The role of spirituality dimension in the sustainability of Islamic banking: a combined structural equation modeling and artificial neural network approach

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Hamidi, M Luthfi
Zobair, Khondker Mohammad
Pratama, Abdul Aziz Nugraha
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2023
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Abstract

Understanding the role of spirituality in Islamic banking sustainability is pivotal, yet current literature within this avenue remains inadequate. The present research investigates the role of the spiritual dimension (Prophet) through different theoretical and methodological lenses. We apply the quadruple bottom line theory (Prosperity, People, Planet, Prophet) and employ structural equation modeling and artificial neural network techniques to investigate the issue. Primary data were gathered in six provinces in Indonesia through a survey resulting in 506 usable respondents. The findings of this study suggest that the Prophet dimension is considered to be more prioritized than the prosperity (profit) dimension. Consequently, in the future, practitioners need to dynamically adjust to conducting more ethical business (Prophet) rather than emphasizing the pursuit of profits (prosperity). The regulator is encouraged to provide incentives for Islamic banks undertaking social functions (people) and conserving the environment (planet).

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Environment, Development and Sustainability

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This publication has been entered in Griffith Research Online as an advanced online version.

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Banking, finance and investment

Information systems for sustainable development and the public good

Agriculture, land and farm management

Environmental management

Development studies

Science & Technology

Life Sciences & Biomedicine

Green & Sustainable Science & Technology

Environmental Sciences

Science & Technology - Other Topics

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Hamidi, ML; Zobair, KM; Pratama, AAN, The role of spirituality dimension in the sustainability of Islamic banking: a combined structural equation modeling and artificial neural network approach, Environment, Development and Sustainability, 2023

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