Information Technology as a Catalyst for Competitive Advantage in Islamic Banking: Evidence from Yogyakarta and Central Java
DOI:
https://doi.org/10.35591/wahana.v29i1.970Keywords:
Information technology, Competitive advantage, Islamic banking, IT alignment, PLS-SEM, IndonesiaAbstract
Digital transformation has emerged as a vital catalyst for competitive advantage in the global banking sector, including Islamic banking. This study investigates how information technology (IT) contributes to competitive advantage in Islamic banks across Yogyakarta and Central Java, Indonesia. Using a quantitative approach with Partial Least Squares Structural Equation Modeling (PLS-SEM), data were collected from 150 Islamic bank customers, 75 customers from Yogyakarta and 75 customers from Central Java. The study examines the influence of IT infrastructure, IT innovation, and strategic IT alignment on competitive advantage. Findings reveal that IT innovation and strategic alignment significantly enhance competitive advantage, while infrastructure serves as a foundational enabler. These insights contribute to both theory and practice by highlighting the strategic role of IT in Islamic financial institutions amid increasing fintech competition. The study also presents implications for Islamic bank management, technology policy development, and future research directions in digital banking transformation.
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