Embedding Islamic Business Ethics in MSMEs: Insights from an Indonesian Case Study

Rachmiya Saputri; Muhammad Fahri; Ilham Azra Putra; Dedi Albekri; Muhammad Redho Yulizar

doi:10.61987/edsojou.v2i2.2203

Authors

Rachmiya Saputri Universitas Islam Nusantara Al-Azhaar
Muhammad Fahri Universitas Islam Nusantara Al-Azhaar
Ilham Azra Putra Universitas Islam Nusantara Al-Azhaar
Dedi Albekri Universitas Islam Nusantara Al-Azhaar
Muhammad Redho Yulizar Universitas Islam Nusantara Al-Azhaar

DOI:

https://doi.org/10.61987/edsojou.v2i2.2203

Keywords:

Islamic Business Ethics Analyze, MSMe, Sharia Economics, Markisaku Syrup

Abstract

This study aims to analyze the application of Islamic business ethics principles in the MSME Sirup Markisaku, a Sharia-based small business located in Lubuklinggau. Islamic business ethics, encompassing principles of honesty, fairness, transparency, and care, are considered essential in MSME operations to ensure business sustainability and foster trust with consumers and partners. This research utilizes a qualitative approach through in-depth interviews with the MSME owner, employees, business partners, and consumers. The findings reveal that Sirup Markisaku has implemented the principle of honesty in product information disclosure, maintaining the quality of raw materials, and ensuring fair pricing for consumers. Additionally, transparency in operations and profit-sharing is practiced to maintain equitable relationships with business partners and employees. However, certain areas still need improvement, such as enhancing transparency in financial reporting and providing further training for employees on Sharia business ethics. This study contributes to the development of Sharia-based MSMEs by offering recommendations on how Islamic business ethics principles can be strengthened and applied more effectively to support business growth and sustainability.

References

AL-Hersh, N. F., & Masron, T. A. (2023). The Role of Culture on Islamic Finance: A Comparative Analysis from Islamic Finance Permitting Countries. Journal of the Knowledge Economy. https://doi.org/10.1007/s13132-023-01579-0

Albar, K. (2023). The Existence of Fintech as a Financing Instrument in Improving Financial Inclusion for MSMEs in Sidayu District. International Journal on Social Science, Economics and Art, 13(3), 185–193. https://doi.org/https://doi.org/10.35335/ijosea.v13i3.404

Albar, K., Abubakar, A., & Arsyad, A. (2023). Islamic Business Ethics in Online Commerce: A Perspective from Maqashid Shariah by Imam Haramain. Jurnal Islam Nusantara, 7(2), 273. https://doi.org/10.33852/jurnalnu.v7i2.501

Alqhaiwi, Z. O., Koburtay, T., & Syed, J. (2024). The Interplay Between Islamic Work Ethic, Unethical Pro Behaviors, and Moral Identity Internalization: The Moderating Role of Religiosity. Journal of Business Ethics, 193(2), 393–408. https://doi.org/10.1007/s10551-023-05527-5

Astuti, S. D., Shodikin, A., & Ud-Din, M. (2020). Islamic Leadership, Islamic Work Culture, and Employee Performance: The Mediating Role of Work Motivation and Job Satisfaction. Journal of Asian Finance, Economics and Business, 7(11), 1059–1068. https://doi.org/10.13106/jafeb.2020.vol7.no11.1059

Chakraborty, L. (2024). Gender Budgeting: Public Financial Management Tool for Accountability. 409, 1–26.

Firdaus, A., Sudarmo, Noor, M. A., Safkaur, T. L., Suprayitno, D., & Setiawan, A. (2024). Job Satisfaction as a Mediation of Transformational Leadership on Organizational Commitment and Employee Performance. Journal of Lifestyle and SDGs Review, 5(2), e03140. https://doi.org/10.47172/2965-730x.sdgsreview.v5.n02.pe03140

Geletu, G. M., & Mihiretie, D. M. (2023). Professional Accountability and Responsibility of Learning Communities of Practice in Professional Development Versus Curriculum Practice in Classrooms: Possibilities and Pathways. International Journal of Educational Research Open, 4(July 2022), 100223. https://doi.org/10.1016/j.ijedro.2022.100223

Hasanudin, H. (2023). Effective Financial Management Strategies to Improve MSME Performance. Journal of Economics and Business (JECOMBI), 3(03), 132–137. https://doi.org/10.58471/jecombi.v3i03.60

Hidayat, M. T., & Witta, S. R. (2024). Halal Certification and Implications for MSMEs: A Systematic Literature Review. Journal of Business Management and Islamic Banking, 03(2), 151–166. https://doi.org/10.14421/jbmib.v3i1.2373

Hirose, M., & Creswell, J. W. (2023). Applying Core Quality Criteria of Mixed Methods Research to an Empirical Study. Journal of Mixed Methods Research, 17(1), 12–28. https://doi.org/10.1177/15586898221086346

Iqbal, M. N. (2024). The Role of Social Media in Shaping Consumer Decisions and Brand Perceptions. In Sustainability, Innovation, and Consumer Preference (pp. 197–225). https://doi.org/10.4018/979-8-3693-9699-5.ch009

Köhler, T. (2024). Multilevel Qualitative Research: Insights from Practice. European Management Journal, 42(4), 503–514. https://doi.org/10.1016/j.emj.2024.03.011

Lubis, F. M., Sami’un, Basyirah, Febrian, W. D., & Wijaya, I. K. K. (2024). Exploration of Competency-Based Performance Management Practices in Driving Employee Career Development: A Case Study in the Financial Services Company. Dinasti International Journal of Economics, Finance & Accounting, 5(2), 736–745.

