Integration between Islamic financial technology and Islamic financial principal to improve performance of SMEs in Indonesia

Sukrisno; Idah Kusuma  Dewi; Pranoto; Reliani  Zai; Dionius Saputra  Nehe; Renny  Apriliyani; Haniek  Listyorini; Kundori; Karona Cahya  Susena

doi:10.59400/fefs2015

Sukrisno Management Department, Indonesian College of Economics and Tourism (STIEPARI), Semarang 50233, Indonesia
Idah Kusuma Dewi Management Department, Indonesian College of Economics and Tourism (STIEPARI), Semarang 50233, Indonesia
Pranoto Management Department, Indonesian College of Economics and Tourism (STIEPARI), Semarang 50233, Indonesia
Reliani Zai Management Department, Indonesian College of Economics and Tourism (STIEPARI), Semarang 50233, Indonesia
Dionius Saputra Nehe Management Department, Indonesian College of Economics and Tourism (STIEPARI), Semarang 50233, Indonesia
Renny Apriliyani Management Department, Indonesian College of Economics and Tourism (STIEPARI), Semarang 50233, Indonesia
Haniek Listyorini Faculty of Maritime, Universitas Maritim AMNI, Semarang 50199, Indonesia
Kundori Faculty of Maritime, Universitas Maritim AMNI, Semarang 50199, Indonesia
Karona Cahya Susena Management Department, Dehasen University, Bengkulu 38227, Indonesia

Article ID: 2015

DOI: https://doi.org/10.59400/fefs2015

Keywords: Islamic financial technology; Islamic financial principles; SMEs of performance; integration; Indonesia

Abstract

This study investigates the integration of Islamic financial technology and principles and their impact on small and medium enterprise (SME) performance in Indonesia. Utilizing a quantitative research methodology, the study employs a correlational design to examine the relationships between Islamic financial technology adoption, adherence to Islamic financial principles, and SME performance metrics. The research sample comprises 230 Muslim SME owners from Java Island, selected through stratified random sampling. Data collection involved structured questionnaires designed to measure the adoption levels of Islamic financial technology, adherence to Islamic financial principles, and various indicators of SME performance. The study employed multiple regression analysis to assess the relationships between the variables. Results indicate statistically significant positive correlations between the implementation of Islamic financial technology, adherence to Islamic financial principles, and SME performance. The regression model accounts for 79.5% of the variance in SME performance. Islamic financial technology adoption emerged as a particularly strong predictor of improved SME outcomes, suggesting the potential for technological innovation within an Islamic financial framework to drive business success. This research contributes to the growing body of literature on Islamic finance and financial technology in emerging markets. It provides empirical evidence for the potential synergies between Islamic financial principles and modern financial technology in enhancing SME performance in Indonesia. The findings have implications for policymakers, financial institutions, and SME owners in leveraging Islamic financial technology to promote sustainable economic growth.

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