Achieving SMEs’ excellence: scale development of Islamic entrepreneurship from business and spiritual perspectives
Journal of Islamic Accounting and Business Research
ISSN: 1759-0817
Article publication date: 8 August 2023
Abstract
Purpose
This paper investigates the effect of Islamic entrepreneurship on small and medium-sized enterprises' (SMEs) business performance and the development of a framework to comprehensively investigate Islamic entrepreneurship to achieve competitive business advantages. Islamic entrepreneurship was measured through the Islamic entrepreneurial model, which is based on two unobserved constructs: business and spiritual perspectives. These two constructs were used as predictors of business performance. This paper aims to develop a new scale of Islamic entrepreneurship from business and spiritual perspectives to achieve SMEs’ successful business performance.
Design/methodology/approach
In total, 189 Muslim respondents were involved and analyzed their responses using exploratory factor analysis and confirmatory composite analysis.
Findings
The empirical findings proved that the Islamic entrepreneurial scale with two perspectives is an absolute measure. Besides, the predictive validity findings revealed that business (i.e. trustworthiness, honesty and truthfulness) and spiritual perspectives of Islamic entrepreneurship (i.e. Taqwa, good intention and respecting religious obligations) positively affected SMEs’ business performance.
Originality/value
The novelty of this study lies in expanding the existing research, developing a measurement scale and empirically testing the Islamic entrepreneurship model. To the best of the authors’ knowledge, this is the first study that contributes to the Islamic entrepreneurship literature in the SME context and offers new avenues for potential researchers. The new scale will allow SMEs to understand the halal and haram concepts in more depth and apply the Islamic rules and principles with full spirit.
Keywords
Acknowledgements
Funding: The authors report there is no financial funding for this work.
Disclosure statement: The authors report there are no competing interests to declare.
Data availability statement: The data that support the findings of this study are available from the corresponding author upon reasonable request.
Citation
Raza, M., Khalique, M., Khalid, R., Kasuma, J., Ali, W. and Selem, K.M. (2023), "Achieving SMEs’ excellence: scale development of Islamic entrepreneurship from business and spiritual perspectives", Journal of Islamic Accounting and Business Research, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JIABR-02-2023-0060
Publisher
:Emerald Publishing Limited
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