Islamic Leadership Principles

Abstract

This paper reports the findings of the questionnaire survey which aims to examine the effect of Islamic leadership principles on accountability practices of Islamic insurance institutions in Malaysia. A total of 227 employees responded to the survey, were attached with Islamic insurance operators located throughout Peninsular Malaysia. Five principles were derived from the literature namely; altruism, emotional healing, wisdom, persuasive mapping, and organizational stewardship. Partial least squares approach was employed as the main analytical procedures to test the research hypotheses. The results of the study indicate that all five principles are significantly related to the level of accountability among Islamic insurance institutions. The findings of this study suggest that for an Islamic insurance institution to demonstrate high level of accountability, the leader needs to exhibit principles of altruism, emotional healing, wisdom, persuasive mapping, and organizational stewardship. In addition, this study provides implications and conclusion.