<![CDATA[Sharia Business Units (SBUs) in Indonesia face increasing pressure to strengthen organizational readiness and financial performance amid evolving regulatory requirements for institutional separation. This study examined the relationships between strategic collaboration, learning programs, compliance activities, work engagement, and financial performance, with individual performance serving as a mediating variable. An explanatory sequential mixed-methods design was employed, combining a questionnaire survey of 215 employees from Indonesian SBUs with semi-structured interviews involving six purposively selected informants. Quantitative data were analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 4, while qualitative interview data were analyzed thematically using NVivo 15. The results revealed that strategic collaboration, learning programs, and compliance activities were significantly and positively associated with individual performance, with learning programs demonstrating the strongest relationship (? = 0.502). Individual performance was significantly associated with financial performance (? = 0.394) and mediated the relationships between these three organizational factors and financial performance. Work engagement also exhibited a significant direct association with financial performance. The structural model explained 54.2% of the variance in individual performance and 56.9% of the variance in financial performance. Qualitative findings highlighted the importance of effective governance, employee competencies, and resource sharing with parent banks in supporting organizational performance. Overall, the findings suggested that sustainable financial performance and institutional readiness among SBUs depend on continuous employee development, strategic collaboration, and consistent compliance with Sharia principles, supported by improved individual performance and effective alignment with parent-bank resources.]]>
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