Dimension of an Islamic Model Value on the Existence of Syariah Walmart
Abstract
Purpose – The purpose of this research is to know the Dimension of an Islamic Model Value on the existence of walmart Syariah, Indonesia.
Design/Methodology/Approach – The data used are primary data sources. The method of analysis used in this research is SEM method using Smart PLS software.
Finding – The show results that customer satisfaction are formed from traditional and Islamic value dimensions.
Research Limitations/Implication – The implications of this research are the need to socialize the concept of Islamic value dimensions to the general public so that the public understanding of Islamic value dimensions is wider and easier to understand.
Originality/Value – This study is worth a new finding because it analyzes the scope of understanding of the value of Islamic value dimensions in Sharia Walmart prospective buyers.
Keywords
Citation
Muda, I. and Windari, (2018), "Dimension of an Islamic Model Value on the Existence of Syariah Walmart", Proceedings of MICoMS 2017 (Emerald Reach Proceedings Series, Vol. 1), Emerald Publishing Limited, Leeds, pp. 317-322. https://doi.org/10.1108/978-1-78756-793-1-00051
Publisher
:Emerald Publishing Limited
Copyright © 2018, Iskandar Muda, Windari.
License
Published in the Emerald Reach Proceedings Series. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
1. Introduction
Small and medium-sized enterprises (SMEs) play an essential role in economic growth through job creation, employment, investment, and innovation. Therefore, SMEs’ access to capital should not be limited and constrained (Huda, 2017; Lajis, 2017). Walmart has bowed to political correctness and is now offering meat that has been prepared halal style to appease about 50 Muslims in its Oxford, Ohio location (Straub, 2014). While this only applies to this one Wal-Mart store you can be certain it would not be the only one. The growth of supermarkets in Indonesia today shows a very rapid increase. Supermarket from abroad was not long to start popping up and they began to enter the various major cities in Indonesia (Ferine et al., 2017; Huda, 2017; Lajis, 2017). These developments cannot be separated from the size of Indonesia’s market potential of 80% Muslim. So the idea of the necessity of establishing Sharia self-service stores is a necessity so that this market potential is not merely used by “foreigners and idlers.” Normatively, Muslims need guaranteed availability of halal products. On the other hand, the need for a sharia supermarket model needs to be answered so that the implementation of sharia values in the distribution of products and services to the Muslims can be more developed (Huda, 2017). The orientation for the territory of Indonesia to be a religious territory seems to require a minimally professionally managed shariah model and widespread benefits to the ummah. There are at least three fundamental reasons that become the basis of thinking for us to feel the need to make a minimarket sharia, namely Normatively, Muslims are required to provide a shopping center that ensures the availability of halal products, thayyib and blessings. The service model must be Islamic not merely symbolic of fashion and ornament but also the principles of hospitality, justice, and brotherhood (Farooq, 2009; Omar et al., 2010; Askari et al., 2012; Mirakhor, 2012; Ali et al., 2013; Zamir and Mirakhor, 2013; Farooq, 2014). Sociologically, the obligation is stronger considering the majority of the population/citizens of Islam. This sharia minimarket will be a family shopping center. In addition, it is also a media promotion and distribution of goods for other Muslim producers. Economically, this business has a good prospect considering the big market. This sharia minimarket is expected to inspire a new spirit of Muslims in strengthening its economic position widely.
2. Methods
The type of this research is Comparative Research. Comparative research involves a wide variety of statistical techniques (Badaruddin et al., 2017; Muda, 2017; Muda, 2018; Syahyunan et al., 2017). The basic design of comparative research involves selecting two different groups on several independent variables and comparing them with several dependent variables. Both groups may be different, one group has characteristics that have no other. Or both groups differ in levels; one group has more than one characteristic than the other groups may have different types of experience (Achmad and Muda, 2017; Badaruddin et al., 2017; Dalimunthe and Muda, 2017; Lubis et al., 2017; Sihombing et al., 2017). This study uses Traditional dimension consisting of Emotional, Quality value, Social value, and value of Money. While Islamic Value Dimension using indicators of behavior, Marketing Strategy, Religious and Riba Concept (Farooq, 2014). The customer satisfaction element consists of Assurance, Emphaty, Reliable, Responsiveness, and Tangible with 127 respondents.
