Competitive Advantage Through a Strategic Approach (Study on Islamic Banking in South Kalimantan)

Abstract

This study aims to test and prove empirically: the influence of five competing forces on the sharia banking competitive strategy and sharia banking competitive advantage; the influence of internal environmental factors on the competitive strategy and competitive advantage of sharia banking and the influence of sharia banking competitive strategy on sharia banking competitive advantage. Theoretically the results of this research are expected to be able to enrich and complement the treasury of knowledge in the field of Management, especially Strategic Management theory, so that it can be beneficial for academics and practitioners. The study population is all of the South Kalimantan Sharia Banking in all regencies and cities throughout South Kalimantan consisting of Sharia Commercial Banks (BUS) and Sharia Business Units (UUS). And the sample in this study is that the managers of Islamic Banking in South Kalimantan numbered 44 respondents. The collected data were analyzed by Partial Least Square (PLS) analysis. The results of this study indicate that (1) Islamic banking is able to detect five factors of competitive power to implement competitive strategies appropriately. (2) Five factors of competitive power have the potential to increase the competitive advantage of Islamic banking. (3) Internal environmental factors are still not strong enough to utilize the competitive strategies of Islamic banking (Mudharabah, Musyarakah and Murabahah) to the maximum, especially towards competitive strategies with profit sharing principles (Mudharabah and Musyarakah). (4) Internal environmental factors have the potential to increase the competitive advantage of Islamic banking. (5) Applying the right sharia banking competitive strategy can improve competitive advantage.