Halal Business and Sustainability: Synergy of Islamic Business Ethics and Culture
Helmi Muhammad
Department of Sharia Economics, Faculty of Economics and Business, Universitas Islam Raden Rahmat, Jl. Raya Mojosari No. 2, Kepanjen, Malang, Jawa Timur 65163, Indonesia.
Correspondence should be addressed to Helmi Muhammad: helmimuhammad@uniramalang.ac.id
Cite this: Nusantara Halal J. 2021, Vol. 2 No.2 pp. 89–101 (Article) | Received 10 September 2021 | Revised 25 November 2021 | Accepted 23 December 2021 | Published 29 December 2021 | http://dx.doi.org/10.17977/um060.2021v2p089-101
Abstract
This research aims to examine Islamic business ethics and culture in the halal business practice and sustainability in Tirtoyudo traditional market, Malang Regency, Indonesia. This study used a single case study approach with an exploratory descriptive design. The data were collected through an in-depth interview with eleven informants through purposive and snowball sampling. The obtained data were analyzed using an interactive model. To maintain research quality, validity tests, data comparisons, and data verification were carried out using triangulation of data sources, methods, and sources as well as member checks. Triangulation of data sources, methods and member checks were used to maintain research quality. The result showed that the Islamic business ethic and the cultural values run harmoniously in the business practice in Tirtoyudo traditional market, Malang regency, Indonesia, which resulted in ethical and cultural values based on religion. This research also formulated a traditional market business model as a local trademark with universal features, which can be adopted by other traditional markets. The harmony of Islamic business ethics and cultural values in business practice became the key to the sustainability of Titoyudo’s traditional market, which has been running for more than half a century.
Keywords: Halal Business, Sustainability, Islamic Business Ethics, Traditional Market
Introduction
The halal business model is a strategy to increase accountable business sustainability in addition to achieving a competitive advantage [1]. This strategy is crucial due to the increasing popularity of halal products in many countries [2,3]. This phenomenon indicates increasing public awareness to recognize the quality and standards of halal products [4]. This also signifies that public knowledge about halal products has helped increase the growth of the halal industry. Therefore, halal is not just a new trend but a new essential paradigm for human life [5]. The rising popularity of halal products can also be observed through the call for companies to formally certify their products and business practices to attain a halal label. This appeal extends not only to countries with Muslim populations but also to non-Muslim countries throughout the world [5]. Public awareness of product halalness has encouraged businesspeople to be more sensitive in running their businesses because a halal business does not only produce halal goods and services but also builds a strong business strategy [6].
The escalated popularity of the halal industry is also accompanied by more studies on halal. Recent research on halal food security, blockchain, and halal food chains has been carried out [7,8]. Also, studies on halal food products and sustainable consumer buying behavior complement the halal treasure [9]. Halal studies on other variables have also been carried out, for example, on microbial food ingredients [10], industry and logistics [11], finance [12], and so forth. The studies on halal products and services have grown beyond the boundaries of religion and culture because of their benefits to humans. In addition, in the intense global competition, the halal business also operates following a business operation strategy based on value for sustainability. Empirical evidence proves that multinational companies such as Nestle have invested millions of dollars in halal orientation before becoming the global leader of halal processed food, while companies such as Walmart and Carrefour are significant suppliers of halal products [13,14]. Clearly, they capture promising business opportunities from the halal sector, especially the potential of the Muslim community segment, known as a “one-billion” market [15].
The impressive potential of the halal market has shifted its position from the domain of religious (halal) knowledge to business strategy due to economic and technological factors. Wilson [16] explained that the values of Islamic business ethics would be ignored because companies focus solely on profit goals. These ethical values consist of deontological ethics, consequentialist ethics, and virtue ethics, as in normative ethical theory [17]. Intrinsically, ethical values contain inherent truths and good consequences. The estuary is a holistic moral virtue that transcends right and wrong but is instead transformed into a life experience with an ethical personality. In Islam, businessmen must pay attention to business ethics in their trade to get profit and blessings. Therefore, the application of religious and cultural values is essential in sustainable and ethical halal business. In fact, an Islamic understanding of laws is also crucial for businesspeople, including the law of the products being transacted, the transaction process, and the purpose of ensuring the halal business process [18]. In addition, the internalization of moral axioms leads to efficient and ethical businesses [19] if accompanied by a solid commitment to Islamic ethics [20].
