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Section Human Resource Management

Inspiring Leadership and Its Role in Boosting Organizational Quality Analytic Study at the Iraqi Islamic Bank for Investment and Development

Vol. 21 No. 2 (2026): May:

Mohammed Thaer Ali ALBayati (1)

(1) Mustansiriyah University / College of Sciences / , Iraq
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Abstract:

General Background: Leadership plays a critical role in organizational performance and the ability of institutions to adapt to dynamic environments. Specific Background: Inspiring leadership, characterized by future vision, self-confidence, change management, and employee empowerment, is increasingly associated with the development of organizational quality. Knowledge Gap: However, empirical evidence explaining how these leadership dimensions relate to organizational quality in Islamic banking institutions remains limited. Aims: This study analyzes the relationship between inspiring leadership and organizational quality at the Iraqi Islamic Bank for Investment and Development. Results: Using data from 279 employees and applying descriptive statistics, simple linear regression, and stepwise regression, the findings reveal a significant positive relationship between inspiring leadership and organizational quality, explaining about 53.1% of its variance. Self-confidence, future vision, and change management emerge as the most prominent determinants, while employee empowerment shows limited statistical contribution. Novelty: The study provides empirical evidence regarding the relative importance of inspiring leadership dimensions in explaining organizational quality within an Islamic banking context. Implications: The findings suggest that strengthening leaders’ confidence, clarifying future vision, and improving change management practices can support the development of organizational quality in banking institutions.


Highlights: 


• Leadership Self-Confidence Emerges as the Strongest Determinant of Institutional Quality Variation.
• Strategic Vision and Structured Change Practices Jointly Strengthen Internal Performance Conditions.
• Staff Autonomy Mechanisms Show Limited Statistical Contribution Within the Examined Banking Context.


Keywords: Inspiring Leadership, Organizational Quality, Islamic Banking, Leadership Self-Confidence, Change Management.

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1. Introduction

Current institutions are exposed to a lot of challenges because of rapid changes in the work environment, especially with the great competition and the rapid development in information and communication technology. These changes greatly affect the performance of these institutions and their ability to reach their goals. Normal performance is no longer enough to keep pace with these transformations. Institutions have become in need of improving and developing their performance to better levels to be able to surpass and survive. It is necessary to adopt creative strategies to ensure their continuity and progress in a dynamic and changing environment.

Leadership is a key concept that has received great attention in research related to modern management, as it has contributed significantly to boosting the performance of organizations and increasing the productivity and excellence of workers. Numerous studies have shown that the leadership style followed int he institution directly affects the behavior and motivation of workers, and their commitment to the objectives of the institution [1]. Inspiring leadership has been characterized as one of the most effective leadership styles in boosting the capabilities of the organization and enabling it to face the current difficulties. Inspiring leadership is not just giving instructions to workers or exercising formal authority, but it also includes creating a common vision, motivating workers to go beyond the limits of traditional performance and boosting creativity and innovation within the institution. The inspiring leader is characterized by its impact on people' feelings and on professional beliefs. This is reflected positively on their commitment and loyalty to the institution, and thus on the quality of their overall performance [2].

Literature indicates that inspiring leadership is an essential component of transformation leadership, and thus it has become more important as a main mean to guide the behavior of workers towards achieving quality and excellence. It is working on boosting the mutual trust between the leader and subordinates and generating professional and psychological energy that drives workers to achieve additional effort, adherence to quality standards, and adopting effective and innovative work practices. Inspiring leadership also participates in improving the work environment through building a culture that supports new ideas and encourages initiatives that boost the organizational quality and the sustainability of its performance [3].

The inspiring leader's influence is not only limited to motivation and behavioral aspects, but it also extends to influence the internal systems of the organization, such as how decisions are taken, communication patterns, and means of evaluation. The inspiring leader works to develop flexible management systems that enhance the quality of results and help the organization to adapt to rapid changes in the work environment. Therefore, organizations that adopt this type of leadership are able to improve the quality of their services and products, giving them a sustainable competitive advantage in highly competitive markets [4].

Based on this, many recent studies tend to ensure that the quality of organizations depends directly on the ability of leaders to inspire and motivate others and set a clear vision for the future; Inspiring leadership is considered an essential factor for improving the quality of operations, team performance, and adherence to work standards, which makes it a strategic factor for achieving organizational superiority and ensuring sustainable success in the modern business environment, and from this standpoint, This study seeks to analyze the crucial role that inspiring leadership plays in boosting the quality of an organization, and to discover how it affects employees and organizational processes with the aim of providing a knowledge framework that supports contemporary management practices [5],[6] [7]

2. Research Problem, Purpose, and Importance

2.1 Problem of the research

Despite the great progress in the management thinking and the need of contemporary organizations for multiple leadership styles, many organizations are still facing many challenges in reaching advanced levels of quality in their services and operations, and the literature indicates that inspiring leadership is one of the leadership styles that boosts the positive interaction between the leader and the workers, by inspiring enthusiasm and driving innovation, and creating a work environment based on trust and respect.

Despite this, the impact of inspiring leadership on improving the organizational quality isn't still clear enough, especially in light of the difficult challenges facing the organizations, the different levels of job commitment, and the multiplicity of work cultures among different organizations. Many organizations are also suffering from a lack of application of effective leadership methods that are capable of raising the quality of performance, increasing customer satisfaction, and improving organizational results. Hence, the research problem can be identified through the following main question: “How does inspiring leadership affect the boosting of the organizational quality , and what are the methods or practices that help this leadership in raising the levels of organizational quality?”. A group of questions branch out from this main question:

  1. To what extent are inspiring leadership practices found in current organizations?
  2. What aspects of the organizational quality are most affected by inspiring leadership style?
  3. How does inspiring leadership affect employees' behavior, commitment, and creativity, reflecting the quality of performance?
  4. What factors may increase or decrease the impact of inspiring leadership on improving organizational quality?

