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Leadership and employee behaviour: the mediating and moderating role of cognitive trust and organizational culture

Ejaz Aslam (School of Islamic Economics, Banking and Finance (SIEBF), Minhaj University Lahore, Lahore, Pakistan)
Muhammad Saleem Ashraf (Lahore School of Accountancy and Finance, University of Lahore, Lahore, Pakistan and School of Islamic Economics, Banking and Finance (SIEBF), Minhaj University Lahore, Lahore, Pakistan)
Anam Iqbal (School of Islamic Economics, Banking and Finance (SIEBF), Minhaj University Lahore, Lahore, Pakistan)
Malik Shahzad Shabbir (Faculty of Management Sciences, ILMA University, Karachi, Pakistan and Sunway Business School, Sunway University, Kuala Lumpur, Malaysia)

Journal of Islamic Accounting and Business Research

ISSN: 1759-0817

Article publication date: 23 September 2024

182

Abstract

Purpose

This study aims to examine the mediating and moderating roles of cognitive trust and organizational culture in the relationship between leadership and employee task performance and turnover intention.

Design/methodology/approach

Data were collected from 543 employees through a survey from the Islamic banking sector in Pakistan. Structural equation modelling (partial least squares) was used to estimate the effect.

Findings

The results demonstrate that cognitive trust plays a positive and significant mediating role between leadership and task performance (O = 0.064, T = 2.005, p = 0.028). Moreover, there is a negative relationship between leadership and employee turnover intention with the mediation of cognitive trust (O = −0.061, T = 1.976, p = 0.021). In addition, organizational culture plays a significant moderating role between cognitive trust and employee task performance (O = 0.014, T = 2.141, p = 0.038).

Research limitations/implications

The results emphasize the critical role of organizational culture and cognitive trust in amplifying or reducing the impact of leadership on employee attitudes. This offers managers and leaders practical insights to boost employee performance and reduce turnover.

Originality/value

To the best of the authors’ knowledge, this study is unique in that it seeks to advance understanding of social exchange theory management by examining the moderated-mediation frameworks in the interaction between leadership and specific aspects of employee attitudes.

Keywords

Acknowledgements

The authors are grateful to the anonymous referee and the journal’s editor for their extremely useful suggestions, which have greatly improved the quality of the article.

Data availability statement: The data that support the findings of this study are available on request from the corresponding author. The data are not publicly available due to containing information that could compromise the privacy of research participants.

Citation

Aslam, E., Ashraf, M.S., Iqbal, A. and Shabbir, M.S. (2024), "Leadership and employee behaviour: the mediating and moderating role of cognitive trust and organizational culture", Journal of Islamic Accounting and Business Research, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JIABR-10-2023-0361

Publisher

:

Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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