Mediation of “AKHLAK” corporate culture and affective commitment on the effect of inclusive leadership on employee performance

Abstract

Researchers and practitioners have claimed that leadership, culture, and employee commitment are important elements of an organization's success in the business world. The main objectives of this article are to analyze: 1) the mediating role of ''AKHLAK'' corporate culture on the effect of inclusive leadership on affective commitment and employee performance; 3) analyze the role of mediating affective commitment to the influence of inclusive leadership and corporate culture ''AKHLAK'' on employee performance. The research sample was 135 permanent employees at three BUMNs in the Madiun area, East Java, Indonesia. Data analysis used SPSS version 24, Smart PLS, and the online Sobel test. The test results show that: 1) ''AKHLAK'' corporate culture as a partial mediation of the influence of inclusive leadership on affective commitment; 2) ''AKHLAK'' corporate culture does not mediate the effect of inclusive leadership on employee performance, because the direct effect of ''AKHLAK'' corporate culture on employee performance is not significant; 3) affective commitment as a full mediation of the influence of inclusive leadership on employee performance; 4) affective commitment as a full mediation of the influence of corporate culture ''AKHLAK'' on employee performance.

Keywords

• Inclusive leadership
• “AKHLAK” corporate culture
• Affective commitment