Disertasi-Staff STMIK AMIKOM Yogyakarta, Vol 1, No 1 (2007)

Font Size:  Small  Medium  Large

The Influence of the Implementation of Sharia Principles toward the Bank Performance, the Employees’ Welfare, and the Welfare of Society Involved in the Sharia Banks Acvtivities in Indonesia.

Mohammad Suyanto

Abstract


The study examines the influence of the implementation of sharia principles toward the bank performance, the employees’ welfare and the welfare of society involved in the Sharia Banks activities in Indonesia between 2002 and 2006. The structural equation modeling (SEM) is used to analyze a series of dependence relationships among variables simultaneously.

The finding of the study indicates that the implementation of sharia principles has a positive and significant influence towards the Sharia Bank performance.  The implementation of sharia principles has an insignificant influence toward the welfare of society involved in the Sharia Banks activities in Indonesia. The implementation of sharia principles has an insignificant influence toward the employees’ welfare. The bank performance has a positive and significant influence toward the employees’ welfare. The bank performance has a positive and significant influence toward the welfare of society involved in the Sharia Banks activities in Indonesia.

Other findings show an indirect effect, namely, the implementation of sharia principles with the bank performance as the intervening variable have a positive and significant influence toward the employees’ welfare. The implementation of sharia principles with the bank performance as the intervening variable have a positive and significant influence on the welfare of society involved in the Sharia Banks activities in Indonesia.

Based on the findings of the study, it can be concluded that the more excellent the implementation of sharia principles is applied, the more consistent and proper the manner on sharia bank would improve the sharia bank performance. Moreover, the excellent performance would in turn exert a significance effect on the welfare of employees and society involved in the activities of Sharia Banks in Indonesia.

 

Keyword : Islamic bank, bank performance, employees and  society welfare.