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The role of spirituality dimension in the sustainability of Islamic banking: a combined structural equation modeling and artificial neural network approach

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  • M. Luthfi Hamidi

    (Universitas Islam Internasional Indonesia)

  • Khondker Mohammad Zobair

    (Griffith University)

  • Abdul Aziz Nugraha Pratama

    (UIN Salatiga)

Abstract

Understanding the role of spirituality in Islamic banking sustainability is pivotal, yet current literature within this avenue remains inadequate. The present research investigates the role of the spiritual dimension (Prophet) through different theoretical and methodological lenses. We apply the quadruple bottom line theory (Prosperity, People, Planet, Prophet) and employ structural equation modeling and artificial neural network techniques to investigate the issue. Primary data were gathered in six provinces in Indonesia through a survey resulting in 506 usable respondents. The findings of this study suggest that the Prophet dimension is considered to be more prioritized than the prosperity (profit) dimension. Consequently, in the future, practitioners need to dynamically adjust to conducting more ethical business (Prophet) rather than emphasizing the pursuit of profits (prosperity). The regulator is encouraged to provide incentives for Islamic banks undertaking social functions (people) and conserving the environment (planet).

Suggested Citation

  • M. Luthfi Hamidi & Khondker Mohammad Zobair & Abdul Aziz Nugraha Pratama, 2024. "The role of spirituality dimension in the sustainability of Islamic banking: a combined structural equation modeling and artificial neural network approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 21567-21593, August.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:8:d:10.1007_s10668-023-03545-x
    DOI: 10.1007/s10668-023-03545-x
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