Islamic community-based enterprise and community economic development : an exploratory case study in Bandung, Indonesia

Abstract

This research sought to investigate an Islamic community-based enterprise (ICBE) in Bandung City, Indonesia. To date, research in the community-based enterprise (CBE) applies mainly conventional ideas of the social entrepreneurship framework. Applying such a framework in the context of a Muslim community raises several fundamental issues as some of the ideas may clash with Islamic teachings and practices. This research examined a singular case of an ICBE that has been working with troubled Muslim youth since 2013. This study is using a qualitative approach which includes sixteen interviews with ICBE founders and members, observations, document reviews, and focus group discussion (FGD). The study aimed to investigate the origin of the ICBE, its unique characteristics, and the manner of its contribution towards community economic development (CED), especially for troubled Muslim youth in Bandung City. Thematic analysis guided the data analysis. The first major finding in this study was hijrah (migration) experienced by the founders which increased their awareness of social duty, motivating them to assist troubled Muslim youths in the city. The founders used jamaah (congregational) in creating goodness and stated that the ICBE was their jariyah (an activity that continues to benefit them until the hereafter). The second major finding concerns the role of Islamic social capital in the interaction process of the community. In particular, the bond of aqeedah is a key which binds all members and non-members. This ensures that ICBE itself is not exclusive. Instead of being open only to members, the ICBE spreads its wings wide to include the wider society. A third major finding of the study reveals that the ICBE establishes short-term, interim, and long-term goals for community economic development, with the ultimate objective of achieving al-falah (success). A vital element in this development that adheres to the Islamic principles is the equal importance of material and non-material goals. The findings of the study have implications for both theory and practice. First, it provides a fresh perspective in looking at the two underlying theories; the resource-based view (RBV) and the social action theory. It clarifies that the function of RBV is not only for the benefit of the organisation or community, but the benefits of RBV can be extended to outsiders. It further indicates that religion is a source of thought and action to carry out social functions in society, disputing the idea that social actions involving religion are due to tradition or just a legacy of ancestors. This study adds depth to the literature on community enterprise from an Islamic perspective in which Islamic teaching and practices form the foundation of the ICBE. The study has also successfully integrated the important role of Islamic Social Capital (ISC) and its relation to the concept of Islamic entrepreneurship. For practical purposes, this study contributes to developing new policy implementations, as it highlights an alternative development model that is based on Islamic teachings and practices which can be adopted by other Muslim communities. The researcher has identified three limitations in the conduct of this study, which include: (i) the limitation of a case study research method; (ii) small sample size; and (iii) there non-definitive evaluation of the development programme.