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Exploring the paradox of in-existence in Islamic banking in Indonesia: institutional, perceptual and digital dimensions

M Zunaiduul Muhaimin et al.

Journal of Islamic Marketing2026https://doi.org/10.1108/jima-10-2024-0454article
ABDC B
Weight
0.50

Abstract

Purpose This study aims to explore paradox of in-existence in Islamic banking in Muslim-majority economies using Indonesia as a case study. The focus is on the situation where institutions exist formally but exhibit limited functionality, accessibility and socioeconomic impact. Design/methodology/approach A mixed-method exploratory sequential design was adopted by integrating Financial Services Authority financial data (2020–2024) with thematic analysis of 15 interviews and 12 media discourses using Gioia methodology. Findings The analyses showed three interrelated forms of in-existence which included institutional in-existence where physical structures and branch networks existed without ensuring equitable access, perceptual in-existence marked by weak brand differentiation and public skepticism regarding Shariah authenticity and digital in-existence characterized by slow financial technology (fintech) adoption and limited digital service integration. These dimensions collectively showed that the stagnation of Islamic banking originated from institutional inertia rather than theological constraints. Practical implications The improvement of Islamic banking legitimacy requires integrated efforts among regulators, industry leaders and society through digital transformation, financial literacy programs and governance reform to convert symbolic presence into functional performance. Originality/value This study introduces in-existence as a three-dimensional framework bridging institutional theory and Islamic marketing. The combination of financial indicators and interpretive insights bridges institutional theory and Islamic marketing scholarship in understanding legitimacy and inclusion gaps in Muslim-majority economies.

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https://doi.org/https://doi.org/10.1108/jima-10-2024-0454

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@article{m2026,
  title        = {{Exploring the paradox of in-existence in Islamic banking in Indonesia: institutional, perceptual and digital dimensions}},
  author       = {M Zunaiduul Muhaimin et al.},
  journal      = {Journal of Islamic Marketing},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1108/jima-10-2024-0454},
}

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Exploring the paradox of in-existence in Islamic banking in Indonesia: institutional, perceptual and digital dimensions

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Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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