Islamic leadership and employee retention in Islamic non-profit organisations in Indonesia

Alramli, Belal M. A. and Mhd Omar, Mohd Faridh Hafez and Alosman, Abdulrahman (2026) Islamic leadership and employee retention in Islamic non-profit organisations in Indonesia. INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS), X (IX). pp. 10797-10815. ISSN 2454-6186

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Abstract

The purpose of this study is to examine the direct relationship between Islamic leadership practices and employee retention, as well as the mediating role of employee commitment within Islamic charitable organizations in Indonesia. While existing empirical research on workforce retention in Indonesia has predominantly examined conventional corporate sectors, such as manufacturing and retail, empirical investigations within faith-aligned institutions remain scarce. This study addresses this critical gap by investigating how ethical and Sharia-compliant leadership principles serve as a strategic mechanism to foster workforce stability in prominent social financing institutions (BAZNAS, Dompet Dhuafa, Rumah Zakat, and Lazismu). Employing an explanatory, cross-sectional quantitative survey design with 348 active amil and administrative personnel, Partial Least Squares Structural Equation Modeling (PLS-SEM) was conducted in SmartPLS 4.0. The empirical results demonstrate that Islamic leadership practices exert a significant direct positive impact on employee retention. Furthermore, employee commitment operates as a complementary partial mediator, translating leadership values into enduring human capital stability. The integrated structural model accounts for 90.8% of the variance in employee retention (R2 = 0.908). These findings offer strategic insights for non-profit administrators to systematically incorporate consultative governance (shura), structural justice (adala), and ethical stewardship (amanah) into human resource practices.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Islamic Leadership, Employee Retention, Employee Commitment, Non-profit Organizations, Indonesia, Zakat Institutions.
Subjects:	H Social Sciences > HM Sociology > HM1176 Social influence. Social pressure > HM1261 Leadership (General Works)
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Arabic Language and Literature Kulliyyah of Islamic Revealed Knowledge and Human Sciences
Depositing User:	Dr Abdulrahman Alosman
Date Deposited:	05 Nov 2026 15:54
Last Update:	05 Nov 2026 15:54
Queue Number:	2026-10-Q6038
URI:	http://irep.iium.edu.my/id/eprint/132498
Indexed In:	ERA, Google Scholar

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