This study aims to address the limited understanding of how leadership brand authenticity (LBA) translates into employee and customer outcomes in Islamic banking, a sector where ethical alignment and trust are critical but underexplored in existing literature. Specifically, it explores how LBA influences role clarity and customer responsiveness. It further examines whether role clarity serves as a key mechanism linking authentic leadership to customer-focused outcomes, and whether the bank’s country of origin (COO) shapes this relationship. By addressing both internal organizational alignment and external perceptions, this study offers a comprehensive view of value-driven leadership in Shariah-compliant financial institutions.
A quantitative research design was used where using a two-source approach, data were collected from 317 employees and 317 customers of Islamic banks operating in Pakistan through purposive sampling. Structural equation modeling was conducted using SmartPLS 4 to test the hypothesized relationships.
Results confirm that LBA has a positive effect on customer responsiveness (ß = 0.238, p < 0.01) and role clarity (ß = 0.809, p < 0.001). Similarly, role clarity has a positive effect on customer responsiveness (ß = 0.169, p < 0.01). Role clarity also significantly mediates the relationship between LBA and customer responsiveness (ß = 0.137, p < 0.05). However, COO did not moderate the relationship between LBA and customer responsiveness, suggesting that Shariah-compliant principles may overshadow country-level differences, thereby ensuring consistency in customer perceptions across both local and foreign Islamic banks.
This study contributes to the limited literature on LBA by exploring its impact on customer responsiveness in Islamic banking. It highlights the importance of role clarity as a mediator and provides unique insights into the interaction between LBA and COO in a Shariah-compliant context. The use of data from both employees and customers strengthens the robustness of the findings, offering practical implications for Islamic banks in emerging economies.