Several variations of the halal and sustainability studies showed that theoretical and empirical discussions had been carried out in various multinational and modern businesses. Nevertheless, a study on halal and sustainability needs to be carried out, primarily investigating the synergy of religion-based business ethics and local culture in traditional markets which have specific uniqueness. Aside from being a trading place with humanistic characteristics that resulted in “family” relations between sellers and buyers, the conventional market also covers the conception of socio-cultural interactions, which includes norms, trust, and bargaining, reinforcing the network and loyalty of traditional market visitors [20,21]. Certainly, visitors’ strong networks and commitment significantly influence business transactions in traditional markets. Some of those conventional markets are formed by adhering to market days in their operations, forming the connection between business ethics and culture. Those market days are Legi, Pahing, Pon, Wage, and Kliwon, which have philosophical meanings in the Javanese tradition. Further, this fact becomes the empirical evidence for the harmonious relationship between business ethics and cultural values in an ethical business framework, positioning it as a fascinating subject for research.
Tirtoyudo traditional market is in the Tlogosari, Tirtoyudo district, Malang Regency, Indonesia. It is one of the traditional markets that follow the Javanese market day in its operation. Particularly, this market peculiarity is in its Pon market day, which only lasts once every five days a week. This market system has been used since 1965. The preliminary data showed that the Pon market season in Tirtoyudo traditional market transforms into a place of the crowd with the society hustle and bustle from various levels and activities, ranging from trade, economic, and social-cultural activities to tourist destinations. Public belief in the “Pon” philosophy is interpreted as a golden yellow color radiating its light, characterizing marketers that trigger the community to empower themselves by marketing their crops and productivity to give added value. Community obedience to the philosophy of Pon market day is realized in business, and cultural activities in Tirtoyudo traditional markets, resulting in the selection of Tirtoyudo in the Village Development Movement (Gema Desa) program in 2019. Besides, this traditional market has also attracted numerous investors in Indonesia-Japan Business Network. The traditional market activity that has been going on for 55 years has been a destination for the traders outside Tirtoyudo to market their commodities and an icon of local product marketing, such as cocoa and coffee. Additionally, this traditional market has been a tourist destination that supports the government’s “one village, one product” and “one village, one destination” programs. The success of the Tirtoyudo village in developing its economic and cultural sectors is recognized to have a positive correlation with the history of the Tirtoyudo traditional Pon market. This traditional market only operates in Pon market days. The Pon market days, with its philosophy, is recognized as a cultural heritage and is implemented in the traditional market operations with excellent relevance to Islamic ethics, especially in the economic and business sectors. The conformity of Islamic business ethics and cultural values can only be practiced in a community that still holds ethical principles in its behavior and actions. For this reason, this study examined the harmony of Islamic business ethics and cultural values, especially in business practices in Tirtoyudo traditional market. Additionally, this study also formulated a business model which integrates Islamic business ethics and cultural values from the perspective of businesspeople in the Tirtoyudo traditional market. This business model was expected to enrich the existing knowledge and can be applied in other traditional markets in Indonesia.
‘Halal’ in the Arabic language encapsulates an Islamic belief representing things and actions permissible under Sharia law [2]. An equally important term in Halal is ‘Thoyyib’, a word that also comes from the Arabic language, which means ‘good and wholesome’ [4]. Based on these religious foundations, the term Halal is used as an indication of quality, connoting considerable value, benefits, and public religious observance to Islamic consumers and producers [5]. Consuming Halal food forms a fundamental component of the Islamic faith. Haram is, conversely, the diametric of Halal, describing prohibited or unlawful practices [6]. Haram and Halal are universally accepted dutiful terms that apply to all facets of a devout Muslim’s life. In this regard, Islam is not only a religious observation, but it also encompasses the dutiful living out of a balanced way of life.
Food is a ritually fundamental component of Muslims’ daily life. For this very reason, Halal food laws, compliance, and regulation clearly carry a special significance. Muslims do not exist to eat; in fact, eating faithfully and observantly is a religious expression to preserve survival and maintain good health. In Islam, eating is considered worshipful, like prayer, fasting, alms-giving, and other religious activities. It must be appreciated that Halal food regulations cover the complete range of operations and activities that occur from the farm to final consumption [7]. Thus, undesirable practices that constitute some fraud or malpractice along Halal food supply chains are very concerning for Muslim consumers [7]. For Muslim consumers, one of the factors influencing food purchase decisions is religious confidence in offered products. Every Muslim is strictly obliged to search for evidence of good handling practices before consuming Halal products [8].
