The study proposed to investigate the effect of the Islamic work ethic on the perception of justice among employees in Islamic microfinance institutions in Indonesia. The construct of organisational justice included three dimensions, namely distributive, procedural, and interactional justice. The sample consisted of 370 employees from 60 Islamic microfinance institutions in Central Java, Indonesia. The results suggest that the Islamic work ethic positively contributes to the aforementioned three dimensions of the perception of justice. Implications, limitations, and suggestions for future research are discussed.
A B S T R A C T Objective:This study explores the influence of social and psychological factors on entrepreneurial behaviour among students studying at Islamic college of Kudus, Central Java, Indonesia. Research Design & Methods: Three hundred undergraduates that represent four faculties were selected using cluster-sampling technique for the investigation. Descriptive statistics and multiple regression technique were used to analyse data. Findings: Results revealed that both social factors such as family background, education system and social status and psychological factors like need for achievement, propensity to risk and locus of control are quite prominent and significant indicators to become entrepreneurs. Implications & Recommendations:The study discovered that all the social attributes have impacts on entrepreneurship intention. University students who are properly trained can obviously play a leading role in this regard. This study is useful in identifying suitable students for any entrepreneurial activity in future. With the support of government, they can promote entrepreneurial culture in the country. Contribution & Value Added: Research on student entrepreneurship has intensified in some countries, but few have explored Islamic students in Indonesia. Article type: research paper
Purpose The purpose of this paper is to examine factors influencing the level of satisfaction of Islamic microfinance customers and their loyalty toward their patronized institution in Central Java, Indonesia. Design/methodology/approach The target population is all customers of Islamic microfinance institutions in Central Java, Indonesia. A sample of 300 respondents is selected for this study using purposive sampling and only 246 data are used in the analysis. The data are then analyzed using structural equation model with cost of loan, risk of loan, loan repayment, family welfare and Shariah issues as exogenous variables and satisfaction and loyalty as endogenous variables tested in the model. Findings The findings have shown that there is a significant effect of cost of loan, risk of loan and loan repayment upon the customers’ satisfaction and from the customers’ satisfaction toward the customers’ loyalty. The Shariah issues and family welfare were statistically insignificant to predict the customers’ satisfaction, which imply a big homework of Islamic finance academics and practitioners in Indonesia to educate people about Islamic finance and to show the real positive impact of Islamic finance models toward poverty. Originality/value Central Java is the province with a large number of SME and microfinance institutions, both conventional and Islamic, in Indonesia. This study provides a good insight for researchers seeking updated information about microfinance in Indonesia.
Purpose: This study aims to examine the relationship between empowerment leadership and organizational innovation. This analyzes the influence of empowerment leadership on organizational innovation, whether knowledge sharing mediates the effect of empowerment leadership on individual creativity, if individual creativity moderates the influence of empowerment leadership on organizational innovation, and how psychological empowerment mediates the effect of leadership on individual creativity. Theoretical framework: Empowerment leadership includes delegation of authority, participating in decision-making, informing employees about regulations, becoming a role model, showing concern, and interacting with the team members. Organizational innovation is the ability to generate and adopt new ideas or behaviors because it increases productivity and business performance. Knowledge sharing is a mechanism that fosters individual creative thinking and increases employees' creativity. Therefore, leaders tend to promote the practice of knowledge sharing by generating useful new ideas and thoughts. Design/methodology/approach: Respondents are lecturers at the Faculty of Economics and Business of Islamic Higher Education (IHE) in Java, Indonesia, who have been selected as participants. Data were analyzed using the PLS-SEM to test the modified results of several models. Findings: The results showed that empowerment leadership directly affects organizational innovation, knowledge sharing mediates the influence of empowerment leadership on Individual creativity howevet, it failed to mediate the effect of empowerment leadership on organizational innovation, while psychological empowerment failed to moderate the relationship between variables. Research, Practical & Social implications: This study added distinctive supports to the leadership literature by identifying key leadership behaviors that foster or impair individual creativity, knowledge sharing and organizational innovation through investigating their relationships with leadership styles in the same research model. Originality/value: This study indicates that empowerment leadership majorly affects organizational innovation. Furthermore, knowledge sharing plays an important role by mediating between variables for the development of organizational innovation.
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