Faith-based Social Entrepreneurship: Improving Mosque's Socio-Economic Values in Emerging Country

Ahmad Faiz Khudlari Thoha (1), Ali Mujahidin (2)
(1) Department of Da’wa Management, STIDKI Ar Rahmah Surabaya, Indonesia
(2) Department of Economics Education, IKIP PGRI Bojonegoro, Indonesia
Fulltext View | Download
How to cite (SHIRKAH) :
Thoha, A. F. K., & Mujahidin, A. (2023). Faith-based Social Entrepreneurship: Improving Mosque’s Socio-Economic Values in Emerging Country. Shirkah: Journal of Economics and Business, 8(3), 268–283. https://doi.org/10.22515/shirkah.v8i3.521

The religious perspective in the literature on social entrepreneurship remains largely unexplored, resulting in a scarcity of studies that analyze social entrepreneurship through a religious lens. Social entrepreneurship, including its manifestation in religious organizations as faith-based social enterprises, has emerged as a significant innovation in addressing diverse social issues, with the vast number of mosques in Indonesia presenting a promising opportunity to contribute to the betterment of the community's well-being. This study aims to identify the transformation process at the Masjid Ar Rahmah Surabaya and its impacts on social welfare considering its successful establishment as a faith-based social enterprises over the past five years, managing multiple business units and generating social benefits. Employing a case study, data were collected through interviews, observations, and document studies. The findings of the study present a model consisting of stages such as opportunity recognition, business establishment, resource acquisition, and organizational reconfiguration. These insights have implications for addressing social issues and enhancing community welfare in Indonesia and other emerging countries.

Adnan, A. A. H. bin. (2015). Pengurusan derma awam dalam menjana ekonomi masjid: Perbandingan Masjid Negara dan Masjid Al-Ghufran Pinggiran Taman Tun Dr Ismail Kuala Lumpur. Akademi Pengajian Islam Universiti Malaya Kuala Lumpur, 167. https://doi.org/10.1017/CBO9781107415324.004

Ahmad, S., & Bajwa, I. A. (2023). The role of social entrepreneurship in socio-economic development: a meta-analysis of the nascent field. In Journal of Entrepreneurship in Emerging Economies, 15(1), 133–157. https://doi.org/10.1108/JEEE-04-2021-0165

Alderson, K. J. (2012). At the crossroads: Social and faith-based entrepreneurship. Thunderbird International Business Review, 54(1), 111-116. https://doi.org/10.1002/tie.21443

Ali, N. M., Mahdzan, N. S. A., Ahmad, R., & Ahmad, A. R. (2019). Perceived factors of successful social enterprises: the case of the state Islamic religious councils and Waqf land development in Malaysia. International Journal of Entrepreneurship, 2(6), 66-75.. https://doi.org/10.35631/ijemp.26006

Aliyasak, M. Z. I., Hussin, M. Y. M., Muhammad, F., & Razak, A. A. (2019). Mosquepreneur in Perak: Reality or fantasy? Research in World Economy, 10(5), 53. https://doi.org/10.5430/rwe.v10n5p53

Almarri, J. (2014). Social entrepreneurship in practice. The multifaceted nature of social entrepreneurship and the role of the state within an Islamic context. [Master thesis. Oulu: University of Oulu].

Anggadwita, G., Mulyaningsih, H. D., Ramadani, V., & Arwiyah, M. Y. (2015). Women entrepreneurship in Islamic perspective: A driver for social change. International Journal of Business and Globalisation, 15(3), 389–404. https://doi.org/10.1504/IJBG.2015.071914

Bansal, S., Garg, I., & Vasa, L. (2023). Can social enterprises aid sustainable development? Evidence from multi-stage investigations. PloS One, 18(2), e0281273. https://doi.org/10.1371/journal.pone.0281273

Borquist, B. R. (2021). What’s love got to do with it? Religion and the multiple logic tensions of social enterprise. Religions, 12(8). https://doi.org/10.3390/rel12080655

Boulven, M. A., Abdullah, S., Bahari, A., Ramli, A. J., Hussin, N. S., Jamaluddin, J., & Ahmad, Z. (2018). Model of Islamic social entrepreneurship: A study on successful Muslim social entrepreneur in Malaysia. MATEC Web of Conferences, 150, 10–13. https://doi.org/10.1051/matecconf/201815005093

