The Impact of Islamic Leadership on Organizational Performance and Organizational Commitment in Participation Banks: An Empirical Analysis in Istanbul

The primary purpose of this study is to examine the effect of Islamic Leadership on organizational performance and organizational commitment in participation banks operating in Istanbul. Specifically, the study aims to explore how the core dimensions of Islamic Leadership—justice, religiosity, kindness, and wisdom—shape employees’ attitudes and behaviours within the context of participation banking. Furthermore, it seeks to address the gap in the literature regarding the empirical examination of Islamic leadership models in the Turkish banking sector. Data for this study were collected using a structured questionnaire administered to 321 employees working at six participating banks in Istanbul. To ensure methodological rigor, standardized measurement scales were employed for Islamic Leadership, organizational performance, and organizational commitment. The data were then analysed using descriptive, correlational, and regression methods in SPSS. The findings of this study have practical implications for participation banks. They reveal that Islamic Leadership, when adopted, can significantly enhance organizational performance and commitment. By promoting productivity, a sense of belonging, and organizational engagement, Islamic leadership principles can lead to improved organizational outcomes. This study is among the pioneering empirical works conducted in Turkey on the relationship between Islamic Leadership, organizational performance, and organizational commitment. It underlines the importance of fostering an organizational culture grounded in moral values, spirituality, and ethical Leadership for sustainable performance and long-term employee commitment in participatory banks. The insights from this study are valuable for the future development of the Turkish participation banking sector.