The Influence of Quality of Work Life and Islamic Work Ethics Towards Job Performance among SMEs’ Employee
Abstract
This study aims to scrutinize the contribution of quality of work life and Islamic work ethics to the job performance of employees who work for Small and Medium Enterprises (SMEs) in Central Java, Indonesia. A deductive questionnaire survey approach was applied to make sure data gathering reaches out across business sectors particularly, most of the registered SMEs throughout central Java. About 354 valid responses were analyzed utilizing SPSS in order to be able to examine how much quality work life of employees in the light of ethical values practice in Islam impact the performance of employees. The outcomes of the study revealed a tremendous effect on the performance of employees in SMEs while their work lives are taken cared for by the company. Similarly, performance found to be overwhelmingly determined by work ethics reflexively applied in a densely populated peninsula of Javanese Muslims. This is reconfirmed when IWE predisposed a significant positive relationship with quality of work life. The results of this study, as expected, provide theoretical and practical gains to the body of knowledge as well as become an impetus for all the likewise faith base business communities across the region, particularly for SMEs’ owner/manager and certainly for future researchers.
Keywords
Full Text:
PDFReferences
Abuznaid, S. 2009. Business Ethics in Islam: The Glaring Gap in Practice, International Journal of Islamic and Middle Eastern Finance and Management. 2(4), 278-288.
Agus, A. and Selvaraj, R., 2020. The mediating role of employee commitment in the relationship between quality of work life and the intention to stay. Employee Relations. 42 (6). 1231-1248.
Al-Aidaros, A.H. and Mohd Shamsudin, F., 2013. Ethics and Ethical Theories from an Islamic Perspective. International Journal of Islamic Thought. 4(1), 1-13.
Al-Douri, J., Aldabbagh, I., Mohammad, M. M., Qawasmeh, R., 2020. The impact of islamic work ethics on job performance with mediating role of intrinsic motivation. Academy of Strategic Management Journal, 19(2), 1-11.
Alegre. I., Mas-Machuca, M., and Berbegal-Mirabent. J., 2016. Antecedents of employee job satisfaction: do they matter?. Journal of Business Research. 69(4), 1390-1395.
Ali, A. J., 1988. Scaling an Islamic work ethic. The Journal of Social Psychology.128(5), 575-583.
Ali, A.J. and Al-Kazemi, A.A., 2005. The Kuwaiti manager: Work values and orientations. Journal of Business Ethics. 60(1), 63-73.
Ali, A.J. and Al-Kazemi, A.A., 2007. Islamic work ethic in Kuwait. Cross Cultural Management: An International Journal. 14 (2), 93-104.
Ali, A.J. and Al-Owaihan, A., 2008. Islamic work ethic: a critical review. Cross cultural management: An International Journal. 15(1), 5-19.
Ali, A.J., 1992. The Islamic work ethic in Arabia. The Journal of Psychology. 126(5), 507-519.
Ali, A.J., 2005. Islamic Perspectives on Management and Organization, Edward Elgar Publishing, London.
Ali, J.A. and Al-Kazemi, A., 2007. Managerial problems in Kuwait. Journal of Management Development. 21(5), 366-375.
Beekun, R., 1997. Islamic Business Ethics, International Institute of Islamic Thought, Herndon, Virginia, U.S.A.
Beloor, V., Nanjundeswaraswamy, T.S., and Swamy, D.R., 2019. Quality of Work Life Development and Scale Validation for Textile Sectors in India. International Journal of Engineering and Advanced Technology. 8 (6), 1736-1747.
Bharati, P.S., Umaselvi, M., and Kumar. 2010. Quality of work life: Perception of college teachers. MPRA paper, No.27868. http://mpra.ub.uni-muenchen.de/27868/
Bolhari, A., Rezaeean, A., Bolhari, J., Bairamzadeh, S., and Soltan A.A., 2011. The relationship between quality of work life and demographic characteristics of informational technology staffs. Proceeding of international conference on CSIT. 5, 374-378.
Bollen, K.A., 1989. Structural equations with latent variables, Wiley, New York.
