Perniagaan Muafakat with tawakkal (reliance on Allah) and ummatic (collectiveness)

Mhd. Sarif, Suhaimi and Zainudin, Dolhadi and Ismail, Yusof and Yahya, Rohaziah (2025) Perniagaan Muafakat with tawakkal (reliance on Allah) and ummatic (collectiveness). IIUM Journal of Case Studies in Management, 16 (1). pp. 76-88. ISSN 2810-2327 E-ISSN 2710-7175

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Abstract

Perniagaan Muafakat, a sole proprietorship founded by Haji Muafakat, serves as a remarkable example of Islamic business ethics in practice, grounded in the principles of mutual assistance (muafakat), communal responsibility (fardu kifayah), and reliance on Allah (tawakkal). Starting modestly as a small grocery shop, the business gradually expanded its operations to include a bakery, printing center, laundry, hardware store, and trading entity, each carefully tailored to address the evolving needs of the local community. These ventures were not merely profit-oriented but were established with the intention of serving as a source of barakah (blessings) by fulfilling the communal obligation to provide essential goods and services. This case study provides an in-depth analysis of the challenges Perniagaan Muafakat faced, such as competition from large malls and digital marketplaces, disruptions brought about by the COVID-19 pandemic, and the complexities of succession planning. It also evaluates the innovative solutions implemented to address these challenges, such as adopting digital tools, introducing loyalty programs, and fostering a deeper sense of community trust and collaboration. By drawing comparisons with similar community-driven business models, the study highlights how Perniagaan Muafakat stands apart as a business anchored in faith and ethical entrepreneurship. The discussion in the case study elaborates on how the adherence to Islamic principles differentiates Perniagaan Muafakat from conventional businesses. Core values such as syukur (gratitude), ihsan (excellence), and ta’awun (mutual assistance) guide its operations, ensuring that the business prioritizes service to the community over profit maximization. Furthermore, the integration of halal assurance and ethical supply chain practices strengthens customer trust and sets a benchmark for other enterprises to follow. Future implications of this case study are also explored, particularly in the realm of digital transformation. The analysis delves into how traditional, value-based businesses like Perniagaan Muafakat can leverage digital tools to enhance operational efficiency while preserving their core values of personalized service and community engagement. Additionally, the study identifies potential research areas, such as scaling ethical business models to larger markets, incorporating Islamic business ethics into educational curricula, and studying the role of technology in sustaining traditional enterprises.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Diversification, Tawakkal, Ta’awun, Ummatic
Subjects:	BPH Islamic Economics > BPH830.3 Social systems. Urban groups. Cities and towns. Sustainable urban development BPL Islamic education > BPL27 Aims and objectives of education. Sustainable education H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5387 Business ethics
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Business Administration
Depositing User:	Dr Suhaimi Mhd Sarif
Date Deposited:	21 Mar 2025 08:32
Last Modified:	21 Mar 2025 08:59
URI:	http://irep.iium.edu.my/id/eprint/120339

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