Shirkah: Journal of Economics and Business
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Driving Local Productivity: The Interplay of MSMEs, Government Spending, and Economic Growth
Full text linkThe strategic development of Micro, Small, and Medium Enterprises (MSMEs) and government spending are pivotal drivers of local productivity and regional economic growth. However, existing empirical investigations often lack an integrated framework linking these crucial factors. This study addresses that gap by analyzing the influence of MSME growth and government spending on local sector productivity and their subsequent implications for economic growth dynamics in Lampung Province, Indonesia. Adopting a quantitative survey design, this research collected primary data from 190 purposively selected respondents, comprising MSME actors and government officials across key economic sectors. Supporting secondary data was also utilized. The study employed Structural Equation Modeling–Partial Least Squares (SEM-PLS) to test seven hypotheses. The findings unequivocally demonstrate that MSME growth and government spending significantly influence the dynamic of economic growth and local sector productivity. Moreover, local sector productivity also significantly influences economic growth. Last but not least, both MSME growth and government spending have significant indirect influences on economic growth through local sector productivity. This study advances the understanding of the causal mechanisms linking fiscal policy and MSME dynamics within regional development frameworks. It further emphasizes the critical importance of synergy between local governments and MSME stakeholders to ensure inclusive and sustainable economic growth. Future research is encouraged to explore sector-specific policy impacts through longitudinal and mixed-method approaches for more profound insights
Corporate Governance, Risk Management, and Financial Performance: The Mediating Role of Risk Governance in Indonesia's Islamic Banks
Full text linkIslamic banks face increasing pressure to strengthen governance and risk oversight, yet the mediating role of risk governance in financial performance remains underexplored, particularly in Indonesia. This study aims to examine the structural relationships among corporate governance, risk management, risk governance, and the financial performance of Indonesia’s Islamic banks. A quantitative research, drawing on secondary data from annual reports of eight Islamic banks between 2016 and 2023 with 64 observations, was employed. Corporate governance was measured using a composite governance index, risk governance through committee structures, risk management via credit, operational, liquidity, and Sharia-compliance controls, while financial performance was proxied by ROA and ROE. Data were analyzed using path analysis with PLS-SEM. The findings reveal that corporate governance significantly strengthens risk governance but does not directly improve financial performance. Conversely, risk management exerts a significant positive influence on financial performance, though it does not shape risk governance. Risk governance itself neither impacts financial performance nor mediates the relationships between governance, risk management, and performance. These results suggest that risk governance in Indonesian Islamic banks remains compliance-oriented rather than performance-enhancing. The study highlights the need for regulatory reforms and strategic integration of risk governance to support sustainable growth
Factors Influencing Customer Satisfaction with Halal Cosmetics: An Online Purchasing Study of Generation Z Muslim Women
Full text linkCustomer loyalty in the beauty product sector, particularly for halal cosmetics, has been underexplored despite its importance in marketing research. This study explores the determinants of customer satisfaction and loyalty towards halal cosmetics in Indonesia. Data were collected from 215 Generation Z Muslim women who have made multiple purchases from the official online store of a halal cosmetic brand through an online questionnaire. The data were further analysed by employing Structural Equation Modelling-Partial Least Square (SEM-PLS). The results showed that overall quality and perceived value significantly influence customer satisfaction, which in turn affects loyalty. However, perceived risk did not significantly impact satisfaction. It was further revealed that customer satisfaction has a significant influence on the customer loyalty to halal cosmetics. These findings highlight the need for brands to consistently deliver high-quality products and enhance perceived value to foster lasting customer relationships. Given Generation Z's potential as customers but known brand-switching tendencies, this study offers insights into their loyalty and satisfaction when purchasing halal cosmetics online. Strategic emphasis on satisfaction-building efforts can ultimately strengthen brand loyalty among Generation Z consumers in the competitive halal cosmetics market. Hence, understanding the factors that drive customer satisfaction and loyalty in online purchases is essential for halal cosmetic companies to develop effective retail strategies