2.2 Objectives of the research

This research aims to clarify and study the role that inspiring leadership is playing in boosting the quality of the institution through achieving a set of the following objectives:

  1. Determining the availability of inspiring leadership practices in the organizations studied, and monitoring the extent to which leaders rely on inspiring and motivating behaviors and employee development.
  2. Analyzing the relationship between inspiring leadership and the organizational quality in terms of the direct impact of this type of leadership on improving the quality of operations, the quality of decisions, and customer satisfaction.
  3. Explaining the mechanisms through which inspiring leadership affects the quality of organizational performance, such as improving communication, boosting motivation, increasing commitment, and supporting innovation.
  4. Identifying the dimensions most affected by the organizational quality by the inspiring leadership, such as the quality of service, the quality of output, the quality of operations, and the quality of the work environment.
  5. reaching a group of conclusions and recommendations and submit them to the studied institution with the aim of improving its performance and addressing weaknesses.

2.3 The importance of research

2.3.1 Theoretical importance

  1. Enriching the literature associated with inspiring leadership by showing its impact on improving the organizational quality , an aspect that requires more depth and research compared to other styles of leadership.
  2. Highlighting the relationship between inspiring leadership and the concept of organization quality, which contributes to bridge the research gap related to the impact of modern leadership methods on total quality practices.
  3. Providing a comprehensive theoretical framework that clarifies the mechanisms through which inspiring leadership affects quality processes, which promotes the development of future theoretical models.
  4. boosting understanding of the role of motivational and Humanistic leadership in influencing employees' behavior and its relationship to organizational quality, is a recent trend in management studies.

2.3.2 Applied importance

  1. Assisting institutions in raising the quality of their services and outputs by adopting leadership styles based on inspiration and motivation and boosting cooperation between members.
  2. Demonstrating the importance of leadership in promoting employee behaviors such as initiative, loyalty, and innovation, which directly affect the quality of performance and the effectiveness of operations.
  3. Providing effective advice to senior management on how to enhance leaders' inspiring leadership skills and linking this to quality and continuous improvement initiatives.
  4. Supporting the efforts of institutions that seek quality-related certificates and accreditation such as ISO, these certificates reflect the importance of leadership in spreading a culture of quality.
  5. Enhancing decision-making processes by highlighting the impact of inspiring leadership in creating a positive work environment that contributes in raising the level of quality and institutional excellence.

3. Previous studies

The study of Rashid, et al.aimed to analyze the role exercised by the inspiring leadership in boosting organizational commitment by examining how the practices of the leader contribute, such as employing motivational discourse, establishing confidence, and formulating a clear future vision in raising the degree of individuals' attachment to the institution and their readiness to fulfill their organizational responsibilities [8]. To achieve this goal, the researchers adopted an applied approach that used the questionnaire tool to collect data from a sample of 72 employees from different colleges and administrative units. The data were analyzed using appropriate statistical methods to test the relationship between the variables of the study and determine the size of the impact.

The results showed that inspiring leadership represents a factor with a moral and direct impact on the development of organizational commitment, as it shows the ability of the leader to instill confidence in the employees, boost the sense of meaning and purpose, and manage change in a motivational manner that contributes significantly in raising the level of commitment and positive behaviors in the work environment. These results confirm the importance of adopting leadership models based on inspiration and value impact, as an effective input to improve the organizational climate and boost loyalty and institutional belonging.

Bouranta study also demonstrated the impact of transformational leadership in boosting total quality management practices, with a comparison conducted between industrial and service companies to determine whether this leadership style has the same impact in both contexts [9]. The researchers adopted a quantitative approach using a questionnaire distributed to samples of workers in the manufacturing and service sectors. The data were then analyzed using structural equations modeling to test the relationship between the variables of the study. The results of the study showed that the leadership characterized by vision, inspirational motivation, intellectual stimulation, and individual consideration contributes to boosting the commitment of employees to quality, improving processes and customer management, and implementing quality plans and the strategy associated with them.

The study of Ma, et al. has tried to analyze the nature of the relationship between transformational leadership and total quality management practices, and the study started from the assumption that the transformational style of leadership based on inspiration, intellectual stimulation, and individual consideration contributes to consolidating the culture of quality within organizations, but this impact may vary depending on the prevailing cultural context [10]. And to achieve the goals, the researchers used a quantitative approach that relied on a questionnaire directed to a group of employees in multiple organizations. Then the data were analyzed using structural equations modeling (SEM) to verify the assumed relationships. The results revealed that leaders who use inspirational methods such as intellectual stimulation, providing a clear vision, and individual consideration contribute to raising the commitment of employees to quality, motivating them to improve processes, and engaging in continuous improvement activities.

As well as the study of Hermanto, et al. aimed to explore the relationship between transformational leadership and organizational citizenship behavior, focusing on the mediating role of both the quality of work life and organizational commitment [11]. The study started from the Hypothesis that transformational leadership, by boosting inspirational motivation, individual consideration, and encouraging professional development, directly affects the quality of employees' lives in the work environment, which leads to an increase in their level of commitment to the organization. The researchers also assume that this commitment boosts positive voluntary behaviors that go beyond official duties, known as organizational citizenship behavior.

The results showed that inspiring leadership as one of the dimensions of transformational leadership, plays a crucial role in boosting the organizational citizenship behavior of employees. It was found that motivating and inspiring the leader to employees towards achieving the goals of the organization directly contributes to improving the quality of their careers and increasing the level of their organizational commitment. The results also affirmed that the impact of inspiring leadership is achieved through intermediaries such as the quality of work life and organizational commitment. The inspiring leader works to boost Belonging and self-motivation, which leads employees to initiate positive voluntary behaviors that go beyond official duties. These results indicate that inspiring leadership is not just a motivating tool, but a strategic factor to enhance organizational performance and build an institutional culture based on commitment and individual initiative.