3. Result and discussion
3.1. Result
3.1.1. Evaluation of structural model.
Inner model evaluation through the bootsraping menu also generates Tstatistics values that will be used to test the hypothesis. The criteria are Tstatistic> 1.66 (Marhayanie et al., 2017; Muda et al., 2017; Sirojuzilam and Muda, 2017). If the value of tcount <ttable, then H0 accepted and when the value of tcount > ttable then H0 is rejected which means that the variable in question there is influence which is significant (Nurlina and Muda, 2017). This means that the independent variables tested have an effect significantly to the dependent variable. The result of t-statistics value in the table path coefficients is presented in Figure 1.
The effect test can be seen in Table 1.
The Result of Bootsraping
| Original Sample | Sample Mean | Standard Deviation | T Statistics | P Values | |
|---|---|---|---|---|---|
| Islamic Value Dimensions (X2) -> Customer Satisfaction on Sharia Walmart (Y) | –0.014 | 0.005 | 0.022 | 0.602 | 0.547 |
| Traditional Dimension (X1) -> Customer Satisfaction on Sharia Walmart (Y) | 0.995 | 0.972 | 0.197 | 5.048 | 0.000 |
Table 1 produces a coefficient of 0.005, smaller than 1α = 5% then the decision of hypothesis testing rejects H0 and accepts the hypothesis Ha (Muda, 2017). The results show that Traditional Dimensions are significant variables on Customer Satisfaction on Sharia Walmart (Y). In addition to hypothesis testing through the bootsrapping menu that produces T-statistics, inner model evaluation is also done by reviewing the R-Square value (Asmeri et al., 2017; Honggowati et al., 2017; Jones et al., 2017; Khoiruman and Haryanto, 2017; Rahmawati et al., 2017; Suprianto et al., 2017). The R square value generated from the inner model evaluation is presented in Table 2 and Figure 2.
R-Square Value
| R Square | R Square Adjusted | |
|---|---|---|
| Customer Satisfaction on Sharia Walmart (Y) | 0.150 | 0.135 |
The variation of R-Square value of 63.3%. The Traditional Dimensions are significant variables on Customer Satisfaction on Sharia Walmart (Y). Mart (modern market) which already has big names in Medan, Indonesia, is mostly owned by foreign parties and applied based on the conventional principle has gripped the people’s market. As a result, slowly the trade by the small people will be eliminated, coupled with the problem of halalness of a product offered on the Mart. In Islamic teachings, there are halal and haram rules that have ordered us to eat only halal and good food, two unity cannot be separated, which can be interpreted halal in terms of sharia and good in terms of health, nutrition, aesthetics, and others. Although various foods and beverages and other products sold freely in the market, not least in supermarkets or minimarkets and the like. So it is not surprising that there are still many products offered there is a product that is still no halal label from Halal Authorized Institution. There should be protection for consumers with the inclusion of halal labels and the expiration date of a product. Seeing from what happened, came the idea for the development of Mart with the concept of sharia. In it, there is a profit-sharing system that is certainly not detrimental to both producers and traders and the main focus of sales not only on profitability but also contains social elements for the less fortunate. In addition, the level of halal either from capital, products offered, until the service, or existing facilities are also guaranteed. The existence of Mart Shariah as a form of concern for the ummah, it can be concluded that Mart Shariah is a market that there are principles of sharia in running it.
The “goodness” of the sold, the capital, and the services provided are the main things that distinguish the conventional modern market, which certainly contains the element of blessing in it (Muda et al., 2014). The existence of the giving of zakat, sodaqah to the surrounding community is also another characteristic of Mart Shariah. This shows that the Syariah Mart is not only focused on the effort to seek profit but also attention to the element of social concern for each other. The selection of qualified human resources who understand the religion in running the Mart Syariah, increasingly perfect this Mart Shariah. The existence of qualified human resources will support the application of religious values such as the value of honesty to be easily applied in the Mart sharia. Satisfactory service to the consumer is also easy to run and improved with the existence of qualified human resources.
4. Limitation and implications
The implications of this research are the need to socialize the concept of Islamic value dimensions to the general public so that the public understanding of Islamic value dimensions is wider and easier to understand.
5. Conclusions
The show results that customer satisfaction is formed from traditional and Islamic value dimensions. The traditional dimensions are significant variables on customer satisfaction on Sharia Walmart.
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All papers within this proceedings volume have been peer reviewed by the scientific committee of the Malikussaleh International Conference on Multidisciplinary Studies (MICoMS 2017).
Corresponding author
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- Introduction
- Acknowledgement I
- Acknowledgement II
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