Understanding Islamic Spiritual Leadership Applied In Business: A Case Study At Baitul Mal Wat Tamwil Usaha Gabungan Terpadu Sidogiri Indonesia

Abstract

This study aimed to investigate the values of Islamic spiritual leadership applied at Baitul Mal wat Tamwil (BMT) Usaha Gabungan Terpadu (UGT) Sidogiri Indonesia and how it motivated and inspired the employees through the establishment of vision and culture based on Islamic values that affect their working productivity and commitment. This study was based on a post-positivist paradigm, and it was a single case study. Indepth interviews were applied for a data collection which was obtained from several research informants. These interviews were recorded, then transcribed to be analyzed using an interactive model. The results showed that spiritual leadership at BMT UGT Sidogiri Indonesia was based on three bases; they are Iman (faith to Allah), Islam and Ihsan (ethic). The value of Iman was reflected through the working seriously, discipline, always supervised, accompanied, and protected by Allah. Next, the value of Islam was reflected through the commitment of doing congregational prayers (salat al-jamaah). An Individual who has an outstanding religious commitment will not forget religious ethics such as being discipline, honest, virtuous, not arbitrary to others and responsible for the job. Furthermore, the value of Ihsan was reflected through working culture. This culture was taken from the personality characters of Prophet such as shiddiq (honest), amanah (trustworthy), tabligh (deliver), and fathonah (intelligent)

Entrepreneurial Muslim leadership in Islamic cooperative business unit

“…Very few similar studies use the mode of a moderated focus group discussion led by Hanafi et al (2021). We conducted research using the interview to collect data, as was done by Muhammad et al (2019). The difference is that we collected data through interviews and triangulation with stakeholders from Islamic boarding schools, representatives from academies, business practicians, community, government and business people from Islamic boarding schools.…”

“…Astuti et al (2020) conducted a similar study by discussing Islamic work culture in examining the influence of Islamic leadership. Muhammad et al (2019) raised the values of spiritual leadership Islam applied in Islamic finance organizations, while Ratnasari (2021) wanted to know the influence of Islamic leadership and internal marketing. We have yet to find any research on how the practice of a business unit leader runs a business in Islamic boarding schools.…”

“…Research that has been done has discussed many leaders of Islamic boarding schools such as by Ahmad and Alam (2018) and Hanafi et al (2021). In the business world, research conducted by Prasetyo et al (2021), Ratnasari (2021) raised the topic of employee performance and marketing but not in the context of an Islamic boarding school which is very clearly in the form of an educational institution, not a business or financial institution as in the context of the research of Muhammad et al (2019). We have not found specific research on how the practice of a business unit leader runs a business in Islamic boarding schools.…”

Green Business Innovation: Sustainable Business Model Development through Integration of Business Model Canvas, Design Thinking, and Islamic Business Ethics

“…Islamic Business Ethics brings a deep value and moral dimension to the green business innovation paradigm (Hartanto et al, 2023). The principles of Islamic business ethics, such as justice, sustainability, and balance, provide an ethical foundation for the development of business models that not only benefit companies financially, socially, and environmentally (Muhammad et al, 2019). In a global context that increasingly recognizes the importance of corporate social responsibility, the integration of Islamic Business Ethics is relevant, especially in responding to the needs of people increasingly concerned about business activities' social and environmental impacts (Maros & Juniar, 2016).…”