This study aims to examine how Islamic financial knowledge (IFK), Islamic financial behavior (IFB) and person-organization (P-O) fit influence job satisfaction, work engagement and turnover intentions within Kuwait’s dual banking system. It further investigates whether ethical and organizational value alignment shapes workplace outcomes differently across Islamic and conventional banks.
Survey data were collected from 270 employees working in Islamic and conventional banks in Kuwait. Structural equation modeling (SEM) was used to examine the mediating role of P–O fit in the relationship between IFK, IFB and workplace outcomes, as well as the moderating effect of bank type on these relationships.
P–O fit mediates the relationship between IFK, IFB and workplace outcomes, with notable differences across bank types. Employees in Islamic banks who report stronger ethical and organizational alignment exhibit higher job satisfaction and engagement and lower turnover intentions through perceived P–O fit. The findings suggest that Islamic financial literacy primarily shapes workplace attitudes through perceived organizational congruence rather than through direct effects alone. In contrast, these indirect effects are weaker or insignificant in conventional banks, where ethical alignment appears to play a more limited role.
This study extends P–O fit theory within Islamic finance and demonstrates how ethical and religious alignment shapes workplace commitment. However, the study is limited by its focus on a single country and a cross-sectional design, which restricts causal inferences. Future research may use longitudinal or comparative designs across GCC and Southeast Asian markets to further examine the generalizability of ethical alignment and workplace attitudes in Islamic banking environments.
The findings highlight the importance of fostering value alignment and integrating Shariah-compliant practices to enhance employee satisfaction, engagement and retention. Managers in Islamic banks can strengthen retention by reinforcing Shariah-compliant HR practices and value-driven organizational cultures. Conversely, conventional banks may benefit more from performance-based incentives and structured career development initiatives.
The findings highlight the broader benefits of incorporating Islamic ethical values into organizational practices. By demonstrating how Shariah-compliant policies promote employee satisfaction and reduce turnover intentions, the results illustrate how ethical alignment can strengthen trust, organizational stability and public confidence in financial institutions.
This study advances the literature by jointly examining IFK, IFB and P–O fit at the employee level. It uniquely examines Kuwait’s dual banking system and offers practical guidance for managers, HR practitioners and policymakers seeking to strengthen employee engagement and retention through value-based organizational practices.