Borman, W.C. and Motowidlo, S.J., 1993. Expanding the criterion domain to include elements of contextual performance. in N. Schmitt & W.C. Borman (Eds.), Personnel selection in organizations. 71–98, San Francisco: Jossey-Bass.
Bozeman, D.P. and Perrewe, P.L., 2001. The effects of item content overlap on organizational Commitment Questionnaire and turnover cognitions relationships. Journal of Applied Psychology. 86 (1), 161-173.
Branine, M. and Pollard, D., 2010. Human Resource Management with Islamic Management Principles: A Dialectic for a Reverse Diffusion in Management. Personnel Review. 39 (6). 712-727. Available at: https://doi.org/10.1108/00483481011075576
Budhwar, P.S. and Mellahi, K., 2010. Introduction: Islam and Human Resource Management. Personnel Review. 39 (6), 685-691.
Chaturvedi, V. and Yadav, D.S., 2012. Rural Marketing: An emerging avenue for Encashing Sustainable Marketing”, International Journal of Management Prudence. 4 (1), 76-81.
De Clercq, D., Rahman, Z., and Haq, I.U., 2019. Explaining Helping Behavior in the Workplace: The Interactive Effect of Family-to-Work Conflict and Islamic Work Ethic. Journal of Business Ethics, 155 (4), 1167-1177.
Dhamija, P., Gupta, S., and Bag, S., 2019. Measuring of job satisfaction: the use of quality of work life factors. Benchmarking: An International Journal. 26 (3), 871-892.
Donaldson, S., 1999. Health behavior, Quality of work Life, and Organizational Effectiveness in the Lumber Industry. Health Education and Behavior. 26 (4), 579-591.
Gheitani, A., Imani, S., Seyyedamiri, N., and Foroudi, P., 2019. Mediating effect of intrinsic motivation on the relationship between Islamic work ethic, job satisfaction, and organizational commitment in banking sector. International Journal of Islamic and Middle Eastern Finance and Management. 12 (1), 76-95.
Hackman, J.R. and Oldham, G.R., 1976. Motivation through the design of work: Test of a theory. Organizational Behavior and Human Performance. 16 (2), 250-279.
Hair, J.F., Black, W.C., Babin, B.J., and Anderson, R.E., 2010. Multivariate data analysis, Upper Saddle River: Prentice-Hall.
Hair, J.F., Hult, G.T. M., Ringle, C., and Sarstedt, M., 2017. A primer on partial least square structural equation modeling (PLS-SEM), Thousand Oaks: SAGE Publication.
Hermawati, A. and Puji, R., 2019. The transglobal leadership-based strategy of MSMEs performance optimization of Malang Raya and the implementation of quality of work life. Research Journal of Textile and Apparel. 23 (1), 38-57. https://doi.org.ezproxy.ugm.ac.id/10.1108/RJTA-05-2018-0038
Hoque, M.Z., Sultana, N., and Thalil, T., 2016. Credit rationing’s determinants of Small and Medium Enterprises (SMEs) in Chittagong, Bangladesh. Journal of Global Entrepreneurship Research. 6 (1), 1. https://doi.org/10.1186/s40497-016-0045-z
Husin, W.N.W. and Kernain, N.F.Z., 2020. The influence of individual Behaviour and Organizational Commitment towards the Enhancement of Islamic Work Ethics at Royal Malaysian Air Force. Journal of Business Ethics, 166, 523-533.
Husin, W.N.W., Kernain, N.F.Z. The Influence of Individual Behaviour and Organizational Commitment Towards the Enhancement of Islamic Work Ethics at Royal Malaysian Air Force. J Bus Ethics 166, 523–533 (2020). https://doi.org/10.1007/s10551-019-04118-7
Ibrahim, A. and Kamri, N.A., 2017. The Ethical Practices of Islamic Banking: An Analysis from Customer Satisfaction Perspective. MIQOT. 41 (1), 55-77.
