Muslim Indonesian women entrepreneurs: a factor analysis of business performance

Abstract

Purpose Muslim Indonesian women entrepreneurs (MIWEs) lie at the intersection of religion and gender. Given the growing participation of women in entrepreneurship and economic stability in Indonesia, the purpose of this study is to identify the factors (and their significance) influencing MIWEs’ business performance. Design/methodology/approach A survey of 101 MIWEs was conducted, and results were analyzed via structural modelling equation using SmartPLS 3. Findings The findings of this study suggest that, within the macro frame of the moderate version of Islam practiced and women’s economic engagement, women business owners’ skills and religious factors significantly influence their business performance. Factor analysis indicates that the role of the veil, Shariah guidance for business and managing stress through the practice of Salah (prayer) are important for MIWEs. However, this study also indicates that, in addition to religious factors, MIWEs’ own effective and participative leadership style, honesty and fairness reputation in business dealings and a good market image are also significant variables affecting business performance. This is in contrast to past studies, where the role of environmental factors such as access to capital, family and government has been shown to have a stronger influence on Muslim women entrepreneurs’ business performance. Originality/value Because of Indonesia’s unique pluralistic national context, along with increasing women’s economic participation, MIWEs emerge as a distinct category of entrepreneurs who integrate religion and their own skills to navigate their business performance.