Budiman, M. A., & Sadewa, M. M. (2018). Assessing the roles of mosques in enhancing the Islamic economic practices. 126(Icied 2017), 95–99. https://doi.org/10.2991/icied-17.2018.19

Canestrino, R., Ćwiklicki, M., Magliocca, P., & Pawełek, B. (2020). Understanding social entrepreneurship: A cultural perspective in business research. Journal of Business Research, 110, 132–143. https://doi.org/10.1016/j.jbusres.2020.01.006

Carino, T. C. (2016). Faith-based organisations between service delivery and social change in contemporary China: The experience of amity foundation. HTS Teologiese Studies / Theological Studies. https://doi.org/10.4102/hts.v72i4.3504

Chell, E., Spence, L. J., Perrini, F., & Harris, J. D. (2016). Social entrepreneurship and business ethics: Does social equal ethical? Journal of Business Ethics, 133(4), 619–625. https://doi.org/10.1007/s10551-014-2439-6

Cherrier, H., Goswami, P., & Ray, S. (2018). Social entrepreneurship: Creating value in the context of institutional complexity. Journal of Business Research, 86(November 2017), 245–258. https://doi.org/10.1016/j.jbusres.2017.10.056

Clarke, M., & Ware, V. A. (2015). Understanding faith-based organizations: How FBOs are contrasted with NGOs in international development literature. Progress in Development Studies, 15(1), 37-48. https://doi.org/10.1177/1464993414546979

Corbin, J. M., & Strauss, A. (1990). Grounded theory research: Procedures, canons, and evaluative criteria. Qualitative Sociology, 13(1), 3–21. https://doi.org/10.1007/BF00988593

Corley, K. G., & Gioia, D. A. (2004). Identity ambiguity and change in the wake of a corporate spin-off. Administrative Science Quarterly, 49(2), 173–208. https://doi.org/10.2307/4131471

Corner, P. D., & Ho, M. (2010). How opportunities develop in social entrepreneurship. Entrepreneurship: Theory and Practice, 34(4), 635–659. https://doi.org/10.1111/j.1540-6520.2010.00382.x

Corner, P., & Kearins, K. (2013). Social entrepreneurship and dynamic capabilities. Academy of Management Proceedings, 2013(1), 13214. http://hdl.handle.net/10292/5672

da Costa, L. M., Tondolo, V. A. G., Tondolo, R. da R. P., Longaray, A. A., & Ferro de Guimarães, J. C. (2020). Dynamic capabilities and organizational performance in the nonprofit sector. Latin American Business Review, 21(4), 393–415. https://doi.org/10.1080/10978526.2020.1768540

Dacin, P., Dacin, M., & Matear, M. (2010). Social entrepreneurship: Why we don’t need a new theory and how we move forward from here. Academy of Management Perspectives, 24(3), 37–57. https://doi.org/10.5465/AMP.2010.52842950

D’Agostino, T. J., Dowd, R., & Mugo, J. (2019). Faith-based education in changing social, economic, and political contexts: Perspectives from Catholic educators in Kenya. Review of Faith and International Affairs, 17(4), 76-88. https://doi.org/10.1080/15570274.2019.1681730

Desa, G., & Basu, S. (2013). Optimization or bricolage? Overcoming resource constraints in global social entrepreneurship. Strategic Entrepreneurship Journal, 7(1), 26–49. https://doi.org/10.1002/sej.1150

Doherty, B., Haugh, H., & Lyon, F. (2014a). Social enterprises as hybrid organizations: A review and research agenda. International Journal of Management Reviews, 16(4), 417–436. https://doi.org/10.1111/ijmr.12028

Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532–550. https://doi.org/10.5465/amr.1989.4308385

