Bounded Creativity under Dual Constraints: How Islamic Nonprofit Organisations Innovate Digitally within State Regulation and Sharia Governance
DOI:
https://doi.org/10.21580/economica.2026.17.1.32231Keywords:
Bounded creativity, Digital innovation, Faith-based nonprofit organisations, Sharia governance, Zakat managementAbstract
This research studies how nonprofit organizations (NPOs) operating in the Islamic finance industry manage the use of information technology (IT) in light of restrictions posed by the state and Sharia boards. The study employed a qualitative case study methodology focused on BAZNAS from January 2023 to February 2025. During this time, the researcher conducted 28 interviews with BAZNAS management and staff, Sharia council members, MUI academics, and members of BAZNAS’s IT and digital media unit. The researcher used a reflexive thematic analysis approach to analyze the case. The study identifies three forms of bounded creativity: (a) compliant adaptation, (b) Sharia-sanctioned innovation, and (c) transformative recombination. The study also identifies and discusses supporting mechanisms, including relational capital and work integration. The single case study and exploratory research design limit the study’s generalizability. The study recognizes that the Indonesian context may not reflect situations elsewhere where similar infrastructure is lacking. The study is situated in Indonesia, where the state is expanding IT infrastructure to support the development of the digital economy. The study advocates integrating Sharia advisors into the innovation team and using structured/deliberate methods in the work integration process to facilitate greater stakeholder participation. Furthermore, the study advocates using narrative work in the innovation process. Lastly, the study offers a religiously integrated framework to analyze creativity in nonprofit organizations.
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