The effect of motivating language and management effectiveness: empirical evidence fromWaqfinstitutions in Malaysia

Sharfizie Mohd Sharip, Marinah Awang and Ramlee Ismail

Journal of Islamic Accounting and Business Research, 2021, vol. 13, issue 2, 220-241

Abstract: Purpose - This study aims to extend the investigation on leader communication by assessing the usage of motivating language (ML) by leaders inWaqfinstitutions in Malaysia. Design/methodology/approach - Data analysis was carried out using structural equation modelling via the partial least squares. The probability sampling technique was deemed more suitable for this study as the available data was definable for constructing the sampling frame. Findings - Management effectiveness was shown to have a significant effect on direction-giving and meaning-making language (MML), but not on empathetic language (EL). The findings demonstrate that increasing use of directive and MML leads to greater management performance; however, increased use of EL has no such effect. Research limitations/implications - The findings should not be taken as a comprehensive solution for improving the management effectiveness of allWaqfinstitutions. As the study only focused on the aspect of leader communication inWaqfinstitutions, the findings cannot be generalized to other contexts. Additionally, this study had only examined religious-based non-profit organizations (NPOs) with affiliations to a religious body, mission statements that incorporate religious values, financial support from religious sources and governance structure and employee selection based on religious processes. Hence, the findings cannot be used as a reference in the context of non-religious NPOs. Practical implications - This paper contributes to the theoretical enhancement of existing literature about leader communication towards improving institutional effectiveness. The current study has empirically tested the model through the integration of the ML theory. Thus, the leader’s choice of language improves employee motivation and ultimately institutional productivity and effectiveness. Originality/value - There is a glaring gap in empirical studies on the relationship between ML usage by leaders and management effectiveness specifically in the context of Malaysian organizations. Based on rigorous searches using the Scopus and Web of Sciences databases, it was found that past studies investigating the said relationship had focused more on Western countries. This is a crucial gap that must be addressed to gain a deeper understanding of the effect of ML on management effectiveness, especially in the Malaysian setting.

Keywords: Waqf; Effectiveness; Leader communication; Motivating language; Malaysia (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jiabrp:jiabr-03-2020-0079

DOI: 10.1108/JIABR-03-2020-0079

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