Asian Journal of Islamic Management (AJIM)

Boycotts and brand perception of mineral water affecting generation Z Muslim purchases

2024-11-14T07:57:14+00:00

Purpose – This study aims to identify the determinants of purchasing decisions for bottled mineral water among generation Z Muslims in Indonesia, particularly in light of product boycotts.
Methodology – The sample consisted of 189 respondents, with the criteria being generation Z Muslims in Indonesia who have made purchases of mineral water after the boycott actions against several mineral water brands in Indonesia due to the conflict between Israel and Palestine.
Findings – Purchasing decisions for mineral water by generation Z Muslims in Indonesia are influenced by halal labeling, brand perception, and promotions related to social and ethical issues, including boycotts against certain brands. The analysis results indicate that consumers not only consider the quality and halal aspects of the product, but also actively respond to the values promoted by the brand, especially in relation to controversies involving brand affiliations with entities that do not align with Islamic principles.
Implications – The mineral water industry needs to manage brand image and marketing strategies by considering the cultural and social values of consumers, particularly generation Z Muslims in Indonesia. With the growing awareness of ethical and political issues, the industry must ensure that its products meet quality and halal standards, as well as avoid associations with controversies that could trigger boycotts.
Originality – This study integrates social and ethical aspects, such as responses to boycott actions and halal awareness, into consumer behavior analysis, providing a new perspective on understanding market dynamics influenced by cultural values and religious beliefs.

A bibliometric analysis of halal tourism research: Indonesia and Malaysia

2024-10-02T09:43:32+00:00

Purpose – Halal tourism has grown significantly, driven by the increasing global Muslim population and disposable income. However, comprehensive analysis of the research landscape is lacking. This study bridges this gap by conducting a bibliometric analysis of halal tourism research from 2014 to 2024 and examining growth trends, key contributors, and collaborative networks.
Methodology – Using Scopus data, 244 documents from 132 sources were analyzed.
Findings – Research on halal tourism has grown at an annual rate of 34.24%. Contributions from 645 authors, averaging 3.25 co-authors per document, indicate robust collaboration. Key journals include the Journal of Islamic Marketing, Journal of Environmental Management and Tourism, and Tourism Management Perspectives. Thematic clusters include economic impact, marketing strategies, sustainability, and religious aspects. Indonesia and Malaysia, led by Universitas Airlangga and the University of Malaya, dominate the research output and citation impact. The findings suggest that enhancing visibility and impact requires focusing on high-quality projects, strategic collaboration, and active dissemination.
Implications – This study identifies key trends and research gaps, guiding future studies, and fostering interdisciplinary collaboration. For industry stakeholders, it underscores the importance of targeted marketing and sustainable practices in catering to Muslim travelers. Policymakers should be encouraged to develop standardized halal tourism frameworks, enhance international collaboration, and support research initiatives for sustainable sector growth.
Originality – This study offers a unique perspective through a comparative bibliometric analysis of halal tourism research in Indonesia and Malaysia, identifying emerging trends and collaboration networks, while providing new directions for future studies and partnerships.

Enhancing competitiveness of Muslim clothing SMEs through entrepreneurial orientation and product innovation

2024-09-30T22:00:58+00:00

Purpose – This study aims to explore the relationships between entrepreneurial orientation (EO), market orientation, product innovation, and competitive advantage within Muslim clothing SMEs. This study provides insights into how these factors interact and contribute to the overall success of these enterprises.
Methodology – This quantitative study explores the relationships between entrepreneurial orientation, market orientation, product innovation, and competitive advantage in the Muslim clothing industry. Using a proportional sample of 103 employees from Muslim clothing SMEs in East Java, data were collected through a five-point Likert-scale questionnaire and analyzed via multiple regression to assess direct and mediating effects.
Findings – The key findings reveal that entrepreneurial orientation positively impacts product innovation, indicating that entrepreneurial companies are more innovative. Additionally, EO significantly influences market orientation, making firms more responsive to their market needs. EO enhances competitive advantage, whereas market orientation negatively impacts it, suggesting that excessive focus on the market may hinder differentiation. Conversely, product innovation positively affects a firm’s competitive advantage. The study finds that market orientation does not mediate the relationship between EO and competitive advantage, whereas product innovation does.
Implications – These findings provide practical insights for SMEs in the Muslim clothing industry. Companies should cultivate entrepreneurial orientation to boost innovation and competitive advantage, balancing market orientation to avoid stifling differentiation.
Originality – This study contributes to the literature by investigating the intricate relationships between EO, market orientation, product innovation, and competitive advantage in Muslim Clothing SMEs, emphasizing the mediating role of product innovation.

