Asian Journal of Islamic Management (AJIM)

Integration of financing and macroeconomic shock in Islamic banking in Indonesia

Dini Rahmayanti — 2024-01-24

Purpose – This study analyzes the relationship between Islamic banking financing and macroeconomic variables as well as its response to key economic variables.
Methodology – The research design uses quantitative analysis with Islamic banking panel data for the period 2019-2022 with monthly data, and the study used the Vector Error Correction Model (VECM).
Findings – Non Performing Financing (NPF) and Inflation negatively impact Islamic banking financing. Meanwhile, Third Party Funds (Dana Pihak Ketiga, DPK), Net Operating Margin (NOM), Return on Assets (ROA), Equivalent Rate of Musyarakah (ERPMUSY), and BI rates have a positive direction of significance for Islamic banking financing. In the Granger causality test, the interaction between the variables was unidirectional. While Islamic banking financing responds to shocks, many financings respond negatively to the shocks that occur.
Implications – Islamic Financing responds significantly in a negative direction as a result of the shocks that occur in each variable and based on long-term estimates. Therefore, Islamic banking needs to supervise and resolve the internal influence of each bank, as well as the macro influence that can be felt in the long term on Islamic banking financing.
Originality – This research integrates Islamic banking finance in Indonesia and examines how internal and macro variables can influence the financing disbursed to Islamic banking in Indonesia. This study also examines shocks between variables and tests the Granger causality between variables. Islamic banking needs to pay attention to many factors to minimize bad financing or lack of interest in applying for financing.

The role of electronic word of mouth on halal brand image and purchase intention in halal cosmetics

Wulandini Az Zahrah — 2023-12-25

Purpose – This study aims to determine the effect of altruism, moral obligation, and halal brand image on purchase intention for halal cosmetic products in Indonesia, mediated by e-WOM variables.
Methodology – This study uses a purposive sampling method to collect the data. The primary data was collected through questionnaires with criteria of Indonesian Muslims and following halal forum accounts on Instagram, such as @halskin, @halalcorner, @halalcornercommunity, @halalstyleid, and @lppommui.
Findings – Altruism positively but not significantly influences e-WOM, moral obligation positively and significantly influences e-WOM, e-WOM positively affects halal brand image and purchase intention, and halal brand image but does not significantly influence purchase intention.
Implications – This research is expected to provide directions and suggestions for further studies in the halal industry, especially with regard to the variables in this study. This research is also expected to help marketing managers see the response/reaction of potential customers to the halal brand image they have built so that they can strategize on the responses that already exist in this study. This study also suggests that halal cosmetic product companies can work with halal forums to discuss their products in halal forums. This aims to make people more aware of halal cosmetic products and increase their buying interest in them.
Originality/Value – This present study provides empirical studies that show that e-WOM can significantly influence HBI and PI because social media users can respond more positively when other consumers/social media users recommend the products

The understanding of the Islamic community's intention toward religious tourism

Zuhdi Mu'ammar — 2023-12-25

Purpose – This study aims to analyze the influence of attitudes, subjective norms, perceived behavioral control, service quality, and religious tourism literacy on people's intention in recommending and returning to religious tourism destinations.
Research methods – The data source for this research was a survey method with a questionnaire distributed via broadcast on social media. This research uses a quantitative data processing method using structural equation modeling partial least squares (SEM-PLS) analysis with the SmartPLS 3.3 statistical tool.
Findings – The results of this study show that subjective norms (SN), attitudes (ATT), and religious tourism literacy (RTL) have a significant influence on the intention to recommend and revisit religious tourism. Meanwhile, service quality (SQ) and perceived behavioral control (PBC) were not accepted and did not have a significant effect on the intention to recommend and revisit religious tourism.
Implications – The government can also focus on developing religious tourism literacy programs to increase public knowledge, which, in turn, can enhance interest, positive attitudes, and the intention to recommend and revisit. Considering these implications, destination managers and stakeholders can design more effective strategies to enhance attractiveness and visitor satisfaction and contribute to the sustainable development of religious tourism.
Originality – This model adopts the Theory of Planned Behavior (TPB) by incorporating service quality and religious tourism literacy. Service quality and religious tourism literacy are considered appropriate factors to capture issues related to the community's intention to recommend and revisit religious tourism destinations

Does the halal label of Lemonilo instant noodles matter to students?