Optimizing Economic Management amid Globalization: A Bibliometric Review of the Emerging Trends (2020-2025)
Full text linkAmid increasing global interdependence and complex socioeconomic challenges, the need for effective and adaptive economic management has grown more urgent. Although academic interest in globalization and economic governance is rising, a comprehensive synthesis of current research trends remains limited. This study addresses that gap by systematically synthesizing how global developments are reshaping economic management discourse. Employing a bibliometric and conceptual review approach, the study examines 1,698 publications from major academic databases (e.g., Scopus, JSTOR, Google Scholar) between 2020 and 2025. A structured search strategy and rigorous screening criteria were applied to ensure relevance and quality. Thematic and bibliometric analyses were used to identify emerging trends in keyword usage, authorship patterns, international collaboration, and disciplinary focus. Key findings highlight sustainability, renewable energy, and public policy as dominant themes in contemporary economic management research. The study also reveals a growing emphasis on interdisciplinary and cross-border approaches, reflecting the complex realities of globalized economies. Notably, the persistent tension between economic growth and environmental protection indicates the need for adaptive, evidence-based policy frameworks
Driving Halal Tourism in Lombok: The Role of Demographics, Islamic Lifestyles, and Vacation Preferences
Full text linkDespite the growing global demand for halal tourism, destinations such as Lombok (one of Indonesia’s prominent tourist regions) continue to face challenges in maximizing engagement within this niche market. This study addresses the critical gap by examining how demographic characteristics, Islamic lifestyles, and vacation preferences influence Muslim tourists’ interest in halal tourism in Lombok, West Nusa Tenggara. Using a quantitative survey design, data were collected from 235 Muslim tourists and analyzed through multiple regression using SPSS version 24. The findings indicate that all three variables significantly affect interest in halal tourism. Notably, vacation preferences emerged as the most influential factor, suggesting that Muslim tourists prioritize travel experiences that integrate leisure with faith-based values. Islamic lifestyle and demographics also demonstrated meaningful contributions, reinforcing the role of religious identity and sociodemographic traits in shaping travel behavior. These results underscore the need for tourism stakeholders to develop culturally aligned, spiritually fulfilling, and experience-driven tourism offerings. The study contributes theoretically to the growing body of literature on halal tourism behavior and offers practical insights for policymakers and destination managers seeking to enhance the appeal of Muslim-friendly tourism experiences
ESG Disclosure and Financial Performance: The Moderating Role of Firm Size in Indonesian Banking Sector
Full text linkThe evolving global business landscape necessitates that corporations move beyond a singular focus on profitability to integrate sustainability performance through Environmental, Social, and Governance (ESG) principles. This study aims to analyze the effect of ESG disclosure on corporate financial performance, measured by Return on Assets (ROA). It further investigates the moderating role of firm size in the relationship between ESG disclosure and ROA. The research sample comprises banking companies listed on the Indonesia Stock Exchange during the 2020-2024 period. Employing a purposive sampling technique, 10 banks were selected as the final sample based on the consistent publication of their annual and sustainability reports. The data were analyzed using panel data regression and Moderated Regression Analysis (MRA), facilitated by Eviews 12 software. The findings indicate that both environmental and social disclosures exert a significant positive influence on ROA. In contrast, governance disclosure and firm size, as standalone variables, do not demonstrate a significant impact on ROA. Crucially, the analysis confirms that firm size positively moderates the relationship between both environmental and social disclosures and ROA. However, it does not moderate the effect of governance disclosure on financial performance. These results offer significant implications for corporate strategy, underscoring the importance of robust ESG management and the strategic leveraging of firm size to enhance financial outcomes
The Role of Monetary Sterilization Mechanisms in Achieving Monetary Stability in Iraq: An Econometric Analysis
