Intellectual Capital and Maqashid Sharia Performance of Islamic Banking in Indonesia: the Moderate of Islamic Sustainable Development Goals (SDGs)

Abstract

Objective: This study aims to obtain empirical evidence on the influence of intellectual capital on the performance of maqashid sharia with Islamic Sustainable Development Goals (SDGs) as a moderating variable.   Theoretical Framework: This research is based on resource-based theory (RBT), legitimacy theory and maqashid sharia theory.   Method: The iB-VAIC method for intellectual capital is measured based on capital employed, human capital, and structural capital. This study also uses a moderating variable, namely the disclosure of sustainable development goals (SDGs) of the type of Islamic corporate social responsibility (iCSR). The bank performance variable is measured using the maqashid sharia approach that Mohammed & Taib (2015) developed. Secondary data in the form of annual reports of 9 Islamic commercial banks in Indonesia were collected from 2015-2020 and analyzed using multiple regression analysis.   Results and Discussion: The research results show that (1) intellectual capital has a negative effect on the performance of maqashid sharia, (2) the amount of Islamic corporate social responsibility (iCSR) disclosure has a positive effect as a moderating variable in the relationship between intellectual capital and maqashid sharia performance.   Research Implications: These findings can help Islamic bank managers improve their corporate performance by effectively utilizing their iCSR and IC.   Originality/Value: To our knowledge, this is the first study to examine the influence of intellectual capital on maqashid sharia performance by using disclosure of Islamic sustainable development goals (SDGs) of the type of Islamic corporate social responsibility as a moderation variable in the Islamic banking context in Indonesia.