Purpose This paper aims to examine loyalty formation, including service quality, perceived value, image and satisfaction as determinants, and their effect on the financial performance of Islamic banks. Design/methodology/approach Data were collected from 280 Islamic bank clients in Indonesia and bank financial performance data from bank financial reports. Variance-based partial least square modelling was used to assess the relationships between loyalty, its determinants and their influence on bank financial performance. Findings This study finds that client loyalty towards Islamic banks is most influenced by perceived service quality and perceived value. Further, this study documents the importance of client loyalty in influencing bank financial performance and indirect effect of clients’ satisfaction on financial performance through the strengthening of client loyalty. Practical implications This study offers a path for the managers of Islamic banks to enhance financial performance by enhancing client loyalty. To develop client loyalty, this study suggests that Islamic banks should offer economical and service-derived benefits that are superior to those other banks offer. Further, Islamic banks need to ensure that their business operations are compatible with Islamic values. Originality/value This is an early empirical study attempting to examine the link between customer loyalty and its impact on Islamic bank financial performance.

Purpose This paper aims to assess customer loyalty towards halal cosmetics using three integrated loyalty routes of product quality, emotional attachment and religious determinants. Design/methodology/approach The data for this study were gathered from 457 s cosmetics customers. Variance-based structural equation modelling was applied to assess the association between product quality, emotional attachment, religiosity, customer satisfaction and customer loyalty. Findings This study reveals that for halal cosmetics, customer loyalty is driven more by emotional attachment and product quality than by religiosity. Further, the religiosity does not moderate the relationship between customer satisfaction and customer loyalty. Finally, this study reveals that the impact of emotional attachment and product quality on customer loyalty is partly through strengthening customer satisfaction. Practical implications This study provides an opportunity for halal cosmetics managers to increase customer loyalty through the development of emotional attachment and product quality. To develop customer loyalty towards their halal cosmetic products, this study suggests that halal cosmetics managers should offer high-quality products and continuously innovate their cosmetic products. Originality/value This is an early empirical study attempting to examine the link between religiosity and customer loyalty in halal cosmetic products.

Purpose This study aims to examine factors driving millennial loyalty towards artificial intelligence (AI)-enabled mobile banking services in Islamic banks. Design/methodology/approach This research collected the data from 204 millennial customers of Islamic banks in Aceh, Indonesia. Partial least square (PLS) was used to evaluate the effect of service factors (the need for service and service quality), technology-based factors (attitudes towards AI, relative advantage, security and trust) and religiosity on millennial loyalty towards AI-enabled mobile banking. Findings This inquiry reveals that service quality, attitude towards AI and trust are determinants important for millennial loyalty towards AI-enabled mobile banking. Further, this research notes the significant role of religiosity on millennial loyalty towards mobile banking services. Practical implications This study suggests Islamic banks focus on developing millennial trust and attitude towards AI to increase their loyalty towards AI-enabled mobile banking services. Further, Islamic banks operation that complies with Islamic law is strongly suggested to develop millennial loyalty. Originality/value To the best of the authors’ knowledge, this is the first study that tries to scrutinize loyalty towards AI-enabled mobile banking.

The creative industry is one of sector that has rapid development in Indonesia, especially in Bandung. The part of this sector that tends to decrease every year or have smallest development level is Handicrafts. Although the number of businessman in this part is less than in food and beverage part, the competition between them is also fierce. The businessman should be the one who can decide the proper competitive strategy to survive in this competition. The other way to do to win the competition is applying innovation strategy towards the product so that it can be different from our competitor products and attract more customers. This research determined the relationship between innovation strategy and competitive advantage in the UKM handicraft business in Bandung. Linear regression will be used to determine this relationship.

The creative industry is one of sector that has rapid development in Indonesia, especially in Bandung. The part of this sector that tends to decrease every year or have smallest development level is Handicrafts. Although the number of businessman in this part is less than in food and beverage part, the competition between them is also fierce. The businessman should be the one who can decide the proper competitive strategy to survive in this competition. The other way to do to win the competition is applying innovation strategy towards the product so that it can be different from our competitor products and attract more customers. This research determined the relationship between innovation strategy and competitive advantage in the UKM handicraft business in Bandung. Linear regression will be used to determine this relationship. Industri kreatif adalah salah satu sektor yang memiliki perkembangan pesat di Indonesia, khususnya di Bandung. Bagian dari sektor ini yang cenderung menurun setiap tahun atau memiliki tingkat pengembangan terkecil adalah kerajinan tangan. Meskipun jumlah pengusaha di bagian ini lebih sedikit daripada di bagian makanan dan minuman, persaingan di antara mereka juga sengit. Pengusaha harus menjadi orang yang dapat memutuskan strategi bersaing yang tepat untuk bertahan dalam kompetisi ini. Cara lain yang dilakukan untuk memenangkan persaingan adalah menerapkan strategi inovasi terhadap produk sehingga dapat berbeda dari produk pesaing kami dan menarik lebih banyak pelanggan. Penelitian ini menentukan hubungan antara strategi inovasi dan keunggulan kompetitif dalam bisnis kerajinan tangan UKM di Bandung. Regresi linear akan digunakan untuk menentukan hubungan ini.