Does Islamic banking spur the business growth ? : an empirical investigation in the creative economy sector in Pekanbaru, Indonesia

Rukiah, Rukiah (2020) Does Islamic banking spur the business growth ? : an empirical investigation in the creative economy sector in Pekanbaru, Indonesia. ResearchGate. pp. 1-22.

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Abstract

The creative economy has become a new wave of the world economy and also Indonesia since it provides an alternative to improve people's welfare. Unfortunately, its presence has not attracted financial institutions to penetrate widely in this sector, including Islamic Banking. This study aims to investigate whether the Islamic Banking is able to spur business growth in the creative economy sector by assessing of Islamic financial inclusion. We also assessing several variables, namely marketing communication and socio-cultural. This study is designed by using SEM approach which involved four latent variables and eleven manifest variables. The respondents are 76 business actors in the creative economy sector, with the criteria that they have already conducted transactions with Islamic banking, either in the form of opening accounts, saving or making financing. The results indicate that the Islamic banking is able to spur the business growth in the creative economy sector in Pekanbaru. This is evidenced by the results of statistical tests where Islamic financial inclusion has a positive and significant impact on business growth. The factors that cause the creative economy sector to be willing to conduct transactions with Islamic banking are the presence of marketing communication carried out by Islamic banking and socio-cultural business actors in the creative economy sector. Such a result has implication in which it is crucial for Islamic banking to penetrate more widely to business actors in the creative economy sector.

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