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Human Capital Drivers To Service Innovation: Evidence From Islamic Banking In Indonesia

Author

Listed:
  • Ruspita Rani Pertiwi

    (Islamic State University Sunan Kalijaga, Indonesia)

  • Syayyidah Maftuhatul Jannah

    (Islamic State University Sunan Kalijaga, Indonesia)

  • Fajar Sodik

    (Islamic State University Sunan Kalijaga, Indonesia)

Abstract

This study examines the human capital drivers and how they contribute to service innovation in Indonesian Islamic banking. A questionnaire is used to gather data from a total of 225 Islamic banking employees, and then partial least squares structural equation modeling (PLS-SEM) is applied for data analysis. Moreover, the Maqashid Sharia concept from Abu Zaharah is used to enrich the study findings from an Islamic viewpoint. The findings reveal that human capital drivers comprising leadership strategies, employee engagement, and workforce optimization have both direct and indirect positive effects on service innovation. We believe that our key contribution to the work is providing a service innovation model, where the constructs in the framework employed so far have not been studied comprehensively in the context of Islamic organizations. Furthermore, the developed model integrates more relevant factors to the construction of a strategic human capital management system that can boost service innovation in Islamic banking.

Suggested Citation

  • Ruspita Rani Pertiwi & Syayyidah Maftuhatul Jannah & Fajar Sodik, 2024. "Human Capital Drivers To Service Innovation: Evidence From Islamic Banking In Indonesia," Journal of Islamic Monetary Economics and Finance, Bank Indonesia, vol. 10(2), pages 221-248, June.
    • Handle: RePEc:idn:jimfjn:v:10:y:2024:i:2a:p:221-248
    DOI: https://doi.org/10.21098/jimf.v10i2.1969
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    More about this item

    Keywords

    Human capital drivers; Service innovation; Islamic banking;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services

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