Journal of Islamic Economic Insights

Does sustainability pay off for Sharia companies? Unveilling the nexus between sustainability performance and firm value

Rifqi Aqil Asyof — 2025-07-20

This study aims to analyze the influence of sustainability on the firm value of Sharia-compliant companies in Indonesia. Panel data regression with a fixed effect model is employed to address this objective. The research findings suggest that sustainability aspects do not significantly affect firm value for several reasons, including a lack of understanding, obstacles during the translation process, uncertainty in the regulatory framework for sustainability projects in Indonesia, and the absence of evident financial rewards for sustainability efforts. Based on these findings, policymakers should proactively encourage the implementation of sustainable practices among Sharia-compliant enterprises in Indonesia. Specifically, education and training programs should be designed to increase the knowledge and comprehension of sustainability principles among corporate executives and staff.

The Islamic banking system as a stabilizing force in contemporary countries

Rodrigo Bochner — 2025-07-20

The Islamic banking system offers a distinctive financial alternative rooted in Islamic law (Sharia) and emphasizes ethical finance, equity, and social justice. This study argues that Islamic banking can serve as a stabilizing force in a country’s economy, particularly during financial crises. By examining the unique principles and mechanisms of Islamic banking, including risk sharing and asset-backed financing, this study aims to highlight how these features contribute to economic resilience. Through a comprehensive literature review, case studies, and empirical analysis, this study identifies the potential of Islamic banks to mitigate economic instability and promote sustainable growth. The findings indicate that Islamic banking not only provides financial services but also fosters social cohesion and economic inclusivity in the banking sector. This study concludes with recommendations for policymakers and financial institutions to create KPI indexes that show the training of new scholars for the public and investors who will create new products for Islamic banking systems to enhance economic stability.

A conceptual framework for measuring e-banking service quality and customer satisfaction: Integrating SERVQUAL and TAM in the context of Nepal

Laba Kumar Shrestha — 2025-07-20

This conceptual paper develops a comprehensive framework for analyzing service quality and customer satisfaction in Nepal’s e-banking industry by modifying the SERVQUAL model with the Technology Acceptance Model (TAM). Despite the spread of e-banking adoption, especially in urban areas, the quality of digital services is still uneven, which can be explained by the lack of infrastructure, digital literacy, and existing security issues. The suggested framework integrates five fundamental SERVQUAL dimensions–reliability, responsiveness, assurance, tangibles, and empathy–with TAM constructs, such as trust, perceived usefulness, and perceived ease of use. Trust was set as a mediating variable, and access to digital infrastructure was appointed as a contextual moderator. The purpose of this study is to provide a formal foundation for further empirical verification using structural equation modeling. The proposed framework provides a theoretical approach to improving digital banking strategy and creating user trust, and thus can enhance inclusive financial participation in developing economies such as Nepal.

Digital transformation and sustainable development: Empowering emerging Islamic economies through the creative economy

Fajar Juanda Matroji — 2025-07-20

This literature review investigates the intersection of digital transformation, sustainable development, and the creative economy in emerging Islamic economies. It explores how digital transformation can foster economic empowerment and sustainable development within Islamic finance. Integration of digital technologies in finance, commerce, and public services promises inclusive growth and efficiency. The review also examines the creative economy's role in fostering innovation, resilience, and societal development. Furthermore, it discusses incorporating Sustainable Development Goals into the Islamic economy, aligning principles of social justice, ethical conduct, and sustainability. Embracing SDGs, Islamic economies aim to eradicate poverty, promote gender equality, and ensure sustainable industrialization. The review highlights the creative economy's role in socio-economic development, job creation, and cultural preservation in Islamic economies. It offers insights and recommendations for policymakers, industry leaders, and stakeholders to advance digital transformation, sustainable development, and economic prosperity in emerging Islamic economies.

Sharia economy as a model for Palestinian development: An international political economy perspective

Fawaz Muhammad Khaer — 2025-07-25

This study investigates the pursuit of economic self-determination in Palestine by advocating economic principles that adhere to Shariah principles. This analysis critically examines the importance of economic sovereignty and the potential consequences of global political dynamics for Palestine's economic development. This research highlights the critical role played by a wide range of international stakeholders, including financial institutions, governmental entities, and non-governmental organizations (NGOs), in supporting Palestine’s economic progress. Moreover, this emphasizes the critical nature of addressing the fundamental shortcomings of the Palestinian economy and cultivating sustainable economic growth. Furthermore, this study examines the capacity of economic methodologies that adhere to Sharia principles to aid in attaining Palestinian economic self-determination. It explicitly emphasizes principles, including ecological sustainability, societal accountability, and fairness.