Title: Dual banking strategy of Islamic banking unit in Indonesia

Authors: Muhammad Amin; Agus Rahayu; Disman; Lili Adi Wibowo

Addresses: School of Postgraduate Studies, Jalan Dr.Setiabudhi 229 Bandung 40154, West Java, Indonesia ' School of Postgraduate Studies, Jalan Dr.Setiabudhi 229 Bandung 40154, West Java, Indonesia ' School of Postgraduate Studies, Jalan Dr.Setiabudhi 229 Bandung 40154, West Java, Indonesia ' School of Postgraduate Studies, Jalan Dr.Setiabudhi 229 Bandung 40154, West Java, Indonesia

Abstract: Research was conducted to investigate business performance and separation of 20 Islamic Banking Units in Indonesia. We derive variables (Dual Banking Strategy, Value Creation Program, Covid-19 Pandemic, Business Performance, Information Technology, Government Regulations, Corporate Readiness Spin Off). Research method is a census with unit analysis of all conventional banks that open Islamic banking units. Collected data is processed using software SmartPLS 3.0 (PLS-SEM). Results of study that 55% to 90% are not ready to spin off obligation and submitted spin off policy to corporate actions of each Islamic Banking Unit. Dual Banking Strategy and Value Creation Program obtained the highest score (86%) and Corporate Readiness Spin Off the lowest score (43%). From empirical testing, it is found that Dual Banking Strategy and Value Creation Program directly affect Islamic Banking Unit Business Performance but does not affect Spin Off Corporate Readiness.

Keywords: pandemic covid-19; information technology; dual banking business performance model; spin off corporate readiness.

DOI: 10.1504/EMJM.2022.123911

EuroMed Journal of Management, 2022 Vol.4 No.3, pp.199 - 218

Received: 07 Dec 2021
Accepted: 21 Jan 2022
Published online: 04 Jul 2022 *

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