Sharia-Based Human Capital Development: A Literature Review on Character Building For Islamic Banking Competitiveness
DOI:
https://doi.org/10.33367/at-tamwil.v7i2.8010Keywords:
Islamic Banking, Human Capital, Character Building, Sharia ValuesAbstract
Purpose – This study aims to examine the integration of Sharia values in human resource character building within Islamic banking institutions. The research highlights the importance of developing Islamic character-based human capital as a strategic foundation for achieving sustainable competitiveness in the Islamic banking industry. The study is motivated by the increasing need to align human resource strategies with Sharia principles to ensure both compliance and differentiation in the financial sector.
Methods – The research uses a qualitative approach using a literature review of academic articles, reports, and policy documents published in the last decade. Content analysis was conducted to identify recurring themes, conceptual frameworks, and strategic implications of Sharia-based human capital development.
Findings – The study reveals that Islamic character building, rooted in Sharia values such as Shiddiq, Amanah, Tabligh, and Fathanah, has a significant contribution to the development of trustworthy, competent, and value-driven employees. These values foster customer trust, strengthen organizational culture, and enhance the competitive advantage of Islamic banks. However, challenges remain in terms of practical implementation, organizational commitment, and balancing technical competencies with ethical-spiritual development.
Research Limitations – As a literature-based study, the findings are conceptual and may not fully capture empirical variations across different Islamic banking institutions. Future research should include case studies or empirical validation to test the applicability of the proposed framework in diverse contexts.
Value – This study contributes to the field of Applied Islamic Finance by providing a conceptual framework that links Sharia-based human capital development with sustainable competitiveness in Islamic banking. It highlights the strategic role of Islamic character building as a differentiating factor that cannot be easily replicated by conventional banks.
References
Abdolshah, M., Moghimi, M., & Khatibi, S. A. (2018). Investigating Competitive Advantage in Banking Industry Based on Porter’s Generic Strategies: IRANs Newly-Established Private Banks. International Journal of Applied Management Sciences and Engineering, 5(1), 52–62. https://doi.org/10.4018/IJAMSE.2018010104
Albaity, M., & Rahman, M. (2021). Customer Loyalty towards Islamic Banks: The Mediating Role of Trust and Attitude. Sustainability, 13(19), 10758. https://doi.org/10.3390/su131910758
Alhammadi, S., Alotaibi, K. O., & Hakam, D. F. (2022). Analysing Islamic banking ethical performance from Maqāṣid al-Sharī‘ah perspective: Evidence from Indonesia. Journal of Sustainable Finance & Investment, 12(4), 1171–1193. https://doi.org/10.1080/20430795.2020.1848179
Ali, B. J., & Anwar, G. (2021). Porter’s Generic Competitive Strategies and its influence on the Competitive Advantage. International Journal of Advanced Engineering, Management and Science, 7(6), 42–51. https://doi.org/10.22161/ijaems.76.5
Almutairi, Mohammad. A. O., & Alsawalhah, Ayyoub. A. (2020). The Impact of Strategies Human Resource Management on Organizational Commitment. (An Applied Study on Employees in Jordanian Islamic Banks). Modern Applied Science, 14(4), 14. https://doi.org/10.5539/mas.v14n4p14
Alwi, Z., Parmitasari, R. D. A., & Syariati, A. (2021). An assessment on Islamic banking ethics through some salient points in the prophetic tradition. Heliyon, 7(5), e07103. https://doi.org/10.1016/j.heliyon.2021.e07103
Ardista, R., Kusuma, A. P., & Munandar, A. N. I. (2024). Manajemen Sumber Daya Manusia Di Bank Syariah: Tantangan dan Peluang Dalam Era Digital. Jurnal Ekonomika Dan Bisnis (JEBS), 4(4), 634–639. https://doi.org/10.47233/jebs.v4i4.1932
Ashari, D. R. W., Gulo, N., Hadikusumo, R. A., Dewi, M., Chakim, M. H. R., Noerhatini, P., Zati, M. R., Milzam, M., Martha, D., & Maulidizen, A. (2025). Manajemen Pengembangan Sumber Daya Manusia. Sada Kurnia Pustaka.
