Izzun Khoirun Nisa
Institut Islam Mambaul Ulum Surakarta

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Ethical–Shariah Commitment and Business Growth: A PLS-SEM Analysis of The Interest-Free Economic Community in Soloraya Joko Subando; Syamsudin; Izzun Khoirun Nisa; Sulistyowati; Sumadi; Aunurrahim
IHTIYATH : Jurnal Manajemen Keuangan Syariah Vol. 10 No. 1 (2026): Ihtiyath : Jurnal Manajemen Keuangan Syariah
Publisher : Fakultas Ekonomi dan Bisnis Islam

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32505/ihtiyath.v10i1.14086

Abstract

This study aims to analyze the influence of Ethical and Shariah Commitment on Service and Transaction Ethics, Social Commitment and Business Relationships, Financial Growth, Structural Growth, and Strategic Growth. The research focuses on the interest-free economic community in the Soloraya region, which actively applies Islamic economic principles in its business activities. A quantitative approach was employed using a survey design, involving 64 purposively selected business actors. Data were collected through structured questionnaires and analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with the assistance of SmartPLS software. The analysis included both measurement model and structural model evaluations to assess construct validity and the strength of relationships among variables. The findings reveal that Ethical and Shariah Commitment has a positive and significant impact on Service and Transaction Ethics, Social Commitment and Business Relationships, and Structural Growth. However, it exerts a negative and significant effect on Financial Growth and Strategic Growth. Meanwhile, Social Commitment and Business Relationships emerged as the most influential construct, positively affecting both Strategic and Financial Growth, but negatively influencing Structural Growth. Furthermore, Strategic Growth plays a key mediating role in enhancing Structural Growth. This study concludes that while ethical and Shariah compliance strengthens integrity, social trust, and institutional stability, it may also limit financial and strategic flexibility if applied rigidly. Therefore, it recommends the development of adaptive and innovative Shariah-based business models that integrate Islamic ethical values with strategic agility and institutional transformation. Strengthening organizational capacity through digital transformation, institutional governance, and value-driven strategies is essential to ensure that Islamic ethical commitments function not as constraints, but as a competitive advantage in achieving sustainable business growth