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This paper aims to examine the short run and long run of Indonesia Islamic bank (IIB) contribution to economic growth over the periods 2009: Q1 – 2019: Q4. IIB is considered which supported by the largest Muslim population in the world. Deposits, financing and offices are proxy to highlight the relationship between Islamic banks and Indonesia's economic growth.

Through cointegration analysis, autoregressive distributed lag (ARDL), vector error correction model (VECM), variance decompositions (VDCs) and impulse response functions (IRFs), this study investigates the Islamic bank and economic growth nexus.

A significant relationship in the short-run and long-run between IIB deposits and offices and economic growth. There is evidence of a bidirectional relationship between the Islamic bank and economic growth.

In spite of their market share less than a conventional bank. The result proved than IB a prosperous sector and has a contribution to economic growth. This address regulator must have a dedicated unit to handle IIB legal cases should it go to the court for adjudication.

The study role of Islamic banking contribution to economic growth in the context of Indonesia is limited. This paper is the first study that examines empirically the effect of Indonesian Islamic banks on economic growth measured by the amount of gross domestic product (GDP), financing, offices and deposits.

This study aims to examine the impact of Sharia-compliant (SC) finance on economic growth by decomposing it into working capital, investment and household finance. The goal is to understand not only the general impact of Islamic financing but also how its various components contribute to economic development.

Using annual data from 33 provinces in Indonesia from 2010 to 2021, the authors use the fixed effects model, accounting for cross-sectional heterogeneity. The study explores the competitive dynamics between Islamic and conventional banking, focusing on how Sharia financing market share affects economic growth. Robustness checks ensure the reliability of the findings.

The results show that total Islamic financing and its components (working capital, investment and household finance) positively impact economic growth. However, a higher market share of Sharia financing can constrain growth, suggesting an underdeveloped market for SC products. This finding emphasizes the need for a balanced development of both Islamic and conventional financial sectors to support sustainable economic growth.

Future research could extend the time frame or investigate other emerging markets to confirm these results. Further studies could also explore how different types of Sharia financing affect specific sectors, such as agriculture or manufacturing, to offer more targeted insights for policymakers and investors.

Policymakers could use the insights from this study to create incentives for Islamic financial institutions to develop tailored products for critical sectors, such as microfinance for smallholder farmers or investment financing for sustainable agriculture. These initiatives would enhance access to finance, stimulate local economies and align with Indonesia’s development goals.

Understanding the role of Sharia financing in growth can help devise strategies that promote ethical investment and reduce poverty. The findings highlight the potential of SC finance to contribute to social welfare and economic equity.

This study provides a unique analysis of how different forms of SC finance affect economic development, filling a gap in the literature. It offers valuable insights for academics, policymakers and practitioners in the field of Islamic finance, emphasizing the nuanced relationship between financial structure and economic growth.

This study contributes to the literature by analyzing the decomposition of Sharia financing into specific categories and their distinct impacts on growth. It suggests that existing models need to account for market development and competitive dynamics when evaluating the role of Islamic finance in economic development.

This study aims to examine Islamic banks’ (IBs’) obligations to uphold society’s moral and ethical dimensions. Furthermore, it explores the perspectives of practitioners and Shariah scholars on the role of IBs as agents to advance social and ethical well-being.

Qualitative methodology, with constructivist philosophy, was used. Semi-structured interviews were conducted with Shariah scholars and Islamic banking officials in Pakistan. The thematic analysis uncovered diverse dimensions catering to fulfill the requirements of social and ethical upliftment of society.

The study reveals discrepancies in the perception of IBs’ advisory board members and managers regarding the social responsibilities of IBs. Results show that practitioners of IBs disregard the overall societal welfare upliftment and faith and spiritual upliftment as a responsibility of IBs. However, they consider the inclusiveness, transparency and assurance of Hifz-e-Maal (safeguarding the wealth) among the prime duties of IBs.

This study serves as a call for policymakers, emphasizing that, to achieve the desired social outcomes, it is imperative to address the perceptual inconsistencies among stakeholders of the Islamic financial system.

This study compels policymakers to confront perceptual inconsistencies in Islamic banking, advocating for regulations that guarantee wider societal welfare and spiritual advancement in addition to financial objectives.

This study could help broaden the understanding of the Islamic financial system, particularly the aspects that may hamper getting the desired results of this system.

Over the past three decades, financial deregulation and various reforms have significantly transformed the competitive environment for banks in Indonesia. These changes have introduced new challenges for banks to retain their market power and ensure their survival. In light of this, the article aims to assess the current levels of market power held by Indonesian banks and explore the factors that influence it.

