Ihtiyath : Jurnal Manajemen Keuangan Syariah
Vol. 10 No. 1 (2026): Ihtiyath : Jurnal Manajemen Keuangan Syariah

Ethical–Shariah Commitment and Business Growth: A PLS-SEM Analysis of The Interest-Free Economic Community in Soloraya

Joko Subando (Institut Islam Mambaul Ulum Surakarta)
Syamsudin (Institut Islam Mambaul Ulum Surakarta)
Izzun Khoirun Nisa (Institut Islam Mambaul Ulum Surakarta)
Sulistyowati (Institut Islam Mambaul Ulum Surakarta)
Sumadi (Institut Teknologi Bisnis AAS Surakarta)
Aunurrahim (Universitas Sains Islam Malaysia)



Article Info

Publish Date
01 Jul 2026

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

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Journal Info

Abbrev

ihtiyath

Publisher

Subject

Religion Arts Humanities Economics, Econometrics & Finance Social Sciences

Description

Ihtiyath : Jurnal Manajemen Keuangan Syariah was published by the Faculty of Economics and Islamic Business IAIN Langsa which aims to disseminate research results and ideas of academics and practitioners in the field of Islamic finance management. The topics in Ihtiyath Journal include sharia ...