Abstract

This study examines the role of Sharia governance as a mediator in the relationship between Sharia Supervisory Board compliance and maqasid performance, and as a moderator, focusing on intellectual capital and its impact on maqasid performance in Islamic banking. The number of members and the frequency of meetings of the Sharia Supervisory Board determines the function of Sharia compliance. At the same time, intellectual capital consists of human intellectual capital, structured intellectual capital, and capital employed efficiency. This study focuses on Islamic Commercial Banks from 2015 to 2020. The research data were obtained from secondary data from financial reports using smartPLS SEM. The findings of this study explain empirical evidence that sharia compliance can improve maqasid performance. In addition, Islamic Banks with high human intellectual capital can directly and substantially impact maqasid performance. However, the existence of structured intellectual capital and capital employed efficiency in Islamic banks does not directly affect maqasid performance. Implementing Sharia governance is very important in improving maqasid performance and can also strengthen the relationship between Sharia compliance and maqasid performance. The main implications of this research are the design, formation, and development of constructive maqasid performance measurements, followed by strengthening Sharia governance regulations at the level of developing asset infrastructure and adding distribution to the Sharia banking network.

Keywords: Sharia governance, Maqasid performance, Intellectual capital, Islamic banking

How to Cite:

Andini, S., Nurkholis, N. & Iqbal, S., (2025) “Exploring Sharia Compliance and Intellectual Capital for a New Approach to Maqasid Performance”, Australasian Accounting Business and Finance Journal 19(3): 2, 3–22. doi: https://doi.org/10.14453/aabfj.v19i3.02

Rights:

In Copyright