Baitul Maal Wat Tamwil: The Strategy of Performance Improvement in Indonesia

Abstract

The purpose of this study is to analyze and explain Baitul Mal wat Tamwil (BMT) performance improvement strategies, an Islamic microfinance institution that is in the midst of the largest Muslim community in the world. This study uses knowledge claims for pragmatism with a quantitative approach. The sample was the CEO/Manager of BMT as many as 283 respondents from all provinces in Java by using a questionnaire as a primary data source and analyzed using PLS. The value in this study uses both mediation intellectual capital and organizational commitment to find the relationship between Islamic business ethics on BMT performance. The findings reveal that Islamic business ethics has a significant effect on BMT performance, which is mediated by organizational commitment, although it is underperforming if mediated by intellectual capital. However, all variables partially have a significant effect on BMT performance.Keywords: Strategy, Islamic Business Ethics, Intellectual Capital, Organizational CommitmentJEL Classifications: G210, M140, D230DOI: https://doi.org/10.32479/ijefi.9179