This study used the partial least squares (PLS) approach to examine the effect of entrepreneurial orientation on the organizational performance of the Islamic banks in Yemen. The data for this study were collected from the Yemeni banking sector employing the responses obtained from the branch managers. Out of 56 distributed questionnaires to the Islamic banks' branches, 44 usable questionnaires were returned. Before examining the effect of entreprenurial orientation (EO) on the organizational performance of Islamic banks, the validity and reliability of the measurement, outer, model was investigated and confirmed in line with the standardized reporting style of PLS structural equation modelimg. The results of the study pertaining to the impact of entrepreneurial orientation on the performance of Islamic banks was confirmed in line with the premises of the resource based view of the firm theory that looks at the organizational capabilities as a source of the competitive advantage. The last section of the study discusses the findings and provides futher insights into the future research venues.

The construct of employees' job satisfaction has been gaining an increasing scholarly attention as one of the crucial determinants of organizational effectiveness and success. Specifically, it has been very much acknowledged by both researchers and academics that employees are the most valuable assets of an organization and play the crucial role in achieving its overall objectives. These arguments justify the attention given to studying the psychological characteristics of employees and what determine their job satisfaction that impacts the organizational performance. In addition to that, transformational leadership has been proven to have a significant effect on the employees' job satisfaction through enhancing the employees' perception of empowerment. Despite this fact, the dynamic role of transformational style on enhancing the level of satisfaction among the empowered individuals has been greatly neglected. It has been, also, proven in the literature that employees' satisfaction directly affects the customers' satisfaction and subsequently the overall organizational performance. In Yemen, as it the case on many developing countries, employees of an organization should be satisfied as the first step to achieve a better organizational performance associated with customers' satisfaction. The poor performance of Yemeni banks, as customer-oriented business, can be, somehow, attributed to the low level of employees' job satisfaction. This paper, however, aims to examine the joint effect of employees' psychological empowerment and transformational leadership on the employees' job satisfaction. To achieve this purpose, responses of a sample of 160 employees from the Yemeni Islamic banks have been examined. The findings of this study confirmed the direct effect of employees' psychological empowerment and transformational leadership on the employees' job satisfaction. On the other hand, the moderating effect of transformational leadership on the relationship between employees' psychological empowerment and the employees' job satisfaction was not supported. These findings were, finally, discussed in the lights of the limitations of the study and future research directions were offered.

The banking sector of Yemen is under threat due to the lack of confidence and trust of the prospective clients that hindered economic development of the country. The study aimed to measure a moderating effect of transformational leadership on employees’ psychological empowerment and job satisfaction relationship so that attitudes of the Yemeni can be bumped towards banking. In this study, 160 employees were surveyed in different branches of four banks in Yemen. The data were analyzed in four stages namely, reliability and validity analysis, descriptive analysis, multivariate analysis, and hypotheses testing analysis. The study revealed a significant positive relationship between employees’ psychological empowerment and transformational leadership towards their job satisfaction level. If the policy makers consider the findings and undertake necessary measures, the Yemeni banking is expected to be accelerated which will contribute to the economy of the country.