Method
This research used a qualitative approach with an exploratory descriptive design [23]. The research was carried out in 2021 in Tirtoyudo traditional market, Malang, Indonesia, selected due to the potential of its unique characteristic. The sample was selected by purposive sampling to choose the key informant. In the end, we chose the head of market administration or usually called mantri pasar, as the key informant. Meanwhile, the other informants were selected based on the previous information from the key informants. In this process, we used snowball sampling involving the sellers, user community, figures from the village, local government, and many other relevant parties to complete the data needed. The data were collected through the in-depth interview [24] with eleven informants. Each interview was conducted for between two to three hours. Further, the interview data were transcribed, coded, and analyzed appropriately using qualitative methods. For the data analysis, we used the interactive model to analyze the correlation from the results based on the category of activity in numerous cycles. Besides, interactive analysis was carried out continuously from the beginning of data collection to the verification or conclusion-drawing process [25]. To maintain research quality, the validity test, data comparison, and data verification were carried out using the triangulation of data sources, methods, and other sources as well as member checks [26].
Results
Islamic Business Ethics Practices
Tirtoyudo traditional market serves as both a location for commercial activity and interaction in the context of social culture. As a trading place, Tirtoyudo traditional market has an essential role in providing economic needs for the people and increasing the economic values. To achieve economic values, ethics are implemented in sustainable business transactions. According to the field observations, generally, the sellers implemented ethical principles that are relevant to Islamic teachings properly. Those ethical principles are discussed in the following.
Upholding Trusts (Amanah)
Amanah represents the trustworthiness that guides a businessperson in doing transactions. Scholars and practitioners widely recognize the importance of trustworthiness because it is the key to interpersonal relationships with others and indicates accountability. This trait will lead to the consumer’s satisfaction and trust through good accountability, as well as loyalty towards business sustainability. The amanah can be observed through the positive correlation between deeds and words, the appropriateness of the report, and the reality of the transaction, as well as honoring a person’s commitment. This trait could be seen from the behavior of Tirtoyudo traditional market traders who showed product defects before being sold, showing that they did not hide the defects (ghisysyi), kept consumers’ orders, did not overestimate the quality of goods, and offered goods based on the existing conditions. In Islam, amanah refers to the success of the Prophet Muhammad in doing business by building trust as an essential capital. The example given by Prophet Muhammad SAW by his trustful nature has later been proven by modern economic and management theories. These theories are close to the teachings of the Prophet Muhammad SAW about the driving factors of the economy and business procedures, which aims to alleviate poverty through entrepreneurship in the monotheism and divinity paradigm [27]. The business practitioners who practiced amanah are in line with the teaching of Islam that businesspeople should have an orientation of independence, able to maximize all the resources they have, and provide benefits for humanity [28]. The function of trustworthiness in business helps someone always do good deeds and avoid cheating. It is in line with the previous research reporting the positive effects of Islamic ethics implementation in business [29].
Fair (‘adl)
Fairness is the central norm in economic aspects. Besides, fairness or justice is one of God’s names, God’s Infinite Justice. God likes people who are fair and are very hostile to wrongdoing. The implementations of fairness in the Tirtoyudo traditional market were observed from their truthful behavior by not cheating in scaling (tahfif) and not reducing the weight (ghabn). In addition, many business or shop owners treated the employees fairly by not differentiating their races, ethnicities, or groups. Besides, they also often gave rewards based on the ethical performance of employees. The head of market administration only permitted one person to own one stall to distribute the places evenly. From another perspective, this fair nature had a positive impact in reporting that the core of marketing is the principle of maximizing values based on justice (such as fair transactions) to achieve the welfare of the wider community [30]. Even all business behavior must be based on the principle of justice or fairness [31]. Also, fairness cannot be ignored to ensure the social welfare of the community [32].
Mutual Assistance (ta’awun)
The Tirtoyudo traditional market, which is dominated by Javanese and Madurese traders, has a tradition of mutual assistance. Often when traders had to do other activities and leave their stalls, their neighboring trader helped with the sales transaction services. In another context, they also helped one another exchange information about business opportunities, price developments, and business expansion opportunities. Also, traders with sufficient capital or products aided other traders in maintaining business continuity. For them, achieving community well-being was a core objective that was built on individual growth. It signifies that happiness and collective growth-oriented work is their identity and existence. These empirical facts showed the nature of mutual assistance (ta’awun), mutual coordination, and cooperation. In many verses, Al-Qur’an teaches Muslims to help one another and work together on good deeds (for example, see Al Maidah: 2). The nature of good mutual assistance includes good deeds (sholihat) [33], which carries a positive impact, such as the formation of ethical behavior in business [34]. Ta’awun requires collaboration, group cohesiveness, a mutual spirit in the sense of family, and social solidarity, which leads to the benefit of the people. Ta’awun practiced by traders or businesspeople in Tirtoyudo traditional markets are in line with the results of previous studies, which stated that universal solidarity (ukhuwwah) through mutual assistance among stakeholders in the form of financial and non-financial businesses has positive benefits in building sustainable business resilience [35].