Impact of digital marketing, fintech, and Islamic branding on MSME performance with innovation moderation

2024-09-13T07:45:27+00:00

Objective – This study aims to analyze the influence of digital marketing, financial technology, and Islamic branching on the performance of Micro, Small Medium Enterprise (MSMEs) in Salatiga City and to test the moderating role of Product Innovation in this relationship.
Methodology – This study employed a quantitative approach using a survey method. Data were collected using questionnaires distributed to 100 MSME owners in Salatiga. To analyze the data, multiple regression analysis was applied to test the effects of digital marketing, financial technology, and Islamic branding on MSME performance and to examine the moderating role of product innovation. Statistical tests, such as the F-test and t-test, were used to evaluate the significance of the model and individual variables, respectively, ensuring the robustness of the findings.
Findings – The results show that financial technology and Islamic brands have a significant influence on MSME performance. By contrast, digital marketing does not have a significant influence. In addition, Product Innovation does not moderate the relationship between digital marketing, financial technology, and Islamic brands and MSME performance.
Implications – These findings provide insights for MSMEs and policymakers regarding the importance of optimizing the use of financial technology and strengthening Islamic branding to improve business performance. However, product innovation must be managed more strategically to have a stronger impact on MSME performance.
Originality – This study makes a novel contribution by exploring the moderating role of product innovation in the relationship between modern business strategies and MSME performance in Salatiga and highlighting the local context relevant to the cultural and economic diversity in this city.

Resilience of Islamic and conventional stocks to geopolitical conflict: A GARCH model analysis

2024-09-13T07:38:13+00:00

Purpose – This study examines the volatility behavior and resilience of conventional and Islamic stock indices in Indonesia during periods of geopolitical uncertainty, focusing on the Israeli–Palestine conflict.
Methodology – This study employs the GARCH(1,1) model to examine the volatility dynamics of four major stock indices: the Jakarta Composite Index (JKSE), LQ45, the Indonesia Sharia Stock Index (JKISSI), and the Jakarta Islamic Index (JII). The analysis covers the period from January 1, 2023, to July 31, 2024, enabling an evaluation of market dynamics before, during, and after the conflict on October 7, 2023.
Findings – The results show that conventional indices (JKSE and LQ45) exhibit significant volatility persistence, suggesting a higher susceptibility to prolonged instability during geopolitical tensions. Conversely, the Islamic indices (JKISSI and JII) are more responsive to recent market shocks, indicating greater resilience owing to ethical investment principles that avoid high-risk sectors. Furthermore, this study finds that external macroeconomic factors generally do not significantly influence stock market volatility in Indonesia.
Implications – This may be due to the predominance of internal factors and local market dynamics over external global shocks, reflecting the Indonesian market’s less integrated nature in the global financial system. These findings offer valuable insights for investors and policymakers in managing risk and optimizing portfolio strategies amid geopolitical stress.
Originality – This study contributes to the growing body of literature on the comparative analysis of conventional and Islamic investments in emerging markets.

Moderating effect of work experience on motivation and performance at Islamic hospital

2024-09-04T07:57:54+00:00

Purpose – This study examined the moderating effect of work experience on the relationship between work motivation and employee performance at an Islamic hospital in East Java. It explores how varying levels of experience influence the impact of motivation on performance, providing insights into improving workforce effectiveness.
Methodology – An explanatory design was used with a sample of 150 Islamic hospital employees selected using proportional sampling. Data were collected through structured questionnaires using a five-point Likert scale. Multiple and interaction regression analyses were performed using IBM SPSS Statistics version 25 to assess the relationships between work motivation, work experience, and employee performance as well as the moderating role of experience.
Findings – The results show a significant positive relationship between work motivation and employee performance, with motivated employees consistently achieving higher performance levels. Work experience significantly moderated this relationship, amplifying the positive effect of motivation on performance. Employees with more experience experienced greater performance improvements when motivated, highlighting the critical role of experience.
Implications – These findings provide practical insights for hospital management, suggesting that motivational strategies should consider different levels of experience. Customized training programs, experience-based development, and rewards aligned with work experience can enhance motivation and performance, and improve retention and organizational outcomes.
Originality – This study contributes to the existing literature by providing empirical evidence of the moderating effect of work experience on the motivation-performance relationship in the healthcare sector, offering practical recommendations for experience-based employee management development strategies. Motivation strategies to optimize employee performance and enhance organizational outcomes.