Shirkah: Journal of Economics and Business
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Maslahah Mursalah: A Substantial Effort to Overcome Income and Wealth Inequality in Indonesia
No full textIncome and wealth inequality in Indonesia persists despite efforts by central and local governments to address it. maslahah mursalah provides a strong theoretical foundation for creating policies that are both religious and highly beneficial. This study aims to explain the history of using maslahah mursalahin income and wealth policies, provide evidence of income and wealth inequality in Indonesia, and explore the potential of using maslahah mursalah to address this inequality. This study examines two key facts: the history of maslahah mursalah's policies on income and wealth, and income and wealth inequality in Indonesia. They were obtained from Arabic usul al-fiqhliterature and the analysis of the Gini ratio and palm index. The data were compared to determine the most urgent policy needs and thepossibility of using maslahah mursalah as the basis. This study found that maslahah mursalahhas been widely used in income and wealth distribution policies. Since income and wealth inequality in Indonesia still exists and continues to increase in the ratio, maslahah mursalah willlikely be the basis of settlement policy. This study aims to provide a robust theoretical foundation for the Indonesian government to design and implement maslahah mursalah-based policies to address income and wealth inequality, including human capital development, labour market opening for women, labour rights protection, improved access to finance, social transfer programs, zakat and tax optimisation, housing policy reform, and increased transparency and corruption eradication
Corporate Governance and Its Relationship with the Working Capital Management in Europe
Full text linkThis study aims to investigate the impact of corporate governance on working capital management, which has been relatively overlooked despite its significance on corporate performance. Using the Ordinary Least Square regression model, a model was developed to assess the relationship between dependent and independent variables. Secondary data from the annual reports of 42 non-financial firms listed on the Frankfort and Oslo stock exchanges from 2017 to 2021 were collected. The dependent variable, working capital management, is indicated by cash holding, while the independent variable, corporate governance, is measured through five proxies: board meeting, board remuneration, the board size, CEO remuneration, and CEO tenure. Leverage and firm size are involved as control variables. The findings revealed that board meetings, board remuneration, CEO remuneration, and CEO tenure exhibit a positive and significant relationship with working capital management. However, board size demonstrated a negative but insignificant relationship. Additionally, the study showed that leverage has a negative relationship, while firm size has a positive relationship with working capital management. In conclusion, the study suggests that future research should focus on the financial sector to conduct comparative analyses with other sectors
Unlocking MSME Performance: The Interplay of Financial Literacy, Financial Inclusion, and Financial Technology Lending with Venture Capital Mediation
Full text linkStudying the dynamic relationship among financial literacy, financial inclusion, fintech lending, and business capital mediation in the context of MSME performance is intriguing due to the intricate interconnections between these variables. This paper sought to assess the effect of financial literacy, financial inclusion, and fintech lending on the MSME performance in North Maluku Province, Sula Islands Regency, Sanana District, Indonesia. This research employed business capital as the mediating variable. Using a structural equation modelling, this study indicates that financial literacy, financial inclusion, and fintech lending have a positive and significant effect on the performance of micro, small, and medium enterprises. The presence of business capital can serve as a mediating factor in how financial literacy, financial inclusion, and fintech lending affect the performance of micro, small, and medium enterprises
The Mawar Emas Program for Fighting Moneylenders
Full text linkThe Mawar Emas Program, a program aimed at countering moneylenders in West Nusa Tenggara, Indonesia, has been running for two years. However, there is insufficient research to evaluate its effectiveness, requiring further analysis. This qualitative study evaluates the performance of this program since its establishment. The study's respondents were mosque administrators, the Chair and Secretary of the NTB Sharia Economic Community (MES), beneficiaries, and banks. Each respondent was interviewed to collect data related to the Mawar Emas program. The study found that the program has aided 32 mosques in West Nusa Tenggara, benefiting a total of 1,194 potential borrowers. The Mawar Emas program has an annual budget of Rp. 1,275,000,000; however, these funds have not been fully utilized. Funding and absorption of funds decreased in the program's second year. Several program elements require evaluation, such as increased funding, default rates, training delivery, obsolete data, and profit-oriented institutions. The study's findings contribute to facilitating MES's ability to assess and improve the program
Muslim Non-Cash Transaction Behavior: The Moderating Role of Religiosity
Full text linkDespite years of exploration, empirical evidence regarding the mediating role of religiosity in the relationship between non-cash interest and behavior is still lacking. This study analyzed the behavior related to the use of non-cash transactions by Muslim communities moderated by religiosity based on the TAM model. The sampling technique in this study used purposive sampling with a total of 438 respondents. The data in this study were analyzed using Partial Least Square Structural Equation Model (PLS-SEM) with Smart PLS 3.0. The results of this study reveal that religiosity can moderate the interest and behavior of using non-cash transactions. Besides that, the perceived ease of use and perceived usefulness have a significant positive effect on consumer behavior in using non-cash transactions, which are proxied by attitude and interest. These results indicate that the Muslim community is accepting and even supporting the development of technology in the payment system because technology brings convenience and benefits. As a result, players in the Islamic finance and halal market should pay close attention to the advancements in payment system technology to ensure the Muslim community prefers payment products on the Sharia market