Sincerity (ikhlas)
Traders’ sincerity in running the business in Tirtoyudo traditional market was observed in a variety of attitudes such as truth in words and actions, good intentions to give assistance, honesty, as well as free from manipulation, falsehood, and camouflage, and free from ulterior motives after they do good deeds. In their perspective, as doing good deeds to others is the nature of human beings, they must do good deeds. Meanwhile, the expectation of getting a reward after a good deed damages the goodness itself. Every human being has an obligation to do a good deed, be friendly, be non-discriminatory, and not commit fraud or bribery because of intelligence [34]. This dimension of sincerity is the character of a simple and humble Muslim [36]. From a social perspective, sincerity also can be interpreted as the contribution of social responsibility of entrepreneurs as a form of individual commitment to the community. Such a view shows human nature as a social creature explicitly has an ethical norm in the development of social responsibility business conduct [37]. If it adopts Toyota Way, this principle of sincerity is oriented towards serving others, which is oriented towards long-term collective well-being [38].
Fraternity (ukhuwah)
Good social interaction creates a sense of fraternity in a community. Interestingly, the traders’ business in the traditional markets of Tirtoyudo showed this sense of fraternity. Their fraternity was observed when the seller still gave the groceries even when the buyer forgot to bring money or only brought less money, the food vendors often provided additional portions, the sellers often gave leeway when buyers could not pay their debts, and the shop owners gave wages solely based on the performance and not based on race or ethnicity. Traditionally, traders are typical units that become part of the family, who are helping and encouraging one another to reach their full potential. These findings indicate social interactions within the framework of fraternity or brotherhood. From an Islamic perspective, fraternity is not only built based on blood ties but also based on faith, unity, and equality as human beings. The brotherhood is also built within the framework of human welfare and good living [36]. Brotherhood as an ethical principle plays an important role both in the context of modern marketing theory and Islamic marketing that leads to benefit [37,38]. Besides, it is also regarded as a universal ethical value [41].
Spirituality
Spirituality is defined as bringing business from the initial material dimension to the immaterial spiritual dimension. Besides, with spirituality, human positions God as a source that inspires, influences, and moves the conscience through an ethical approach to religion. This spirituality was also observed in the business practices in the Tirtoyudo traditional market. Traders argued that besides being materially oriented through business, they also expected to be able to donate and help others with their business revenue. Also, obedience to God through prayer obligation was not neglected during busy business days, and they perceived business revenue as a preparation for the afterlife. In business, spiritual practice is essential because it shapes the individual’s character based on religious ethics, which focus on righteous deeds, such as modesty, discipline, and honesty. This view is reinforced by the results of previous studies that spiritual values can enhance creativity [42], commitment, and interpersonal relationships [43]. Besides, spiritual values are also reported to motivate ethical behavior [44], improve performance [45], have a positive impact on spiritual health [46], and be more concerned with ethics than just pursuing material [47].
The Cultural Values
In addition to the ethical principles mentioned above, traders in Tirtoyudo traditional market also practiced cultural principles. These cultural values give a positive meaning to business sustainability without leaving existing local wisdom. The cultural values are discussed in the following discussion.
Seduluran (brotherhood)
Seduluran means fraternity or brotherhood. This culture was built by giving understanding to all traditional market traders that they were all family. It was preached by community leaders in Tirtoyudo village and the head of market administration who continuously conducted gathering which was called “kumpulan”. The event was attended by all traders or their representatives to strengthen the relationship as well as to foster fraternity in the market trader community. In this context, seduluran practices include manifesting mutual assistance among traders whenever they encounter obstacles. Sometimes, the assistance was in the form of helping to sell or provide information. In addition, good social relationships, such as helping in looking after the goods or stalls, built the sensitivity of family relationships. This fraternity in traditional market communities serves as a cultural heritage and a framework for maintaining local wisdom as a Javanese community always holds the principle of fraternity, both based on faith and fellow human beings. In association with business, this sense of brotherhood related to maintaining relations provides business and marketing network opportunities. This concept is in line with the results of previous studies, which stated that brotherhood has a prominent role in marketing [37,38]. The characteristics of seduluruan traditionally come from the normative-religious environment. Often, traders and local people apologize to one another, showing humility and care for others. The culture of apologizing is not in the context of admitting mistakes or responsibilities as it is done in the western world, but it is used to maintain harmony in family and community. Further, this traditional culture of apologizing has conformity with the normative spiritual business culture in Japan that also aims for maintaining brotherhood [48].