Astuti, S. D., SHODIKIN, A., & UD-DIN, M. (2020). Islamic Leadership, Islamic Work Culture, and Employee Performance: The Mediating Role of Work Motivation and Job Satisfaction. The Journal of Asian Finance, Economics and Business, 7(11), 1059–1068. https://doi.org/10.13106/JAFEB.2020.VOL7.NO11.1059
Asutay, M., Buana, G. K., & Avdukic, A. (2022). The Impact of Islamic Spirituality on Job Satisfaction and Organisational Commitment: Exploring Mediation and Moderation Impact. Journal of Business Ethics, 181(4), 913–932. https://doi.org/10.1007/s10551-021-04940-y
Basri, M. F. (2020). Competition and market structure of the Malaysian Islamic banking industry. Journal of Islamic Accounting and Business Research, ahead-of-print(ahead-of-print). https://doi.org/10.1108/JIABR-08-2017-0127
Bismala, L. (2021). Assessing Islamic Leadership and Its Effect on Employee Job Satisfaction at SME’s. Proceeding International Seminar of Islamic Studies, 2(1), 533–542.
Dewi Ambarwati, Udik Budi Wibowo, Hana Arsyiadanti, & Sri Susanti. (2021). Studi literatur: Peran inovasi pendidikan pada pembelajaran berbasis teknologi digital | Ambarwati | Jurnal Inovasi Teknologi Pendidikan. https://journal.uny.ac.id/index.php/jitp/article/view/43560
Dhiraj, A., Joshi, M., & Kumar, A. (2020). Human resource management and character building: Route to business sustainability. International Journal of Business and Globalisation, 25(3), 332. https://doi.org/10.1504/IJBG.2020.109024
Eldon, M., & Ashari, D. R. W. (2025). Transformasi Kapasitas Pemasaran Digital Umkm Makanan Ringan Melalui Workshop Partisipatif Di Kawasan Semi-Perkotaan. Janita: Jurnal Pengabdian Kepada Masyarakat, 5(1), Article 1. https://doi.org/10.36563/pengabdian.v5i1.1573
Faizulayev, A., Wada, I., Kyzdarbekova, A. S., & Parmankulova, I. (2021). What drives the banking competition in Islamic finance oriented countries? Islamic vs conventional banks. Journal of Islamic Accounting and Business Research, 12(4), 457–472. https://doi.org/10.1108/JIABR-06-2020-0173
Fasa, M. I. (2018). Developing the Quality of Islamic Corporate Culture on Islamic Bank in Indonesia. JES (Jurnal Ekonomi Syariah), 2(2), 140–155. https://doi.org/10.30736/jes.v2i2.35
Firdiansyah, F. A. (2021). Optimization Of Human Resources Management In Islamic Banking. JPS (Jurnal Perbankan Syariah), 2(2), 150–164. https://doi.org/10.46367/jps.v2i2.375
Gheitani, A., Imani, S., Seyyedamiri, N., & Foroudi, P. (2019). Mediating effect of intrinsic motivation on the relationship between Islamic work ethic, job satisfaction, and organizational commitment in banking sector. International Journal of Islamic and Middle Eastern Finance and Management, 12(1), 76–95. https://doi.org/10.1108/IMEFM-01-2018-0029
Ginting Munthe, P. (2018). An Analysis of the Impact of Islamic Work Ethic on Job Satisfaction and It’s Implication towards Organizational Commitment (A Case Study: Islamic Banks in Medan) [PhD Thesis, Universitas Islam Negeri Sumatera Utara]. http://repository.uinsu.ac.id/5833/
Hadjri, M. I., Perizade, B., Marwa, T., & Hanafi, A. (2019). Islamic Human Resource Management, Organizational Commitment and Employee Performance: A Case Study on Sharia Bank in South Sumatera. International Review of Management and Marketing, 9(1), Article 1.
