Growing the Performance of SMEs with Islamic Financial Literacy and Spirituality

SMEs can achieve sustainable competitive advantage and superior profitability if they possess valuable resources and capabilities. Financial literacy is one such intangible resource that helps equip individuals with the knowledge and information necessary to manage budgets and make strategic investm...

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Main Authors: Mardiana, Achmad Sani Supriyanto, Ilfi Nur Diana, Eko Suprayitno, Vivin Maharani Ekowati
Format: Article
Language:English
Published: University of Brawijaya 2025-07-01
Series:Jurnal Aplikasi Manajemen
Subjects:
Online Access:https://jurnaljam.ub.ac.id/index.php/jam/article/view/8599
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author Mardiana
Achmad Sani Supriyanto
Ilfi Nur Diana
Eko Suprayitno
Vivin Maharani Ekowati
author_facet Mardiana
Achmad Sani Supriyanto
Ilfi Nur Diana
Eko Suprayitno
Vivin Maharani Ekowati
author_sort Mardiana
collection DOAJ
description SMEs can achieve sustainable competitive advantage and superior profitability if they possess valuable resources and capabilities. Financial literacy is one such intangible resource that helps equip individuals with the knowledge and information necessary to manage budgets and make strategic investment decisions. Financial literacy is a person's knowledge of improving the quality of decision-making and financial management to achieve welfare. This study aims to determine the effect of Islamic financial literacy of SMEs actors on the growth of SMEs’ performance. Testing the Islamic spirituality as moderating the effect of Islamic financial literacy on the spirituality of SMEs’ performance. The method used in this study is quantitative research with an explanatory approach to prove the truth of the hypothesis. The population in this study consisted of small and medium-sized enterprises (SMEs) actors in Malang City, East Java, with the criteria of being Muslim. The sample used in the study was obtained using the Slovin formula with a precision of 5%, so a sample of 200 respondents was obtained. The data collection technique used a questionnaire distributed to 200 respondents and analyzed using Partial Least Squares (PLS). The findings reveal that Islamic financial literacy directly and significantly affects SMEs’ performance. Islamic spirituality can moderate the effect of Islamic financial literacy on SMEs’ performance. Based on the results of this study, it is hoped that SMEs’ actors will know what factors need to be considered to improve their business performance. Future studies should include other variables and expand the topic of discussion regarding the sustainability of SMEs’ performance related to innovation, Islamic business ethics, and spirituality in the workplace.
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institution Kabale University
issn 1693-5241
2302-6332
language English
publishDate 2025-07-01
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series Jurnal Aplikasi Manajemen
spelling doaj-art-55ff733adc8e47c68037da73e2b5c56b2025-08-21T07:39:11ZengUniversity of BrawijayaJurnal Aplikasi Manajemen1693-52412302-63322025-07-01231637410.21776/ub.jam.2025.023.1.048104Growing the Performance of SMEs with Islamic Financial Literacy and SpiritualityMardiana0Achmad Sani Supriyanto1Ilfi Nur Diana2Eko Suprayitno3Vivin Maharani Ekowati4Universitas Islam Negeri Maulana Malik Ibrahim MalangUniversitas Islam Negeri Maulana Malik Ibrahim MalangUniversitas Islam Negeri Maulana Malik Ibrahim MalangUniversitas Islam Negeri Maulana Malik Ibrahim MalangUniversitas Islam Negeri Maulana Malik Ibrahim MalangSMEs can achieve sustainable competitive advantage and superior profitability if they possess valuable resources and capabilities. Financial literacy is one such intangible resource that helps equip individuals with the knowledge and information necessary to manage budgets and make strategic investment decisions. Financial literacy is a person's knowledge of improving the quality of decision-making and financial management to achieve welfare. This study aims to determine the effect of Islamic financial literacy of SMEs actors on the growth of SMEs’ performance. Testing the Islamic spirituality as moderating the effect of Islamic financial literacy on the spirituality of SMEs’ performance. The method used in this study is quantitative research with an explanatory approach to prove the truth of the hypothesis. The population in this study consisted of small and medium-sized enterprises (SMEs) actors in Malang City, East Java, with the criteria of being Muslim. The sample used in the study was obtained using the Slovin formula with a precision of 5%, so a sample of 200 respondents was obtained. The data collection technique used a questionnaire distributed to 200 respondents and analyzed using Partial Least Squares (PLS). The findings reveal that Islamic financial literacy directly and significantly affects SMEs’ performance. Islamic spirituality can moderate the effect of Islamic financial literacy on SMEs’ performance. Based on the results of this study, it is hoped that SMEs’ actors will know what factors need to be considered to improve their business performance. Future studies should include other variables and expand the topic of discussion regarding the sustainability of SMEs’ performance related to innovation, Islamic business ethics, and spirituality in the workplace.https://jurnaljam.ub.ac.id/index.php/jam/article/view/8599growthislamic financial literacyislamic spiritualityperformancesmes
spellingShingle Mardiana
Achmad Sani Supriyanto
Ilfi Nur Diana
Eko Suprayitno
Vivin Maharani Ekowati
Growing the Performance of SMEs with Islamic Financial Literacy and Spirituality
Jurnal Aplikasi Manajemen
growth
islamic financial literacy
islamic spirituality
performance
smes
title Growing the Performance of SMEs with Islamic Financial Literacy and Spirituality
title_full Growing the Performance of SMEs with Islamic Financial Literacy and Spirituality
title_fullStr Growing the Performance of SMEs with Islamic Financial Literacy and Spirituality
title_full_unstemmed Growing the Performance of SMEs with Islamic Financial Literacy and Spirituality
title_short Growing the Performance of SMEs with Islamic Financial Literacy and Spirituality
title_sort growing the performance of smes with islamic financial literacy and spirituality
topic growth
islamic financial literacy
islamic spirituality
performance
smes
url https://jurnaljam.ub.ac.id/index.php/jam/article/view/8599
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AT ilfinurdiana growingtheperformanceofsmeswithislamicfinancialliteracyandspirituality
AT ekosuprayitno growingtheperformanceofsmeswithislamicfinancialliteracyandspirituality
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