The Use of Information Technology System for Risk Control at a Sharia Cooperative
Full text linkThe use of technology plays an unnegotiable role in the risk control of sharia cooperatives. Because almost all sharia cooperatives lack proper information technology systems, many cooperatives are unable to recognize the risks, particularly due to a lack of liquidity as well as a lack of managerial supervision and control over operational transactions carried out by officers. An improvement in the current information technology systems can replace these roles. This study analyzes the use of information technology systems in the financing, liquidity, and sharia compliance risk control in the BMT UGT Nusantara Cooperative, located in Pasuruan East Java. This descriptive qualitative involves informants of administrators, supervisors, managers, branch heads, and IT providers. With automatic notification system, applicant screening, application adjusting policies and regulation, this study indicates that upgrading information technology systems are critical to minimizing risks and lowering the ratio of non-performing financing. It also eases the applicants as well as the institution in the process of application and screening as well as an installment payment
Revitalizing the Livelihoods of Kahayan River Communities: Exploring the Determinants of Income Increase
Full text linkIdentifying strategies for increasing the income of densely populated communities, particularly concerning the COVID-19 pandemic, remains a challenge. Specifically, this study aims to investigate the influence of entrepreneurial interest, digital marketing, and financial capital on income generation in Pahandut Village. The study adopts a quantitative research methodology based on a sociological-economic approach. Data analysis involves the use of multiple linear regression analysis. A random sampling technique was utilized to select 152 respondents from the entire population of Pahandut village. The findings reveal that entrepreneurial interest, digital marketing, and financial capital have a positive and significant influence on income generation during the Covid-19 pandemic. Therefore, it can be concluded that greater entrepreneurial interest, utilization of digital marketing, and financial capital will increase income for Kahayan River bank community during the Covid-19 pandemic era. Therefore, to adapt to the evolving business landscape, it is crucial to provide support for business literacy aimed at both starting and expanding a business
Purchase Decision on Halal Products among Female Muslim: Evidence from Indonesia
Full text linkSo far, limited research has analyzed the factors influencing female's decisions to purchase halal products. The purpose of this study was to determine how religiosity, product quality, price, brand, and halal knowledge affect the decision-making process of Islamic female students when purchasing halal-certified products. The study employed quantitative research methods, employing a questionnaire distributed through Google Forms for data collection. The study's population comprised all female students at Pondok Pesantren Al Munawwir Yogyakarta Indonesia. The sampling technique employed the Slovin formula, resulting in a research sample of 91 respondents. Data analysis involved classical assumption tests, multiple linear regression, partial tests (t-tests), simultaneous tests (F-tests), and the determination coefficient (R²). The findings indicated that religiosity, price, and halal knowledge negatively influenced female's purchasing decisions for halal products. Conversely, product quality and brand positively influenced these decisions. The study highlights that consumers, especially female students, prioritize brands and product quality when deciding to purchase halal products. Consequently, producers of halal products need to prioritize and enhance product quality
A Decade of Research on Intellectual Capital in Indonesia: Systematic Literature Review
Full text linkThe present study aims to scrutinize empirical evidence related to the study of intellectual capital in Indonesia. The study conducts an analysis of 60 articles from Scopus-indexed and SINTA-indexed journals over the observational period spanning from 2012 to 2023. The methodology employed in this study is the charting field method. Notably, the findings reveal that financial performance serves as the predominant metric in the exploration of intellectual capital in Indonesia over the course of a decade. Nevertheless, our mapping results unveil a critical gap in the research landscape, specifically, the inconsistency in the relationship between intellectual capital and financial performance proxies such as Return on Assets (ROA), Return on Equity (ROE), Price-to-Book Value (PBV), and Debt-to-Equity Ratio (DER). It is our aspiration that future research concerning the subject of intellectual capital will extend their scope to non-financial performance dimensions and incorporate qualitative data analysis, surveys, interviews, or the incorporation of Environmental, Social, and Governance (ESG) indicators within the context of intellectual capital exploration in Indonesia
Non-Muslims' Intention to Consume Halal Food in Indonesia
Full text linkThe effect of religiosity on intention to consume halal food among non-Muslims on a national scale has not been examined in previous studies. This research aims to gauge the acceptance of non-Muslims toward halal-certified food in Indonesia by investigating the effect of attitude, subjective norms, perceived behavioral control, and religiosity on the intention of non-Muslims to consume halal food. Data was collected from 250 respondents in each province using convenience sampling and analyzed using PLS-SEM. The results show that attitude, subjective norms, and religiosity significantly affect intention, while perceived behavioral control does not show significance. Theoretical implications of this research lie in its potential contribution to the academic discourse surrounding the acceptance of halal-certified food among non-Muslim people. Additionally, this study is expected to yield practical benefits by informing campaigns aimed at promoting halal-certified food among non-Muslims