Hamdani, H., Basri, Y. Z., . K., & Surbakti, S. (2019). Implementation of Islamic Work Values in Realizing Sharia Good Corporate Governance and Its Implications in Stakeholders Oriented Values (SOV) and Financial Performance of Islamic Banking in Indonesia. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3413620
Hasan, Z. (2020). How Important are Human Resources in Supporting Sharia Banking Performance in Indonesia? INFERENSI: Jurnal Penelitian Sosial Keagamaan, 14(2), 181–200. https://doi.org/10.18326/infsl3.v14i2.181-200
Ifada, L. M., Ghozali, I., & Faisal, F. (2019). Islamic Organizational Culture, Islamic Corporate Social Responsibility, and Corporate Performance: Evidence From Sharia Bank in Indonesia. International Journal of Financial Research, 10(6), 118. https://doi.org/10.5430/ijfr.v10n6p118
Jan, A. A., Lai, F.-W., & Tahir, M. (2021). Developing an Islamic Corporate Governance framework to examine sustainability performance in Islamic Banks and Financial Institutions. Journal of Cleaner Production, 315, 128099. https://doi.org/10.1016/j.jclepro.2021.128099
Jan, A., Marimuthu, M., Hassan, R., & Mehreen. (2019). Sustainable Business Practices and Firm’s Financial Performance in Islamic Banking: Under the Moderating Role of Islamic Corporate Governance. Sustainability, 11(23), 6606. https://doi.org/10.3390/su11236606
Jatmika, A., Entang, M., & Purba, J. H. V. (2021). The Strategy of Human Resources Development in Improving the Competitive Advantage (case Study at Madinatul Qur’an Islamic Boarding School, Depok). JHSS (JOURNAL OF HUMANITIES AND SOCIAL STUDIES), 5(1), 91–98. https://doi.org/10.33751/jhss.v5i1.3827
Khairunnisa, M., Purwoko, S., Latifah, L., & Yunitawati, D. (2022). Evaluasi Pelaksanaan Program Stimulasi, Deteksi, dan Intervensi Dini Tumbuh Kembang di Magelang. Jurnal Obsesi : Jurnal Pendidikan Anak Usia Dini, 6(5), 5052–5065. https://doi.org/10.31004/obsesi.v6i5.1885
Khan, A. A., Ghias, S., & Hyder, S. I. (2021). Islamic Banking Prospects, Challenges and Criticism: A Systematic Literature Review. Journal of Accounting and Finance in Emerging Economies, 7(4), 921–930. https://doi.org/10.26710/jafee.v7i4.2072
Khomsatun, S., Rossieta, H., Fitriany, F., & Nasution, M. E. (2021). Sharia Disclosure, Sharia Supervisory Board and the Moderating Effect of Regulatory Framework: The Impact on Soundness of Islamic Banking. In W. A. Barnett & B. S. Sergi (Eds.), International Symposia in Economic Theory and Econometrics (pp. 291–321). Emerald Publishing Limited. https://doi.org/10.1108/S1571-038620210000028017
Mahmud, M. H., Barlian, A., Mus, A. R., Mallongi, S., . N., Bunyamin, A., Assagaf, Abd. R., . S., & Raehana, S. (2024). Human Resource Development Planning Oriented Towards Character Building in Santri: A Case Study in Soppeng District’s Islamic Boarding Schools. International Journal of Religion, 5(10), 5441–5447. https://doi.org/10.61707/vvbq8h91
Mansour, W., Ben Jedidia, K., & Majdoub, J. (2015). How Ethical is I slamic Banking in the Light of the Objectives of I slamic Law? Journal of Religious Ethics, 43(1), 51–77. https://doi.org/10.1111/jore.12086
Minaryanti, A. A., & Mihajat, M. I. S. (2024). A systematic literature review on the role of sharia governance in improving financial performance in sharia banking. Journal of Islamic Accounting and Business Research, 15(4), 553–568. https://doi.org/10.1108/JIABR-08-2022-0192
Muflih, M. (2021). The link between corporate social responsibility and customer loyalty: Empirical evidence from the Islamic banking industry. Journal of Retailing and Consumer Services, 61, 102558. https://doi.org/10.1016/j.jretconser.2021.102558