ILO. (March 2019), Financing Small Businesses in Indonesia: Challenges and Opportunities, Copyright © International Labor Organization, website: www.ilo.org/publns
Khan, K., Abbas, M., Gul, A., and Raja, U., 2015. Organizational justice and job outcomes: Moderating role of Islamic work ethic. Journal of Business Ethics. 126 (2), 235-246.
Kheradmand, E., Volilou, M., and Lotfi, A., 2010. The Relationship between Quality of Work Life and Job Performance. Middle East Journal of scientific Research. 4 (3), 317-323.
Kristiningrum, E., Ayundyahrini, M., Susanto, D.A., Setyoko, A.T., Kresiani, R.H., Suparmanto, N. Quantifying the economic benefit of standard on auto-electric stove for Batik small medium enterprises in Indonesia (2021) Heliyon, 7 (6), art. no. e07299, . 2-s2.0-85108371631
Kumar, N. and Rose, R.C., 2010. Examining the link between Islamic work ethic and innovation capability. Journal of management development. 29 (1), 79-93.
Mohamed, N., Karim, N.S.A., and Hussein, R., 2010. Linking Islamic work ethic to computer use ethics, job satisfaction and organisational commitment in Malaysia. Journal of Business Systems, Governance and Ethics. 5 (1), 13-23.
Mohammad, J. and Quoquab, F., 2016. Furthering the thought on Islamic work ethic: How does it differ?. Journal of Islamic Marketing. 7 (3), 355-375. https://doi.org/10.1108/JIMA-07-2014-0047
Mohammad, J., Quoquab, F., Idris, F., Al-Jabari, M., Hussin, N., and Wishah, R., 2018. The relationship between Islamic work ethic and workplace outcome: A partial least squares approach. Personnel Review. 47 (7), 1286-1308. https://doi.org/10.1108/PR-05-2017-0138
Morin, E.M. and Morin, W., 2004. Quality of work life and firm performance at Canada in Kashyap, V.R.P. and Mrudula, E. (Eds), Quality of Work-Life: Introduction and Perspectives, ICFAI University Press, Hyderabad, 86-96.
Mosadeghrad, M.A., Ferlie, E., and Rosenberg, D., 2011. A study of relationship between job stress, quality of working life and turnover intention among hospital employees. Health Service Manage Research. 24 No. 4, pp. 170-181.
Murtaza, G., Abbas, M., Raja, U., Roques, O., Khalid, A., and Mushtaq, R., 2016. Impact of Islamic work ethics on organizational citizenship behaviour and knowledge-sharing behaviour. Journal of Business Ethics. 133 (2), 325-333.
Nayak, T., Sahoo, C.K., and Mohanty, P.K., 2018. Workplace empowerment, quality of work life and employee commitment: a study on Indian healthcare sector. Journal of Asia Business Studies. 12 (2), 117-136. https://doi.org/10.1108/JABS-03-2016-0045
Oyewobi, L.O., Oke, A.E., Adeneye, T.D., and Jimoh, R.A., 2019. Influence of organizational commitment on work–life balance and organizational performance of female construction professionals. Engineering, Construction and Architectural Management. 26 (10), 2243-2263. https://doi.org/10.1108/ECAM-07-2018-0277
Putra, P. O. H., Santoso, H. B. (2020) ‘Contextual factors and performance impact of e-business use in Indonesian small and medium enterprises (SMEs)’, Heliyon. Elsevier Ltd, 6(3), p. e03568. doi: 10.1016/j.heliyon.2020.e03568
Rai, R. and Tripathi, S., 2015. A Study on QWL and its effects on Job Performance. Apeejay-Journal of Management Sciences and Technology. 2 (2), 33-42.
