ENHANCING ISLAMIC SOCIAL FINANCE THROUGH DIGITAL SERVICE INTEGRATION: A FRAMEWORK FOR COLLABORATIVE VALUE CREATION

Abstract

This study aims to explore the integration of digital services in Islamic Social Finance (ISF) by developing a conceptual framework that emphasizes a service-oriented approach. Addressing the research problem of limited methodological applications and strategic guidelines for ISF institutions, this paper investigates how digital services can enhance service design and implementation within these organizations. Utilizing a comprehensive literature review and qualitative data analysis, the study examines the unique characteristics of ISF and the applicability of Service-Dominant Logic (SDL) to these financial services.

The research findings highlight the potential for digitalization to expand ISF services, improve stakeholder engagement, and optimize value creation. The proposed framework demonstrates how service systems can be structured around primary objectives (al-Maqāṣid) and tailored to meet the specific needs of stakeholders. It emphasizes a shift from product-centered to service-centered models, focusing on beneficiary engagement and collaboration among stakeholders. This approach not only aligns with Islamic principles but also facilitates the development of sustainable and effective service ecosystems. 

The study concludes that adopting a beneficiary-centered perspective in ISF service systems can lead to significant improvements in service quality and accessibility. By integrating modern information and communication technologies, ISF institutions can better serve their communities while maintaining adherence to Islamic values. The framework provides a foundation for further research and development, supporting the transition of ISF institutions towards a more dynamic, service-oriented model that fosters innovation and collaboration.