The Multiple Performance Analysis of Indonesian Islamic Banks: The Stakeholder Theory Approach
DOI:
https://doi.org/10.7187/GJAT072022-4Keywords:
Stakeholder Theory, Balanced Score Card, Customer Satisfaction, Islamic BankAbstract
This study aimed to develop an alternative measurement model based on the stakeholder theory that answers the critiques toward the Balance Score Card (BSC). It synthesized variables from previous studies, including Job Satisfaction (JSA), Business Process (BPR), Customer Satisfaction (CSA), and Financial Performance (FPE). Moreover, the study set nine hypotheses representing the relationship between JSA, BPR, CSA, and FPE. The hypotheses were accepted after the Structural Equation Modelling (SEM) analysis of the financial data of the four biggest Indonesian Islamic banks and responses from 200 respondents. This finding confirmed the robustness of the model proposed in this study. The model denotes that the FPE results from the excellent implementation of JSA, BPR, CSA, and the interaction between these variables, which directly impact financial performance.
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