Bancaan (eating together)
Bancaan is a Javanese tradition that serves various foods on banana leaves to be consumed together. Bancaan was usually done by traders when they opened a new store coinciding with the market day or during Pon market day at Tirtoyudo traditional market. Bancaan was conducted as a sign of gratitude to God for the blessings they received, which is realized by sharing food with others. It was also a form of respect and devotion to the ancestors who created the path enabling the people to trade or make a fortune in Tirtoyudo traditional markets. Additionally, it could strengthen solidarity between people in a community. In the traditions of Tirtoyudo traditional market, bancaan began with advice and prayers led by local figures. This ritual aimed to provide a sense of closeness to God to obtain peace of mind and optimism in their business. The origin of bancaan, aside from being a culture and local wisdom, also implied ethical and spiritual values that positively affect the people and businesses in general.
Ewuh Pakewuh (a form of respect for others)
Ewuh Pakewuh is defined as a form of respect for senior traders. The senior level was determined by their age or their long period of trading at the Tirtoyudo traditional market. This culture complemented a harmonious atmosphere by increasing fraternity in the traditional market community. Senior traders usually gave good examples to younger traders, such as keeping the market clean, greeting one another, and maintaining the harmony of the market environment to create a culture of feeling reluctant or hesitant to make a mistake. The harmony created in the market environment among traders, buyers, suppliers, heads of administration, and community leaders proves that ewuh pakewuh has a positive impact on the fraternity. This culture is not interpreted as a barrier and obstacle during an argument that usually occurs in the Javanese community but rather as a trigger for the creation of a good culture. This empirical fact differs from a previous study reporting that the ewuh pakewuh shows the misalignment of people’s attitudes and behavior, even having a negative impact on organizational behavior [49].
Ngawulo Bekti (the sense of obedience to commands)
Ngawulo bekti, is a local culture that has a positive impact on business sustainability. Ngawulo bekti is interpreted as a form of servitude in the sense of obedience to commands, written rules, and applicable customs. Tirtoyudo traditional market entities such as traders, suppliers, buyers, head of administrative and community leaders had a consensus of adherence to the agreed rules. The violation of the joint consensus would result in isolation and elimination from the market community as a form of punishment. Their similar views enhance their harmonious fraternity. Besides, ngawulo bekti culture is also defined as the view that perceives trading as a form of human servitude to God in the form of carrying out His commands to seek His gifts and good fortune. Their sense of obedience was also observed in their obedience to pray in the middle of trading as soon as the prayer call echoed. Their obedience was a positive result of kumpulan or bancaan through the advice given by the religious leaders. Obedience also emerges because of a solid religious foundation. Linearly, previous research also described that every effort is part of the worship that should be completed properly and the attempt to provide benefits for others with a balanced orientation towards the world and the hereafter [50].
Nandur Becik (cultivate good will)
Nandur becik is a culture to cultivate goodwill. This cultural value was expressed through the views and behavior of traditional market traders. The traders explicitly stated that every act was an investment with future rewards. This culture was reflected when the traders’ provided drinks, snacks, or candy to buyers during the transaction. Their closeness was shown through the cheerful dialogue while enjoying the service. Although this treatment was part of the service effort, its nature was to cultivate kindness. Additionally, the practice of this culture is also the implementation of God’s order, as declared in Al-Qur’an, “so whoever does an atom’s weight of good will see it; and whoever does an atom’s weight of evil will see it” (QS 99: 7–8). The tradition of nandur becik was always echoed by community leaders in kumpulan and bancaan, so traders carried out this trait through various forms because every human being must do good and give benefits. From the perspective of Islam, the nandur becik practiced in Tirtoyudo traditional market is part of spirituality in business, as it reflects the awareness of businesspeople that their profits are not only short-term worldly profits but also long-term profits in the afterlife. Businesses that run based on spiritual values are proven to survive and develop well, as the traders of the Tirtoyudo market have existed for generations, since more than half a century ago.
Business practices in Tirtoyudo traditional market were carried out ethically by still considering the cultural values as the local heritage. The correlation of Islamic business ethics and cultural values practiced by Tirtoyudo traditional market entities is also connected with the Pon market philosophy itself. Pon market has the wood characteristic, representing its general flexible but hard features. Flexible means that if bent, it will return to its former position. Meanwhile, its hard characteristic refers to seriousness. Besides, the wood characteristic also signifies that in the event of good fortune, it will turn into wood until it becomes frail, and in the event of bad luck, it will turn into firewood. From a business perspective, Pon market indicates that a good business must be flexible and adapt to the environment. Business flexibility requires ethical behavior that does not conflict with culture as part of an influential environment. The summary of the harmonious relationship between Islamic business ethics and cultural values practiced in Tirtoyudo traditional market is summarized in Table 1.
