Duduh Sujana
Universitas Pendidikan Indonesia

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The Effect of Islamic Bank Financing Performance on the Achievement of Maqashid Shariah and Economic Sustainability in Indonesia Duduh Sujana
Jurnal Ilmiah Manajemen Kesatuan Vol. 14 No. 1 (2026): JIMKES Edisi January 2026
Publisher : LPPM Institut Bisnis dan Informatika Kesatuan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37641/jimkes.v14i1.5035

Abstract

This study examines the effect of Islamic bank financing performance on the achievement of Maqashid Shariah and economic sustainability in Indonesia during the 2020–2024 period. The study is grounded in the view that Islamic banking should not be oriented solely toward profitability, but must also fulfill broader social, ethical, and developmental objectives in accordance with Islamic principles. A quantitative approach was employed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The analysis was based on secondary data collected from 10 Islamic commercial banks in Indonesia, annual financial reports, Financial Services Authority statistics, and Bank Indonesia publications. Financing performance was measured using indicators such as Financing to Deposit Ratio (FDR), Non-Performing Financing (NPF), Return on Assets (ROA), and Operational Efficiency Ratio (BOPO), while Maqashid Shariah was represented by the dimensions of education, justice, and public welfare, and economic sustainability was reflected in green financing, financial inclusion, and sustainable economic contribution. The results show that financing performance has a positive and significant effect on the achievement of Maqashid Shariah. Furthermore, Maqashid Shariah has a positive and significant effect on economic sustainability. The findings also confirm that Maqashid Shariah mediates the relationship between financing performance and economic sustainability. These results imply that the effectiveness of Islamic bank financing should be assessed not only through financial indicators but also through its contribution to social welfare and sustainable economic development. This study contributes to the literature on Islamic banking by integrating performance, maqashid orientation, and sustainability into a single analytical framework and offers practical implications for regulators and Islamic banking institutions in strengthening value-based financial intermediation. Keywords: Islamic bank financing performance, Maqashid Shariah, economic sustainability, Islamic banking, SEM-PLS, Indonesia
Managerial Capability and Financial Sustainability of SMEs: The Mediating Role of Product Innovation and the Moderating Role of Access to Finance Duduh Sujana; Nugraha Nugraha; Disman Disman; Imas Purnamasari
Jurnal Ilmiah Manajemen Kesatuan Vol. 14 No. 4 (2026): JIMKES Edisi Juli 2026
Publisher : LPPM Institut Bisnis dan Informatika Kesatuan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37641/jimkes.v14i4.5450

Abstract

Financial sustainability is a decisive condition for small and medium-sized enterprises (SMEs) because it determines whether firms can maintain liquidity, generate stable profitability, absorb shocks, and finance growth. Drawing on Dynamic Capability Theory and the Resource-Based View, this study examines how managerial capability contributes to SME financial sustainability through product innovation and how access to finance strengthens the innovation-sustainability relationship. The research used a quantitative survey design involving 350 SME owners and managers in West Java, Indonesia, selected through purposive sampling. Data were collected using a structured seven-point Likert questionnaire and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that managerial capability has a strong positive effect on product innovation (beta = 0.727; t = 19.755; p < 0.001), product innovation positively affects financial sustainability (beta = 0.411; t = 4.876; p < 0.001), and managerial capability directly improves financial sustainability (beta = 0.231; t = 5.422; p < 0.001). Product innovation significantly mediates the effect of managerial capability on financial sustainability (indirect effect = 0.299; t = 5.742; p < 0.001), while access to finance positively moderates the effect of product innovation on financial sustainability (beta = 0.218; t = 3.108; p = 0.002). The findings support a Dynamic Capability-Based Financial Sustainability Model for SMEs, suggesting that managerial capability becomes financially meaningful when translated into innovation and supported by adequate financial access. The study contributes to strategic management, entrepreneurship, and SME sustainability literature by clarifying the capability-innovation-finance mechanism through which SMEs improve long-term financial viability in an emerging economy context.   Keywords: managerial capability; product innovation; access to finance; financial sustainability; SMEs; dynamic capability; PLS-SEM