Moderating effect of social capital on the relationship between micro waqf banks on sharia financial inclusion of micro business

Abstract

This study aims to analyse the impact of Micro Waqf banks on the Islamic financial inclusion of micro and small business actors in the pesantren environment and examine the role of social capital as a moderating variable in the relationship between Micro Waqf banks and financial inclusion. The population is micro-businesses located around the Al Kautsar Modern Islamic Boarding School, Sarilamak, Limapuluh Kota Regency, using purposive sampling, obtained a sample of 150 micro and small businesses. The analysis technique uses SPSS and the Process Macro (Hayes, 2017). The results confirm that Micro Waqf banks significantly impact Islamic financial inclusion. Furthermore, social capital moderates the relationship between micro waqf banks and sharia financial inclusion. Therefore, social capital plays an essential role in improving the relationship of Micro Waqf banks in relation to sharia financial inclusion.