International Journal of Islamic Business & Management 2023-01-18T18:15:18+00:00 Managing Editor/Editor Open Journal Systems MOSLEM BEHAVIOR TOWARD DEBT MANAGEMENT 2022-11-05T13:49:48+00:00 Wiwik Lestari Meliza Silvy <p><em>Islam teaches Muslims to be clever in seeking of “rizki” (income) and spending it wisely to achieve well-being, happiness in the Islamic way. This study aims to prove whether Islamic Financial Knowledge, religiosity, self-control, and lifestyle are determinants of debt management behavior in Muslim communities. Furthermore, this study also examines whether debt management behavior affects financial well-being. This study is a quantitative study using a carefully developed questionnaire and tested for validity and reliability. The selected samples are residents of Surabaya who earning money from work.&nbsp; By surveying 331 respondents and using SEM analysis tools, behavior towards debt was confirmed as a determinant of welfare even the correlation number is small but significant. This study also proved that financial knowledge does not affect self-control but lifestyle and religiosity do. Furthermore, financial knowledge together with self-control and religiosity are predictor of behavior. Interestingly, the result shows that the higher the religiosity, the lower the debt behavior. This fact may be since there are some cultural rituals on a religious event that need extra spending. This result implies that Moslem should be careful with their lifestyle especially regarding Islamic events and consumerism as identity since it can reduce self-control and in turn potentially lower financial management. Using debt to fulfill the lifestyle is dangerous for well being.</em></p> <p><strong>JEL Classification Codes: </strong>D1, I22, R11.</p> 2022-11-05T13:49:48+00:00 ##submission.copyrightStatement## THE METHODOLOGY OF ISLAMIZATION OF KNOWLEDGE: A CONCEPTUAL STUDY 2023-01-15T17:28:40+00:00 Muhammad Mostofa Hossain Luqman Haji Abdullah Muhammad Tazammol Hoque Muhammad Ikhlas Bin Roslee <p style="text-align: justify;"><em>Islamization of knowledge (IOK) merges ethical principles of Islam with the finest contemporary intelligence to reach a new ijma (consensus) pertinent to divine pieces of knowledge, sciences and scientific methods that are compatible with Islamic teachings, ethics and values. Islamizing knowledge and thought are crucial to attaining the objective of Islam in human existence regardless of their religious or geographical identities. It, therefore, is fit to be incorporated in most pure sciences. The process of IOK often in its commencement emphasizes the style and method above its substance to circulate its essence through an appropriate structure. It values the higher objective, Islamic teachings and ethics in its process, which are Islam's foundation in socio-political and epistemological paradigms. There is an actual obscure for any embryonic paradigm to pattern a dynamic methodology, and IOK is not unconventional from that obscure. Although IOK characteristically upholds its strength in terms of its methodological features of direct and indirect divine scriptures, which remarkably minimize the obstacles in its journey, yet, there is a pressing need for the investigation of current methodology and adoption of newly devised methodologies based on the sources of knowledge and whose proposal is to be the aim of the study. A descriptive approach of the qualitative method will be followed to achieve the study's objective. </em></p> <p><strong>JEL Classification Codes: </strong>I20, I21, I23.</p> 2022-12-30T00:00:00+00:00 ##submission.copyrightStatement## COVID-19 AND THE PERFORMANCE OF ISLAMIC BANKS IN INDONESIA 2023-01-18T17:21:39+00:00 Sholikha Oktavi Khalifaturofi‘ah Indra Listyarti Ririn Poerwanti <p style="text-align: justify;"><em>Covid-19 has an impact on the profitability of Islamic Banks in Indonesia. Islamic banks' profitability in Indonesia tends to decline during a covid-19 outbreak. Although declining, the profitability indicators measured by Return on Asset and Net Operating Margin are more stable than Return on Equity. The average Return on Equity declined sharply in the fourth quarter of 2021. This study aims to analyze the determinants of the profitability of Islamic banks, including internal bank factors and macroeconomic indicators during the covid-19 outbreak. This study uses a quantitative approach with the fixed effect method. This study employs panel data from 8 Islamic commercial banks from 2020q1 to 2021q4. The results show that capital adequacy, disbursed financing, and operational efficiency has a negative and significant effect on the profitability of Islamic banks. Financing risk and bank size have no significant effect on the profitability of Islamic banks. Macroeconomic indicators such as economic growth, inflation, interest rates, and exchange rates have no significant effect on the profitability of Islamic banks. During the covid-19 pandemic, to increase profitability, banks need to reduce the capital and financing provided to customers. On the other hand, to increase profitability, Islamic banks need to reduce unnecessary costs so that income is not eroded. Macroeconomic indicators do not influence the performance of Islamic banks. This shows that Islamic commercial banks are more resistant to economic turbulence. </em></p> <p style="text-align: justify;"><strong>JEL Classification Codes: </strong>G21, L25, O18.</p> 2022-12-30T00:00:00+00:00 ##submission.copyrightStatement## THE IMPACT OF ISLAMIC FINANCE TOWARDS HALAL PRODUCT DEVELOPMENT AND PATRONISING HALAL SMES IN NIGERIA 2023-01-18T18:15:18+00:00 Tijjani Muhammad Musa Umar Yakasai <p style="text-align: justify;"><em>The study assesses the level of Islamic finance on halal awareness, products, certification, and brands through the behavioural intention to patronise Islamic SMEs products for better Halal production, as most of the SME's products neglect Halal certification in their daily production. Design/Methodology/Approach:&nbsp;The study used the Confirmatory Factor Analysis under Structural Equation modelling using a qualitative data collection technique through convenience sampling. The cluster sampling of selecting the SMEs with their consumer. The validity and reliability were also tested for data justification. This paper designed and collected data from the three categories of stakeholders, Consumers and others in Northern Nigeria, considering the vast population of the states in the Northern part of the country. The result shows that the priority issues that enhanced social awareness, halal products, certification and halal brands have a positive relationship with market patronage. Further, describes the weak factors hindering halal certification through a cluster model based on the categories of the responses proposed by the halal integrity network. The practical implication addressed and developed an alternative way of managing factors that hamper the concerned Halal certification towards Halal industries and their ingredients and logistics for Muslim markets patronage. Originality/Value:<strong>&nbsp;</strong>It is challenging to find a paper that discusses factors that hamper Halal certification in Northern Nigeria and with a new method introduced of using CFA under SEM for model development industries in Northern Nigeria.</em></p> <p style="text-align: justify;"><strong>JEL Classification Codes: </strong>D21, G19, M31.</p> 2022-12-30T00:00:00+00:00 ##submission.copyrightStatement##