Stakeholder perspectives on shariah supervisory board independence: A mixed-methods study in Indonesia

Faizi, Faizi and Widodo, Purwanto and Jumbri, Isma Addi and Fauzan (2026) Stakeholder perspectives on shariah supervisory board independence: A mixed-methods study in Indonesia. Quality & Quantity, -. pp. 1-33. ISSN 1573-7845

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Abstract

This study investigates the stakeholders’ perspectives on the independence of the Shariah Supervisory Board (SSB) in Indonesian Islamic financial institutions (IFIs). Despite the critical role of SSB independence in ensuring Shariah compliance and stakeholder trust, existing research offers limited empirical insights into the factors shaping public perceptions, particularly regarding gender diversity, cross-membership, and transparency, and how these perceptions influence trust, loyalty, and adoption of Islamic banking products. To address this gap, this study employs an explanatory sequential mixed methods design. Quantitative data were collected through a survey of 292 stakeholders and analyzed using SPSS. This was followed by a qualitative phase involving 15 in-depth interviews with customers, employees, SSB members, scholars, and regulators to contextualize and enrich these quantitative findings. The integrated results revealed an overall positive perception of SSB independence, driven largely by members’ expertise, transparent compensation, and merit-based appointments. Perceived independence emerged as a significant driver of public trust, customer loyalty, and adoption of Islamic financial products. Gender diversity and operational transparency were found to enhance trust and align with maqasid al-Shariah objectives, while cross-membership was perceived as a source of conflict of interest. Demographic analysis indicated variations in perceptions based on gender, age, religion, and geographic locations. By combining generalizable trends with rich contextual insights, this study makes a methodological contribution to the literature on Shariah governance and offers actionable recommendations for strengthening governance, transparency, and stakeholder trust in Indonesia’s Islamic finance sector. These findings provide practical guidance for policymakers and IFIs to enhance SSB independence through regulatory reforms and transparent governance practices.

Item Type:	Article
Uncontrolled Keywords:	Shariah supervisory board, Independence, Corporate governance, Islamic banking, Gender diversity, Cross-membership, Maqasid al-Shariah
Divisions:	Faculty of Technology Management and Technopreneurship
Depositing User:	Norfaradilla Idayu Ab. Ghafar
Date Deposited:	04 Sep 2026 01:20
Last Modified:	04 Sep 2026 01:20
URI:	http://eprints.utem.edu.my/id/eprint/30401
Statistic Details:	View Download Statistic

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