The Role of DART Key Building Blocks as Customer Co-Creation Determinants in Islamic Banking Services

Abstract

Co-creation is a baseline for innovation strategies to increase market share and competitive advantage in the Islamic Banking industry. The purpose of this study is to examine the role of the DART (dialogue, access, risk and transparency) model as a determinant of co-creation activities in Islamic banking. It is the first empirical investigation that tests the DART model in this way. Using Partial Least Squares Structural Equation Modeling, this study analyzes the responses of 192 Islamic bank customers to test four proposed hypotheses. The research result confirms that the dialogue and transparency of the DART model positively support co-creation activities. Our study is based on data from Islamic Banking customers in Indonesia; therefore, it needs to be retested in a broader context. Since we distributed questionnaires among Islamic Banking customers, future studies could compare their responses with those of customers of conventional banks. Further studies are recommended to develop the DART model in other specific contexts. It is important for Islamic Banking managers in Indonesia to prioritize dialogue and information disclosure in serving customers while also allowing customers access to information to and delivering risk assessments honestly.