Integrating Islamic social finance and community service to promote inclusive economic development
Downloads
Background. The potential of Islamic social finance (ISF), which includes zakat, waqf, and sadaqah, extends beyond poverty alleviation and has increasingly been recognized as a catalyst for inclusive and sustainable economic development. However, the effectiveness of ISF initiatives largely depends on their integration with community service programs that ensure local participation, empowerment, and social inclusion. Despite its relevance, there is limited empirical evidence on how structured collaborations between ISF institutions and community-based services contribute to inclusive growth.
Purpose. This quantitative study aimed to examine the role of integrating Islamic social finance and community service in promoting inclusive economic development. Specifically, it explored whether the outcomes of such integration are influenced by four key factors: community participation, financial literacy, institutional governance, and technology adoption.
Method. The study involved 288 beneficiaries and stakeholders from zakat and waqf-based community programs across three regions in Indonesia. Data were collected through structured questionnaires and analyzed using statistical methods, including multiple regression and structural equation modeling (SEM).
Results. The findings reveal that programs combining Islamic social finance with community service significantly enhance local economic inclusivity through entrepreneurship development, skills training, and microfinance support. Moreover, community participation and financial literacy emerged as strong predictors of positive outcomes, while weak institutional governance reduced the overall impact of such initiatives.
Conclusion. This study highlights the importance of integrating ISF and community service to foster equitable and inclusive economic growth. It provides actionable insights for policymakers and practitioners to strengthen collaborative models, enhance governance, and utilize technology in managing Islamic social finance initiatives for sustainable community development.
Amrullah, A. M. K. (2025). Integrating Islamic Education with Environmental Programs: Strategies for Sustainable Character Development at SMAN 2 and 7 Malang Indonesia. Qualitative Report, 30(3), 3276–3287. https://doi.org/10.46743/2160-3715/2025.6020
Apipuddin. (2024). Integrating Electronic Information and Transaction Law (UU ITE) and Islamic Criminal Law: Addressing Malware-Based Data Theft. Al Ahkam Jurnal Ilmu Syari Ah Dan Hukum, 9(2), 154–170. https://doi.org/10.22515/alahkam.v9i2.10269
Asyiqin, I. Z. (2024). Integrating Sharia Principles with Environmental Sustainability: A DSN-MUI Fatwa Analysis in Islamic Capital Markets. E3s Web of Conferences, 594(Query date: 2025-08-03 04:47:00). https://doi.org/10.1051/e3sconf/202459404007
Azziz, R. (2022). Integrating Islamic Ruling and the Medical Concept: A Study of the Hermaphrodite Inheritance. Global Journal Al Thaqafah, 12(2), 172–182. https://doi.org/10.7187/gjat122022-11
Bhatti-Ali, R. (2023). Integrating Acceptance and Commitment Therapy with Islamic Psychotherapy for Managing Chronic Pain. Dalam Integrating Acceptance and Commitment Therapy with Islamic Psychotherapy for Managing Chronic Pain (hlm. 136). https://doi.org/10.4324/9781003329626
Cucchi, A. (2022). Integrating Cognitive Behavioural and Islamic Principles in Psychology and Psychotherapy: A Narrative Review. Journal of Religion and Health, 61(6), 4849–4870. https://doi.org/10.1007/s10943-022-01576-8
Elsotouhy, M. M. (2023). Integrating ISS and SOR models to investigate the determinants of continuance intention toward using m-payment for donations (Sadaqah): The moderating role of Islamic religiosity. International Journal of Bank Marketing, 41(7), 1640–1670. https://doi.org/10.1108/IJBM-11-2022-0498
Habiburrahim. (2022). Integrating English Subject Materials into Islamic Boarding School Curriculum Context: Insights from Aceh, Indonesia. Studies in English Language and Education, 9(2), 667–684. https://doi.org/10.24815/siele.v9i2.23279
Iqbal, M. (2022). Arsyad Al-Banjari’s Dialectical Model for Integrating Indonesian Traditional Uses into Islamic Law. Argumentation Through Languages and Cultures, Query date: 2025-08-03 04:47:00, 73–99. https://doi.org/10.1007/978-3-031-19321-7_5
Iqbal, S. (2024). Integrating Guillain-Barré Syndrome Awareness with Sustainable Islamic Business and Finance: A Path Towards Enhanced Health and Well-being. 2024 International Conference on Sustainable Islamic Business and Finance Sibf 2024, Query date: 2025-08-03 04:47:00, 278–283. https://doi.org/10.1109/SIBF63788.2024.10883843
Jan, A. A. (2022). Integrating sustainability practices into islamic corporate governance for sustainable firm performance: From the lens of agency and stakeholder theories. Quality and Quantity, 56(5), 2989–3012. https://doi.org/10.1007/s11135-021-01261-0
