Shirkah: Journal of Economics and Business
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Purchase Decisions among Non-Muslim: The Role of Islamic Branding, Product Ingredients, and Islamic Social Environment
Full text linkThe influence of acculturation on non-Muslims’ purchase decisions remains an unanswered question. Thus, the impact of the Islamic environment on non-Muslim purchase decisions requires further exploration. This study examines how Islamic branding and product ingredients affect purchase decisions and whether the Islamic social environment can strengthen or weaken this relationship for non-Muslim consumers. This study employed a quantitative approach using SmartPLS 3.0. Data were collected from 500 non-Muslim respondents using purposive sampling. The results indicate that both Islamic branding and product ingredients significantly influence non-Muslim purchase decisions, highlighting the growing importance of ethical and cultural considerations in consumer behavior. Moreover, the Islamic social environment plays a crucial role in moderating this relationship, further strengthening the impact of Islamic branding and product ingredients on purchase decisions. These findings suggest that non-Muslim consumers are not only responsive to the intrinsic qualities of products but are also influenced by the broader Islamic social context in which these products are marketed. This offers valuable insights for the government and companies in developing effective strategies to market Indonesian halal meat products to non-Muslim consumers globally. A deeper understanding of non-Muslim purchasing behavior can enhance their position in the halal industry
Empowering MSMEs: The Role of Mosques in Community Economic Development
Full text linkMosques hold significant potential in community development, particularly through the management of zakat, infaq, and sadaqah to empower Micro, Small, and Medium Enterprises (henceforth MSMEs). This study explores the role of Jogokariyan Mosque, a unique and famous mosque located  in Yogyakarta Indonesia, as a zakat administrator in supporting MSMEs empowerment. Utilizing primary data from in-depth interviews and content analysis, this case study highlights the mosque's initiatives, including kindness loans, business training, and market creation. The key informant, Mr. Jardi, an administrator of Jogokariyan Mosque, was selected through purposive sampling. The research adopts a triangulation method, involving pre-field analysis, data interpretation and classification, data reduction, and conclusion verification. The findings reveal that Jogokariyan Mosque, through its institution Lembaga Amil Zakat (LAZ), effectively collects, manages, and distributes zakat funds, providing essential support to MSMEs and enhancing community welfare. This research underscores the crucial role of mosques in economic development and community empowerment. Last but not least, this research offers valuable insights for policymakers, religious leaders, and community organizers on the potential of mosques to serve as central hubs for economic empowerment through zakat management
Customer Response towards Funding Return Uncertainty in Indonesian Islamic Banking
Full text linkA guaranteed return on funding is the expectation of customers when engaging in transactions with Islamic banks, yet it remains uncertain. This study aims to explain customer responses to the uncertainty of funding returns in Islamic Banks in Indonesia. The research is based on descriptive qualitative methods, with data collected through observations and interviews. Observations involved visiting bank branches and interacting with employees to explain the research intent. The researchers directly observed funding transactions at several selected Islamic banks in Semarang municipality, Indonesia. Interviews were conducted with customers from these banks, selecting at least one funding customer for each interview (N= 4). Data were analyzed using descriptive analysis methods. The study found that the uncertainty of funding returns is attributed to the application of the mudharabah contract. Customers are not overly concerned with the return uncertainty as long as the Islamic bank operates normally. Loyal customers prefer Islamic banks for their funds placement, considering the total return competitive. This research refutes the perception among some in the public that Islamic banks are similar to conventional banks. Islamic banks must maintain competitive equivalent rates to preserve customer loyalty.Â
Factors Affecting Financial Stability of Sharia Banks in Indonesia
Full text linkTo ensure the financial stability of Indonesian banks, especially Sharia banks, it is essential to focus on various factors and elements. This study investigates the endogenous and exogenous factors influencing the financial stability of Sharia banks in Indonesia. The study utilized data from the annual financial statements of Sharia banks in Indonesia spanning from 2010 to 2021. Panel data regression served as the analytical tool for the research. The findings indicate that the stability of Sharia commercial banks in Indonesia is influenced by both capital structure and credit risk. Financial leverage also affects sharia bank’s financial stability. While ownership distinguishes a bank in terms of organizational structure, it does not necessarily guarantee stability. Islamic commercial banks remain stable amid the COVID-19 pandemic, showing no significant impact on their overall stability. These findings will enhance bank understanding of the risks faced by banks and form the basis for new regulatory efforts to strengthen overall risk management, including liquidity risk and credit risk
Corporate Governance toward 5.0: Insights from State-Owned Enterprises in Indonesia
Full text linkExisting research separately examines factors like qualification, tenure, and independence in relation to financial performance, overlooking the potential combined or interactive effects. This research intends to determine the role of the board of directors in addressing future challenges encountered by Indonesian state-owned enterprises. The research methodology involves quantitatively correlating independent and dependent variables, with or without variable control, utilizing nine financial ratios to assess firm conditions. The study utilized secondary data from financial statements and annual disclosures of Indonesian state enterprises from 2009 to 2016. The findings indicated that firstly, the degree, whether with or without control variables, is associated with Return on Asset and Fixed Asset Turnover. Secondly, board tenure, with or without control variables, does not exhibit a correlation with financial performance. Thirdly, the size of the independent board of directors, with control variables, does not correlate with financial performance, whereas without control variables, it is correlated with Net Profit Margin and Cash Ratio. This study introduces a new concept of board performance to predict bankruptcy indicators in companies, considering their Return on Assets (ROA) and Fixed Asset Turnover
