Strategic Management in Islamic Banking: The Role of Religiosity and Service Satisfaction in Shaping Customer Decisions
DOI:
https://doi.org/10.20414/jed.v6i3.11857Keywords:
service satisfaction, religiosity, customer decision, islamic banking, financial inclusion, strategic managementAbstract
Purpose: This study explores the influence of religiosity and service satisfaction on customer decisions, focusing on the dynamics of these variables within the Islamic banking sector in Indonesia, one of the largest markets for Sharia-compliant financial services globally.
Method: A quantitative research approach was used to collect data from 100 respondents via structured questionnaires. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to rigorously test the hypothesized relationships and evaluate the strength and direction of the proposed variables.
Result: The findings indicate that religiosity has a statistically insignificant effect on customer decisions. While religious alignment may influence preferences, it does not substantially drive decision-making. In contrast, service satisfaction is a significant and dominant factor influencing customer decisions. Together, these variables account for 50.7% of the variance in customer decisions, highlighting the critical role of service quality in shaping customer behavior within the Islamic banking sector.
Practical Implications for Economic Growth and Development: The study suggests that enhancing service satisfaction in the Islamic banking sector can significantly drive customer decisions, thereby contributing to economic growth and development by strengthening consumer trust and increasing market participation.
Downloads
References
Abduh, M., & Omar, M. A. (2012). Islamic banking and economic growth: The Indonesian experience. International Journal of Islamic and Middle Eastern Finance and Management, 5(1), 35–47. https://doi.org/10.1108/17538391211216811
Abror, A., Patrisia, D., Engriani, Y., Evanita, S., Yasri, Y., & Dastgir, S. (2020). Service quality, religiosity, customer satisfaction, customer engagement, and Islamic bank’s customer loyalty. Journal of Islamic Marketing, 11(6), 1691–1705. https://doi.org/10.1108/JIMA-03-2019-0044
Alarcón, D., & Sanchez, J. A. (2015). Assessing convergent and discriminant validity in the ADHD-R IV rating scale: User-written commands for Average Variance Extracted (AVE), Composite Reliability (CR), and Heterotrait-Monotrait ratio of correlations (HTMT). Spanish STATA Meeting 2015, 1–39. https://www.stata.com/meeting/spain15/abstracts/materials/spain15_alarcon.pdf
Ali, S. N. (2017). Building trust in Islamic finance products and services. Society and Business Review, 12(3), 356–372. https://doi.org/10.1108/sbr-03-2017-0017
Alnaser, F. M., Ghani, M. A., Rahi, S., Mansour, M., & Abed, H. (2017). The impact of the SERVQUAL model and subjective norms on customer satisfaction and customer loyalty in Islamic banks: A cultural context. International Journal of Economics & Management Sciences, 6(5). https://doi.org/10.4172/2162-6359.1000455
Alnaser, F. M. I., Ghani, M. A., & Rahi, S. (2018). Service quality in Islamic banks: The role of the PAKSERV model, customer satisfaction, and customer loyalty. Accounting, 4(2), 63–72. https://doi.org/10.5267/j.ac.2017.8.001
Asnawi, N., Sukoco, B. M., & Fanani, M. A. (2020). The role of service quality in Indonesian customers' satisfaction and loyalty and its impact on Islamic banks. Journal of Islamic Marketing, 11(1), 192–212. https://doi.org/10.1108/JIMA-03-2017-0033
Ben Hassen, T. (2022). The GCC economies in the wake of COVID-19: Toward post-oil sustainable knowledge-based economies? Sustainability (Switzerland), 14(18). https://doi.org/10.3390/su141811251
Dandis, A. O., Wright, L. T., Wallace-Williams, D. M., Mukattash, I., Al Haj Eid, M., & Cai, H. (2021). Enhancing consumers' self-reported loyalty intentions in Islamic banks: The relationship between service quality and the mediating role of customer satisfaction. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.1892256
Diez, D., Cetinkaya-Rundel, M., & Barr, C. D. (2019). OpenIntro Statistics: Fourth Edition. openintro.org/os
