Spiritual leadership on organizational commitment and organizational commitment on organizational performance

Abstract

Purpose: This research was administered to investigate the influence of spiritual leadership on organizational commitment and organizational commitment on organizational performance seen through multidimensions where spiritual leadership is in three dimensions namely vision, faith/hope, and altruistic love; organizational commitment in three dimensions namely affective, normative, and continuity, while organizational performance is in two dimensions which are financial and nonfinancial performance. Design/Method: The population selected in this study included 1,422 members of Village Credit Institution (LPD) in Bali Province including the chairman, secretary, and treasurer. Samples were selected by using the probability sampling technique which is a simple random sampling in which the sample size [Formula: see text] was drawn from a population of magnitude [Formula: see text], allowing each unit to have the same chance of being selected. The obtained data were then analyzed using a Structural Equation Modeling based on analysis of moment structure (AMOS), with multidimensions in each research variable. Findings: The results of the analysis show that vision, faith/hope, and altruistic love have a significant influence on affective commitment, normative commitment, and continuity commitment. On the other hand, affective, normative, and continuity commitment share a certain influence on financial performance. However, it is only the normative commitment that influences nonfinancial performance. Originality: The novelty of this research is in the effort to reconstruct the previous research model to obtain a new one that combines two research models; the spiritual leadership model and the A-Three Component Model of Organizational Commitment. The new model is expected to solve the inconsistencies of previous research results and solve various problems related to leadership and organizational commitment as variables that influence LPD performance.