Erguig, R., MahdiNejad, J. e. D., Nguyen, A., Omar, A. R. C., Sözeri, S., Kosar-Altinyelken, H., Volman, M., Yasoa’, M. R., Ghazali, M. S., Alwi, M. A. M., Rahman, A. H. A., Abdullah, S. S., Abdullah, A. R., Ismail, M., Yaacob, M. R., Banerjee, A. T., Landry, M., Zawi, M., Childerhose, D., … Lussier, D. N. (2019). Explaining an influential model of the significant relationship between religion, spirituality, and environmental peace in mosque interior architecture. Research in World Economy, 10(2), 2149–2162. https://doi.org/10.5430/rwe.v10n5p30

Fadzil, M. I., Lee, M. A. I., & Khamis, K. A. (2019). social entrepreneurship of mosque institution: the medium of human capital enhancement. International Journal of Modern Trends in Social Sciences, 2(9), 01–10. https://doi.org/10.35631/ijmtss.29001

Fauzi, A., & Abdullah, M. Y. M. (2016). Strategi pembangunan ekonomi Masjid As-Salam sebagai wasilah dakwah kontemporari. International Conference on Aqidah, Dakwah and Syariah, 2016, page 75–87. https://adoc.pub/strategi-pembangunan-ekonomi-masjid-as-salam-sebagai-wasilah.html

Foster, A. J., Marshall, M. L., Jefferson, W. K., Ard, Q. Y., & Spivey, S. (2022). Collaboration with African American faith-based organizations to promote physical activity: Lessons learned from a process evaluation of a shared-use agreements program. Health Promotion Practice, 23(1), 55S-66S. https://doi.org/10.1177/15248399221117160

Gioia, D. A., Corley, K. G., & Hamilton, A. L. (2013). Seeking qualitative rigor in inductive research: Notes on the Gioia Methodology. Organizational Research Methods, 16(1), 15–31. https://doi.org/10.1177/1094428112452151

Hall, K., Alcock, P., & Millar, R. (2012). Start Up and sustainability: Marketisation and the social enterprise investment fund in England. Journal of Social Policy, 41(4), 733–749. https://doi.org/10.1017/S0047279412000347

Hati, S. R. H., & Idris, A. (2019). The role of leader vs organisational credibility in Islamic social enterprise marketing communication. Journal of Islamic Marketing, 10(4), 1128–1150. https://doi.org/10.1108/JIMA-02-2017-0018

Hoque, N., Khan, M. A., & Mohammad, K. D. (2015). Poverty alleviation by Zakah in a transitional economy: a small business entrepreneurial framework. Journal of Global Entrepreneurship Research, 5, 7. https://doi.org/10.1186/s40497-015-0025-8

Ince, I., & Hahn, R. (2020). How dynamic capabilities facilitate the survivability of social enterprises: A qualitative analysis of sensing and seizing capacities. Journal of Small Business Management, 58(6), 1256–1290. https://doi.org/10.1111/jsbm.12487

Kamaruddin, M. I. H., Auzair, S. M., & Muhamed, N. A. (2018). Accountability in Islamic Social Enterprises (ISEs) from stakeholders ’ perspective. International Journal of Engineering & Technology, 7(3.35), 253–256. https://doi.org/10.14419/ijet.v7i3.35.29457

Kannothra, C. G., Manning, S., & Haigh, N. (2018). How hybrids manage growth and social–business tensions in global supply chains: The case of impact sourcing. Journal of Business Ethics, 148(2), 271–290. https://doi.org/10.1007/s10551-017-3585-4

Klarin, A., & Suseno, Y. (2022). An integrative literature review of social entrepreneurship research: Mapping the literature and future research directions. In Business and Society. SAGE Publications Ltd. https://doi.org/10.1177/00076503221101611

Kormishkina, L., Kormishkin, E., Gorin, V., Koloskov, D., & Koroleva, L. (2019). Environmental investment: The most adequate neo-industrial response to the growth dilemma of the economy. Entrepreneurship and Sustainability Issues, 7(2), 929-948. https://doi.org/10.9770/jesi.2019.7.2(10)

Kruse, P., Wach, D., & Wegge, J. (2021). What motivates social entrepreneurs? A meta-analysis on predictors of the intention to found a social enterprise. Journal of Small Business Management, 59(3), 477–508. https://doi.org/10.1080/00472778.2020.1844493

Lincoln, Y. S., & Guba, E. G. (1985). Naturalistic inquiry. Naturalistic Inquiry.