Raja, U., Haq, I.U., De Clercq, D., and Azeem, M.U., 2020. When ethics create misfit: Combined effects of despotic leadership and Islamic work ethic on job performance, job satisfaction, and psychological well-being. International Journal of Psychology. 55 (3), 332-341. https://doi.org/10.1002/ijop.12606
Rawwas, M.Y., Javed, B., and Iqbal, M.N., 2018. Perception of politics and job out-comes: Moderating role of Islamic work ethic. Personnel Review. 47 (1), 74-94. https://doi.org/10.1108/PR-03-2016-0068
Rayton, B.A. and Yalabik, Z.Y., 2014. Work engagement, psychological contract breach and job satisfaction. The International Journal of Human Resource Management. 25 (17), 2382-2400. http://dx.doi.org/10.1080/09585192.2013.876440
Riady, H., 2007. Peranan Kualitas Kehidupan Kerja dalam Membangun Komitmen Keorganisasian: Study Empiric pada Bank Milik Negara di Jakarta (The Role of Quality of Work Life in Building Organizational Commitment: An Empirical Study at a State-Owned Bank in Jakarta). Jurnal Ekonomi dan Bisnis Indonesia. 22 (2), 215-235.
Rokhman, W., 2010. The Effect of Islamic Work Ethics on Work Outcomes. Electronic Journal of Business Ethics and Organization Studies. 15 (1), 21-27.
Shah, N., Irani. Z., and Sharif, A.M., 2017. Big data in an HR context: Exploring organizational change readiness, employee attitudes and behaviors. Journal of Business Research.70, January, 366-378.
Sheel, S., Sindhwani, B.K., Goel, S., and Pathak, S., 2012. Quality of Work Life, employee performance and career growth opportunities: a literature review. International Journal of multidisciplinary research. 2 (2), 291-300.
Shooshtarian, Z., Ameli, F., and AMINI L.M., 2013. The Effect of Labor’s Emotional Intelligence on Their Job Satisfaction, Job Performance, and Job Commitment. Iranian Journal of Management Studies. 6 (1), 27-43.
Tambunan, T.J., 2019. Recent evidence of the development of micro, small and medium enterprises in Indonesia. Journal of Global Entrepreneurship Research. 9 (18), 1-15. https://doi.org/10.1186/s40497-018-0140-4
Thakur, R. and Sharma, D., 2019. A Study of Impact of Quality of Work Life on Work Performance. Management and Labour Studies. 44 (3), 326-344.
Topolosky, P.S., 2000. Linking Employee Satisfaction to Business Results, New York: Garland.
Vanparia, B.O. and Ganguly, P., 2010. SERVQUAL versus SERVPERF: An assessment from Indian banking sector. QUEST Journal of Management and Research. 1 (1), 3-13.
Walton, J.M., 1982. Research Activity and Scholarly Productivity Among Counselor Educators. Counselor Education and Supervision. 21 (3), 305-311.
Wyatt, T.A. and Wah, C.Y., 2001. Perceptions of QWL: A study of Singaporean Employees Development. Research and Practice in Human Resource Management. 9(2), 59-76.
Yaken. 2006. What is the Meaning of My Belong to Islam?. Beirut: Darul Al-Ressalh Publication.
Yang, C. and Hwang, M., 2014. Personality traits and simultaneous reciprocal influences between job performance and job satisfaction. Chinese Management Studies. 8 (1), 6-26. https://doi.org/10.1108/CMS-09-2011-0079
Yousef, D.A., 2000a. The Islamic work ethic as a mediator of the relationship between locus of control, role conflict and role ambiguity: A study in an Islamic country setting. Journal of Managerial Psychology. 15 (4), 283-298.
Yousef, D.A., 2000b. Organizational commitment as a mediator of the relationship between Islamic work ethic and attitudes toward organizational change. Human Relations. 53 (4), 513-537.
Zhang, S.S., van Doorn, J., and Leeflang, P.S., 2014. Does the importance of value, brand and relationship equity for customer loyalty differ between Eastern and Western cultures?. International Business Review. 23 (1), 284-292. http://dx.doi.org/10.1016/j.ibusrev.2013.05.002
DOI: http://dx.doi.org/10.21043/iqtishadia.v14i1.11729
Copyright (c) 2021 IQTISHADIA
Iqtishadia Journal Indexed by :
Iqtishadia : Jurnal Kajian Ekonomi dan Bisnis Islam is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.