Exploring the Impact of Islamic Work Ethic on Job Performance of Public Sector Employees: A Moderated Parallel Mediation Approach

Abstract

This study investigates the influence of Islamic Work Ethic (IWE) on the job performance of public sector employees, with an emphasis on parallel mediating roles of Public Service Motivation (PSM) and Psychological Capital (PsyCap), and the moderating effect of Ethical Leadership. Employing a quantitative research design, data were collected from 225 employees across various public sector organizations in Pakistan, with 208 valid responses analyzed using the PROCESS macro in SPSS. The results reveal that IWE significantly and positively predicts job performance. Moreover, PSM and PsyCap partially mediate this relationship in a parallel framework, while Ethical Leadership strengthens the IWE-PsyCap link, serving as a critical boundary condition. These results highlight the transformational potential of Islamic work ethic as a basis for enhancing employee's job performance. A culture focused on sustainable growth can thus be achieved by organizations through developing ethics, resilience, and motivation. The study thus provides empirical insights into the broader literature on the interplay of ethical frameworks, motivation, psychological resources, and leadership in the workplace, especially in the context of developing countries like Pakistan. Practical implications include the requirement for public sector organizations to adopt policies that integrate ethical leadership, increase psychological capital, and encourage a work ethic that is consonant with organizational and societal values. This research provides a rich framework for policymakers and organizational leaders who seek to improve employee performance and promote ethical workplace cultures.