eprintid: 79058
rev_number: 10
eprint_status: archive
userid: 12253
dir: disk0/00/07/90/58
datestamp: 2026-10-13 04:05:26
lastmod: 2026-10-13 06:51:02
status_changed: 2026-10-13 06:51:02
type: article
metadata_visibility: show
creators_name: Darmawan, -
creators_name: Agus Faisal, -
creators_name: Halimah, -
creators_name: Nadina, -
title: Mudharabah Adoption as Institutional Risk Governance Evidence from Coastal Livelihoods in Indonesia
ispublished: pub
subjects: KB
divisions: artkl
full_text_status: public
keywords: Mudharabah, Islamic microfinance, Institutional risk governance, Risk
management, Institutional trust, Coastal development
abstract: This study examines the adoption of mudharabah financing in high-risk coastal livelihoods by
reframing Islamic financial contracts as instruments of institutional risk governance rather than
purely normative or religious arrangements. It seeks to explain how institutional processes
shape adoption decisions under conditions of environmental and income uncertainty. A quantitative research design is employed using survey data from 440 coastal economic actors
in Indonesia. The proposed framework is tested through a serial mediation model using partial
least squares structural equation modeling (PLS-SEM). Multi-group analysis is further applied
to capture contextual variations across geographic settings and fishing-asset ownership
structures. The findings indicate that access to capital and perceived fairness do not directly influence the
intention to adopt mudharabah. Their effects are fully transmitted through a sequential
institutional pathway involving the institutional role of Islamic financial intermediaries, riskmanagement
practices addressing weather and price volatility, and the formation of
institutional trust. Multi-group analysis reveals that these institutional pathways are
significantly stronger in mainland coastal areas and among individual asset owners, suggesting
that institutional risk governance operates unevenly across contexts.The results suggest that strengthening mudharabah adoption requires more than expanding
access or emphasizing Shariah compliance. Islamic financial institutions should prioritize
institutional capacity for risk governance, including contract clarity, distributive fairness, and
operational risk-management mechanisms, particularly in vulnerable coastal environments  This study contributes to the Islamic finance and development literature by reconceptualizing
mudharabah adoption as an outcome of institutional risk governance. It positions trust as an
endogenous result of institutional performance and offers a context-sensitive framework for
designing Islamic microfinance interventions in high-risk livelihood settings
date_type: published
publication: Journal of Islamic Accounting and Business Research
publisher: Emerald Publishing Limited
refereed: TRUE
citation:   Darmawan, - and Agus Faisal, - and Halimah, - and Nadina, -   Mudharabah Adoption as Institutional Risk Governance Evidence from Coastal Livelihoods in Indonesia.  Journal of Islamic Accounting and Business Research.       
document_url: https://digilib.uin-suka.ac.id/id/eprint/79058/1/Mudharabah%20Adoption%20as%20Institutional%20Risk%20Governance%20Evidence%20from%20Coastal%20Livelihoods%20in%20Indonesia.PDF
document_url: https://digilib.uin-suka.ac.id/id/eprint/79058/6/surat-surat-pernyataan1791873978.pdf