Jurnal Ekonomika dan Bisnis Islam
Vol 8 No 3 (2025): Desember On Process

DOES PRODUCT INNOVATION ENHANCE MUSTAHIQ WELFARE THROUGH THE MEDIATION OF ISLAMIC BUSINESS SUCCESS? A PARTIAL LEAST SQUARES STRUCTURAL EQUATION MODELLING APPROACH

Tamamala, Zailan Basri (Unknown)
Rajasa, Muhammad Attar Indra (Unknown)
Ratnasari, Ririn Tri (Unknown)



Article Info

Publish Date
31 Dec 2025

Abstract

The welfare of mustahiq (zakat recipients) is one of the primary objectives of implementing productive zakat in the Islamic economic system. This study focuses on the mediating role of Islamic business success in the relationship between product innovation and mustahiq welfare. Referring to the principles of maqasid al-Shari'ah, a quantitative approach was used in this study, where primary data were obtained from micro-entrepreneurs who are recipients of productive zakat in Indonesia. Analysis using Partial Least Squares-Structural Equation Modeling (PLS-SEM) shows that product innovation significantly contributes to the success of Islamic businesses, ultimately improving the welfare of mustahiq. Furthermore, Islamic entrepreneurial motivation and entrepreneurial competency are proven to be essential factors influencing business success and its impact on sustainably improving the quality of life of zakat recipients. This study highlights the importance of a holistic approach integrating spiritual, social, and economic dimensions in zakat-based empowerment programs. These findings provide strategic recommendations for zakat institutions to design more effective interventions to support the financial independence of mustahiq and achieve the goals of sustainable Islamic social finance.

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Journal Info

Abbrev

jei

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomika dan Bisnis Islam mencakup studi ilmu Ekonomi Islam yang terdiri dari: Ekonomi dan Bisnis Islam Kewirausahaan Islam Zakat dan Wakaf Akuntasni Syariah Keuangan dan Perbankan ...