Determinant factors of market share: evidence from the Indonesian Islamic banking industry
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Received October 26, 2017;Accepted February 28, 2018;Published March 28, 2018
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Author(s)Link to ORCID Index: https://orcid.org/0000-0002-5731-1411Link to ORCID Index: http://orcid.org/0000-0002-4256-7975
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DOIhttp://dx.doi.org/10.21511/ppm.16(1).2018.37
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Article InfoVolume 16 2018, Issue #1, pp. 392-398
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Cited by6 articlesJournal title: Corporate and Business Strategy ReviewArticle title: The effective use of performance measurement for value-based intermediation adoption among Islamic banking institutionsDOI: 10.22495/cbsrv3i2art7Volume: 3 / Issue: 2 / First page: 76 / Year: 2022Contributors: Rina Fadhilah Ismail, Engku Zaidah Engku Abdul Rahman, Saunah Zainon, Hamezah Md NorJournal title: Journal of Islamic Accounting and Business ResearchArticle title: Earnings growth, marketability and the role of Islamic financial literacy and inclusion in IndonesiaDOI: 10.1108/JIABR-12-2021-0322Volume: 14 / Issue: 7 / First page: 1088 / Year: 2023Contributors: Ahmad Abbas, Neks Triani, Wa Ode Rayyani, Muchriana MuchranJournal title: Banks and Bank SystemsArticle title: The impact of conversion on market share in Indonesian Islamic banksDOI: 10.21511/bbs.18(2).2023.01Volume: 18 / Issue: 2 / First page: 1 / Year: 2023Contributors: Mohammad Nur Rianto Al Arif, Dwi Nuraini Ihsan, Zulpawati, Dede Abdul FatahJournal title: Journal of Islamic Accounting and Business ResearchArticle title: Market development of Islamic banking in Pakistan and its economic impactDOI: 10.1108/JIABR-02-2022-0028Volume: / Issue: / First page: / Year: 2023Contributors: Salman Ahmed ShaikhJournal title: Airlangga International Journal of Islamic Economics and FinanceArticle title: DETERMINANTS OF SHARIA BANKING MARKET SHARE GROWTH IN INDONESIADOI: 10.20473/aijief.v1i2.20805Volume: 1 / Issue: 2 / First page: 87 / Year: 2020Contributors: Nizar Hosfaikoni Hadi, Muh. Khairul FatihinJournal title: Development ManagementArticle title: Test_QA_1DOI: 10.21511/bbs.16(1).2021.10Volume: 18 / Issue: 4 / First page: 100 / Year: 2021Contributors: Abdul Qayyum Khan, Abdullah Saeed S Alqahtani
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Market share is one of the performance indicators for the Islamic banking industry in Indonesia. Actually, the policy makers had set up the 5% market share to be achieved in 2008. Unfortunately, this target finally was met at the end of 2016. This study is going to examine the determinants of market share in the Indonesian Islamic banking industry. From the empirical result, we can see that some of the variables had an impact on market share. The variables impacting market share are the default rate, operational efficiency rate, the yield of profit sharing, and conventional bank’s interest rate. The other variables such as profitability ratio and liquidity ratio don’t have an impact on market share. The result implies that Islamic banks should strengthen the internal factors to accelerate their growth and performance.
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JEL Classification (Paper profile tab)C30, D40, G21
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References29
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Tables3
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Figures0
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- Table 1. The number of Islamic banks in Indonesia
- Table 2. The Islamic banking market share development
- Table 3. Estimation result
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