Table 1. The Harmonious Relationship of Islamic Business Ethics and Cultural Values
Islamic Business Ethics | Culture | ||
Upholding Trust | Not hiding the defects of goods (ghisysyi)Keeping the consumers’ ordersNot overestimating the quality of goodsOffering goods based on the existing conditions | Seduluran | Helping one another Looking after the other traders’ goods or stallSensitivity of fraternity relationshipMaintaining local wisdom based on religious belief or human relation. |
Fair | Not cheating the scales (tahfif)Not reducing the weight (ghabn)Treating the employees fairlyOne person to own one stall. | Bancaan | Eating togetherSign of gratitudeRespecting the ancestorsStrengthening solidarity |
Mutual Assistance | Providing assistanceExchanging informationCapital support for other traders. | Ewuh pakewuh | Giving good examples to younger traders, such as keeping the market clean, greeting one another, and maintaining the harmony of the market environment to create a feeling of reluctance or hesitation to make a mistake.Creating harmony in the market environmentGiving positive effect on the fraternity framework |
Sincerity | GoodwillHonestyFree of manipulation and falsityFree of ulterior motivesGoodwill is human nature.Expecting a reward will ruin the goodwill itself. | ||
Fraternity | Keep selling the groceries even when the buyer forgets to bring money or only brings less money.Providing additional portionGiving leeway when buyers cannot pay their debts.Giving employees’ wages based on performance. | Ngawulo Bekti | Sense of obedience to the agreed rulesCommon views as familyTrading is a form of human servitude to Allah SWTObedience to pray in the middle of the trading |
Spirituality | Donating and helping one anotherObedience to God through obligated prayerPositioning business revenue as a preparation for the afterlife | Nandur Becik | Attitude is an investment. Providing drinks, snacks, or candy to buyers during the transactionService is cultivating goodwill |
Source: Field Data Results
The ethical values practiced by Tirtoyudo market traders, from the perspective of normative ethical theory, deontological ethics, and consequentialist ethics, are classified as appropriate and have good consequences [17]. Any business requires people with ethical behavior because these people present positive contributions. The synergy between Islamic business ethics and cultural values practiced in daily behavior becomes a work culture and individual virtue coming from the heart based on strong faith. Jonsson (2011) described ethics as a holistic virtue that is not considered a matter of right and wrong but rather as a way of life that is infused with moral character. In Islam, this ethic is named ihsan. Ethical values in business guarantee the production of halal goods that positively contribute to other lives. The synergy of Islamic business ethics and local cultural values shows the high knowledge and actions of traders in the Tirtoyudo traditional market. Empirical experience (through religious and cultural knowledge) passed down by previous generations has placed traders in a position of virtue (Ihsan).
Tirtoyudo traditional market has combined Islamic business ethics and local cultural values for more than half a century. This market existence shows that business continuity is well established using the business model from the Tirtoyudo traditional market. The business model correlating the Islamic business ethics and local cultural values practiced in the Tirtoyudo traditional market are presented in Figure 1.

Figure 1. Halal and Sustainable Business Model in Tirtoyudo Traditional Market.
Conclusion
Sustainable business practiced in Tirtoyudo traditional market, M alang Regency, Indonesia, collaborates the principles of Islamic business ethics and cultural values as a legacy of local wisdom. The business is harmoniously carried out by market entities which include traders, buyers, suppliers, heads of administration, and community leaders. Islamic business ethics, as a business practice based on Islamic teachings, plays a vital role in shaping business with excellent characteristics, such as upholding trust (amanah), fairness (‘adl), mutual assistance (ta’awun), sincerity (ikhlas), fraternity (ukhuwwah) and spirituality. At the same time, the local cultural values juxtaposed in business practices include seduluran, bancaan, ewuh pakeweuh, ngawulo bekti, and nandur becik cultures. Islamic business ethics and cultural values are practiced in harmony by the Tirtoyudo traditional market entities because of their excellent understanding of symbols, languages, and norms. This harmonious combination of Islamic business ethics and cultural values results in a business model of the Tirtoyudo traditional market, which has become a local trademark. Nevertheless, this local trademark is universal, allowing it to be adopted by other traditional markets. Additionally, the harmonious combination of Islamic business ethics and cultural values is also a significant factor in the sustainability of the Tirtoyudo traditional market, as proven by its more than half a century existence.
References
[1] N. Karia and M. H. A. H. Asaari, “Halal business and sustainability: Strategies, resources and capabilities of halal third-party logistics (3PLs),” Prog. Ind. Ecol. an Int. J., vol. 10, no. 2–3, pp. 286–300, 2016.
[2] M. Hong, S. Sun, A. R. Beg, and Z. Zhou, “Determinants of halal purchasing behaviour: Evidences from China,” J. Islam. Mark., 2018.
