Asian Journal of Islamic Management (AJIM)

Service quality, financial-spiritual benefits, and dual-pathway loyalty: Evidence from Indonesia’s largest Islamic bank

Fikri Farhan — 2026-01-08

Purpose – This study examines how service quality and financial and spiritual benefits influence customer satisfaction and loyalty in Indonesian Islamic banking, with satisfaction acting as a mediating variable.
Methodology – Data were collected from 300 customers of Bank Syariah Indonesia (BSI) in Java using a structured questionnaire. The relationships among variables were analyzed using partial least squares structural equation modeling (PLS-SEM).
Findings – The results show that service quality, financial benefits, and spiritual benefits significantly enhance customer satisfaction. Service quality and financial benefits have direct effects on loyalty, whereas spiritual benefits primarily influence loyalty indirectly through satisfaction. Mediation tests revealed that satisfaction serves as both a complementary and an indirect mediator, depending on its antecedents.
Implications – The findings highlight the importance of integrating functional and spiritual value propositions into loyalty-building strategies for Islamic banks. Enhancing service quality, offering competitive financial advantages, and ensuring consistent adherence to Islamic principles are essential to strengthening long-term customer relationships.
Originality – This study extends the service quality–satisfaction–loyalty framework by incorporating financial and spiritual benefit dimensions, offering new empirical evidence on how Islamic values complement conventional satisfaction models within the emerging Islamic banking context of Indonesia.

Factors influencing green product purchase intention among Gen-Z Muslims

Saifudin Saifudin — 2026-01-08

Purpose – This study aims to analyze the influence of online green product reviews, self-image congruence, attitude, subjective norms, and perceived behavioral control on the intention to purchase environmentally friendly products among Generation Z Muslims in Salatiga City, an area renowned for its environmental management achievements.
Methodology – A quantitative research design was used, employing purposive sampling of 350 respondents aged 17 years and above. Data were collected through questionnaires and analyzed using structural equation modeling (SEM) with SmartPLS 3.2.9.
Findings – The study found that online green product reviews, self-image congruence, attitude, and perceived behavioral control had a significant positive effect on the purchase intention of green products. However, subjective norms only showed a significant impact on product reviews, and not directly on purchase intention. The dominant factors influencing purchase intention are attitude and self-image congruence.
Implications – The findings suggest that marketing strategies should focus on aligning product image with consumer identity, emphasizing attitude, and self-image congruence. Additionally, leveraging online reviews can serve as an effective tool for pro-environmental education and the promotion of green product purchases.
Originality – This research provides valuable insights into the environmental awareness and consumption behavior of Generation Z Muslims in Salatiga City, contributing to the understanding of the factors influencing the intention to purchase environmentally friendly products, especially in emerging markets with strong environmental values.

Zakat management innovation: Wakalah contract for cash flow stabilization

Ahmad Muqorobin — 2026-01-08

Purpose – Zakat institutions (ZIs) face managerial inefficiencies to the extreme seasonality of zakat fitr collection, which restricts distribution to short-term consumptive aid. This study analyzes LAZISMU's "year-round zakat fitr" program implementation at LAZISMU Ponorogo, East Java, as a fiqh-management innovation designed to address this operational challenge by harmonizing Sharia compliance with financial sustainability.
Methodology – A qualitative, single-case study design was employed. Data were collected through in-depth interviews with LAZISMU management and Sharia experts, supplemented by analyses of institutional documents and fiqh rulings. An interactive qualitative model was used to examine the legal foundations and managerial implications of the program.
Findings – This study finds that Sharia compliance is achieved through the wakalah contract rather than ta'jil (early payment). This legal framework allows for the temporal separation of fund collection from disbursements. Consequently, the institution successfully transforms its cash flow into a stable, continuous flow from a volatile seasonal lump sum, thereby resolving critical operational bottlenecks.
Implications – The fiqh-management model enhances strategic planning and operational efficiency. By stabilizing cash flow, ZIs can shift their distribution strategy from purely reactive and consumptive to proactive, enabling the integration of zakat fitr funds into long-term productive empowerment programs without violating Sharia constraints.
Originality – Unlike previous studies that predominantly focus on the distributional aspects of wakalah, this study offers a novel analysis of the wakalah contract as a strategic cash flow-smoothing tool in the zakat administration. It bridges classical Islamic jurisprudence with modern corporate finance theory and provides a replicable model for Islamic social finance institutions to overcome operational seasonality.