Mulyaningsih, H. D., & Ramadani, V. (2017). Social entrepreneurship in an Islamic context. In Entrepreneurship and Management in an Islamic Context. Springer International Publishing. https://doi.org/10.1007/978-3-319-39679-8_10

Noor, A. H. M., Sani, A. A., Hasan, Z. A., & Misbahrudin, N. T. (2018). A conceptual framework for waqf-based social business from the perspective of Maqasid Al-Shariah. International Journal of Academic Research in Business and Social Sciences, 8(8), 801–818. https://doi.org/10.6007/ijarbss/v8-i8/4635

Oham, C. (2015). Case studies on faith-based social enterprises. 1–26.

Omar, A. R. C., Hussin, M. Y. M., & Muhammad, F. (2017). Perniagaan sosial menerusi aktiviti ekonomi masjid. Journal of Global Business and Social Entrepreneurship (GBSE).

Qureshi, I., Bhatt, B., Sutter, C., & Shukla, D. M. (2023). Social entrepreneurship and intersectionality: Mitigating extreme exclusion. Journal of Business Venturing, 38(2), 106283. https://doi.org/10.1016/j.jbusvent.2022.106283

Razak, A. A., Yahya, M., Hussin, M., & Muhammad, F. (2014). Economic significance of mosque institution in Perak State, Malaysia. Kyoto Bulletin of Islamic Area Studies.

Rohimat, A. M. (2020). Socio-entrepreneurship Dewan Kemakmuran Masjid (DKM) dalam membentuk kesalehan sosial di tengah Covid-19. Journal of Islamic Discourses, 3(1), 105-124. https://doi.org/10.14421/lijid.v3i1.2216

Rundle, S. L. (2014). Does donor support help or hinder business as mission practitioners? An empirical assessment. International Bulletin of Missionary Research, 38(1), 21–26. https://doi.org/10.1177/239693931403800105

Saebi, T., Foss, N. J., & Linder, S. (2019). Social entrepreneurship research: Past achievements and future promises. Journal of Management, 45(1), 70–95. https://doi.org/10.1177/0149206318793196

Santos, F. M. (2012). A positive theory of social entrepreneurship. Journal of Business Ethics, 111(3), 335–351. https://doi.org/10.1007/s10551-012-1413-4

Shier, M. L., & Handy, F. (2015). Social change efforts of direct service nonprofits: The role of funding and collaborations in shaping social innovations. Human Service Organizations Management, Leadership and Governance. https://doi.org/10.1080/23303131.2014.973623

Smith, W. K., Gonin, M., & Besharov, M. L. (2013). Managing social-business tensions: A review and research agenda for social enterprise. Business Ethics Quarterly, 23(3), 407–442. https://doi.org/10.5840/beq201323327

Sud, M., Vansandt, C. V., & Baugous, A. M. (2009). Social entrepreneurship: The role of institutions. Journal of Business Ethics, 85, 201-216. https://doi.org/10.1007/s10551-008-9939-1

Syed, U., Kapera, O., Chandrasekhar, A., Baylor, B. T., Hassan, A., Magalhães, M., Meidany, F., Schenker, I., Messiah, S. E., & Bhatti, A. (2023). The role of faith-based organizations in improving vaccination confidence & addressing vaccination disparities to help improve vaccine uptake: A systematic review. Vaccines, 11(2). https://doi.org/10.3390/vaccines11020449

Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z

Vallaster, C., Maon, F., Lindgreen, A., & Vanhamme, J. (2021). Serving multiple masters: The role of micro-foundations of dynamic capabilities in addressing tensions in for-profit hybrid organizations. Organization Studies, 42(6), 911–947. https://doi.org/10.1177/0170840619856034

Vézina, M., ben Selma, M., & Malo, M. C. (2019). Exploring the social innovation process in a large market based social enterprise: A dynamic capabilities approach. Management Decision, 57(6), 1399–1414. https://doi.org/10.1108/MD-01-2017-0090

Wilburn, K., & Wilburn, R. (2014). The double bottom line: Profit and social benefit. In Business Horizons, 57(1), 11-20. https://doi.org/10.1016/j.bushor.2013.10.001

Wu, Y. J., Wu, T., & Arno Sharpe, J. (2020). Consensus on the definition of social entrepreneurship: a content analysis approach. Management Decision, 58(12), 2593–2619. https://doi.org/10.1108/MD-11-2016-0791

Yan, H. D. (2012). Social entrepreneurship of the Buddhist Tzu Chi movement. American Journal of Entrepreneurship, 5(1), 37-56.https://www.proquest.com/docview/1013765334

Yin, R. K. (2017). Case study research and Applications: Design and methods. Sage.

