The effect of ethical leadership on religious commitment and employee performance (Study on Sharia Banks in Pasuruan and Probolinggo Cities)

The main objective of this paper was to examine and analyze the effect of ethical leadership on organizational commitment, organizational commitment on employee performance, organizational commitment as a mediating variable the effect of ethical leadership on employee performance, religiosity as an moderating effect of ethical leadership on organizational commitment, and organizational commitment on employee performance of Islamic banks in Pasuruan and Probolinggo Cities, East Java Province, Indonesia. This study uses a positivist or quantitative approach to test the hypothesis. The population was Islamic banking located in Pasuruan City and Probolinggo City. The status was state-owned and private companies. The samples were 109 full time employees other than the leadership level in Sharia Bank. This was a survey research. Validity and reliability testing was presented. Explanatory research method was examined by PLS to test the hypotheses. Research results show that ethical leadership has a significant effect on organizational commitment, organizational commitment has a significant effect on employee performance, mediating effect of organizational commitment variable was also evident to the effect of ethical leadership on employee performance, and religiosity variable can moderate the effect of ethical leadership on organizational commitment and religious ability. Religiosity variable moderate the effect of organizational commitment on employee performance. This paper contributes to the company to show the moderating effect of religiosity to improve the effect of ethical leadership on organizational commitment and employee performance.