And for the study of Abu Jarbou, it tried to explore the impact of inspiring leadership in boosting the organizational culture, through analyzing how the behaviors of the inspiring leader like motivation, inspiration, supporting employees, and boosting common values contribute to establishing a cohesive organizational environment that encourages belonging, cooperation, and job discipline, thus contributing to achieving the goals of the organization in an effective and sustainable manner [12]. To achieve this goal, the study used a descriptive questionnaire approach in collecting data from a sample of employees and then analyzed the extent to which level of inspiring leadership is related to variables related to the organizational culture such as the spirit of belonging, cooperation, discipline, and job satisfaction.

The results showed that inspiring leadership has a positive and great moral impact in building and boosting the organizational culture. This means that leaders who apply inspiring leadership styles are able to instill the values of the organization, promote belonging and loyalty, and motivate workers to cooperate and achieve common goals. According to that, the study affirms that inspiring leadership is not only a management style, but also an important strategic element in developing the cultural structure of the institution and motivating workers towards positive and sustainable organizational behavior.

Previous studies point to the crucial role of inspiring and transformational leadership in boosting the quality and efficiency of the organization by improving organizational performance and organizational culture. The study of Rashid, et al. says that inspiring leadership directly contributes to raising the level of organizational commitment among employees by motivating, instilling confidence, and showing a clear future vision, which reflects positively on the quality of organizational processes and outputs [8]. In the same context, the study of Bouranta showed that transformational leadership positively affects total quality management practices in industrial and service companies, as the leader's style contributes to improving the commitment of employees to quality, developing processes, and implementing related strategies, which boost the organizational quality in general, and the study of Ma, et al. confirms that These results show that the collective culture is a modifying factor that boost the impact of transformational leadership on quality practices [9] [10]. Intellectual stimulation, individual consideration and clear vision lead to raising commitment and improving operational processes, thus boosting the organizational quality .

The study of Hermanto, et al. declared that inspiring leadership works through intermediaries such as the quality of work life and organizational commitment to boost organizational citizenship behavior, which contributes to improving organizational performance and raising the quality of the work environment in the organization [11]. The study of Abu Jarbou showed that inspiring leadership strengthens the organizational culture by instilling common values, boosting belonging, cooperation and functional discipline, which in turn supports the organizational quality by creating a cohesive and organized environment that contributes to the efficient achievement of its goals [12].

In general, these studies confirm that inspiring and transformational leadership is not just a management style, but as well represents an essential strategic tool to enhance the commitment, organizational culture, and volunteer behaviors of employees, with a clear impact on raising theorganizational quality , considering that the strength of this impact may vary according to the cultural and organizational context of each institution.

4. Theoretical Framework

4.1 Inspiring Leadership

4.1.1 Concept of Inspiring Leadership

Inspiring leadership refers to the ability of the leader to positively influence others and push them towards success with finding opportunities to develop their ambitions in accordance with the actions and behaviors of the team. The leader is usually expected to help develop the skills and qualities of subordinates, as he truly believes in them, develops good performance, and pushes them to make sacrifices to achieve positive behavior Murnieks, et al., Molen berghs, et al. defines inspiring leadership as a leadership that seeks to create a future collective vision that helps individuals to work together, as he defines it Al-Halabi as a leadership that requires the leader to have the determination and the will that makes them think about subordinates and cares about them greatly [13][14] [15]. He believes Poojomjit, et al. that inspiring leadership is based on ideological values that develop and boost the confidence of subordinates to a high degree that makes them active and compatible with them and encourages them to make organizational change to achieve the desired goals [16].

Inspiring leadership is also known as a leader's ability to motivate and inspire employees through clear vision and effective communication that helps to boost their commitment. This motivation produces an internal motivation among employees that drives them to exceed what is expected from them. The literature indicates that an inspiring leader depends on innovative ways of communicating, being a good example, and providing emotional and moral support to build a work environment based on mutual trust. This contributes directly to boosting the sustainability of the institution and the quality of its performance [17]. It is also known as the leader's ability to influence the feelings and morals of individuals by providing a clear vision, enthusiasm, and pushing them to overcome difficulties and achieve better performance, and it highlights the importance of inspiration and personal motivation instead of depending on formal authority or material motivation.

Inspiring leadership is a kind that resembles democratic leadership, as it encourages participation in decision-making, opens the way for discussion, and allows communication with others and the introduction of alternative ideas. It is a leadership model depending on building, creativity and innovation. Murnieks, et al. confirms that inspiring leadership is about the ability of the leader to positively influence others and give them opportunities to improve their skills and ambitions in accordance with the goals and behaviors in the organization [13]. Moreover, it motivates them constantly to achieve collective success. The inspiring leader contributes to promoting good performance, believes in the capabilities of others, and encourages sacrifice to achieve common goals.

Inspiring leadership is a type of leadership that focuses on the leader's ability to evoke a positive feeling to members through their influences and interactions, which helps to create a comfortable psychological atmosphere that helps in creative thinking and renewal. This positive feeling is considered a link between inspiring leadership and team innovation. A leader who is considered inspiring is the person who is able to boost the enthusiasm of the team and use this mood as a platform of encouraging on innovation. However, success in this depends on how close individuals relate to their professional identity [18] [19].

Taha defines the inspiring leader as the attractive leader who is distinguished in his attributes and being, and who seeks to sustain the relationship with his subordinates by influencing deeply their loyalty and performance to the point of being impressed by his ideas [20]; while Garton believes that the inspiring leader is the one who Chooses events and experiences that boost a culture of performance with inspiration., and Molen berghs, et al. considers inspiring leadership as a leadership that seeks to create a future collective vision that enables individuals to work collaboratively and effectively [14].

