Article Sidebar

Download
PDF

Main Article Content

Abstract

The sustainability of Islamic banks has received growing scholarly attention; however, its long-term determinants remain theoretically fragmented across governance, risk, innovation, and ethical domains. This systematic literature review synthesizes 68 peer-reviewed articles published between 2021 and 2025 to critically consolidate the structural drivers of sustainable business in Islamic banking. Addressing five interrelated research questions, the findings demonstrate that sustainability does not depend on isolated financial indicators. Rather, it emerges from the systemic interaction between internal governance mechanisms particularly Islamic corporate governance, operational efficiency, and innovation capacity and external institutional pressures, including environmental regulation, market dynamics, and alignment with the Sustainable Development Goals (SDGs). The literature shows persistent analytical fragmentation and limited operational integration between global sustainability standards and Islamic ethical objectives. Digital transformation has become an increasingly important strategic enabler, yet it remains institutionally secondary to governance, corporate social responsibility, and sustainable financing factors. Risk management, especially financing risk, consistently underpins long-term stability, while evidence on capital adequacy and liquidity remains inconclusive. By proposing an integrated sustainability architecture linking financing risk, green financing, digital transformation, Islamic corporate governance, and environmental regulation, this study reframes the discourse and offers a theoretically grounded basis for future empirical and policy development.

Keywords

Islamic banking; Sustainable finance; Islamic corporate governance; Digital transformation; Financing risk.

