Is Halal Financing Enough: Digital Ecosystems and MSME Sustainability
DOI:
https://doi.org/10.55606/jumia.v4i3.4518Keywords:
Digital Ecosystem, Halal Financing, Islamic Finance, MSME, SustainabilityAbstract
This study seeks to explore how halal financing contributes to the sustainability of MSMEs, while also examining the role of the digital ecosystem as a mediating factor in this relationship. A quantitative approach was employed in this study, utilizing primary data gathered from 102 MSME actors in the Bandung area. The analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate both the direct and indirect relationships among the variables. The results indicate that halal financing exerts a positive and statistically significant influence on MSME sustainability. Furthermore, halal financing is found to significantly enhance the digital ecosystem, which subsequently contributes positively to MSME sustainability. The mediation analysis demonstrates that the digital ecosystem partially mediates the relationship between halal financing and MSME sustainability. This suggests that the effectiveness of financial access is strengthened when it is complemented by digital integration.This study concludes that halal financing alone is not sufficient to ensure MSME sustainability. Instead, its effectiveness depends on the ability of MSMEs to leverage digital ecosystems. Therefore, the integration of Islamic financial services and digital technologies is essential for achieving sustainable MSME development
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