Full text linkAchieving monetary stability remains a critical challenge for Iraq, primarily due to its heavy reliance on oil revenues and heightened vulnerability to external financial shocks. The volatility of global oil prices and frequent fiscal imbalances have complicated the Central Bank of Iraq’s (CBI) efforts to maintain monetary equilibrium. This study investigates the effectiveness of the monetary sterilization mechanism in stabilizing Iraq’s monetary environment between 2004 and 2023. Using annual data from official sources, primarily the CBI, the research employs an econometric approach, integrating a deductive methodology with descriptive analysis and quantitative modelling. The study estimates the sterilization coefficient and evaluates its impact on key monetary indicators, including inflation and exchange rate stability. The findings reveal that sterilization policies have a statistically significant effect on short-term monetary stability, mitigating immediate price and currency volatility. However, the long-term impact is statistically insignificant, largely due to structural economic limitations, such as the predominance of oil exports, shallow financial markets, and restricted monetary policy tools. The empirical results suggest that Iraq practices partial rather than full sterilization, leading to residual inflationary and deflationary pressures. The study recommends developing more diverse and sustainable monetary policy instruments, strengthening coordination between monetary and fiscal policies, and promoting economic diversification to achieve enduring monetary stability
“When Money Matters”: Unpacking the Role of Broad Money in Strengthening Islamic Bank Financing and Economic Growth
Full text linkIslamic banking plays an increasingly vital role in promoting inclusive and Sharia-compliant financial services amid economic expansion in Indonesia. This study aims to examine the moderating effect of the ratio of broad money (RBM), as an indicator of financial deepening, on the relationship between Gross Domestic Product (GDP) and Islamic bank financing. Employing a quantitative research design, this study utilizes secondary time-series data and applies moderated regression analysis (MRA) across three models to evaluate the direct and interactive effects of GDP and RBM on Islamic bank financing. The findings reveal that while GDP positively influences Islamic bank financing, the inclusion of RBM as a moderating variable significantly strengthens this relationship, as demonstrated by the significance of the interaction term in the third model. This indicates that financial deepening, reflected in a higher RBM, enhances the capacity of Islamic banks to channel funds into the real economy during periods of economic growth. The study emphasizes the strategic importance of managing broad money supply to support Islamic finance performance and broader macroeconomic goals. Theoretically, the findings contribute to the understanding of how monetary aggregates interact with Islamic financial systems, while practically, they inform policymakers and Islamic financial institutions about the need to align monetary policies with the growth of Islamic banking. Future research should consider additional macroeconomic factors and a broader institutional context to further refine these insights
Factors Affecting Third-party Funds in Indonesian Sharia Banks: A Meta-analysis
Full text linkWhile Indonesia, with its substantial Muslim population, holds promise for the advancement of Islamic banks, the current reality reveals that the volume of third-party funds for these banks in the country trails significantly behind that of conventional banks. This study aims to determine the determinants of third-party funds in Indonesian Islamic banks. This quantitative study used meta-analysis. The data were derived from accredited national journals and were subsequently processed using OpenMEE. The findings of this study indicate a positive correlation between third-party funds and various variables, such as inflation, exchange rates, BI Rate, GDP, SBI, JCI, FDR, CAR, NPF, BOPO, profit sharing and bonuses, promotional costs, ROA, LDR, money supply, service offices, and total assets. The results of this study can serve as a reference for practitioners of Islamic banks when formulating policies pertaining to the increase in third-party funds
Navigating Faith and Finance: The Role of Islamic Literacy and Scepticism in Shaping Cryptocurrency Investment Intention
Full text linkDespite the rapid global adoption of cryptocurrencies, the lack of a unified Sharia ruling creates profound ethical uncertainty for faith-conscious investors. The present study analyses how investors integrate spiritual considerations and the complexities of Islamic Finance to formulate investment intentions in cryptocurrencies. Building on the Decomposed Theory of Planned Behaviour (DTPB), the model incorporates Islamic Financial Literacy and Sharia Scepticism. Shariah Scepticism and Islamic Financial Literacy reflect the Islamic value-embedded attitude towards finance and investment. For this study, the authors collected and analysed survey data from Java’s urban areas' 213 Muslims using PLS-SEM. Results demonstrate that people’s investment intentions are shaped by the compatibility of values, ease of use, and perceived usefulness of the investment. Financial Literacy in Islam bolsters confidence in Shariah-compliant digital assets, and Shariah Scepticism raises theological and ethical considerations. Despite the limited impact of perceived behavioural control, subjective norms exerted the most significant influence on behavioural intentions. This study adds to the Islamic behavioural finance literature the first faith-based model to explain investment intentions in cryptocurrencies within Muslim populations