Research of Islamic Economics

Unlocking Loyalty: The Power of Halal Labels on Customer Satisfaction and Purchasing Decisions

Putri Lestari — 2025-01-18

This research was conducted with the aim of testing the effect of the halal label on customer loyalty through purchasing decisions and customer satisfaction as mediating factors. This research was designed as explanatory research. The sampling technique used was non-probability sampling. Data collection was carried out using a questionnaire survey instrument method via the Google Form page. The researfactor: lts show that the halal label has a positive and significant effect on customer loyalty; customer satisfaction has no effect on customer loyalty; the influence of the halal label on customer loyalty is not mediated through customer satisfaction as a mediating factor; Purchasing decisions can partially mediate the relationship between halal labels and customer loyalty. Managerial Implications This research shows that the halal label has a significant impact on customer loyalty and purchasing decisions, with customer satisfaction acting as an important intervening variable. The role of intervening variables in this research plays a key role in explaining how the relationship between independent variables and dependent variables can occur indirectly through these variables. In the context of this research, the independent variable is the halal label, while the dependent variable is customer loyalty.

Strengthening MSME Performance: The Role of Entrepreneurial Orientation and Business Models in Micro Wakaf Bank PKP

Shaqyna Ratu Nurinda — 2025-01-21

This research aims to determine to analyze the effect of entrepreneurial orientation on the performance of MSMEs on customers of the Pondok Karya Pembangunan Micro Waqf Bank (PKP) and to analyze the effect of the Business Model on the performance of MSMEs on customers of the Micro Waqaf Bank Pondok Karya Pembangunan (PKP) Development Work. The population of this study was 100 customers of the PKP Micro Waqf Bank. Sample selection through non-probability sampling method with purposive sampling technique. The results of this study indicate that Entrepreneurial Orientation and Business Model have a positive and significant influence on MSME Performance on customers of the Pondok Karya Pembangunan Micro Waqf Bank (PKP). The managerial implications of this study emphasize the need for Micro Wakaf Bank Pondok Karya Pembangunan (PKP) to enhance entrepreneurial orientation and optimize business models among its UMKM customers. By fostering innovation, proactive risk-taking, and competitive aggressiveness, the bank can empower UMKM to adapt to market dynamics effectively. Simultaneously, developing flexible and customer-centric business models can improve operational efficiency and market responsiveness. These strategies not only drive better performance outcomes for UMKM but also strengthen the bank's role as a facilitator of sustainable economic growth in the community.

The Role of Work Discipline, Islamic Work Ethics, Compensation in Shaping Job Satisfaction Among Muslim Employees

Muhammad Ferizqo Hilman — 2025-01-21

This study examines the impact of work discipline, Islamic work ethics, and compensation on the job satisfaction of Muslim employees in Tangerang City. Using a Saturated Sampling method, data were collected via a questionnaire and analyzed using the Partial Least Square Structural Equation Modeling (PLS-SEM) method. The findings reveal that work discipline, Islamic work ethics, and compensation each have a positive and significant effect on job satisfaction. These factors are shown to be highly effective in enhancing job satisfaction among employees. The managerial implications suggest that improving work discipline, fostering Islamic work ethics, and offering fair and competitive compensation can significantly boost job satisfaction. This study contributes by highlighting the importance of these variables in shaping employee satisfaction, specifically within the context of Islamic values. Moreover, the predictive model developed through PLS-SEM offers organizations practical insights into creating fair, consistent policies that align with Islamic principles to enhance workplace satisfaction. These findings underscore the value of integrating ethical and equitable practices to improve the job satisfaction of Muslim employees in Tangerang City.

The Impact of Islamicity Performance Index on the Profitability of Sharia Banks in Indonesia

Atikah Fawwa Alamah — 2025-01-21

This study evaluates the business and social performance of Indonesian Islamic Banking using the Islamicity Performance Index from 2020 to 2022. Business performance is measured through the Profit Sharing Ratio (PSR) and Islamic Income vs. Non-Islamic Income Ratio (IIR), while social performance is assessed using the Zakat Performance Ratio (ZPR) and Equitable Distribution Ratio (EDR). A purposive sampling method was employed, selecting 12 Indonesian Islamic banks, with data sourced from their Annual Reports. The research applies a quantitative methodology, analyzing data through multiple linear regression using SPSS 22. The study identifies Zakat Performance Ratio (ZPR) as the sole variable positively affecting profitability (ROA), while PSR, IIR, and EDR have no significant impact. The findings underscore the importance of integrating Sharia principles into operational practices. The managerial implications suggest that Sharia bank management should focus on improving ZPR by emphasizing equitable wealth distribution and adherence to Islamic values to enhance profitability. This study provides valuable insights for the Islamic banking sector, emphasizing the need for a holistic approach that aligns with the Islamicity Performance Index to achieve both financial and social objectives.

The Ethical Deviations of AI in Marketing Practices: A Critical Review from Halal Perspectives

Asep Koswara — 2025-01-31

This paper critically examines the ethical deviations in Artificial Intelligence (AI) tools used for marketing practices from a halal perspective, focusing on Islamic ethical principles. The research highlights risks associated with AI technologies like generative AI (e.g., ChatGPT), image generators, face-swapping tools, and voice cloning, which can lead to misinformation, manipulation, and exploitation. These issues contradict Islamic values of justice (‘adl), integrity (amanah), and harm avoidance (mafsadah). Using a qualitative, exploratory approach, this study identifies key ethical violations while introducing the novel concept of integrating halal principles into AI governance frameworks for marketing. The managerial implications of this research include the necessity for businesses to adopt ethical guidelines, conduct regular AI audits, and prioritize consumer trust through transparent and accountable practices. Companies can enhance competitive advantage by aligning their AI-driven marketing strategies with halal standards, fostering trust among diverse consumer bases. This study not only addresses immediate ethical concerns but also lays the foundation for developing AI tools aligned with Islamic values, contributing to responsible innovation and long-term societal impact.