Business Strategy Formulation of Sharia Rural Bank (SRB) in Facing Pandemic

Authors

DOI:

https://doi.org/10.21111/tijarah.v8i2.8153

Keywords:

Sharia rural bank, business strategy, market penetration, product development, qualitative study, applied research, case study

Abstract

This study was conducted to formulate a business strategy for a sharia rural bank whose performance has decreased because the financing sector served is affected by Covid-19. This study is applied research that is qualitative and uses a single case study approach. Primary data was obtained through interviews with several members of the board of commissioners, members of the board of directors, and heads of divisions. Secondary data were obtained from internal company documents, while external sources were mostly from regulatory bodies for the sharia banking industry in Indonesia. A framework from David et al. (2020) is used to obtain a business strategy formulation. For the upcoming three years, the business strategy that should be carried out are market penetration and product development, i.e., conducting selective increase in financing in prospective sectors, conducting coaching in the micro and small sectors so that they can better cope with the impact of Covid-19, and developing products for first-time young customers.

Author Biography

Ningky Sasanti Munir, Universitas Bhayangkara Jakarta Raya (Ubhara Jaya)

Associate Professor in Business and Corporate Strategy

References

Alamanda, D. T., Anggadwita, G., Raynaldi, M., Novani, S., & Kijima, K. (2019). Designing strategies using IFE, EFE, IE, and QSPM analysis: Digital village case. The Asian Journal of Technology Management, 12 (1), pp. 48-57.Astriawan, A. (2019). Mengukur kinerja institusi keuangan syariah. Infobank Vol. 5, No. 496, Edisi Khusus, pp. 18-25Bougie, R. & Sekaran, U. (2019). Research methods for business: A skill-building approach. 8th edition. West Sussex: John Wiley & Sons Inc.David, F.R., Creek, S. A., David, F.R. (2019). What is the Key To Effective SWOT Analysis, Including AQCD Factors, SAM Advancement Management Journal, 84 (1), pp. 25-35.David, F.R., David, F.R., David, M.E. (2020). Strategic management concepts and cases - a competitive advantage approach. 17 edition, Boston: Pearson Education.David, M. E., David, F. R., David, F. R. (2017), The quantitative strategic planning matrix: a new marketing tool, Journal of Strategic Marketing, 25 (4), pp. 342-352Financial Services Authority. (2013) Undang-Undang Republik Indonesia Nomor 21 Tahun 2008 Tentang Perbankan Syariah. Retrieved from https://www.ojk.go.id/waspada-investasi/id/regulasi/Documents/UU_No_21_Tahun_2008_Perbankan_Syariah.pdfFinancial Services Authority. (2019). Peraturan Otoritas Jasa Keuangan Republik Indonesia Nomor 20 /POJK.03/2019 Tentang Sistem Penilaian Tingkat Kesehatan Bank Pembiayaan Rakyat Syariah. Retrieved from https://peraturan.bpk.go.id/Home/Details/128530/peraturan-ojk-no-20-pojk032019-tahun-2019.Financial Services Authority. (2020). Digital Finance Innovation Road Map and Action Plan 2020-2024. Retrieved from https://www.ojk.go.id/id/berita-dan-kegiatan/publikasi/Pages/Publikasi-Materi-Digital-Finance-Innovation-Road-Map-dan-Action-Plan-2020-2024-serta-Digital-Financial-Literacy.aspxFinancial Services Authority. (2021) Roadmap Pengembangan Perbankan Syariah Indonesia 2020-2025. Retrieved from https://www.ojk.go.id/id/kanal/syariah/berita-dan-kegiatan/publikasi/Pages/Roadmap-Pengembangan-Perbankan-Syariah-Indonesia-2020-2025.aspxFinancial Services Authority. (2021) Sharia Banking Statistics December 2021. Retrieved from https://www.ojk.go.id/id/kanal/syariah/data-dan-statistik/statistik-perbankan-syariah/Pages/Statistik-Perbankan-Syariah---Desember-2021.aspxFinancial Services Authority. (2021). The 2020 Population Census. Retrieved from https://www.bps.go.id/ pressrelease/2021/01/21/1854/hasil-sensus-penduduk-2020.htmlFinancial Services Authority. (2022). Fintech Lending Statistics Februari 2022. Retrieved from https://www.ojk.go.id/id/kanal/iknb/data-dan-statistik/fintech/Pages/Stat.aspxFinancial Services Authority. (2022). Sharia Banking Statistics February 2022. Retrieved from