This study aims to examine the effect of Islamic human resource practices (IHRP) on Islamic corporate image (ICI) and the moderating role of employees’ Islamic work ethics (IWE).
Data were collected from 418 employees of a leading Sharia-based microfinance institution and analyzed with Partial least squares structural equation modeling to test the hypotheses.
The findings indicate that IHRP dimensions, comprising Islamic training and development (ITD), Islamic recruitment and selection (IRS) and Islamic Remuneration and Compensation (IRC), significantly enhance ICI, whereas Islamic Performance Appraisal (IPA) does not. Additionally, Islamic work ethics (IWE) significantly strengthens the positive effects of IRC on ICI.
This study is limited by its cross-sectional design, reliance on self-reported data and focus on a single Sharia-based financial institution in Indonesia, which may constrain causal inference and generalizability. Future research should employ longitudinal and multi-source approaches across diverse organizational and cultural contexts to better capture the dynamic relationships among IHRP, IWE and ICI.
This study offers actionable insights for human resource (HR) managers to implement Islamic-based HR practices that strategically elevate the ICI.
This study advances the literature by examining how each dimension of IHRP shapes ICI, with IWE acting as a moderating factor.