The paper measured the degree of market power and identified its impacting factors for 22 listed commercial banks using the Adjusted Lerner Index (ALI) and appropriate regression technique over a period of 2011–2023.

The empirical findings reveal that banks in Indonesia enjoy high market power, and factors such as capitalization, diversification, operational inefficiency, asset quality and GDP growth rate significantly impact banks’ market power. Additionally, the findings contradict the structure-conduct-performance paradigm, which advocates that a concentrated banking system impairs competition.

The study suggests that regulatory authorities should closely monitor the market power levels and promote strategies to enhance competition within the banking sector. Additionally, banks should prioritize implementing measures to reduce operational costs and improve the quality of assets.

This research represents one of the early attempts to gauge the market power of publicly listed conventional commercial banks in Indonesia by employing the Adjusted Lerner Index. Additionally, it introduces “technology adoption” as a novel variable to the analysis alongside other established variables.

Knowledge management is a common practice in organizations, with empirical evidence suggesting that organizations value the breadth of their knowledge capabilities. This study investigated transformational leadership styles and their influence on knowledge management practices and organizational performance.

A quantitative survey was conducted, and data from 270 managers of Islamic banks in the United Arab Emirates were analyzed.

Transformational leadership (TL) considerably affects organizational performance and knowledge management capabilities (KMC).

This study offers critical insights into adopting knowledge management practices and discusses the theoretical and managerial implications of its findings. Furthermore, it elucidates the crucial impact of transformational leadership on organizational performance and KMC.

This research investigates the Islamic banks’ intermediation role (e.g. branches and deposits) in financing. It also examines how financing contributes to the regions' economic growth and poverty alleviation as a predictor and mediator variable.

A total of 297 observations were extracted from 33 Indonesian districts and 14 Islamic banks during the period 2012–2020. Fixed-effect regression analysis was used to examine variable’s interactions.

The empirical results indicate that Islamic banks have adopted a channelling role towards redistributing capital from lender to borrower. Besides, there are crucial roles in developing economies and reducing poverty at the district level. This study also reinforces the critical role of financing in mediating the relationship between branches and deposits as predictor variables and GDP and poverty as outcome variables.

The current study was limited to Indonesian Islamic banks and the district’s perspective. Future research needs to cover sub-districts and other poverty measurements (e.g. human education and development perspectives), including conventional and Islamic banks. It can help practitioners, regulators and researchers observe the dynamic behaviour of the banking sector to understand its role in the economic and social fields.

Bank managers and regulators should promote branches, deposits and financing. It also enlightens people about the essential role of Islamic banks and their fundamental operations in business and economics.

This study contributes to economic literature, bank managers and local governments' decision-making processes by developing and testing an economic growth and poverty model.

Several studies link Islamic finance to economic growth. There are at least two major limitations in these investigations. First, the proxy used to measure Islamic finance may not represent the whole impact of Islamic finance on economic growth because it only considers a subset of variables like Islamic banks’ deposits or sukuk issuance, etc. Second, it is difficult to extrapolate findings to other markets because most studies were conducted in just one nation or a small group of countries. Overcoming these issues is the driving force behind this research. In doing so, the study aims to use the overall Islamic Financial Development Index as a proxy for Islamic finance. The index measures the quantitative growth, knowledge, corporate social responsibility, governance and awareness of the Islamic financial sector.

Using a panel data set of 67 countries starting from 2012 to 2020, this study investigates the relationship between Islamic finance and economic growth.

The authors find that Islamic finance contributes to economic growth. This connection is more robust in Muslim and developing nations than it is in non-Muslim and developed nations.

To promote a country’s economic growth, the authors propose that regulators should focus on development of Islamic finance. To increase the reach of Islamic products, the government should take initiatives to raise public awareness of Islamic finance.

The findings imply that Islamic finance may have a more significant impact on socio-economic development in countries with a higher concentration of Muslim population and those in the developing stage. It highlights the potential role of Islamic finance in addressing socio-economic challenges and promoting inclusive growth in these regions.

This is the first study to use a more comprehensive sample of countries, covering both Muslim and non-Muslim nations, as well as both developing and developed nations. In addition, this study, unlike its predecessors, used a more robust and comprehensive index of Islamic finance developed by Thomson Reuters.