https://www.ojk.go.id/en/kanal/perbankan/data-dan-statistik/statistik-perbankan-syariah/Pages/Sharia-Banking-Statistic---February-2022.aspxHalinen, A., & Törnroos, J. (2005). Using case methods in the study of contemporary business networks. Journal of Business Research, 58 (1), pp. 1285-1297.Hasan, Z. (2020). The impact of covid-19 on Islamic banking in Indonesia during the pandemic era. Journal of Entrepreneurship and Business, 8 (2), pp. 19-32.Hill, C.W.L., Schilling, Melissa, A., Jones, G.R. (2019). Strategic management: theory & cases: an integrated approach .13th Edition.Kementrian Koperasi dan Usaha Kecil dan Menengah. (June 2020). Rencana Strategis Kementerian Koperasi dan Usaha Kecil dan Menengah Tahun 2020 – 2024. Retrieved from https://www.kemenkopukm.go.id/uploads/laporan/ 1600168483 _RENSTRA%202020-2024%20OK.pdfKusnandar, V. B. (2021, September, 30). Sebanyak 86,88% penduduk indonesia beragama islam. Databoks. Retrieved from https://databoks.katadata.co.id/datapublish/2021/09/30/sebanyak-8688-penduduk-indonesia-beragama-islam#:~:text=Sebanyak%2020%2C4%20juta%20jiwa,jiwa%20atau%200%2C75%25.Madeira, A., Palrão, T., & Mendes, A. S. (2021). The impact of pandemic crisis on the restaurant business. Sustainability, 13 (1).Maruto, H. (2016). Akad mudharabah, musyarakah, dan murabahah serta aplikasinya dalam masyarakat. IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita, 5 (2), pp. 80-106.Muhammad, R., Suluki, A., & Nugraheni, P. (2020). Internal factors and non-performing financing in Indonesian Islamic rural banks, Cogent Business & Management, 7 (1), Nábrádi, A., Forest, D., Bittner, B., Kovács, TZ, Madai, H., and Nagy, A. (2021). Latest trends and new tools being used in strategic management. International Journal of Engineering and Management Sciences, 6 (1), pp. 73–85.Nugroho, A. (Oktober 2020). Menilai rating institusi keuangan syariah. Infobank 77-77Porter, M. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York, NY: The Free Press.Sarono, A. (2019). Analisis problem pembiayaan mudharabah serta solusinya. Diponegoro Private Law Review, 4 (1), pp. 401-409Sierotowicz, T. (2020). Scientific foundation of strategies towards a model for strategies. Academy of Strategic Management Journal, 19 (2), pp. 1-16.Sofyan, M. (2021). Kinerja BPR dan BPRS pada masa pandemik Covid-19. The 2nd Seminar Nasional ADPI Mengabdi Untuk Negeri Pengabdian Masyarakat di Era New Normal. Prosiding 2 (2).Soleh, I., Sule, E. T., Joeliaty, Sutisna. (2020). Competitive advantage model and its implication on the performance of islamic rural banks in java island. Academy of Strategic Management Journal, 19 (3), pp. 1-15.Sonobe, T., Takeda, A., Yoshida, S., and Truong, H. T. (March 2021). The Impacts of the COVID-19 Pandemic on Micro, Small, and Medium Enterprises in Asia and Their Digitalization Responses. Asian Development Bank Institute.Statistics Indonesia. (2020). Analisis Hasil Survei Dampak Covid-19 Terhadap Pelaku Usaha. Statistics Indonesia. Retrieve from https://www.bps.go.id/publication/2020/09/15/ 9efe2fbda7d674c09ffd0978/analisis-hasil-survei-dampak-covid-19-terhadap-pelaku-usaha.htmlSyafarudin, A., & Mulyana, B. (2019). Formulation strategy of PT. bandara internasional jawa barat bandung indonesia, kertajati in business aerocity (aerotropolis). International Review of Management and Marketing, 9 (3), pp. 106-111.Thompson, A., Peteraf, M., Gamble, J., & Strickland, A. (2019). Crafting & executing strategy: The quest for competitive advantage: concepts and cases .22nd edition. McGraw-Hill EducationYin, R.K. (2017). Case study research and applications: Design and methods. 6th edition. SAGE Publications, Inc.

Downloads

Published

2023-09-26

How to Cite

Munir, N. S. (2023). Business Strategy Formulation of Sharia Rural Bank (SRB) in Facing Pandemic. Al Tijarah, 8(2), 25–39. https://doi.org/10.21111/tijarah.v8i2.8153

Issue

Vol. 8 No. 2 (2022): Al Tijarah | December

Section

Articles

License

The Authors submitting a manuscript do so on the understanding that if accepted for publication, copyright of the article shall be assigned to Al Tijarah journal and Departement of Management, Faculty of Economics and Management, University of Darussalam as publisher of the journal.