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The Impact of Marketing Communication and Islamic Financial Literacy on Islamic Financial Inclusion and MSMEs Performance: Evidence from Halal Tourism in Indonesia

Author

Listed:
  • Siti Mujiatun

    (Faculty of Economic and Business, Universitas Muhammdiyah Sumatera Utara, Medan 20238, Indonesia)

  • Budi Trianto

    (STEI Iqra Annisa, Pekanbaru 28291, Indonesia)

  • Eko Fajar Cahyono

    (Faculty of Economic and Business, Universitas Airlangga, Surabaya 60132, Indonesia
    School of Business and Economics, Universiti Putra Malaysia, Serdang 4330, Malaysia)

  • Rahmayati

    (Faculty of Islamic Religion, Universitas Muhammdiyah Sumatera Utara, Medan 20238, Indonesia)

Abstract

The development of halal tourism in Indonesia is the focus of the Indonesian government and MSMEs have an important role in supporting the development of halal tourism in Indonesia. This study aims to examine the relationship between marketing communication and Islamic financial literacy on Islamic financial inclusion and MSME performance in the halal-tourism sector. A covariance-based SEM technique utilizing LISREL software was used to analyze the data from this investigation. Nonprobability sampling was employed to collect the data, and the sample consists of 152 halal-tourism entrepreneurs. This study found a positive and significant association between Islamic financial inclusion and business performance. This study also found that there is a positive and significant association between Islamic financial literacy and Islamic financial inclusion. Marketing communication and Islamic financial inclusion have a positive relationship, but it is insignificant. This study implies that to establish a halal-tourist ecosystem for long-term development in Indonesia, commercial actors must lend their full support. This study demonstrates that they can thrive when MSMEs in the halal-tourist ecosystem are backed by Islamic banking and Islamic rural banks. As a result, a more accommodating approach from Islamic banking is required to provide access to halal finance for business actors in Indonesia’s halal-tourism ecosystem.

Suggested Citation

  • Siti Mujiatun & Budi Trianto & Eko Fajar Cahyono & Rahmayati, 2023. "The Impact of Marketing Communication and Islamic Financial Literacy on Islamic Financial Inclusion and MSMEs Performance: Evidence from Halal Tourism in Indonesia," Sustainability, MDPI, vol. 15(13), pages 1-20, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:13:p:9868-:d:1175870
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    References listed on IDEAS

    as
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    3. van Rooij, Maarten & Lusardi, Annamaria & Alessie, Rob, 2011. "Financial literacy and stock market participation," Journal of Financial Economics, Elsevier, vol. 101(2), pages 449-472, August.
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