Issa adds that inspiring leadership aims to foresight the future, provide a supportive environment, and encourage individuals on continuous self-correct, with involving employees in decision-making at all organizational levels, and enabling them to achieve goals, especially in environments characterized by uncertainty.

Finally, we can see that inspirational leadership is a leadership style in which a leader inspires and guides individuals toward a shared vision through boosting meaning and purpose at work and building a collective enthusiasm that drives team members to commit to organizational tasks voluntarily. This type of leadership focuses on motivating the internal motivation of employees through the use of influential communication messages, clarifying the importance of individual roles in achieving general results, in addition to instilling a sense of confidence and empowerment among team members [15].

4.1.2 Characteristics and Features of Inspiring Leadership

Inspiring leadership in contemporary organizations is one of the essential factors for the success of administrative and executive processes, as it seeks to unlock the hidden potential of employees through investing in self-motivations and internal values, inspiring individuals to move towards the desired goals, and contributing to the development of performance at various organizational levels, through developing skills and motivating competencies.

The characteristics that distinguish inspirational leaders are defined as follows [16]; [21]:

  1. Positive Mood Induction: An inspiring leader is able to create positive psychological effects on team members, raising their morale and enthusiasm for work.
  2. Continuous guidance and training:inspiring leaders are keen on supporting work teams through training and guidance, enabling them to make their decisions with confidence, and encouraging continuous learning and personal and professional growth, with the aim of preparing a new generation of inspiring leaders who are capable of facing future challenges.
  3. Taking responsibility and having confidence: Inspired leaders are self-confident, able to take responsibility for decisions made and their consequences and understand that mistakes are an integral part of organizational learning and development.
  4. Inspiration and Motivation: An inspiring leader motivates subordinates and boost their internal motivation to commit to work and achieve goals.
  5. Motivation Influence: An inspiring leader is able to motivate team members towards achieving goals and highlight the importance of their tasks within a broader vision of the team.
  6. Innovation Orientation: The inspiring leader seeks to create an environment that encourages creative thinking and experimentation and motivates the team to present new ideas and innovative solutions.
  7. Autonomy and Proactiveness: The inspiring leader boosts the sense of independence of subordinates and motivates them to take initiatives, which increases the effectiveness of the team and its ability to innovate.
  8. Professional Salience: One of the characteristics of an inspiring leader is that he highlights the importance of the professional role of each member and makes their professional identity a focus of interaction and commitment, which increases the effectiveness of innovation.
  9. EffectiveCommunication: Aninspiring leader uses clear and inspiring communication, reinforcing positive messages and stimulates interaction between team members.
  10. Good listening and openness: Good listening is one of the most prominent features of an inspiring leader, as he listens carefully to employees' suggestions, observations and fears, which contributes to improving the work environment, boosting mutual trust and supporting the organizational learning process.
  11. Future Vision /Envisioning: The leader has the ability to draw a clear ambitious vision for the future, which helps subordinates to direct their efforts in a coordinated and innovative manner.

4.1.3 Inspiring Leadership Dimensions

Inspiring leadership is characterized by a set of behavioral dimensions that embody the effective roles of the leader in the organization and show his ability to affect positively on others and motivate them towards achieving strategic goals. Inspiring leadership is not limited to just verbal influence or emotional stimulation, but it is embodied in real management practices that reflect four basic abilities, which are

  1. Future vision: It expresses the ability to predict and foresight the future, and to draw a future picture through which the organization sees its current conditions, and to look beyond the events deeply and with awareness, and the future vision is considered a compass that guides any organization, it guides and directs organizations, It is a set of decisions and actions that result in the formation and fulfillment of the plans designed to achieve the goals of the organization [22].
  2. Self-confidence: The leader's ability to make the right decisions is shown, in addition to his fully bearing the consequences of his choices. Self-confidence is an essential element in supporting the organization's position in the long term and in establishing social relations with others [23].
  3. Change management: Under the circumstances of rapid change and increasing complexity, a leader 's ability to manage change becomes an essential characteristic of inspiring leadership; an inspiring leader is not only adapting to change, but he is also the key element who drives this change in the organization by identifying the need for change, creating a motivational environment, and preparing the human resources required for the success of the transformation process [24].
  4. Empowering employees: This means that to give management the ability to employ the powers, responsibilities, and freedom of employees completely, in addition to providing the necessary resources and creating an appropriate work environment, in addition to training them technically and behaviorally, and giving them the confidence that helps them carry out tasks and contribute to making decisions. The vital factor for the success of an organization's decisions is the quality of decisions made by its employees, and the knowledge they have [25].

4.2 Organizational quality

4.2.1 Organizational quality Concept

It is defined as a comprehensive management approach that focuses on quality management through the use of smart technologies and advanced analytical models; with the aim of creating an organizational structure that can achieve sustainable quality in services and products, in addition to improving the quality of life inside and outside the organization. This approach, known as intelligent quality management, relies on a set of dimensions such as leadership that enhances quality, smart infrastructure, digital interaction, smart planning, and multi-indicator measurement systems. This concept represents a complete view of quality, which goes beyond just improving efficiency to boosting the welfare of individuals and achieving sustainable development [26].

Marques indicates that the organizational quality is embodied in the effectiveness and efficiency of the organization of communication system as an essential element that reflects the level of overall quality of the internal environment of the institution [27]. Bazrkar, et al. study believes that the organizational quality reflects the organization's ability to apply the dimensions of total quality management in an integrated manner with the aim of achieving continuous improvement in performance, raising the efficiency of operations, and boosting customer satisfaction, achieving this is done through supportive leadership and an organizational culture that prioritizes quality [28].