El Hajjar, S. T. (2018). Statistical analysis: Internal-consistency reliability and construct validity. International Journal of Quantitative and Qualitative Research Methods, 6(1), 27–38. www.eajournals.org
Fianto, B. A., Gan, C., Widiastuti, T., & Sukmana, R. (2020). Customer loyalty to Islamic banks: Evidence from Indonesia. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1859849
Gazi, M. A. I., Masud, A. Al, Amin, M. Bin, Hossain, M. A., Senathirajah, A. R., & Abdullah, M. (2024). Evaluating customer satisfaction with the quality of online banking services after COVID-19: A developing country perspective. Cogent Business and Management, 11(1). https://doi.org/10.1080/23311975.2024.2423057
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2020). A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications, Inc. https://www.researchgate.net/publication/353452600_Partial_Least_Squares_Structural_Equation_Modeling
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. https://doi.org/10.2753/MTP1069-6679190202
Haron, R., Subar, N. A., & Ibrahim, K. (2020). Service quality of Islamic banks: Satisfaction, loyalty, and the mediating role of trust. Islamic Economic Studies, 28(1), 3–23. https://doi.org/10.1108/ies-12-2019-0041
Haryono, S. (2016). Metode SEM untuk Penelitian Manajemen dengan AMOS, LISREL, PLS (Cetakan 1). PT Intermedia Personalia Utama. https://doi.org/10.1088/1751-8113/44/8/085201
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
Jamshidi, D., & Hussin, N. (2018). An integrated adoption model for Islamic credit card: A PLS-SEM based approach. Journal of Islamic Accounting and Business Research, 9(3), 308–335. https://doi.org/10.1108/JIABR-07-2015-0032
Khan, S., Bhutto, N. A., Khan, U. A., Rehman, M. Z., Alonazi, W. B., & Ludeen, A. (2022). ?uk?k or bond, which is more sustainable during COVID-19? Global evidence from the wavelet coherence model. Sustainability (Switzerland), 14(17), 1–20. https://doi.org/10.3390/su141710541
Muslichah, I., & Sanusi, S. (2019). The effect of religiosity and financial literacy on the intention to use Islamic banking products. Asian Journal of Islamic Management (AJIM), 1(2), 85–92. https://doi.org/10.20885/ajim.vol1.iss2.art2
OJK. (2022). Indonesian Islamic Finance Report 2022. Department of Islamic Banking Financial Services Authority. https://www.ojk.go.id/en/berita-dan-kegiatan/info-terkini/Pages/Indonesian-Islamic-Finance-Report-2022.aspx
Pranajaya, A., & Dharma, B. (2022). The effect of innovation to increase growth in Islamic banking: Comparison of Islamic banking growth in Indonesia and Pakistan. Journal of Management and Business Innovations, 4(02), 1–6. https://doi.org/10.30829/jombi.v4i02.13864
Ramadhi, Fikriando, E., Ortega, D., Yunas, B., Relifra, Ayu, D., & Lestari. (2024). Unpacking the quiet quitting phenomenon: The role of work stress in the workload and work-life balance. Journal of Enterprise and Development (JED), 6(3), 627–642. https://doi.org/10.20414/jed.v6i3.11643
Sarmawa, I. W. G., Widyani, A. A. D., Sugianingrat, I. A. P. W., & Martini, I. A. O. (2020). Ethical entrepreneurial leadership and organizational trust for organizational sustainability. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1818368
Tabrani, M., Amin, M., & Nizam, A. (2018). Trust, commitment, customer intimacy, and customer loyalty in Islamic banking relationships. International Journal of Bank Marketing, 36(5), 823–848. https://doi.org/10.1108/IJBM-03-2017-0054
Wulandari, D. (2022). Customer satisfaction as a priority in excellent banking services. KINERJA: Jurnal Manajemen Organisasi Dan Industri, 1(1), 27–34. https://doi.org/10.37481/jmoi.v1i1.5
Yusfiarto, R. (2021). The relationship between m-banking service quality and loyalty: Evidence in Indonesian Islamic banking. Asian Journal of Islamic Management (AJIM), 3(1), 23–33. https://doi.org/10.20885/ajim.vol3.iss1.art3
Downloads
Additional Files
Published
Issue
Section
License
Copyright (c) 2024 Ahyar Junaedi, Mohamad Rafii, Bayu Suratmoko
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