[3] S. B. Utomo, R. Sekaryuni, A. Widarjono, A. Tohirin, and H. Sudarsono, “Promoting Islamic financial ecosystem to improve halal industry performance in Indonesia: A demand and supply analysis,” J. Islam. Mark., vol. 12, no. 5, pp. 992‑1011, 2020.
[4] S. Gillani, F. Ijaz, and M. M. S. Khan, “Role of islamic financial institutions in promotion of Pakistan halal food industry,” Islam. Bank. Financ. Rev., vol. 3, no. 01, pp. 29–49, 2016.
[5] J. A. Wilson, “The halal phenomenon: An extension or a new paradigm?,” Soc. Bus., vol. 4, no. 3, pp. 255–271, 2014.
[6] J. A. Wilson and J. Liu, “Shaping the halal into a brand?,” J. Islam. Mark., 2010.
[7] C. Bux, E. Varese, V. Amicarelli, and M. Lombardi, “Halal food sustainability between certification and blockchain: A review,” Sustainability, vol. 14, no. 4, p. 2152, 2022.
[8] A. Tan, D. Gligor, and A. Ngah, “Applying blockchain for halal food traceability,” Int. J. Logist. Res. Appl., vol. 25, no. 6, pp. 947–964, 2022.
[9] S. N. Wiyono, Y. Deliana, E. Wulandari, and N. H. Kamarulzaman, “The embodiment of Muslim intention elements in buying halal food products: A literature review,” Sustainability, vol. 14, no. 20, p. 13163, 2022.
[10] E. Karahalil, “Principles of halal-compliant fermentations: Microbial alternatives for the halal food industry,” Trends Food Sci. Technol., vol. 98, pp. 1–9, 2020.
[11] M. S. Ab Talib, “Identifying halal logistics constraints in Brunei Darussalam,” J. Islam. Mark., vol. 12, no. 6, pp. 1145–1158, 2020.
[12] R. M. Yusof, A. A. Mahfudz, and S. Yaakub, “Halal trade finance and global well-being: Here come the Millennials,” in Contemporary Management and Science Issues in the Halal Industry, Springer, 2019, pp. 469–494.
[13] J. Hamprecht, D. Corsten, M. Noll, and E. Meier, “Controlling the sustainability of food supply chains,” Supply Chain Manag. an Int. J., 2005.
[14] K. Naughton, “Arab-America’s store,” Newsweek (10 March 2008, http//www. newsweek. com/id/117835, accessed 1 Sept. 2008), 2008.
[15] E. Izberk-Bilgin and C. C. Nakata, “A new look at faith-based marketing: The global halal market,” Bus. Horiz., vol. 59, no. 3, pp. 285–292, 2016.
[16] R. Wilson, “Islamic Economics: Where from, Where to?,” J. King Abdulaziz Univ. Islam. Econ., vol. 362, no. 3389, pp. 1–7, 2014.
[17] P. O. Jonsson, “On utilitarianism vs virtue ethics as foundations of economic choice theory,” Humanomics, 2011.
[18] H. Muhammad, “Holistic practice of Fiqh Al-Muamalat: Halal accountability of Islamic microfinance institutions,” Nusant. Halal J. (Halal awareness, Opin. Res. Initiat., vol. 1, no. 1, pp. 22–31, 2020.
[19] N. Aydin, “Moral economic axioms, preference formation and welfare in Islamic economics and business,” Asian J. Bus. Ethics, vol. 7, no. 1, pp. 21–36, 2018.
[20] A. Hassan, “Islamic ethical responsibilities for business and sustainable development,” Humanomics, 2016.
[21] I. Aliyah, B. Setioko, and W. Pradoto, “Spatial flexibility in cultural mapping of traditional market area in Surakarta (A case study of Pasar Gede in Surakarta),” City, Cult. Soc., vol. 10, pp. 41–51, 2017.
[22] R. A. Rahadi, “Factors related to repeat consumption behaviour: A case study in traditional market in Bandung and surrounding region,” Procedia-Social Behav. Sci., vol. 36, pp. 529–539, 2012.
[23] P. J. Brink and M. J. Wood, Advanced design in nursing research. Sage, 1998.
[24] R. K. Yin, Case study research: Design and methods, vol. 5. sage, 2009.
[25] M. B. Miles, A. M. Huberman, and J. Saldana, “Fundamentals of Qualitative Data Analysis In Qualitative Data Analysis: A Methods Sourcebook (pp. 69–104).” Thousand Oaks, CA: Sage Publications.[Google Scholar], 2014.
[26] M. Q. Patton, How to use qualitative methods in evaluation, no. 4. Sage, 1987.
