Strategic Agility Diversification Investment: Islamic Financial Inclusion on the Financial Performance of Sharia Banks

Abstract

This study aims to conceptualize new variables as an intervention on the relationship between Islamic financial inclusion and the financial performance of Islamic banks. This variable is the strategic agility diversification investment (SADI) which is an integration of the resource-based and portfolio theories. The methodology is to derive the two theories, which are integrated based on a logical connection. SADI is used to mediate Islamic financial inclusion (challenges facing financial inclusion, benefits of financial inclusion, and realization of financial inclusion) in predicting the financial performance (activities, operations, products, and services) of Islamic banks. The result is that the conceptual SADI can be an intervention for improving the financial performance of Islamic banks in conditions where Islamic financial inclusion does not directly support the performance of Islamic banks.