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Yamin, M., Siswanti, I., Kurniasih, A., & Herliansyah, Y. (2026). Determinants to Enhance the Sustainable Business of Islamic Banks: A Comprehensive Review for Future Research Agenda. Amkop Management Accounting Review (AMAR), 6(1), 773–804. https://doi.org/10.37531/amar.v6i1.3669
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Abdelatif, A., Nettour, D., Chaib, R., Verzea, I., & Bensehamdi, S. (2023). IMPROVEMENT OF ENTERPRISE RISK VISUALIZATION: RISK MAPPING. Technology Audit and Production Reserves, 6(2), 28–36. https://doi.org/10.15587/2706-5448.2023.291959
  2. Afifah et al. (2023). The impact of green finance on profitability with credit risk as an intervening variable. In IJAFIBS (Vol. 11, Number 3). www.ijafibs.pelnus.ac.id
  3. Alam, A., Azizah, N. R., Saputro, T. A., Hanifudin, I., & Nordin, N. (2025). Islamic Bank Risk Studies: A Bibliometric Review. International Journal of Accounting and Economics Studies, 12(2), 445–456. https://doi.org/10.14419/nm80n608
  4. Al-Dmour, H., AlKhawaldeh, H., Al-Dmour, A., Obidat, B., & Al-Dmour, R. (2025). The integrated role of Safety Management Systems (SMS) and risk management in achieving aviation sustainability. Discover Sustainability, 6(1). https://doi.org/10.1007/s43621-025-01632-9
  5. Annissa, E., Samri, Y., & Nasution, J. (2024). THE INFLUENCE OF ISLAMIC CORPORATE GOVERNANCE AND ISLAMIC CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL PERFORMANCE IN INDONESIAN SHARIA COMMERCIAL BANK. In Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) (Vol. 7, Number 1).
  6. Asutay, M., Ayturk, Y., & Aksak, E. (2020). The effects of regulation and supervision on the risk-taking behaviour of Islamic banks. Journal of Islamic Accounting and Business Research, 11(9), 1953–1967. https://doi.org/10.1108/JIABR-12-2019-0222
  7. Bilgin, M. H., Danisman, G. O., Demir, E., & Tarazi, A. (2021). Economic uncertainty and bank stability: Conventional vs. Islamic banking. Journal of Financial Stability, 56, 100911. https://doi.org/https://doi.org/10.1016/j.jfs.2021.100911
  8. Boubaker, S., Le, T. D. Q., & Ngo, T. (2023). Managing bank performance under COVID-19: A novel inverse DEA efficiency approach. International Transactions in Operational Research, 30(5), 2436–2452. https://doi.org/10.1111/itor.13132
  9. Dariah, A. R., Rani, A. M., Sundaya, Y., & Abdullah, R. (2025). Sustainable business practices in Indonesia and Brunei Darussalam: awareness or innovation? Discover Sustainability, 6(1). https://doi.org/10.1007/s43621-025-01028-9
  10. Florek-Paszkowska, A., & Ujwary-Gil, A. (2025). The Digital-Sustainability Ecosystem: A conceptual framework for digital transformation and sustainable innovation. Journal of Entrepreneurship, Management and Innovation, 21(2), 116–137. https://doi.org/10.7341/20252127
  11. Issa, S. O., Alabi, A. T., & Ubandawaki, A. T. (2025). Climate change governance, Shariah governance quality, and financed emission mitigation: Evidence from Islamic banks in Southeast and West Asia. Borsa Istanbul Review, 25(4), 722–732. https://doi.org/10.1016/j.bir.2025.03.011
  12. Jalloh, M. B., Wardani, D. T. K., Kencana, F. A., Aqilah, H. N., & Wiranatakusuma, D. B. (2025). The role of Islamic finance in advancing the green economy: Evidence from OIC countries. BIO Web of Conferences, 199. https://doi.org/10.1051/bioconf/202519902014
  13. Jan, A., Mata, M. N., Albinsson, P. A., Martins, J. M., Hassan, R. B., & Mata, P. N. (2021). Alignment of islamic banking sustainability indicators with sustainable development goals: Policy recommendations for addressing the covid-19 pandemic. Sustainability (Switzerland), 13(5), 1–38. https://doi.org/10.3390/su13052607
  14. Li, H., & Li, J. (2021). Risk governance and sustainability: A scientometric analysis and literature review. In Sustainability (Switzerland) (Vol. 13, Number 21). MDPI. https://doi.org/10.3390/su132112015
  15. Liu, F. H. M., & Lai, K. P. Y. (2021). Ecologies of green finance: Green sukuk and development of green Islamic finance in Malaysia. Environment and Planning A, 53(8), 1896–1914. https://doi.org/10.1177/0308518X211038349
  16. Mergaliyev, A., Asutay, M., Avdukic, A., & Karbhari, Y. (2021). Higher Ethical Objective (Maqasid al-Shari’ah) Augmented Framework for Islamic Banks: Assessing Ethical Performance and Exploring Its Determinants. Journal of Business Ethics, 170(4), 797–834. https://doi.org/10.1007/s10551-019-04331-4