Maheshkar, C., & Soni, N. (2021). Problems Faced by Indian Micro, Small and Medium Enterprises (MSMEs). SEDME (Small Enterprises Development, Management & Extension Journal): A Worldwide Window on MSME Studies, 48(2), 142–159. https://doi.org/10.1177/09708464211064498

Meliza, J., Erwansyah, E., Harianto, H., & Ariffin, K. H. K. (2023). Islamic Entrepreneurship Nurturing New Ventures through Islamic Principles. In Strategies and Applications of Islamic Entrepreneurship (pp. 56–66). https://doi.org/10.4018/978-1-6684-7519-5.ch004

Muhammad, H., Moeljadi, Indrawati, N. K., & Djazuli, A. (2019). Understanding Islamic Spiritual Leadership Applied in Business: A Case Study at Baitul Mal Wat Tamwil Usaha Gabungan Terpadu Sidogiri Indonesia. International Journal of Engineering and Advanced Technology, 8(5C), 112–118. https://doi.org/10.35940/ijeat.E1016.0585C19

Nambira, N., Geoffrey, G., & Namene, K. (2020). Empirical Evidence on the Perceptions of Msmes Entrepreneurs on Operational Management Knowledge, Skills and Business Growth. Strategic Journal of Business & Change Management, 7(1), 893–910. https://doi.org/10.61426/sjbcm.v7i1.1598

Perdana, F. F. P., & Habir, A. D. (2024). A Framework for Risk Mitigation in Halal Self-Declaration for SMEs and MSMEs in Indonesia. Journal of Contemporary Islamic Studies, 10(1), 1–10. https://doi.org/10.24191/jcis.v10i1.2

Rahman, M. M., Razimi, M. S. A., Ariffin, A. S., & Hashim, N. (2024). Navigating Moral Landscape: Islamic Ethical Choices and Sustainability in Halal Meat Production and Consumption. Discover Sustainability, 5(1), 225. https://doi.org/10.1007/s43621-024-00388-y

Sinha, K. J., Shweta, S., & Jee, B. (2024). Micro, Small, and Medium-Sized Enterprises (MSMEs): The Significant Role and Challenges in Indonesia’s Economy. International Journal For Multidisciplinary Research, 6(3), 20824. https://doi.org/10.36948/ijfmr.2024.v06i03.20824

Sulaiman, R., Toulson, P., Brougham, D., Lempp, F., & Haar, J. (2022). The Role of Religiosity in Ethical Decision-Making: A Study on Islam and the Malaysian Workplace. Journal of Business Ethics, 179(1), 297–313. https://doi.org/10.1007/s10551-021-04836-x

Sutrisno, S., Permana, R. M., & Junaidi, A. (2023). Education and Training as a Means of Developing MSME Expertise. Journal of Contemporary Administration and Management (ADMAN), 1(3), 137–143. https://doi.org/10.61100/adman.v1i3.62

Tarjo, T., Anggono, A., Alim, M. N., Said, J., & Mohd-Sanusi, Z. (2024). Religiosity, Ethical Leadership and Local Wisdom in Moderating the Effect of Fraud Risk Management on Asset Misappropriation: Evidence from Local Government in Indonesia. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-09-2022-0227

Thamrin, N., Solihat, D., & Agustiana, V. (2024). Business English Literacy in Improving the Effectiveness of MSME Businesses. International Journal Administration, Business & Organization, 5(4), 91–100. https://doi.org/10.61242/ijabo.24.419

Wijayanti, T., Hidayatullah, H., & Prasetiya, B. (2022). The Influence of Visionary Leadership and Managerial Accountability towards Competitive Advantage. AL-TANZIM: Jurnal Manajemen Pendidikan Islam, 6(4), 1115–1125. https://doi.org/10.33650/al-tanzim.v6i4.3227

Yoana, Auwalin, I., & Rumayya. (2024). The Role of Vocational Education on Unemployment in Indonesia. Cogent Education, 11(1), 2519–2525. https://doi.org/10.1080/2331186X.2024.2340858

Zaki, I., Zusak, M. B. F., Mi’raj, D. A., & Hasib, F. F. (2022). Islamic Community-based Business Cooperation and Sustainable Development Goals: A Case of Pesantren Community in Indonesia. International Journal of Ethics and Systems, 38(4), 621–632. https://doi.org/10.1108/IJOES-12-2021-0218