4.2.2 Organizational quality Dimensions

The organizational quality includes a set of dimensions that reflect the extent of its commitment to supporting innovation, developing processes, improving the performance and boosting beneficiary satisfaction. The most important dimensions of them are:

  1. Inspiring Motivation: Leaders, through their inspirational motivation, convey their vision to their followers with utmost confidence, encouraging them to focus on their skills and efforts. Consequently, followers demonstrate commitment, autonomy, and assurance in accomplishing assigned tasks. These leaders enhance followers' perceptions and interests, inspiring them toward improved performance. By providing emotional support and encouragement, leaders motivate followers to unlock their potential. Leaders with inspirational motivation are consistently concerned about the future, articulating a forward-looking vision within their organizations. Such leaders cultivate a strong image among their followers, which is essential for effective leadership. They are particularly effective in challenging situations, where they uplift team spirit, foster enthusiasm, and promote creative behavior [29].
  2. Intellectual stimulation: Through the exercise of intellectual stimulation, supervisors can enhance employees' existing skill sets, improve their problem-solving abilities, and, as a result, foster their growth and success in the workplace. Furthermore, intellectual stimulation promotes an open and forward-thinking approach in pursuing goals. Consequently, high levels of intellectual stimulation encourage employees to tackle less routine challenges, allowing them to generate creative ideas for product or service enhancements. Each of these activities aligns with the motivations of promotion-focused employees while equipping them with the skills to address these challenges, leading to even greater creative outcomes. In contrast, low levels of intellectual stimulation offer little encouragement or inspiration for promotion-focused individuals, diminishing their motivation to confront issues arising from problem-solving efforts [30].
  3. Encouraging Professional Development: Professional Development Motivation (PDM) refers to the level of enthusiasm a professional has for participating in professional development activities. It reflects the selection, direction, intensity, and persistence of professional development behaviors. Human motivation theory suggests that motivation is founded on a "recurring concern for a goal state... that energizes, orients, and selects behavior." Therefore, highly motivated employees are likely to actively engage in learning and development, while less motivated employees might be content to attend training seminars simply because they are instructed to do so. Furthermore, various individual and organizational environmental factors may also influence learning motivation, warranting further investigation [31].

4.2.3 Organizational quality Importance

The organizational quality is one of the main factors that contribute to maintaining the sustainability of institutional success in competitive business environments that are changing fast; The organization's ability to provide products and services that meet customer needs and achieve customer satisfaction is reflected in this, which also contributes to boosting internal performance and increasing resource efficiency.

  1. Achieving customer satisfaction, the organizational quality is the main factor in increasing customer satisfaction and loyalty. Building trust in the organization and increasing positive engagement with it occurs when products or services meet or exceed customer expectations [32]. moreover, customer satisfaction contributes to improving its competitive position and increasing the market share of the organization.
  2. Improving internal efficiency and effectiveness: Quality practices contribute on boosting effeminacy internal operations and lowering Waste of resources and time, which is reflected on increasing productivity and reduced operating costs as well as supporting Quality to internal organization through applying scientific methods to manage operations and to improve performance [28].
  3. Boosting reputation and credibility: Adherence to quality standards helps in building strong reputation to the organization among clients, Partners and investors. That boosts the organization's appeal for strategic collaboration and introduces a competitive Sustainable advantage [26].
  4. Supporting innovation and continues improvement: Quality goes beyond keeping just the Standards but also boost continues improvement and the culture of innovation, as that encourages the association on developing products, services and building modern methods to improve operations. That contributes on adapting with technological changes and market demands [27].
  5. Adherence to international standards, adherence to international quality standards, such as ISO 9001, ensures that the organization complies with internationally recognized best practices, facilitates access to international markets, and boosts the trust of customers and business partners [28].
  6. Increase profitability and lower costs:the quality of the institution contributes to reducing waste of resources and errors, which contributes to reducing operational costs and increasing profitability. In addition, the increased customer satisfaction is reflected in increasing sales and achieving greater financial stability for the institution.

Organizational culture is also one of the most important factors that explain the conduct of workers and their tendencies towards quality. It also acts as a link between leadership styles, especially inspiring leadership, the degree of quality of the association, and its position of excellence. The literature shows that inspiring leaders leave an impact on the culture of the association in direct or circular ways. This encourages workers to borrow quality values and work within common norms that promote outstanding performance [32].

5. Research design and methodology

5.1 Metrics

The current study adopted ready-made standards with some partial updates in measuring the research variables, which proved their validity when applied in previous studies, and which are characterized by stability and credibility. Table (1) presents the study variables, the distribution of questionnaire items, the approved scientific scale,and their source.

Table 1 . Questionnaire construction scale

5.2 Hypothetical outline of the study and its hypotheses

Figure (2) shows the nature of the connections between the exploration variables according to the exploration problem and its objects and depending on the theoretical aspect of the exploration variables.

Figure 1. Hypothetical diagram of the study model

From the figure, it is clear that the research is grounded on verifying one main hypothesis, from which 4 sub-hypotheses come up, which are as follows:

Inspiring leadership appreciatively affects the organizational quality at the Iraq i Islamic Bank for Investment and Development .

: The future vision dimension is supporting increasing the organizational quality at the Iraqi Islamic Bank.

: The self-confidence dimension leads to increasing the organizational quality at the Iraqi Islamic Bank.

: The change management dimension affects positively the organizational quality at the Iraqi Islamic Bank.

: The worker empowerment dimension affects positively the organizational quality at the Iraqi Islamic Bank.

5.3 Study population and sample

The study community consists of 1,100 employees at all executive situations at the First Islamic Bank of Iraq for Investment and Finance. the minimal sample size able of representing (285) exploration population was set at 285 respondents from all executive situations, which is equivalent to 26% of the study population.