The Antecedents of Muslim Tourists' Revisit Intention: The Mediating Role of Visitor Satisfaction
Full text linkThis study aims to investigate the key antecedents influencing the revisit intentions of Muslim tourists to Batu City, East Java, Indonesia. Specifically, the research examines the impact of destination image, service quality, availability of halal facilities, and visitor income on the propensity to revisit, with visitor satisfaction introduced as an intervening variable. Utilizing 209 samples, the data is analyzed through Structural Equation Modeling-Partial Least Squares (SEM-PLS) to assess the direct and indirect relationships between the variables. The results demonstrate that destination image exerts a significant and positive effect on Muslim tourists' intention to revisit Batu City, while service quality, halal facilities, and visitor income show no statistically significant direct impact. However, all four factors—destination image, service quality, halal facilities, and visitor income collectively enhance visitor satisfaction, which in turn mediates their indirect influence on revisit intentions. This research offers valuable insights for local governments, tourism stakeholders, and academic circles by identifying factors crucial for improving the Muslim visitor experience. The findings have practical implications for enhancing the attractiveness of Batu City as a tourism destination, ultimately contributing to increased visitation rates among Muslim tourists
Determinants of Bank Capital in Indonesian Islamic Banks
Full text linkBank capital is the linchpin for Islamic banks to steer clear insolvency risk. However, studies on Islamic bank capital in Indonesia remain scarce, with existing studies failing to distinguish between Islamic commercial banks and Islamic business units. Our research analyzes the determinants of Islamic bank capital using the latest data and splits them into Islamic commercial banks and Islamic business units. We used quarterly data from 31 Islamic banks from 2014 to 2020. The estimation method used in this study was panel data regression with unbalanced panel data. The results reveal that bank capital is positively affected by bank size, bank margin, and financing. Conversely, competition, inefficiency, and non-performing financing worsen Islamic bank capital. In addition, bank size and margin have a more pronounced impact on Islamic commercial banks than on Islamic business units. However, inefficiency and non-performing financing have a stronger impact on bank capital for Islamic business units than for Islamic commercial banks. These findings have several important implications, suggesting that Islamic bank capital can be boosted through increased margins and efficiency, while reducing impaired financing is crucial for capital accumulation
The Role of Green Human Resource Management on Employee Behavior and Corporate Environmental Performance in Indonesian Sharia Banks
Full text linkThe growing number of companies focusing on environmental preservation and the limited literature on green human resource management in the Islamic banking industry make this an intriguing topic for deeper research. This study explored the impact of environmental green human resource management on environmental engagement and corporate environmental performance in the Sharia banking industry. This investigation also explores the mediating effect of Green Organizational Culture on the relationship between Green Human Resource Management and both environmental engagement and corporate environmental performance. Using quantitative methods, Smart-PLS analysis was used to perform structural equation modeling (SEM). A total of 116 data respondents were selected using random sampling from Sharia banking employees in East Java, Indonesia. The results showed that Green Organizational Culture has a positive impact on environmental engagement and corporate environmental performance. Green Organizational Culture fully mediates the impact of Green Human Resource Management on environmental engagement and corporate environmental performance. The implications of this study suggest that companies should embed environmentally friendly values into their vision and mission and cultivate an organizational culture that embodies these values
Identifying Key Determinants of Islamic Customer Perceived Value: A Mixed-Method Study
Full text linkThe concept of customer perceived value is crucial for businesses to understand consumer behavior and gain a competitive edge; however, research on Muslim consumers remains scarce. This study seeks to identify the indicators and factors that shape Islamic customer perceived value, particularly within tertiary education institutions. A mixed-methods approach was employed, beginning with qualitative research using focus group discussions and interviews, followed by quantitative analysis through principal component analysis. The focus groups included students, lecturers, and experts, while 118 respondents completed the questionnaires. The findings uncovered 21 indicators and 6 key factors, namely: Islamic academic standards, Islamic attitudes, Islamic performance, Islamic physical attributes, Islamic organizational values, and Halal food and beverage offerings. These results advance the understanding of Islamic marketing and provide valuable insights for universities when formulating marketing strategies aligned with Islamic principles
Cash Waqf Management for Education: Challenges, Solutions and Strategies
Full text linkIn Indonesia, the potential for funding educational initiatives through the empowerment of cash waqf is considerable, with estimates reaching up to IDR 120 trillion annually. As of March 2022, cash waqf collections amounted to IDR 1.4 trillion, a notable increase from the IDR 855 billion accumulated between 2018 and 2021. Despite this growth, cash waqf collections remain far below their potential, limiting their impact on educational empowerment. While various researchers have proposed strategies to address these obstacles, there is a paucity of research on an ideal model for empowering education through cash waqf in Indonesia. This study aims to develop a model for the empowerment of cash waqf specifically for educational programs in Indonesia. The research utilizes the Analytic Network Process (ANP) methodology, aided by Super Decision software, which is a decision-making method based on priority scales. The study conducts a synthesis analysis of problems, solutions, and strategies related to this issue. The findings indicate that both internal and external challenges affect the empowerment of cash waqf in education, with management being the primary concern. Relevant strategies include waqf policy enhancement, nazhir (waqf managers) training and empowerment, strengthening educational programs, and promoting cash waqf. An investment-based model, coupled with partnerships, scholarships, and educational initiatives, offers insights into the management of cash waqf, from collection processes to empowerment within the educational sector