Musa, M. A., Sukor, M. E. A., Ismail, M. N., & Elias, M. R. F. (2020). Islamic business ethics and practices of Islamic banks: Perceptions of Islamic bank employees in Gulf cooperation countries and Malaysia. Journal of Islamic Accounting and Business Research, 11(5), 1009–1031. https://doi.org/10.1108/JIABR-07-2016-0080
Naimah, N. N., Ashari, D. R. W., & Wasilah, A. A. K. (2025). The Role of Local Wisdom in Enhancing Trust in Islamic Banking: A Literature Review. Journal of Economics and Banking ESPAS, 2(1), 33–44. https://doi.org/10.28926/espas.v2i1.1826
Nasution, F. N., & Rafiki, A. (2019). Islamic work ethics, organizational commitment and job satisfaction of Islamic banks in Indonesia. RAUSP Management Journal, 55(2), 195–205. https://doi.org/10.1108/RAUSP-01-2019-0011
Nawaz, T. (2019). Exploring the Nexus Between Human Capital, Corporate Governance and Performance: Evidence from Islamic Banks. Journal of Business Ethics, 157(2), 567–587. https://doi.org/10.1007/s10551-017-3694-0
Naz, I., Shah, S. M. A., & Kutan, A. M. (2017). Do managers of sharia-compliant firms have distinctive financial styles? Journal of International Financial Markets, Institutions and Money, 46, 174–187. https://doi.org/10.1016/j.intfin.2016.05.005
Nurdin, R. (2017). Analisis Kesesuaian Konsep Asset and Liability Management (Alma) dengan Sistem Perbankan Syariah. Media Syari’ah : Wahana Kajian Hukum Islam dan Pranata Sosial, 18(2), 363–380. https://doi.org/10.22373/jms.v18i2.1924
Oriana, D., & Violita, E. (2020). The Effect of Islamic Work Ethics on Job Satisfaction, Organizational Commitment, Turnover Intention, and Innovation Capability. Proceedings of the Proceedings of the 1st International Conference on Applied Social Sciences, Business, and Humanity, ICo-ASCNITY, 2 November 2019, Padang, West Sumatra, Indonesia. Proceedings of the 1st International Conference on Applied Social Sciences, Business, and Humanity, ICo-ASCNITY, 2 November 2019, Padang, West Sumatra, Indonesia, Padang, Indonesia. https://doi.org/10.4108/eai.1-11-2019.2293983
Qasim, M., Irshad, M., Majeed, M., & Rizvi, S. T. H. (2022). Examining Impact of Islamic Work Ethic on Task Performance: Mediating Effect of Psychological Capital and a Moderating Role of Ethical Leadership. Journal of Business Ethics, 180(1), 283–295. https://doi.org/10.1007/s10551-021-04916-y
Rashid, Md. H. U., Nurunnabi, M., Rahman, M., & Masud, Md. A. K. (2020). Exploring the Relationship between Customer Loyalty and Financial Performance of Banks: Customer Open Innovation Perspective. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 108. https://doi.org/10.3390/joitmc6040108
Rizvi, S. A. R., Narayan, P. K., Sakti, A., & Syarifuddin, F. (2020). Role of Islamic banks in Indonesian banking industry: An empirical exploration. Pacific-Basin Finance Journal, 62, 101117. https://doi.org/10.1016/j.pacfin.2019.02.002
Seijts, G., Espinoza, J. A., & Carswell, J. (2020). Utility analysis of character assessment in employee placement. Leadership & Organization Development Journal, 41(5), 703–720. https://doi.org/10.1108/LODJ-07-2019-0314
Serhan, C., Nehmeh, N., & Sioufi, I. (2022). Assessing the effect of organisational commitment on turnover intentions amongst Islamic bank employees. ISRA International Journal of Islamic Finance, 14(2), 141–156. https://doi.org/10.1108/IJIF-01-2021-0008
Shamsudheen, S. V., Rosly, S. A., & Aljunid, S. A. H. (2021). Drawing ethical mentation in Islamic banks; addressing operational lines heterogeneity with special reference to Al-Ghazali’s ethical philosophy. International Journal of Ethics and Systems, 37(4), 559–580. https://doi.org/10.1108/IJOES-12-2020-0205
Shofwan, A. M., Arifin, M., Muttaqin, A., Rohman, M., Ihsani, A. F. A., Laili, A., Farantika, D., Aulia, H., Ashari, D. R. W., Haris, M. B. A., & Rifa’i, A. (2024). Character Building Sebuah Tinjauan Berbagai Aspek (Vol. 1). PT. Insan Cendekia Mandiri Group.