The researcher collected the necessary data for the study through a survey form which was designed and distributed electronically, After analyzing the received forms, 6 forms were excluded, whether due to not being serious in the responses or because there missing data exceeding 12% of the questionnaire statements. Thus, the final sample reached 279 respondents, and then the response rate reached 97.9% of the total sample drawn. Here, Table (2) shows the distribution of the study population and sample.

Table 2. Study population and sample distribution according to administrative level

Table 3. Demographic characteristics of the respondent's sample

It is clear from Table (3) that the majority of the respondents are males (59.9%) compared to females (40.1%), which reflects the nature of the workforce at the administrative levels of the First Islamic Bank of Iraq under study, as the male workforce is still dominating the work in the bank. It was also found that the most represented age group is (30–40) years by (32.3%), followed equally by (less than 30) years, (40–50) years by (25.1%), and then (50 and older), indicating that most of the workers belong to the middle age groups, which achieves a balance between practical and job experience. In terms of educational level, bachelor's degree holders accounted for the largest percentage of the sample (57.3%), followed by those with a master's degree (21.5%), then those with intermediate degrees (12.5%), and PhDs (8.6%), which indicates that working in the bank depends mainly on university competencies, with a distinguished presence of those with higher qualifications, especially masters. regarding practical experience, the category (5–10 years) ranked first by (30.5%), followed by the category (less than 5 years) by (26.9%), and the category (15 years and more) by (17.6%), which reflects a concentration of intermediate expertise in the bank, with the availability of expertise that contributes to the stability of the institution.

5.4 Questionnaire List Test (Honesty and Reliability)

The results of Table (4) showed that convergent validity was achieved by increasing the saturation values of the phrases that form the underlying factor structure of the dimensions of inspiring leadership, and the organizational quality . This is because the values of the dendrites far exceed the standard value (0.40) and do not reach the correct one. The combined variance between saturated items was also calculated for each latent factor, known as the extracted mean variance. (AVE), its value was greater than the acceptance threshold (0.50). Which indicates that the two scales of the study have convergent validity.

Also, it was clear from Table (5) that the correlation coefficients between the underlying factors of each variable were high, but they were less than the value (0.90), and the value of (Chi-square differences) was statistically significant at the level of1%. The value of the correlations of the HTMT scale in Table (6) is less than the value (0.90). Which indicates that the differential validity between the latent factors of the two variables of the study has been achieved, which means, there is no similarity between the latent dimensions, and that each latent dimension represents itself. Thus, we conclude that CFA, EFA is an important tool in the toolkit of researchers who aim to validate their metric structure. It provides a strict way to make sure that data is consistent with expected theoretical constructs, which boosts the reliability and validity of subsequent analyses based on these measurements.

The reliability of Cronbach's alpha is one of the most widely used reliability measures in the social and organizational sciences. which describes the reliability of a sum (or average) of measurements , and here if the measurements represent multiple questionnaire/test items, which is the most common application, Cronbach's alpha is referred to here as a measure of the reliability of Internal Consistency [33]

Internal consistency describes the extent to which all items (statements/questions) found on the test are able to measure the same concept or theoretical construct and is therefore related to Interrelationship between elements in the test, thus, we can simply say that the interpretation of reliability is the correlation of the test itself. In addition, reliability estimates show the quantum of dimension error in the test. As reliability ratings increase, the portion of the test score attributable to the error will decrease. This implies that the test will give the same or similar results if the test is re-estimated [34]. The Cronbach alpha reliability coefficient for all instrument structures was calculated in Table (4).

Table 4. Convergent validity and Reliability of the instrument's constructs

Table 5. Discriminant Validity ( Difference) for the instrument's constructs

Note: **, * indicate statistical significance at the 1% and 5% levels, respectively.

Table 6. HTMT standard for the instrument’s constructs

It is clear that the questionnaire as a whole, with its all variables are characterized by high stability, as the Cronbach alpha coefficient of the questionnaire list with its variables far exceeds the standard value (0.7). Which means that the scale used will give the same results when repeated in the study, therefore accepting the stability of the questionnaire. Thus, the researcher has assured the validity and stability of the questionnaire statements, which gives full confidence in the validity of the questionnaire and its validity to analyze the results, answer the study questions and test its hypotheses.

6. Analysis, Measurement and Results

6.1 Descriptive Analysis

Table (7) summarizes the appropriate descriptive statistics such as the mean, which is one of the measures of central tendency, and the standard deviation and variation, This is to describe all the variables of the study model, which is (inspiring leadership, and the organizational quality ).

Table 7. Statistical summary of the study's variables

Table 8. Pearson correlation matrix between the study sub-variables

Note: ** indicates statistical significance at the 1% level.

Upon examining the statistical characteristics, it was observed that the degree of inspiring leadership at the Islamic Bank of Iraq for Investment and Finance is moderate and shows a tendency to increase, as the overall arithmetic mean reached (2.800) with a significant percentage of (56%). This percentage indicates that the bank's employees recognize that the practices of inspiring leadership direct and motivate them; however, there remains a critical need for further development to enhance their impact on the bank. As for the dimensions of inspiring leadership, self-confidence came first with an average of 2.914 and a percentage of 58.3%. This means that leaders have high confidence in their decisions and their ability to influence others, which is a key point in leadership. Directly after that, the change management comes in second place with 2.973 and 55.9%. This indicates that the management has relative flexibility and is ready to deal with the organizational changes received in an appropriate professional manner to the current situation. As for the future vision, it was ranked third with 2.448 and 49.0%, which reflects a general strategic direction, but it needs more clarity and wider engagement with employees. Finally, the empowerment of employees came in the last rank with2.366 and47.3%, which shows a deficiency in the practices of delegation and participation in decision-making, which indicates that this dimension still requires more attention to comply with the requirements of inspiring leadership in the bank.

