The Influence of Maqashid Shariah-Based Innovation on Startup Sustainability: Evidence from Indonesian Muslim Entrepreneurs
DOI:
https://doi.org/10.37134/Keywords:
Maqashid Shariah, Islamic entrepreneurship, Ethical innovation, PLS-SEMAbstract
This study investigates the influence of Maqashid Shariah-based innovation on startup sustainability among Muslim entrepreneurs in Indonesia. Using a quantitative approach and Partial Least Squares Structural Equation Modeling (PLS-SEM), the research examines how innovations aligned with the five objectives of Shariah—protection of religion, life, intellect, progeny, and wealth—contribute to the economic, social, and environmental sustainability of startups. The model also explores the moderating role of religio-ethical commitment in strengthening these relationships. Data were collected from 280 Muslim startup founders operating in various halal-related sectors, including food, fashion, fintech, and creative industries. The results show that Maqashid Shariah-based innovation significantly and positively influences all three dimensions of sustainability, with the strongest effect observed in the economic domain. Furthermore, religio-ethical commitment significantly moderates the relationship, amplifying the effect of value-based innovation on sustainability outcomes—particularly in economic and social dimensions. These findings affirm the strategic role of Islamic ethical principles in driving sustainable innovation. The study not only contributes to the theoretical advancement of Islamic entrepreneurship literature but also provides practical implications for entrepreneurs, policymakers, incubators, and Islamic financial institutions aiming to build inclusive, ethical, and future-resilient startup ecosystems. The research highlights that Maqashid Shariah can serve as a transformative framework for modern entrepreneurship, where business success is redefined beyond profit to include spiritual, social, and environmental impact.
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