The Role of Islamic Management in Shaping Human Capital Development in Muslim Countries

Mohamed Khamees Sarhan; Abdul Razak Munire; Sabbar Dahham Sabbar

Authors

Mohamed Khamees Sarhan Iraqi University for Islamic Sciences, Iraq
Abdul Razak Munire Iraqi University for Islamic Sciences, Iraq
Sabbar Dahham Sabbar The Rosy City for Educational Services and Consultations, Amman , Jordania

Keywords:

Environmental strategies, Ethical responsibility, Implementation ethics, Sustainable business performance

Abstract

This study investigates the impact of implementation ethics and environmental strategies on sustainable business performance, with ethical responsibility acting as a mediating variable. Using a quantitative approach, data were collected from 312 managers of small and medium-sized enterprises (SMEs) in Indonesia and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results reveal that implementation ethics positively and significantly influences both environmental strategies and ethical responsibility, ultimately leading to enhanced sustainable business performance. Similarly, environmental strategies were found to exert a strong positive effect on ethical responsibility and directly contribute to sustainable business outcomes. The mediation analysis indicates that ethical responsibility partially mediates the relationship between implementation ethics, environmental strategies, and sustainable business performance, underscoring its critical role as a behavioral and cultural enabler. These findings contribute to the growing literature on ethical business practices and sustainability by empirically demonstrating that ethics-driven management approaches and proactive environmental strategies are crucial drivers of organizational success. Practical recommendations are provided for managers and policymakers to integrate ethical frameworks and green strategies into their business models to achieve long-term sustainability and competitive advantage.

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