Transformational-Servant Leadership and Perceived Operational and Financial Performance: The Mediating Role of Organizational Citizenship Behavior in Islamic Microfinance Institutions

Niki Puspita Sari, Helmi Muhammad, Erna Resmiatini, Indra Kurniawan, Mohd Khairy Kamarudin

Abstract


This study examines the effect of transformational-servant leadership (TSL) on perceived operational and financial performance (POFP) and investigates the mediating role of organizational citizenship behavior (OCB) in an Islamic microfinance institution. This explanatory quantitative study collected data from 298 middle-top managers of BMT UGT Nusantara. The population consisted of 298 managers representing 298 office units across Indonesia. Using census sampling, 298 questionnaires were distributed, all of which were returned and deemed valid, resulting in a 100% response rate. The unit of analysis was the individual middle-top manager as a key informant representing each organizational unit. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that TSL positively and significantly influences OCB and POFP, while OCB does not significantly influence POFP. Furthermore, OCB does not mediate the relationship between TSL and POFP. The structural model explains 57.8% of the variance in OCB and 53.2% of the variance in POFP, indicating adequate explanatory power. This study contributes to Islamic human resource management literature by emphasizing the contextual role of OCB and highlighting the importance of sustainable leadership practices, fair workload management, and employee recognition in Islamic microfinance institutions.

Keywords


Transformational Servant Leadership; Organizational Citizenship Behavior; Operational performance; Financial Performance

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References


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DOI: https://doi.org/10.18860/iq.v22i2.41962

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