Organizational Culture and Employee Performance

An Empirical Study of Islamic Banks in Indonesia

The purpose of this study is to examine the impact of organizational culture and employee performance on Islamic banks in Indonesia, as well as understanding the mediating role of organizational leadership commitment on job satisfaction. This study applied a quantitative method using path analysis to understand the relationship between variables and the existing phenomenon. A survey method was used in gathering approximately 600 respondents from employees in several Islamic banks in Indonesia, including Bank Muamalat, BTN Syariah, Bank Mandiri Syariah, BRI Syariah, and BNI Syariah, who have worked for more than three years. Furthermore, the data were analyzed with Structural Equation Modeling PLS. The findings indicate that organizational culture can explain job satisfaction, organizational leadership commitment, and employee performance. These results suggest that organizational leadership commitment and job satisfaction play a crucial role in mediating corporate culture and employee performance of Islamic banks. The finding of this research should entice decision-makers in Islamic banks in Indonesia, especially in East Java, to pay more attention to maintaining and improving organizational culture that has strong organizational leadership commitment and employees’ job satisfaction. This study’s results are also expected to contribute to the development of human resources management science and organizational behavior.