Islamic Leadership, Organizational Culture, and Job Satisfaction as Drivers of Employee Performance in Post-Merger Islamic Banking

                                                            Illustration by AI

FORMOSA NEWS Makassar, Indonesia — Researchers from Universitas Islam Negeri (UIN) Alauddin Makassar report that ethical Islamic leadership and a strong organizational culture are critical to maintaining employee performance after bank mergers. The findings come from a 2026 study by Kahar, Muslimin Kara, Abdul Wahab, and Amiruddin, published in the International Journal of Global Sustainable Research (IJGSR). Focusing on employees at Bank Syariah Indonesia (BSI), Makassar Branch, the research shows that leadership behavior and shared values matter more than personal motivation alone when organizations undergo major structural change.

The findings are timely. Bank mergers are becoming more common across Indonesia’s Islamic finance sector, driven by policies aimed at efficiency, scale, and global competitiveness. While mergers may strengthen institutions financially, they often place heavy pressure on employees, who must adjust to new systems, leadership styles, and workplace cultures. How leaders manage this transition can determine whether performance improves or declines.


Why Leadership and Culture Matter in Islamic Banking

In Islamic banking, leadership is not only a managerial function but also a moral responsibility. Employees expect decision-making, communication, and workplace policies to reflect Sharia principles, including justice, trustworthiness, accountability, and social responsibility.

After a merger, these expectations become even more important. Uncertainty about roles, performance targets, and organizational identity can weaken morale. Without clear ethical guidance, employees may feel disconnected from the institution’s mission.

The research from UIN Alauddin Makassar addresses this challenge directly by examining how Islamic leadership, organizational culture, work motivation, and job satisfaction interact in a post-merger environment. Rather than focusing on financial indicators, the study looks at the human factors that sustain daily performance.


How the Research Was Conducted

The study was carried out at Bank Syariah Indonesia, Makassar Branch, following the bank’s merger process. The researchers collected data from 232 employees across different roles and departments.

Participants completed structured questionnaires measuring:

  • Islamic leadership behavior
  • Islamic organizational culture
  • Islamic work motivation
  • Job satisfaction
  • Employee performance

The responses were analyzed using a statistical modeling approach that allows multiple factors to be examined simultaneously. This method made it possible to identify which factors directly influence performance and which work indirectly through job satisfaction.

In simple terms, the analysis shows how leadership and culture shape workplace outcomes during periods of organizational change.


Clear Findings From the Data

The results show a consistent pattern across the employee sample.

Islamic leadership has a strong direct impact on employee performance.
Employees perform better when leaders demonstrate fairness, honesty, moral consistency, and responsibility. Leadership behavior sends a clear signal about priorities and expectations after a merger.

Islamic organizational culture also directly improves performance.
Shared values such as justice, cooperation, integrity, and collective responsibility guide employee behavior even when formal systems are still adjusting.

Islamic work motivation does not directly increase performance.
Personal motivation rooted in Islamic values is important, but it does not automatically lead to higher productivity.

Job satisfaction is the key link.
Motivation contributes to performance only when employees feel satisfied with their work environment, leadership, and treatment within the organization.

Leadership and culture matter more than motivation alone.
In post-merger conditions, ethical leadership and organizational culture have a stronger influence on performance than individual motivation by itself.

These findings highlight that performance is shaped less by personal effort and more by the conditions created by leaders and institutions.


What the Researchers Emphasize

According to Kahar and his co-authors from Universitas Islam Negeri Alauddin Makassar, leadership in Islamic organizations functions as a form of stewardship. Leaders are expected to guide employees not only toward results but also toward ethical consistency.

The authors explain that when leadership behavior aligns with Islamic values and the organizational culture reinforces those values, employees feel secure and respected. Job satisfaction then becomes the mechanism that converts shared beliefs into real performance outcomes.

This perspective challenges the assumption that motivation alone is enough to drive productivity, especially during times of structural change.


Implications for Industry and Policy

The findings carry practical implications beyond a single bank branch.

For Islamic banks and financial institutions, the study shows that post-merger success depends on more than system integration. Ethical leadership and cultural alignment should be treated as strategic priorities. Job satisfaction should be managed as a performance driver, not just an employee welfare issue.

For policymakers and regulators, the research supports stronger attention to governance quality in Islamic finance. Merger policies may benefit from considering leadership standards, workplace culture, and human capital stability alongside financial metrics.

For business education and leadership training, the findings reinforce the relevance of values-based leadership models. Islamic leadership principles offer practical guidance for managing change in modern organizations.

For society, ethical leadership in financial institutions helps build trust, stability, and social responsibility. Well-managed mergers reduce workplace stress and protect job quality in a changing economy.


A Clear Takeaway

The evidence from Bank Syariah Indonesia, Makassar Branch shows that employee performance after mergers depends less on individual motivation and more on how people are led and the values that shape their workplace. Islamic leadership and organizational culture provide direction and stability, while job satisfaction turns shared values into measurable results.

As Islamic banking continues to expand through consolidation, the study offers a clear message: sustainable performance begins with ethical leadership and a culture employees can trust.


Author Profiles

Kahar
Doctoral Candidate
Universitas Islam Negeri (UIN) Alauddin Makassar
Expertise: Islamic leadership, human resource management, Islamic banking performance

Muslimin Kara, Ph.D.
Faculty of Economics and Business
Universitas Islam Negeri (UIN) Alauddin Makassar
Expertise: Islamic economics, organizational behavior, financial institutions

Abdul Wahab, Ph.D.
Faculty of Economics and Business
Universitas Islam Negeri (UIN) Alauddin Makassar
Expertise: Human resource management, organizational culture, Islamic management

Amiruddin, Ph.D.
Faculty of Economics and Business
Universitas Islam Negeri (UIN) Alauddin Makassar
Expertise: Management science, employee performance, Islamic organizational studies


Source

Article title: Islamic Leadership, Organizational Culture, and Job Satisfaction as Drivers of Employee Performance in Post-Merger Islamic Banking
Journal: International Journal of Global Sustainable Research (IJGSR)
Publication year: 2026

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