Regarding the organizational variable, the results showed that it was at a higher than the proposed rate by a high percentage. with a high arithmetic mean of 3.060; 3.818 and a percentage of 61.2; 76.4%, and this indicates a good organizational environment full of efficiency, motivation and internal harmony. At the dimensional level, inspirational motivation had the first place with 3.182 and 63.6%, which shows that the bank has the ability to provide an appropriate positive organizational and motivational climate, which helps in improving performance. Then encourage professional development in second place with 3.135 and 62.7%, which indicates the management's interest in developing skills and building career paths for employees. As for intellectual stimulation, it came in third place with 2.939 and 58.8%, which indicates actual attempts to stimulate creative thinking, but it requires stronger support from more inspiring leadership.

For the first check of strength and the direction of assumes relationships between variables, Zero-degree bivariate correlations for Pearson are being analyzed Among the study variables (Kremelberg, 2011), which clarify that there is a statistically significant positive correlation at the (1%) level between organizational quality and all dimensions of inspirational leadership. It was the strongest relationship between the future vision and the organizational quality with (0.638) which reflects the vital role of for clarity of direction and vision in boosting cooperation and supporting quality in the bank among workers. After that a change management dimension came with (0.520) which indicates that there is an ability to deal and adapt with circumstances and emerging variables Which works on Improving the organizational quality and work in the bank.

As well it was found that an average relationship between self-confidence and the organizational quality at (0.488), which indicates that the leaders in the bank have confidence in their decisions and their ability to play an essential and effective role in supporting the stability of the bank and encouraging its employees. As for Employee empowerment came with a poor correlation of (0.241), and despite its statistical significance, its lowering indicates limited and weak application, which indicates the necessity of directing double attention so that it is an essential dimension of inspiring leadership.

6.2 Deductive Analysis (Hypothesis Testing)

Evidentiary statistics cares for examining the study's questions to reach a decision on accepting or rejecting hypotheses, as follows:

Here, Table (9) deals with testing the main hypothesis of the study, which states that "inspiring leadership affects positively the organizational quality at the First Islamic Bank of Iraq for Investment and Finance". To achieve this, a simple linear regression method was adopted using the input method.

Table 9 . Impact of inspired leadership on Organization quality: Simple linear regression results

Statistical analysis results indicate that motivational leadership has a significant positive impact on the organizational quality of First Islamic Investment and Finance Bank of Iraq (significance level: 1%). This aligns with modern management literature, which emphasizes the importance of motivational leadership in improving institutional performance and bank organizational quality. The unstandardized regression coefficient (β) shows that for every unit increase in motivational leadership, organizational quality improves by 0.680 units. The relatively small standard deviation (0.0264) suggests that the estimate is stable and statistically reliable at the 1% significance level. The t-value (t = 20.81) also indicates a significant effect, confirming that motivational leadership is an important and effective explanatory variable in the banking industry. This supports the principal hypothesis H₁, that motivational leadership has a positive impact on organizational quality.

Regarding the overall indicators of the model, the correlation coefficient (R = 0.652) particularly demonstrates a direct and significant relationship between motivational leadership and organizational quality. The coefficient of determination (R² = 0.531) indicates that motivating leadership explains approximately 53.1% of the variance in organizational quality; that is, more than two-thirds of the variance is attributable to motivating leadership, while the remaining 46.9% is attributable to factors outside the model. Furthermore, the adjusted coefficient of determination (adjusted R² = 0.530) confirms that the model's predictive power is unaffected by sample size. The low standard error of the estimate (0.2517) indicates the accuracy of the predictions and the model's suitability for the data.

Analysis of variance (ANOVA) yielded a high F-value (541.225), statistically significant at the 1% significance level. This highlights the overall effectiveness of the model and refutes the nihilistic assumption that motivating leadership has no impact on organizational quality. This confirms the validity of the study's primary hypothesis and demonstrates a strong correlation between the two variables. The results suggest that motivating leadership is a key pathway to improving organizational quality in the banking industry. It helps enhance a bank's competitiveness by inspiring vision, motivating employees, building trust, improving efficiency, and enhancing services..

  • Main study hypothesis research
  • Sub-study hypotheses research

After testing the main hypotheses of this study, this section explores the sub-hypotheses. These sub-hypotheses aim to investigate the individual impact of four dimensions of motivating leadership on organizational quality. This study uses stepwise regression to test these hypotheses. Stepwise regression aims to identify the explanatory variables that best support the theory, thereby explaining the maximum variation in organizational quality with as few explanatory variables as possible. In social research, especially in public administration, an incremental approach is often used to assess the importance of variables and select a meaningful subset of independent variables. Therefore, the goal of stepwise regression is to progressively determine the research model by adding or removing one independent variable at a time, based solely on its statistical significance. Stepwise regression combines forward and backward selection, meaning that after each variable is added, the significance of all candidate variables in the model is checked to ensure it is below a pre-defined tolerance level.

Table 10 . Impact of inspiring leadership dimensions on Organization quality: Stepwise regression results

Table 1 1 . Impact of inspiring leadership dimensions on Organization quality: Stepwise regression summary

Table 1 2 . Impact inspiring leadership dimensions on Organization quality: Excluded variables result

The gradual regression results presented in Table (10) indicate the development of three consecutive interpretive models aimed at clarifying the extent to which the inspiring leadership dimensions contribute to explaining the quality level of the organization at the First Islamic Bank of Iraq for Investment and Finance. In the first model, leadership self-confidence emerged as the most influential variable (0.636), as it was able to individually explain about 50.6% of the variation in the organizational quality , with a standard error of 0.2639, which highlights the essential role of the leader's self-confidence and decisions in boosting work efficiency, clarity of organizational trends, and boosting the organizational quality .