Literature has pointed that conventional financial development theories have inconclusive role on motivating new businesses. New ventures often consider the conventional system that passes through risk and provides fixed-interest lending as a burden. Comparatively, Islamic finance contributes using participative and equitable substitute for startups and has a potential in promoting new businesses. This study aims to investigate the holistic financial development index quadratic effect on entrepreneurship and include the moderating role of Islamic financing at national level.

Islamic banks of 21 nations constitute the unbalanced panel data. Financial development and entrepreneurship indices were developed using factor analysis and panel median regression to estimate the nonlinear financial market development effects and Islamic financing moderation model.

The results indicated that low financial market development is entrepreneurship deterring because of interest burden effect, which could be eased with a proportional increase in the Islamic financing, which is participative. The moderating effect has led to the categorization of the sample countries into entrepreneurship promoting and entrepreneurship discouraging with respect to the current incidence of financial market development and Islamic financing, which can help policymakers in understanding the entrepreneurship promoting combination of financial development and Islamic financing.

Central banks and Shari’ah advisory councils can adopt Islamic financing transition in the national financial inclusion policy for new business facilitation.

This study is instrumental in exploring the assessment of introducing Islamic financing while developing the financial sector on multidimensional entrepreneurship.

The purpose of this study is to examine the effect of Islamic banks (IBs) and macroeconomic variables on economic growth in Saudi Arabia, the United Arab Emirates, Kuwait, Malaysia, Qatar, Bahrain and Bangladesh.

Based on these criteria, 672 observations from 24 IBs in Saudi Arabia, the United Arab Emirates, Kuwait, Malaysia, Qatar, Bahrain and Bangladesh were chosen for further investigation. Time series analysis is a well-known method for determining if model variables are stationary and how long-term relationships function through cointegration analysis. This study uses impulse response function (IRF) and variance decomposition (VD) methodologies to demonstrate how each macroeconomic variable shock influences the short-term dynamic path of all system variables.

Islamic banking promotes economic growth, especially in Saudi Arabia, the UAE, Kuwait, Malaysia, Qatar, Bahrain and Bangladesh. The findings of the Islamic banking VDC test have a direct and long-term effect on economic growth.

The literature on this topic can be improved in a number of ways, including by adopting a more robust method to analyze over a longer time frame. By researching specific financing in various areas of the economy, one can gain a deeper understanding of Islamic financing. This will enable the identification of sectors that contribute to economic expansion. Future research should examine combining nations with pure Islam and dual-banking systems to acquire sufficient data.

This paper has practice and research implications. It recommends adopting the nation’s successful experiment with the Islamic banking system as a model for attaining economic growth through Islamic financing. To replicate this successful experiment, government-based decision-makers and monetary policy experts must collaborate to make Islamic money flows simple and rapid through financial channels that enhance economic growth.

The study of the contribution of Islamic banking to economic growth in developing nations, particularly those with the highest total assets (TAs) and total deposits (TDs) in the world, remains of modest value. To the best of the authors’ knowledge, this is the first study to empirically assess the impact of IBs in developing nations, particularly those with the highest TAs and TDs in the world, on economic growth as measured by gross domestic product (GDP).

Islamic finance is an alternative approach of financial intermediation based on risk-sharing and asset-backed operations, which evolved substantially in recent years in academic research raising the need for quantitative studies to address the intellectual development and scientific performance of this field. This study aims to provide quantitative statistics and comprehensive review of the key influential and intellectual structure of Islamic finance literature.

The authors apply the trending and cutting-edge quali-quantitative approach of bibliometric citation analysis. This study reviews 1,940 English studies and review papers published in scientific journals indexed by the Scopus database from 1983 to 2019. RStudio, VOSviewer and Excel’s software are used to analyze the collected data and apply the bibliometric tests.

The results identify the leading academic authors, journals, institutions and countries with relation to Islamic finance. The authors also propose six main research themes in this field, which are as follows: Islamic finance – fundamentals, growth and legitimacy; customer’s attitude and perception toward Islamic finance; accounting and social reporting of Islamic finance; performance and risk management of Islamic finance; Islamic financial markets; and efficiency of Islamic financial institutions. Lastly, the authors identify research gaps in the existing Islamic finance literature and present 24 future research directions.

The data in this study is confined only to the Scopus database of English papers and reviews. It also considers papers directly related to the field of Islamic finance.

To the best of the authors’ knowledge, this paper is one of the first to address the literature of Islamic finance from a bibliometric aspect. The results of this study along with future research questions will help researchers and practitioners to further explore and stand on firm quantitative bases regarding the scientific development of Islamic finance.