Islamic Work Ethics, Affective Commitment, and Employee’s Performance in Family Business: Testing Their Relationships

Abstract

A family business is usually managed and run by family members to form and pursue a business vision that will ensure continuity across generations. Subsequently, this study aims to scrutinize and inspect the effect of Islamic work ethics on affective commitment and employee performance. Out of 273 questionnaires that were disseminated to employees of family businesses in Pati, Batang, and Demak districts of Central Java, Indonesia, 147 were filled out and completed questionnaires, reflecting a response rate of 53.8%. Based on the results from the structural equation modeling from AMOS 21, Islamic work ethics were confirmed to be positively and significantly associated with affective commitment and employee performance. The affective commitment was also positively and significantly related to employee performance. Consequently, this study will contribute to expanding the literature on the association between Islamic work ethics, affective commitment, and employee performance in Indonesian family businesses.