In the second model m the future vision dimension was added besides self-confidence, then the explanatory power of the model raised to 54.6% and the standard error decreased to 0.288 which states that combining a clear vision for the future and confidence in leaders leads to improved organizational quality through unified goals. As for the third model, it was introduced after change management to the previous two dimensions, so that the percentage of explained variance rises to 56.7%with a further falling in the standard error to0.2350, which reflects that the integration of the three dimensions of inspiring leadership, which is self-confidence, clarity of the future vision and change management, is the most effective framework for improving the organizational quality in the banking environment.

The data of Table (11) ensures the importance of the values of F Change at the level of 1% in the three models, which means that the introduction of each dimension of inspiring leadership was accompanied by a real improvement in the interpretive ability of the model. The analysis of variance also showed that the value of F in the third model was 470.44 and was statistically clear at 1%, which supports the strength and validity of the model in explaining the relationship between inspiring leadership And organizational quality. The correlation coefficient (R = 0.674) indicates a significant positive correlation between the various dimensions of motivational leadership and organizational quality. The coefficient of determination (R² = 0.567) explains approximately 56.7% of the differences in quality levels, while the remaining 43.3% can be attributed to other organizational and managerial factors outside the model.

The adjusted coefficient of determination (adjusted R² = 0.565) improves the reliability of the results and indicates that the model is consistent and unaffected by sample size and the number of variables. The Durban-Watson value of 1.608 indicates the absence of autocorrelation, and the variance inflation factor (VIF) value is below the critical threshold, indicating no linear overlap among the independent variables. Regarding the relative importance of the dimensions of motivational leadership, standardized regression coefficients show that self-confidence is the dimension with the strongest influence on organizational quality (0.287), followed by change management (0.242) and future vision (0.209). However, Table 12 shows that employee empowerment did not reach statistical significance, suggesting that in the context of this study, the impact of employee empowerment on organizational quality is small and indirect..

Based on non-standard regression coefficients, it is shown that a one-unit increase in the level of self-confidence of leaders is associated with an increase of 0.310 in the organizational quality , while future vision contributes an increase of 0.186, and change management contributes 0.206. The results then indicate the It is essential to concentrate on boosting the various dimensions of inspiring leadership styles within banks to elevate their organizational quality. This can be achieved by emphasizing leadership, fostering leaders' self-confidence and decision-making abilities, and articulating a clear future vision for the bank. Additionally, effectively managing change is crucial, as these dimensions significantly influence organizational performance by enhancing its overall quality. Following the empowerment of employees, it is essential to reassess the mechanisms in place by boosting their involvement in decision-making processes, providing them with support, and cultivating their ideas in a way that aligns with the specific nature of the work conducted within the bank.

7. Conclusions

This research aligns with the growing concern about how contemporary leadership strategies impact organizational quality in the banking sector, particularly in the highly competitive and increasingly challenging regulatory and human resources environment of Islamic banking. The study focuses on motivating leadership, a style characterized by building trust, articulating a clear vision, inspiring employees, and fostering a supportive organizational environment that enhances organizational cohesion and improves the quality of positive interactions between leaders and employees. In this context, organizational quality is a key outcome reflecting organizational efficiency, process effectiveness, and employee satisfaction with their work environment. This includes clarity of objectives, a well-structured work environment, effective communication systems, and the quality of banking services provided to clients.

Based on this theoretical foundation, this study examines the impact of motivating leadership on the organizational quality of First Islamic Investment and Finance Bank of Iraq. To this end, the study analyzes key dimensions such as leader confidence, future vision, change management, and employee engagement, linking them to key indicators of organizational quality. This analytical approach provides a comprehensive understanding of how motivating leadership shapes the working environment and fosters institutional harmony within the banking sector. It balances the needs of the bank with the expectations of its employees, while supporting the development of organizational policies that promote sustainable performance and institutional excellence.

Therefore, this study aimed to measure the impact of inspirational leadership models on organizational quality at the First Islamic Investment and Finance Bank of Iraq. The final sample included 279 bank employees, representing 97.7% of the total sample. The analysis employed ordinary least squares (OLS) regression and stepwise regression models. The results showed that inspirational leadership effectively contributed to improved organizational quality. The arithmetic mean of all dimensions and the overall organizational quality level were above average. This indicates that employees perceived positive leadership practices, but further strengthening is needed, particularly in employee empowerment and future vision. Leadership confidence, change management, and future vision proved to be the most important dimensions influencing organizational quality, while employee empowerment had a relatively smaller impact, reflecting its limited application in current leadership practices. Inferential analysis showed a significant positive correlation (68%) between inspirational leadership and organizational quality. Linear regression analysis indicated that high levels of inspirational leadership were closely associated with significant improvements in organizational quality. The various dimensions of inspirational leadership explained most of the differences in organizational quality. The asymptotic regression model revealed that leadership confidence, future vision, and change management were the most important determinants of the bank's organizational quality, while employee empowerment had a relatively smaller impact. This suggests a need to re-examine empowerment policies and the way employees participate in decision-making processes, and to open broader channels for employees to contribute to the further development of the banking business. These results lead to the assertion that investing in building an inspiring leadership culture, based on boosting leaders' self-confidence, formulating a clear and common future vision, and efficiently managing change, is an important factor in raising the organizational quality , improving banking services, and boosting the competitiveness of the bank. It also emphasizes the significance of considering employee characteristics in the design of leadership development programs, ensuring that motivational and communication strategies are aimed at the least engaged or most conservative groups, thereby enhancing levels of satisfaction and organizational commitment. Based on the above, the study recommends adopting the comprehensive institutional programs to consolidate inspiring leadership practices and integrate them into the daily culture of work, with periodic follow-up of the impact of these practices on the organizational quality to ensure the sustainability of improvement and development in the performance of the bank.

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