Developing Business Model Based on Islamic Classical Economic Thoughts

Abstract

This study aims to develop a business model based on Islamic economic thoughts pioneered by Muslim thinkers such as Abu Yusuf, al-Syaibani, Abu Ubayd, al-Mawardi, al-Ghazali, Ibn Taimiyah, and Ibn Khaldun. They existed from the early period of Islam until 1446. An absence of consensus on the definition of a business model that is universally accepted has led to the reassessment of the current business model towards pro-business and encouraged by profit margins. A holistic and comprehensive business model influences a business's enhanced performance. Hence, in reality, the survival rate of businesses, mainly businesses run by Muslims, is at a low ebb, although Islam has provided guidelines for all life activities, including business strategies. Hence, further studies should be conducted to seek solutions to overcome the resilience of Muslim businesses by referring to the thoughts of Islamic economic scholars. However, the scholarly thoughts were not organised as a scientific discipline, which eventually led to a decline in the Islamic economy, and consequently, humans began to follow the conventional economy. Data were collected through the document analysis and Focus Group Discussion (FGD) methods involving agency representatives, entrepreneurs, and academicians in the business field. It was then analysed using the content analysis method. Findings indicate that the business model comprised four components, namely production, business transactions, marketing, and the government's role, which was based on Islamic creed (aqidah), Islamic law (shariah), and Islamic morality and manners (akhlaq), acts as a catalyst for a successful business venture. This study has a significant impact and offers a new solution for overcoming and substantiating society's economic growth and development by making business a mechanism for empowering the Islamic economy.

Received: 16 April 2022 / Accepted: 25 June 2022 / Published: 5 July 2022