Khakim, U. (2024). Formulating an Islamic Corporate Social Responsibility (I-CSR) Model: Integrating Maq??id Shar?‘ah and I?s?n. Journal of Islamic Thought and Civilization, 14(2), 263–285. https://doi.org/10.32350/jitc.142.16
Khaliq, A. (2025). Ethical and sustainable finance: Integrating Islamic principles. Islamic Finance and Sustainable Development Balancing Spirituality Values and Profit, Query date: 2025-08-03 04:47:00, 113–141. https://doi.org/10.4324/9781003505570-8
Khan, N. (2025). Integrating halal tourism with sustainable development goals through Islamic values environmental responsibility and technological innovation. Discover Sustainability, 6(1). https://doi.org/10.1007/s43621-025-01503-3
Kismawadi, E. R. (2024). Integrating Islamic finance for sustainable development in industry 5.0. Sustainable Development in Industry and Society 5 0 Governance Management and Financial Implications, Query date: 2025-08-03 04:47:00, 48–66. https://doi.org/10.4018/979-8-3693-7322-4.ch003
Laksana, A. W. (2025). Integrating Maqasid al-Shari’ah in Contemporary Islamic Legal Reform on Drug Policy. Milrev Metro Islamic Law Review, 4(1), 416–439. https://doi.org/10.32332/milrev.v4i1.10665
Latif, J. (2024). Integrating Spiritual Interventions in Isl?mic Psychology: A Practical Guide. Dalam Integrating Spiritual Interventions in Islmic Psychology A Practical Guide (hlm. 190). https://doi.org/10.4324/9781003344827
Mahmud, S. (2024). INTEGRATING HOWARD GARDNER’S MULTIPLE INTELLIGENCES IN ISLAMIC EDUCATION: A SYSTEMATIC REVIEW OF INDONESIAN PRACTICES. Jurnal Ilmiah Peuradeun, 12(3), 1017–1050. https://doi.org/10.26811/peuradeun.v12i3.1215
Mardatillah, F. (2025). Integrating Islamic Educational Values in Higher Education: A Framework for Social Cohesion and Peacebuilding in Aceh. Journal of Peacebuilding and Development, Query date: 2025-08-03 04:47:00. https://doi.org/10.1177/15423166251342683
Mohidem, N. A. (2023). Integrating Environment with Health: An Islamic Perspective. Social Sciences, 12(6). https://doi.org/10.3390/socsci12060321
Muhajir, M. (2025). INTEGRATING MULTICULTURAL VALUES TO FOSTER TOLERANCE AND INCLUSIVITY IN ISLAMIC RELIGIOUS EDUCATION. Jurnal Pendidikan Islam, 11(1), 17–32. https://doi.org/10.15575/jpi.v11i1.44607
Norman, N. A. (2024). IBN SINA’S CONTRIBUTIONS TO MODERNITY: INTEGRATING MEDIEVAL PHILOSOPHY, NEUROPHILOSOPHY, AND EDUCATIONAL REFORM IN ISLAMIC THOUGHT AND CIVILISATION. Al Shajarah, 2024(Query date: 2025-08-03 04:47:00), 225–248. https://doi.org/10.31436/shajarah.vi.1936
Nugraha, T. C. (2024). INTEGRATING PROBLEM-BASED AND FLIPPED LEARNING IN ISLAMIC RELIGIOUS EDUCATION: A PATHWAY TO ACHIEVING SUSTAINABLE DEVELOPMENT GOALS. Jurnal Pendidikan Islam, 10(1), 125–136. https://doi.org/10.15575/jpi.v10i1.35204
Ramadhani, E. R. (2025). Integrating Islamic Values with the Right to Be Forgotten: A Legal Approach to Addressing Deepfake Pornography in Indonesia. De Jure Jurnal Hukum Dan Syar Iah, 17(1), 112–131. https://doi.org/10.18860/j-fsh.v17i1.28880
Rosli, M. H. (2023). INTEGRATING HALAL KNOWLEDGE TOWARDS SELECTION OF ISLAMIC BANKING PRODUCT: THE PERSPECTIVE OF MUSLIM STUDENTS. Journal of Fatwa Management and Research, 28(1), 32–44. https://doi.org/10.33102/jfatwa.vol28no1.504
Salim, A. (2024). Integrating Javanese culture in Islamic education: The role of Pathok Negara Mosque. Indonesian Journal of Islam and Muslim Societies, 14(2), 381–407. https://doi.org/10.18326/ijims.v14i2.381-407
Shahida. (2023). Green Academia: Integrating Islamic Teachings in Education for a Sustainable Future. Journal of Islamic Thought and Civilization, 13(2), 86–103. https://doi.org/10.32350/jitc.132.06
Smolo, E. (2024). Integrating islamic finance into the sustainable development goals (SDGs). Future of Islamic Finance from Shari Ah Law to Fintech, Query date: 2025-08-03 04:47:00, 65–82. https://doi.org/10.1108/978-1-83549-906-120241005
Sumanti, E. (2024). Integrating Hybrid Sharia Contracts in Letter of Credit (L/C) Transactions for Export and Import in Islamic Banking in Indonesia. Al Adalah, 21(2), 449–478. https://doi.org/10.24042/adalah.v21i2.23301
Syaharuddin, S. (2025). INTEGRATING CULTURAL AND RELIGIOUS VALUES IN EDUCATION: A WEB-BASED APPROACH TO PROMOTING SOCIAL AWARENESS IN ISLAMIC SCHOOLS. Jurnal Pendidikan Islam, 11(1), 47–62. https://doi.org/10.15575/jpi.v11i1.44605
Umar. (2025). Integrating Maja Labo Dahu culture in Islamic education: A module for character development in elementary students. Journal of Education and Learning, 19(2), 711–723. https://doi.org/10.11591/edulearn.v19i2.21801
Waluyo, B. (2024). Integrating gender awareness into EFL pedagogy: Insights from Indonesia’s Islamic universities. Issues in Educational Research, 34(3), 1180–1201.
Widiastuti, T. (2022). Integrating sustainable Islamic social finance: An Analytical Network Process using the Benefit Opportunity Cost Risk (ANP BOCR) framework: The case of Indonesia. Plos One, 17(5). https://doi.org/10.1371/journal.pone.0269039
Copyright (c) 2025 Nur Jamludin, Shofiah Tidjani, Didi Suardi, Iti Septi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
