Business Performance and Organizational Sustainability in the Muslim Fashion Industry through Religious-Centric Product Strategies

Noor Laila Ramadhani; Satria Avianda Nurcahyo; Setya Indah Isnawati; Ilyasa Bin Muhammad Faiq

doi:10.21580/jdmhi.2025.7.1.23764

Authors

Noor Laila Ramadhani Universitas Ngudi Waluyo, Indonesia http://orcid.org/0000-0002-4591-8806
Satria Avianda Nurcahyo Universitas Ngudi Waluyo, Indonesia http://orcid.org/0009-0003-9847-7391
Setya Indah Isnawati Universitan Ngudi Waluyo, Indonesia
Ilyasa Bin Muhammad Faiq International Islamic University Malaysia, Malaysia

DOI:

https://doi.org/10.21580/jdmhi.2025.7.1.23764

Keywords:

Business Performance, Religious Centric Product Strategies, Organizational Sustainability, Maqashid Syariah

Abstract

This research aims to explores the impact of religious-centric product strategy, operational sustainability, and product quality on business performance in the Muslim fashion industry in Central Java. Using a quantitative approach with SEM PLS analysis, data was collected from 285 Muslim fashion outlets. The study aimed to test four hypotheses and two mediation tests to understand the relationships among the constructs. The results indicate that religious-centric product strategy positively influences operational sustainability and product quality, which in turn significantly affects business performance. Furthermore, operational sustainability and product quality were found to have significant mediation effects on the relationship between religious-centric product strategy and business performance. However, one hypothesis—regarding the direct relationship between religious-centric product strategy and business performance—was found to be non-significant. This suggests that while religious-centric strategies are crucial for enhancing operational sustainability and product quality, their direct effect on business performance is less pronounced. Overall, the findings highlight the importance of integrating religious values into business strategies for improving sustainability and quality, which, in turn, drive business performance in the Muslim fashion sector. This study contributes to the understanding of how religious-based strategies can influence business outcomes and provides practical implications for businesses aiming to enhance their competitiveness in the market.

Keywords: Business Performance, Religious Centric Product Strategies, Organizational Sustainability, Maqashid Syariah

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