Enhancing the MSME Islamic financial inclusion in Indonesia: an institutional theory perspective

Saifurrahman, Adi and Kassim, Salina (2023) Enhancing the MSME Islamic financial inclusion in Indonesia: an institutional theory perspective. Journal of Accounting and Finance, 23 (2). pp. 6-25. ISSN 2158-3625

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Abstract

The concept of financial inclusion is a complex problem, and it was constructed by several aspects ranging from socio-cultural, psychological, economic, geographical and political issues. Financial inclusion under the conceptualisation of institutional theory highlights the role of institutions in active markets, government, communities and societies in explaining the financial exclusion phenomenon, emphasising its vital position as the component in influencing the realisation of financial inclusion. By implementing this theory, the main objective of this study is to examine and identify the roles of involved institutions as a critical determining factor to attain Islamic financial inclusion for the Micro, Small, and Medium-sized Enterprise (MSME) sector in Indonesia by incorporating the notion of “Institutional Isomorphism” in their operation. This study suggests that by integrating the institutional pressure in the institutional environment of the three involving sectors, namely: The public sector, Islamic financial services providers and the MSMEs industry, this system will intensify the chance of the MSMEs sector in embracing Islamic financial inclusion, improve their productivity, and contribution to Indonesia’s sustainable economy.

Item Type:	Article (Journal)
Uncontrolled Keywords:	financial inclusion, Indonesia, institutional theory, Islamic Financial Inclusion, MSME
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HG Finance H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Prof. Dr. Salina Kassim
Date Deposited:	19 Jan 2024 08:56
Last Modified:	19 Jan 2024 08:56
URI:	http://irep.iium.edu.my/id/eprint/110251

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