Journal of Business Management and Islamic Banking

The Role Foreign Direct Invesment, Financial Development and Institutions Quality of Economic Growth Empirical Evidence From WANA Countries

Muhammad Ahsanul Amal, Muhammad Ghafur Wibowo — Mon, 09 Dec 2024 00:00:00 +0700

Research Aims: The study investigates the impact of foreign direct investment, financial development, and institution quality on economic growth in nations located in western Asia and North Africa

Methodology: This study methodology employs a panel data regression model using a fixed effect model (FEM) strategy. The study data is collected using the information that was available between the years 2000 and 2022. The WANA nations include Saudi Arabia, Iran, Israel, Jordan, Kuwait, Lebanon, Morocco, Egypt, Oman, Qatar, Tunisia, and the United Arab Emirates.

Research Findings: The findings indicated that foreign direct investment (FDI), financial development (FD), and intellectual quotient (IQ) had an impact on economic growth. Specifically, foreign direct investment (FDI) has a beneficial and statistically substantial impact on economic development, but the quality of institutions has an adverse and statistically substantial impact on economic growth. However, financial development does not affect economic growth.

Originality: The grand theory used in this research Economic Growth, Foreign Direct Investment, Institutions Quality, Financial Development, and Export and population growth variables are controlled. variables in this study by testing three variables consisting of independent variables, dependent variables and control variables.

Research limitation and implication: The findings in this study suggest that policies implemented by governments, public institutions and academics aimed at increasing FDI, FD, and institutional quality can help improve economic growth in WANA countries.

Company Attractiveness, Corporate Reputation, and Recruitment Websites as Determinants of Job Application Intentions (Case Study of Islamic Banking Study Program Students)

Tri Puji Astuti — Mon, 09 Dec 2024 00:00:00 +0700

Research Aims: The research aims to examine and analyze the influence of company attractiveness, company reputation and recruitment website on job application intentions in the sharia banking industry.

Methodology: The respondents were sharia banking students in Yogyakarta, with a sampling technique using purposive sampling with a total sample of 145 respondents. The analysis tool used is WarpPLS 7.0.

Research Findings: The results of the research show that company attractiveness has a positive and significant effect on intention to apply, company reputation and recruitment website do not have a significant effect on intention to apply for work and recruitment websites are proven to be able to moderate the influence of company attractiveness and company reputation on job application intentions.

Theoretical Contribution: The research findings identify the factors that serve as strengths, making them attractive to potential applicants based on the Theory of Reasoned Action.

Research limitation and implication: Islamic banks in Indonesia should pay closer attention to company attractiveness, particularly regarding the value that potential employees will gain. Similarly, regarding corporate reputation, Islamic banks must continue to maintain their well-established reputation among employees and the surrounding community.

Financial Technology Innovation in Modernizing Zakat Payment in the Digital Era

Abdullah Alief, Ibi Satibi — Tue, 10 Dec 2024 00:00:00 +0700

Research Aims: To explore how the use of fintech in zakat payment is viewed from both Islamic jurisprudential and historical perspectives.

Methodology: Library research is used as the primary data collection method.

Research Findings: The research concludes that the use of financial technology for zakat payments is an innovative and flexible solution grounded in ijtihad (independent legal reasoning) within Islamic jurisprudence and The use of fintech in zakat payment is a form of technology fiqh (Islamic jurisprudence related to technology) that provides functional benefits in the context of zakat.

Theoretical Contribution: Research finding the discourse on Islamic jurisprudence by highlighting how financial technology can be integrated into zakat payment systems, offering a new approach to Islamic financial practices.

Research limitation and implication: The use of fintech can significantly streamline zakat payments, making the process more accessible and efficient for Muslims in Indonesia.

Building Resilient Financial Performance: a Case Study of Indonesian Islamic Banks in The Perspective of SDGs

Wed, 18 Dec 2024 00:00:00 +0700

Research Aims: This study examines the impact of financial indicators—Non-Performing Financing (NPF), Financing to Deposit Ratio (FDR), Capital Adequacy Ratio (CAR), and Operating Expenses to Operating Income (BOPO)—on the Return on Assets (ROA) of Indonesian Islamic banks, aiming to contribute to SDG 8 by enhancing understanding of financial performance factors.

Methodology: A quantitative approach is applied using secondary data from Indonesia's Financial Services Authority (OJK) covering 2018–2022. Multiple linear regression analysis identifies significant factors influencing ROA.

Research Findings: The study finds that NPF, FDR, CAR, and BOPO all significantly affect ROA. Specifically, while NPF has a positive but insignificant impact, FDR, CAR, and BOPO exhibit negative and significant effects on ROA, suggesting that Islamic banks should focus on credit quality, capital adequacy, and operational efficiency.

Theoretical Contribution: This research provides novel insights by exploring the financial ratios' influence on ROA within Indonesian Islamic banks, contributing to the limited literature in this specific area and offering implications for the sector's sustainability in line with SDG 8.

Research limitation and implication: The study is limited to secondary data from nine banks over five years. Future research could expand to more banks or explore other performance measures. The findings offer practical implications for improving the financial stability and growth strategies of Islamic banks.

Halal Certification and Implications for MSMEs: A Systematic Literature Review

M. Topit Hidayat, Sri Rahma Witta — Mon, 30 Dec 2024 00:00:00 +0700

Research Aims: This study explores the role of halal certification in fostering business growth within the Micro, Small, and Medium Enterprises (MSMEs) sector. Addressing a gap in the literature on the impact of halal certification on MSME performance, it examines its influence on competitiveness, profitability, and market expansion.

Methodology: The research employs a Systematic Literature Review (SLR) methodology, gathering relevant articles published between 2019 to 2024 from the Google Scholar database. The PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) model is utilized to guide the collected studies’ identification, selection, and filtration processes.

Research Findings: The findings indicate that halal certification significantly supports MSME operations and enhances product continuity. Consumers are more likely to purchase halal-certified MSME products, positively impacting revenue and sales growth. However, price remains a dominant factor in consumer purchasing decisions, even though halal certification is crucial for meeting Muslim consumer standards.

Theoretical Contribution: This study contributes to the literature by shifting the focus from large corporations to MSMEs. It emphasizes halal certification’s economic and operational implications, highlighting its role in attracting Muslim consumers, enhancing market confidence, and fostering MSME growth and sustainability in the global halal market.

Research Limitation and Implication: The research is limited to Google Scholar studies within a specific timeframe, possibly excluding relevant findings from other sources. It emphasizes the importance of integrating halal certification into MSME strategies to meet sharia standards, enhance market performance, and provide valuable insights for policymakers and halal industry practitioners.