Towards the distinctive Islamic mode of leadership in business

Abstract

Purpose – The paper provides some fundamental observations on leadership from an Islamic perspective and the Islamic revealed knowledge. The purpose of this paper is to measure the association between Islamic leadership and the most common western forms of leadership namely; transactional, transformational, authentic, and ethical leadership styles as well as its relationship on leader’s effectiveness and organizational innovation. Design/methodology/approach – An empirical investigation was conducted using portrait value questionnaire recommended by Schwartz (1994b), confirmatory factor analysis (CFA) followed by structural equation modelling (SEM). Findings – The results indicated that Islamic leadership is positively and significantly associated with perception of leader effectiveness and innovation outcomes. In addition the findings revealed that Islamic leadership is positively correlated with transformational, ethical, and authentic leadership as well and not with the transactional leadership style. Practical implications – Among the practical implications of this research is that while a large body of leadership research has adopted a variation of leadership theories, our results suggest that we should seize to pay attention to the influential Islamic leadership. Originality/value – The originality of this paper is that it extends scholarly understanding on Islamic perspectives of management which is a relatively new and growing area of interest for academics and practitioners, in terms of both theory and practice.