The Impact of Organizational Culture and Spiritual Leadership on Performance: Mediating Roles of Workplace Spirituality and Innovation

Abstract

Objective: This study investigates the relationship between organizational culture, spiritual leadership, workplace spirituality, innovative behavior, and organizational performance in SMEs in Madura].   Theoretical Framework: The study enriches the understanding of the role of organizational culture, spiritual leadership, and spirituality in organizational performance   Method: Data were collected through in-depth interviews, observations, and document analysis from 35 SME owners and employees in four districts of Madura.   Results and Discussion: Results show that an organizational culture that emphasizes spiritual values such as integrity, fairness, and empathy has a positive impact on organizational performance. Spiritual leadership is instrumental in shaping an organizational culture that supports these values and champions employee well-being, thus creating a productive and meaningful work environment. Spirituality at work serves as a significant mediator between organizational culture, spiritual leadership, and organizational performance. Employees who perceive spiritual values in the organizational culture are more connected to their work and have higher intrinsic motivation, which increases innovative behavior and organizational performance   Research Implications: These findings can be used by organizational leaders and human resource managers to develop effective strategies for creating an organizational culture that supports high-performance and continuous innovation. However, this study had methodological limitations that should be addressed in future research.