Key factors influencing Generation Z participation in Islamic mutual funds in Indonesia

Haidar Majid — 2026-01-09

Purpose – This study aims to examine the influence of promotion, Sharia financial literacy, and risk on the investment decision of Generation Z in Islamic mutual funds through their Bibit application.
Methodology – Thei study employed a quantitative approach involving 172 Generation Z respondents. Primary data were collected using questionnaires, and the analysis was conducted using structural equation modeling with partial least squares (SEM-PLS) through SmartPLS 3.2.9 to evaluate the relationships between variables.
Findings – The results indicate that promotion, Sharia financial literacy, and perceived risk have a positive and significant effect on investment intention in Islamic mutual funds. Among these variables, Sharia financial literacy showed the strongest influence, followed by perceived risk and promotion. The positive effect of perceived risk suggests that Generation Z investors who are more aware of potential risks tend to exhibit higher investment decisions, as risk awareness enhances preparedness, confidence, and informed decision-making rather than discouraging participation.
Implications – The strong effect of Sharia financial literacy underscores the importance of educational programs and financial knowledge dissemination targeted at Geineiration Z. Financial service providers are encouraged to einhancei promotional strategies and maintain transparent risk commuinication to build trust and increiasei participation in Islamic mutual funds.
Originality – This reiseiarch einricheis thei liteiratuirei on Islamic digital investment behavior among Generation Z by integrating behavioral aspeicts of financial liteiracy and peirceiiveid risk in thei conteixt of digital inveistmeint applications. Thei stuidy provideis neiw insights into how youing, teichnology orieinteid Muislim inveistors eingagei with Sharia-compliant investment platforms.

Intention to adopt halal concept in online food delivery meatball restaurants

Retty Ikawati — 2025-12-18

Purpose – This study aimed to analyze the impact of engagement, personal norms, perceived organizational readiness, and behavioral controls on meatball partners' intentions to adopt halal concepts..
Methodology – The Respondents are the meatball partner OFD in Yogyakarta and Solo Raya, gathering 195 respondents through purposive sampling. The number of samples determined follows Roscoe's principle. The information gathered was analyzed using Structural Equation Modeling (SEM) in conjunction with Partial Least Squares (PLS) techniques to determine the relationships between the different factors.
Findings – The results indicated that religious commitment, halal awareness, personal characteristics, perceived behavioral control, subjective norms, and attitudes do not affect the intentions of meatball partners to apply the halal concept, contrary to TPB theory in influencing the intention to perform a behavior. On the contrary, the obligation of halal certificates and organizational readiness has a positive effect on the intentions of meatball partners to apply the halal concept..
Implications – It is necessary to increase entrepreneurs' awareness of halal and their religious commitment. Halal obligation and organizational preparedness are two factors that significantly influence partners' intentions to implement the halal concept. Because it takes the combined efforts of all members, strengthening the organization becomes a source for producers.
Originality – Its examination of the application of the halal concept to meatball partners incorporated in online applications. It contributes to the understanding of the impact of engagement, personal norms, perceived organizational readiness, and behavioral controls on meatball partners' intentions to adopt the halal concept.

Exploring brand trust, experience, and repurchase intention in halal fashion: The role of e-WOM

Mufti Alam Adha — 2025-12-22

Purpose – This study examines how brand trust, experience, and repurchase intention affect halal fashion purchase decisions mediated by electronic word of mouth (e-WOM)
Methodology – This study employs survey data from 198 respondents using the Elzatta brand. Structural Equation Modeling (SEM) with the Partial Least Squares (PLS) approach was used, and purposive sampling was applied.
Findings – The findings of this study suggest that brand experience and repurchase intention significantly influence e-WOM and purchase decisions both directly and through mediation. By contrast, brand trust has a negative and insignificant effect on e-WOM and mediates purchase decisions.
Implications – This study is useful for improving marketing strategies by strengthening brand trust, enhancing brand experience, and leveraging digital word of mouth to support consumer purchase decisions.
Originality – This study contributes to the scholarly discourse on consumer behavior in the halal fashion sector by elucidating the mediating role of electronic word of mouth (e-WOM) in the relationship between brand trust, brand experience, and repurchase intention and purchase decisions. Thus, this study offers both managerial and theoretical insights.