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Driver of Islamic banking market share in Indonesia

Author

Listed:
  • Finorita Fauzi
  • Mts Arief
  • Anita Maharani
  • Pantri Heriyati

Abstract

The growth of Islamic banks in Indonesia remains relatively low and unsatisfactory. Furthermore, the study of the Islamic banking market share is still lacking and crucial. This study aims to test the effect of market orientation, technology adoption, ambidextrous leadership, intellectual capital, and competitive advantage on the market share of Islamic banks in Indonesia. The unit of analysis for this study comprises the senior leaders and middle management of Islamic banks in Indonesia. Data were collected in 2024 through a sample size of 400 participants. Structural Equation Modeling (SEM) was utilized for data analysis, employing LISREL software. The findings suggest that market orientation, technology adoption, ambidextrous leadership, and intellectual capital contribute to competitive advantage. Market orientation, technology adoption, and ambidextrous leadership do not directly influence market share, but intellectual capital has a direct impact. Competitive advantage contributes to market share, with its influence being more significant when supported by market orientation, technology adoption, and ambidextrous leadership. This shows a crucial contribution of competitive advantage in expanding the market share of Islamic banking in Indonesia, where the support of intellectual capital will have a greater impact. These findings offer valuable managerial implications to enhance the market share of Islamic banks.

Suggested Citation

  • Finorita Fauzi & Mts Arief & Anita Maharani & Pantri Heriyati, 2025. "Driver of Islamic banking market share in Indonesia," International Journal of Innovative Research and Scientific Studies, Innovative Research Publishing, vol. 8(3), pages 3089-3100.
  • Handle: RePEc:aac:ijirss:v:8:y:2025:i:3:p:3089-3100:id:7169
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