Digital Capabilities, Islamic Financial Literacy, and Halal Orientation Driving Online MSME Sustainability

Meiliza Atikah Candraningtyas; Yunaita Rahmawati

doi:10.69725/jebi.v2i3.317

Authors

Meiliza Atikah Candraningtyas Department of Sharia Accounting, Faculty of Islamic Economics and Business, State Islamic Institute of Ponorogo, Ponorogo, Jawa Timur, 63492, Indonesia
Yunaita Rahmawati Department of Sharia Accounting, Faculty of Islamic Economics and Business, State Islamic Institute of Ponorogo, Ponorogo, Jawa Timur, 63492, Indonesia

DOI:

https://doi.org/10.69725/jebi.v2i3.317

Keywords:

Digital capability, Islamic business, Online trust, Financial inclusion, Sustainability performance

Abstract

Purpose: The purpose of this paper is to investigate how digital and Islamic strategic capacities are related to sustainability performance via the mediation of relational trust and financial inclusion.

Method: A structural survey-based quantitative methodology with variance based structural equation model was used to test the direct and mediated relationships.

Findings: From results, these strategic capabilities developed based on the foundation of digitalization and Islamic values do not contribute to sustainable performance automatically. Their success is contingent upon how well firms build online trust and adopt of inclusive digital financial services. Relation credibility re-enforces loyalty customers and operational stability, whereas digital financial inclusion improves transaction efficiency and financial resilience. Results indicate trust and financial inclusion as critical transmission mechanisms that help to spread the influence of organizational digital capability, Islamic financial literacy, halal orientation and digital marketing capability on long term sustainability performance.

Novelty: This paper presents a dual-mediation framework where relational and institutional mechanisms are collectively regulated by the Resource-Based View (RBV) and Dynamic Capabilities Theory, applied to an Islamic digital business setting.

Implications: The study contributes to theory by integrating fragmented capability–performance dynamics, and practitioners through advocating for the enhancing ethical digital strategies, trust-building process, and inclusive financial ecosystems for sustainable digital entrepreneurship.

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Author Biographies

Meiliza Atikah Candraningtyas, Department of Sharia Accounting, Faculty of Islamic Economics and Business, State Islamic Institute of Ponorogo, Ponorogo, Jawa Timur, 63492, Indonesia

Meiliza Atikah Candraningtyas is a dedicated student at the Sharia Accounting Study Programme, Faculty of Economics and Islamic Business, Institut Agama Islam Negeri Ponorogo. Her academic studies focus on the integration of Islamic financial principles with contemporary accounting practices, with a particular research interest in improving financial literacy and digital technology adoption among micro enterprises. As a young researcher, Zuna actively explores how sharia values can strengthen business resilience and build consumer trust. Through her commitment to knowledge development, she aspires to contribute to advancing a sustainable and inclusive Islamic economic ecosystem in Indonesia.
Yunaita Rahmawati, Department of Sharia Accounting, Faculty of Islamic Economics and Business, State Islamic Institute of Ponorogo, Ponorogo, Jawa Timur, 63492, Indonesia

Dr. Yunaita Rahmawati is a renowned academic and researcher at the Institut Agama Islam Negeri Ponorogo, specialising in Sharia Accounting. Many of her scientific works discuss Islamic financial reporting standards, governance of Islamic financial institutions, and Islamic micro-enterprise development. Her research not only contributes significantly to the scientific field, but also offers practical solutions for policy makers and industry players. As an educator, Dr Yunaita is committed to transferring the values of Islamic business ethics and fostering a new generation of Islamic accountants who are competent and have high integrity.

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