Shariah Compliance and Amanah as Drivers of Member Satisfaction

Abstract

Introduction: Islamic cooperatives (KSPPS/BMT) operate under the dual mandate of financial intermediation and adherence to Islamic principles. Despite their rapid growth in Indonesia, empirical evidence on how Shariah compliance and the prophetic value of Amanah (trustworthiness) jointly shape service quality and member satisfaction remains limited. Objective: This study examines the direct and indirect effects of Shariah compliance and Amanah on member satisfaction at KSPPS BMT UGT Nusantara, with Service Quality as a mediating variable. Methodology: A quantitative approach using Partial Least Squares-Structural Equation Modeling (PLS-SEM) was applied to survey data collected from 400 members across 52 branches. Instruments measuring Shariah Compliance (16 items), Amanah (5 items), Service Quality (18 items), and Member Satisfaction (15 items) were validated using SmartPLS 4.0. Results: Shariah Compliance significantly influences both Service Quality (β = 0.440) and Member Satisfaction (β = 0.106), while Amanah positively affects Service Quality (β = 0.278) and Member Satisfaction (β = 0.107). Service Quality is the strongest direct predictor of Member Satisfaction (β = 0.508). Indirect effects confirm Service Quality mediates both Shariah Compliance→Member Satisfaction (β = 0.224) and Amanah→Member Satisfaction (β = 0.141) pathways. All constructs demonstrate sound reliability (Cronbach's α ≥ 0.794) and validity (AVE ≥ 0.506, HTMT < 0.65). Conclusion: Embedding Shariah values and Amanah in institutional practice substantially improves service quality, which in turn elevates member satisfaction. These findings offer practical guidance for cooperative managers and policymakers seeking to strengthen Islamic microfinance performance.