Zahra, S. A., Gedajlovic, E., Neubaum, D. O., & Shulman, J. M. (2009). A typology of social entrepreneurs: Motives, search processes and ethical challenges. Journal of Business Venturing, 24(5), 519–532. https://doi.org/10.1016/j.jbusvent.2008.04.007

Copyright

Copyright aims to protect the specific way the article has been written to describe an experiment and the results. Shirkah: Journal of Economics and Business is committed to its authors to protect and defend their work and their reputation and takes allegations of infringement, plagiarism, ethical disputes, and fraud very seriously. Automotive Experiences is published under the terms of the Attribution-NonCommercial 4.0 International (CC BY-NC 4.0). Authors retain copyright and grant the journal right of first publication (online and print) with the work simultaneously. We use the restrictive license (non-commercial) as follows:

BY (attribution): Users are allowed to share, distribute and redistribute the published article in any medium or format, with an identification of the authors and its initial publication in this journal. Authors are encouraged to post and distribute their articles immediately after publication (e.g., institutional or public repositories, personal websites). Authors are allowed to enter into additional contractual arrangements for the non-exclusive distribution of the published and an acknowledgment of its initial publication in this journal.
NC (non-commercial): Users are not allowed to use the article commercially without the permission of the authors. Authors agree explicitly that the published article is indexed worldwide in databases, repositories and indexation services, even if these services operate on a commercial basis. Authors grant Shirkah: Journal of Economics and Business explicit the right to include the published articles in databases, repositories and indexation services. 

License

License to Publish

The non-commercial use of the article will be governed by the Attribution-NonCommercial 4.0 International (CC BY-NC 4.0). The author hereby grants Shirkah: Journal of Economics and Business an exclusive publishing and distribution license in the manuscript include tables, illustrations or other material submitted for publication as part of the manuscript (the “Article”) in print, electronic and all other media (whether now known or later developed), in any form, in all languages, throughout the world, for the full term of copyright, and the right to license others to do the same, effective when the article is accepted for publication. This license includes the right to enforce the rights granted hereunder against third parties.

Author's Warranties

The author warrants that the article is original, written by stated author/s, has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author and free of any third party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).

User Rights

Under the Creative Commons Attribution-Non Commercial 4.0 International (CC BY-NC 4.0) license, the author(s) and users are free to share (copy and redistribute the material in any medium or format) and adapt (remix, transform, and build upon the material). Users must give appropriate credit, provide a link to the license, and indicate if changes were made.

Rights of Authors

Authors retain the following rights:

  1. Copyright, and other proprietary rights relating to the article, such as patent rights,
  2. The right to use the substance of the article in future own works, including lectures and books,
  3. The right to reproduce the article for own purposes, provided the copies are not offered for sale, and
  4. The right to self-archive the article.

Co-Authorship

If the article was prepared jointly with other authors, the signatory of this form warrants that he/she has been authorized by all co-authors to sign this agreement on their behalf, and agrees to inform his/her co-authors of the terms of this agreement.

Royalties

This agreement entitles the author to no royalties or other fees. To such extent as legally permissible, the author waives his or her right to collect royalties relative to the article in respect of any use of the article by Shirkah: Journal of Economics and Business or its sublicensee.

Miscellaneous

Shirkah: Journal of Economics and Business will publish the article (or have it published) in the Journal if the article’s editorial process is successfully completed and Shirkah: Journal of Economics and Business or its sublicensee has become obligated to have the article published. Shirkah: Journal of Economics and Business may conform the article to a style of punctuation, spelling, capitalization, and usage that it deems appropriate.