Ni’matus Saadah — 2023-12-25

Purpose – This study aimed to determine the influence of the Korean wave, brand ambassadors, and halal label on the purchasing decisions of Lemonilo instant noodles.
Methodology – This study uses quantitative research methods. Using a purposive sampling technique, the research sample comprised 72 students from a management study program at UIN Walisongo Semarang. Descriptive statistical analysis, a validity test, a reliability test, a classical assumption test, multiple linear regression analysis, and hypothesis testing were used.
Findings – The Korean wave variable positively and significantly influenced purchasing decisions. By contrast, brand ambassadors and halal label had an insignificant effect on the purchasing decisions of Lemonilo instant noodles among students of the Management Study Program at UIN Walisongo Semarang.
Implications – Literacy of the halal label among the student community needs to be enhanced to understand that the halal label is an essential aspect in deciding food consumption. Additionally, it needs to be understood that the Korean wave is not always in line with Islamic values; therefore, an understanding of the halal label is necessary within the young community familiar with the Korean wave..
Originality – This study aims to determine the extent of the influence of the Halal label on students in Islamic institutions regarding their decision to purchase Korean instant noodle products

Exploring how local cultural influences affect tourist conduct

Indra Iryanto Nur Hidayat — 2023-12-25

Purpose – The primary aim of this study is to investigate the influence of local culture on the behavioral intentions of Muslim tourists who have visited Kebondalem Kidul Cultural Tourism Village through the mediation of memorable tourism experiences and destination image.
Methodology – In this study, a quantitative analysis approach and descriptive analysis were employed, utilizing a 5-point Likert scale: the sample collection non-probability sampling method, specifically convenience sampling. The sample comprised 190 respondents who had experienced the Kebondalem Kidul Cultural Tourism Village as a tourist destination. Structural Equation Modeling (SEM) SmartPLS 3.2.9 was used as the analytical tool for analysis.
Findings – The study reveals that local culture directly impacts Muslim tourists' recommendation intention, memorable tourism experience, and destination image when they visit Kebondalem Kidul Cultural Tourism Village.
Implications – This research aims to aid Tourism Village managers in crafting effective marketing strategies and provides valuable insights for Kebondalem Kidul Cultural Tourism Village managers in addressing Muslim tourist needs.
Originality – This study contributes substantially to the existing body of knowledge regarding Local Culture in multiple aspects. Initially, it investigated the Local Culture variable, specifically in the context of heritage tourism, with a primary emphasis on tourists who were patrons of the Kebondalem Kidul Cultural Tourism Village.

Interactive marketing and relationship quality in Islamic banking: A Parepare case study

Multazam Mansyur Addury — 2023-06-23

Purpose − This research aims to analyze the effects of interactive marketing and relationship quality on customer satisfaction and loyalty in Islamic banking.
Methodology − A quantitative research approach was employed, and data was collected through a survey questionnaire administered to customers of Islamic banks in Parepare. The data analysis method used in this study is Partial Least Squares-Structural Equation Modeling (PLS-SEM).
Findings − The study findings indicate that, indirectly, interactive marketing and relationship quality do not have a direct significant influence on customer loyalty in Islamic banks. However, it is observed that interactive marketing and relationship quality can affect customer loyalty through satisfaction. These findings suggest that the process of maintaining and enhancing customer loyalty in Islamic banks requires careful attention to multiple factors and stages.
Implications − This research emphasizes the significance of integrating interactive marketing strategies, fostering relationship quality, and prioritizing customer satisfaction in the context of Islamic banks. These factors are essential for maintaining and strengthening customer loyalty, ultimately contributing to the long-term success and competitiveness of Islamic banks in Kota Parepare.
Originality − The originality of this research lies in its contextual focus and integration of variables. Firstly, the study specifically examines the impact of interactive marketing and relationship quality on customer satisfaction and loyalty within the context of Islamic banks in Kota Parepare. Secondly, the study integrates multiple variables, including interactive marketing, relationship quality, customer satisfaction, and customer loyalty, providing a comprehensive understanding of the factors that contribute to customer loyalty in the context of Islamic banks.