[27] M. Hunter, “Entrepreneurship as a means to create Islamic economy,” Econ. Manag. Financ. Mark., vol. 9, no. 1, p. 75, 2014.
[28] S. Abdullah, “The characteristics of successful entrepreneurs from islamic perspective,” J. Islam. Hum. Adv. Res., vol. 3, no. 6, pp. 322–345, 2013.
[29] S. F. A. Jabbar, H. M. Ali, Z. M. Mohamed, and F. Jalil, “Business ethics: Theory and practice in an Islamic context,” in Regulations and Applications of Ethics in Business Practice, Springer, 2018, pp. 257–271.
[30] M. Saeed, Z. U. Ahmed, and S. M. Mukhtar, “International marketing ethics from an Islamic perspective: A value-maximization approach,” J. Bus. Ethics, vol. 32, no. 2, pp. 127–142, 2001.
[31] T. Abeng, “Business ethics in Islamic context: Perspectives of a Muslim business leader,” Bus. ethics Q., vol. 7, no. 3, pp. 47–54, 1997.
[32] A. J. Ali, “Cultural discontinuity and Arab management thought,” Int. Stud. Manag. Organ., vol. 25, no. 3, pp. 7–30, 1995.
[33] M. Fah̲rī, Ethical theories in Islam, vol. 8. Brill, 1991.
[34] S. A. Abuznaid, “Business ethics in Islam: The glaring gap in practice,” Int. J. Islam. Middle East. Financ. Manag., 2009.
[35] S. M. Sarif, “Ta’awun-based social capital and business resilience for small businesses,” South East Asia J. Contemp. Business, Econ. Law, vol. 7, no. 2, pp. 24–34, 2015.
[36] G. Rice, “Islamic ethics and the implications for business,” J. Bus. ethics, vol. 18, no. 4, pp. 345–358, 1999.
[37] J. Graafland, C. Mazereeuw, and A. Yahia, “Islam and socially responsible business conduct: An empirical study of Dutch entrepreneurs,” Bus. ethics a Eur. Rev., vol. 15, no. 4, pp. 390–406, 2006.
[38] J. K. Liker and J. K. Franz, The Toyota way to continuous improvement: Linking strategy and operational excellence to achieve superior performance. McGraw Hill Professional, 2011.
[39] B. A. Alserhan, The principles of Islamic marketing. Routledge, 2017.
[40] M. Arham, “Islamic perspectives on marketing,” J. Islam. Mark., vol. 1, no. 2, pp. 149–164, 2010.
[41] M. U. Chapra, Islam and the economic challenge, no. 17. International Institute of Islamic Thought (IIIT), 1992.
[42] L. Zsolnai and K. Illes, “Spiritually inspired creativity in business,” Int. J. Soc. Econ., 2017.
[43] M. R. Dehaghi, M. Goodarzi, and Z. K. Arazi, “The effect of spiritual values on employees’ organizational commitment and its models,” Procedia-Social Behav. Sci., vol. 62, pp. 159–166, 2012.
[44] L. Zsolnai, “Ethics needs spirituality,” in Spirituality and business, Springer, 2010, pp. 87–90.
[45] T. W. Moon, N. Youn, W. M. Hur, and K. M. Kim, “Does employees’ spirituality enhance job performance? The mediating roles of intrinsic motivation and job crafting,” Curr. Psychol., vol. 39, no. 5, pp. 1618–1634, 2020.
[46] M. Ahmad and S. Khan, “A model of spirituality for ageing Muslims,” J. Relig. Health, vol. 55, no. 3, pp. 830–843, 2016.
[47] T. F. Stillman, F. D. Fincham, K. D. Vohs, N. M. Lambert, and C. A. Phillips, “The material and immaterial in conflict: Spirituality reduces conspicuous consumption,” J. Econ. Psychol., vol. 33, no. 1, pp. 1–7, 2012.
[48] I. Taka, “Business ethics: A Japanese view,” Bus. Ethics Q., vol. 4, no. 1, pp. 53–78, 1994.
[49] R. Meilina and D. K. H. Soedjoko, “The implication of ‘ewuh pakewuh’ cultural in OCB implementation of service employee at pesantren sub district of Kediri city,” in ACHITS 2019: Proceedings of the 1st Asian Conference on Humanities, Industry, and Technology for Society, ACHITS 2019, 30–31 July 2019, Surabaya, Indonesia, 2019, p. 252.
[50] O. K. Bhatti, A. Alkahtani, A. Hassan, and M. Sulaiman, “The relationship between Islamic piety (taqwa) and workplace deviance with organizational justice as a moderator,” Int. J. Bus. Manag., vol. 10, no. 4, p. 136, 2015.
Copyright
© 2021 by the authors. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
You must be logged in to post a comment.