Spiritual leadership on organizational commitment and organizational commitment on organizational performance

Abstract

Purpose: This research was administered to investigate the influence of spiritual leadership on organizational commitment and organizational commitment on organizational performance seen through multidimensions where spiritual leadership is in three dimensions namely vision, faith/hope, and altruistic love; organizational commitment in three dimensions namely affective, normative, and continuity, while organizational performance is in two dimensions which are financial and nonfinancial performance. Design/Method: The population selected in this study included 1,422 members of Village Credit Institution (LPD) in Bali Province including the chairman, secretary, and treasurer. Samples were selected by using the probability sampling technique which is a simple random sampling in which the sample size [Formula: see text] was drawn from a population of magnitude [Formula: see text], allowing each unit to have the same chance of being selected. The obtained data were then analyzed using a Structural Equation Modeling based on analysis of moment structure (AMOS), with multidimensions in each research variable. Findings: The results of the analysis show that vision, faith/hope, and altruistic love have a significant influence on affective commitment, normative commitment, and continuity commitment. On the other hand, affective, normative, and continuity commitment share a certain influence on financial performance. However, it is only the normative commitment that influences nonfinancial performance. Originality: The novelty of this research is in the effort to reconstruct the previous research model to obtain a new one that combines two research models; the spiritual leadership model and the A-Three Component Model of Organizational Commitment. The new model is expected to solve the inconsistencies of previous research results and solve various problems related to leadership and organizational commitment as variables that influence LPD performance.

Spiritual Leadership and Organizational Commitment: A 21-year Systematic Literature Review

“…Overall, the study demonstrated that SL positively and significantly impacts OC (Akbar et al, 2018;Djaelani et al, 2020;Espinosa et al, 2017;Fry, 2003;Fry et al, 2005Fry et al, , 2010Jeon & Choi, 2020;Malik et al, 2017;Mansor et al, 2013;Markow & Klenke, 2005;Phuong et al, 2018;Riana, 2021;Samul & Wangmo, 2021;Sapta et al, 2021;Terzi et al, 2020;Tabor et al, 2020;Yang & Fry, 2018;Vandenberghe, 2011). The degree of impact depends largely on each leader's perception of spirituality (Samul & Wangmo, 2021).…”

“…Sapta et al (2021) find that workplace spirituality has a mediating effect on the relationship between SL and OC. Furthermore, Riana (2021) states that there is a positively significant relationship between: first, SL and calling; second, between calling and OC; and third, between calling and organizational performance.…”

“…This study was performed to shed more light on our current understanding of SL and OC and to identify patterns and gaps in previous studies of SL as it relates to OC. It follows other research that succeed in constructing research problems and identifying important concerns for organizations from the analysis of relevant scientific studies related to SL and OC (Çimen & Karadağ, 2019;Djaelani et al, 2020;Fry, 2003;Riana, 2021;Sapta et al, 2021;Zhang & Yang, 2020;Zou et al, 2020).…”

Organizational Purpose and Performance of National Health Non-Governmental Organizations in Kenya

“…Additionally, Gede (2022) argued that articulating and clearly communicating organizational purpose could create and sustain a widely shared commitment toward an organization's ultimate purpose in large, complex, business enterprises facing dynamic environments. The definition of organizational purpose entails defining the mission, vision, and strategic objectives of the organization which is linked to the resource-based view theory of the firm (Gulati et al, 2016).…”