THE EFFECT OF ETHICAL LEADERSHIP AND WORKPLACE SPIRITUALITY ON PERFORMANCE THROUGH THE MEDIATION OF ISLAMIC WORK ETHICS: A STUDY AT PRIVATE UNIVERSITY X IN YOGYAKARTA

Abstract

This study examines the influence of ethical leadership and workplace spirituality on employee performance, with Islamic Work Ethic serving as a mediating variable, at Private University X in Yogyakarta. A quantitative research design was employed using a census sampling technique that included all 164 employees. Data were analyzed using the Structural Equation Modeling–Partial Least Squares (SEM-PLS) method. The results indicate that neither ethical leadership nor workplace spirituality has a direct, significant impact on employee performance. However, ethical leadership and workplace spirituality significantly and positively influence Islamic Work Ethic. Furthermore, Islamic Work Ethic exerts a positive and significant influence on employee performance. Mediation analysis reveals that Islamic Work Ethic significantly mediates the relationship between ethical leadership and employee performance, as well as the relationship between workplace spirituality and employee performance. These findings suggest that enhancing employee performance can be achieved more effectively by instilling a strong Islamic work ethic, reinforced by ethical leadership practices and a work environment that supports spiritual aspects.