  17. Muhamad, S. F., Zain, F. A. M., Samad, N. S. A., Azira, A. H., & Yasoa’, M. R. (2022). Measuring Sustainable Performance of Islamic Banks: Integrating the principles of Environmental, Social and Governance (ESG) and Maqasid Shari’ah. IOP Conference Series: Earth and Environmental Science, 1102(1). https://doi.org/10.1088/1755-1315/1102/1/012080
  18. Mustofa, A., Haryati, E., & Ismail, S. (2025). THE IMPACT OF DIGITAL TRANSFORMATION ON PUBLIC SERVICES GOVERNANCE: A QUALITY ASSESSMENT SCALE APPROACH IN URBAN MUNICIPALITIES. Journal of Governance and Regulation, 14(4), 156–165. https://doi.org/10.22495/jgrv14i4art15
  19. Nilasakti, A. O. (2020). Determinants of Sustainability Reporting of Islamic Banks in Emerging Countries. 2020, 149. https://doi.org/10.18326/.v11i2.149-161
  20. Paltrinieri, A., Dreassi, A., Rossi, S., & Khan, A. (2021). Risk-adjusted profitability and stability of Islamic and conventional banks: Does revenue diversification matter? Global Finance Journal, 50. https://doi.org/10.1016/j.gfj.2020.100517
  21. Panagopoulos, A. G., & Tzionas, I. (2023). The Use of Sustainable Financial Instruments in Relation to the Social Impact Investment: ESG Policies, Capital Markets’ Approach and Investors’ Protection: An Innovative Perspective for a Global Surveillance Authority. International Journal of Business Administration, 14(1), 87. https://doi.org/10.5430/ijba.v14n1p87
  22. Pramudena, S. M., Wati, L. N., & Marlapa, E. (2026). Corporate law and Sharia governance: Empirical insights, risk-based bank rating, and ESG Islamic approach. Corporate Law & Governance Review, 8(1), 64. https://doi.org/10.22495/clgrv8i1p5
  23. Rabbani, M. R., Bashar, A., Nawaz, N., Karim, S., Ali, M. A. M., Rahiman, H. U., & Alam, M. S. (2021). Exploring the role of islamic fintech in combating the aftershocks of covid-19: The open social innovation of the islamic financial system. Journal of Open Innovation: Technology, Market, and Complexity, 7(2). https://doi.org/10.3390/joitmc7020136
  24. Raimi, L., Abdur-Rauf, I. A., & Ashafa, S. A. (2024). Does Islamic Sustainable Finance Support Sustainable Development Goals to Avert Financial Risk in the Management of Islamic Finance Products? A Critical Literature Review. In Journal of Risk and Financial Management (Vol. 17, Number 6). Multidisciplinary Digital Publishing Institute (MDPI). https://doi.org/10.3390/jrfm17060236
  25. Shalhoob, H. (2025). ESG Disclosure and Financial Performance: Survey Evidence from Accounting and Islamic Finance. Sustainability (Switzerland), 17(4). https://doi.org/10.3390/su17041582
  26. Siswanti, I., & Cahaya, Y. F. (2020). Sustainable business islamic banks in indonesia. Accounting, 7(2), 299–310. https://doi.org/10.5267/j.ac.2020.11.023
  27. Sueb, M., Prasojo, Muhfiatun, Syarifah, L., & Putra, R. N. A. (2022). The effect of shariah board characteristics, risk-taking, and maqasid shariah on an Islamic bank’s performance. Banks and Bank Systems, 17(3), 89–101. https://doi.org/10.21511/bbs.17(3).2022.08
  28. Suranto, B., Kovač, N., Haryono, K., Abdul Rahman, S. F., Mohd Shukri, A. F., Suder, M., Kusa, R., & Žugić, D. (2025). State of digitalization in the Southeast Asia region – bibliometric analysis. Quality and Quantity. https://doi.org/10.1007/s11135-025-02296-3
  29. Tok, E., & Yesuf, A. J. (2022). Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social Impact. Sustainability (Switzerland), 14(2). https://doi.org/10.3390/su14020916
  30. Wahyudi, H., Lestari, W. R., Said, U. Bin, Leny, S. M., & Awaluddin, I. (2025). Dynamics of Growth and Stability in the Islamic Financial Services Industry on ECA, GCC, MENA, SSA, and EAP. International Journal of Economics and Financial Issues , 15(3), 448–456. https://doi.org/10.32479/ijefi.19200
  31. Yu, L., & Jin, P. (2026). Green innovation under multiple pressures: examining financial constraints, ESG performance, and environmental regulations. Journal of Innovation and Knowledge, 12. https://doi.org/10.1016/j.jik.2025.100876
  32. Zouari, G., & Abdelhedi, M. (2021). Customer satisfaction in the digital era: evidence from Islamic banking. Journal of Innovation and Entrepreneurship, 10(1). https://doi.org/10.1186/s13731-021-00151-x
  33. Zulfiqar, S., Alqatan, A., Alsaber, A., Al-Sabah, M., Alshammari, T., & El-Halaby, S. (2025). ISLAMIC AND CONVENTIONAL BANKS’ GOVERNANCE IN THE GCC REGION: A COMPARATIVE ANALYSIS OF RISK-BASED FINANCIAL PERFORMANCE. Journal of Governance and Regulation, 14(2), 254–264. https://doi.org/10.22495/jgrv14i2siart4

Similar Articles

<< < 16 17 18 19 20 21 

You may also start an advanced similarity search for this article.