Sholihin, M., Zaki, A., & Maulana, A. O. (2018). Do Islamic rural banks consider Islamic morality in assessing credit applications? Journal of Islamic Accounting and Business Research, 9(4), 498–513. https://doi.org/10.1108/JIABR-01-2018-0015
Sinaga, I. P. A. S., Rizky, G. M., & Sodikin, K. (2024). Analisis Tantangan Penegakan Hukum Dan Persaingan Usaha Di Era Digitalisasi. Journal of Law, Administration, and Social Science, 4(1), 1–12. https://doi.org/10.54957/jolas.v4i1.594
Suandi, E., Herri, H., Yulihasri, Y., & Syafrizal, S. (2023). An empirical investigation of Islamic marketing ethics and convergence marketing as key factors in the improvement of Islamic banks performance. Journal of Islamic Marketing, 14(6), 1438–1462. https://doi.org/10.1108/JIMA-07-2021-0225
Supriyatni, R. (2021). Legal Perspective on the Supporting Role of Human Resource in the Islamic Banking Industry in Indonesia. International Journal of Criminology and Sociology, 10, 299–304. https://doi.org/10.6000/1929-4409.2021.10.36
Susanto, H. H. (2019). Improving Competitiveness of Islamic Banking Through Human Resources (SDI) Development Strategy. Al-Iktisab: Journal of Islamic Economic Law, 3(1). https://doi.org/10.21111/al-iktisab.v3i1.3904
Tok, E., & Yesuf, A. J. (2022). Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social Impact. Sustainability, 14(2), 916. https://doi.org/10.3390/su14020916
Waluyo Jati, K., Agustina, L., Muliasari, I., & Armeliza, D. (2020). Islamic social reporting disclosure as a form of social responsibility of Islamic banks in Indonesia. Banks and Bank Systems, 15(2), 47–55. https://doi.org/10.21511/bbs.15(2).2020.05
Wardiwiyono, S. (2020). Six Years in Achieving Maqasid Ash-Shariah: The Case of Islamic Commercial Banks in Indonesia. Proceedings of the 1st International Conference on Science, Health, Economics, Education and Technology (ICoSHEET 2019). 1st International Conference on Science, Health, Economics, Education and Technology (ICoSHEET 2019), Semarang, Central Java, Indonesia. https://doi.org/10.2991/ahsr.k.200723.005
Wasilah, A. A. K., Ashari, D. R. W., & Naimah, N. N. (2025). The Role Of Digital Payment Systems in Enhancing Financial Inclusion: A Literature Review in the Context of Indonesian Banking. Journal of Economics and Banking ESPAS, 2(1), 45–57. https://doi.org/10.28926/espas.v2i1.1827
Wikaningrum, T. (2011). Praktek dan Kebijakan Manajemen Sumber Daya Manusia pada Perbankan Syariah. Jurnal Siasat Bisnis, 15(1), 99–122. https://doi.org/10.20885/jsb.vol15.iss1.art8
Yani, A. (2019). Competitive Advantage Through a Strategic Approach (Study on Islamic Banking in South Kalimantan). Proceedings of the International Conference on Social Science 2019 (ICSS 2019). Proceedings of the International Conference on Social Science 2019 (ICSS 2019), Surabaya City, Indonesia. https://doi.org/10.2991/icss-19.2019.140
Yousef, D. A. (2001). Islamic work ethic – A moderator between organizational commitment and job satisfaction in a cross‐cultural context. Personnel Review, 30(2), 152–169. https://doi.org/10.1108/00483480110380325
Yu, D., Xiao, H., & Bo, Q. (2018). The Dimensions of Organizational Character and Its Impacts on Organizational Performance in Chinese Context. Frontiers in Psychology, 9, 1049. https://doi.org/10.3389/fpsyg.2018.01049
Zafar, M. B., & Jafar, A. (2024). Human capital and Islamic banking: A systematic literature review. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-11-2023-0376
Abstract
Views:
202, 
PDF downloads: 113
Published
Issue
Section
License
Copyright (c) 2025 Denny Rakhmad Widi Ashari, Atina Hidayati, Mohammad Basid Al Haris, Setyoadi Pambudi, Gautama Sastra Waskita
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
