Amwaluna: Jurnal Ekonomi dan Keuangan Syariah
Vol. 9 No. 1 (2025): Amwaluna: Jurnal Ekonomi dan Keuangan Syariah

The Emerging Role of Sharia Compliance to Enhance Public Trust in Islamic Cooperatives with Good Cooperative Governance as a Mediating Factor

Rahmat, Biki Zulfikri (Unknown)
Ramadhani, Indi (Unknown)
Zahra, Qiny Shonia Az (Unknown)



Article Info

Publish Date
31 Jan 2025

Abstract

This research examines the role of sharia compliance and label in enhancing public trust in sharia cooperatives in Tasikmalaya, with Good Cooperative Governance (GCG) acting as a mediating factor. Employing a quantitative approach, data were collected through surveys distributed to cooperative members and analyzed using regression analysis of mediating variables (product of coefficient method). The findings reveal that sharia compliance and sharia label alone is insufficient to build trust; rather, strong governance mechanisms play a crucial role in reinforcing public trust. The mediation analysis confirms that GCG significantly strengthens the relationship between sharia compliance and trust and also between sharia label and trust, highlighting the need for cooperative managers to integrate governance best practices with Islamic financial principles. The study contributes to the literature on Islamic microfinance by demonstrating the critical function of governance in trust-building and offers practical recommendations for cooperative leaders to enhance sustainability. Future research should explore qualitative insights into member perceptions and expand the study to other regions to improve generalizability.  

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Journal Info

Abbrev

amwaluna

Publisher

Subject

Economics, Econometrics & Finance

Description

Amwaluna : Jurnal Ekonomi dan Keuangan Syariah is an academic journal published twice annually (January-July) by Syariah Faculty of Universitas Islam Bandung in cooperation with Asosiasi Pengajar dan Peneliti Hukum Ekonomi Islam Indonesia (APPHEISI). This journal publishes original researches in ...