Issue

Vol. 12 No. 2 (2025): December

Date Log

Submitted
15 July 2025
Accepted
17 March 2026
Published
31 December 2025

Copyright (c) 2025 Nurul Asfiah, Rizki Febriani, Ratya Shafira Arifiani, Aimi Anuar (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Islamic Work Ethic and SME Performance: Evidence from Indonesia and Malaysia

https://doi.org/10.24252/minds.v12i2.59627
Nurul Asfiah
Universitas Muhammadiyah Malang, Indonesia
Rizki Febriani
Universitas Muhammadiyah Malang, Indonesia
Ratya Shafira Arifiani
Universitas Muhammadiyah Malang, Indonesia
Aimi Anuar
Management and Science University, Indonesia

Corresponding Author(s) : Nurul Asfiah

[email protected]

Jurnal Minds: Manajemen Ide dan Inspirasi, Vol. 12 No. 2 (2025): December

Abstract

This study examines the effect of Islamic Work Ethic (IWE) on SME business performance in Indonesia and Malaysia through Innovative Work Behavior (IWB) and Islamic Social Entrepreneurship (ISE). The study advances the literature by demonstrating that Islamic ethical values influence firm performance through behavioral and entrepreneurial mechanisms rather than direct moral orientation alone. Using a quantitative explanatory design, data were collected from more than 300 SME owners in 2024 and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that IWE significantly enhances innovative work behavior and Islamic social entrepreneurship, both of which positively influence business performance, with innovative work behavior partially mediating the relationship. These findings indicate that embedding Islamic ethical principles in entrepreneurial practices strengthens innovation capacity and value creation, offering strategic guidance for SMEs seeking sustainable performance in Muslim-majority economies.

Keywords

Islamic Work Ethics innovative work behavior Islamic Social Entrepreneurship Business Performance SMEs
Asfiah, N., Febriani, R., Arifiani, R. S., & Anuar, A. (2025). Islamic Work Ethic and SME Performance: Evidence from Indonesia and Malaysia. Jurnal Minds: Manajemen Ide Dan Inspirasi, 12(2), 833–844. https://doi.org/10.24252/minds.v12i2.59627
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Author Biographies

Nurul Asfiah, Universitas Muhammadiyah Malang

Master in Management Department

Rizki Febriani, Universitas Muhammadiyah Malang

Management Department

Ratya Shafira Arifiani, Universitas Muhammadiyah Malang

Management Department

Aimi Anuar, Management and Science University

Faculty of Business

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