Market orientation and change capability on an Indonesian sharia banking performance: the moderating effect of leadership religiosity

Abstract

Purpose

Changes are required to improve the performance of Sharia banking in Indonesia. Using dynamic capability theory, this study aims to analyze organizational learning, change process and change context (OCC) in Bank Syariah Indonesia as influenced by market orientation (competitor and customer orientation) and moderated by religiosity and its impact on organizational performance (Maqashid Sharia) using a multilevel perspective.

Design/methodology/approach

To test the hypothesis, this research surveyed by distributing online questionnaires to managers and employees at 62 branch offices of Bank Syariah, the largest Sharia bank in Indonesia. Data processing involved multilevel structural equational modeling with Mplus analysis software.

Findings

Market orientation determines an organization’s ability to change significantly, which leads to organizational performance being significantly moderated by religiosity. In OCC, organizational learning influences change context through change processes, ultimately influencing organizational performance (Maqashid Sharia).

Originality/value

This research used a multilevel perspective by combining market orientation and OCC variables moderated by religiosity and its impact on Maqashid Sharia. This study was conducted at the largest Sharia bank in Indonesia, Bank Syariah Indonesia.

Citation

Rosyidi, L.N., Sukoco, B.M., Mawardi, I. and Aslan, H. (2025), "Market orientation and change capability on an Indonesian sharia banking performance: the moderating effect of leadership religiosity", Journal of Islamic Marketing, Vol. 16 No. 3, pp. 955-975. https://doi.org/10.1108/JIMA-07-2024-0287