Islamic business development of Madurese-owned ethnic-based grocery stores: Study from Indonesia

Abstract

The retail grocery business is experiencing rapid expansion in several major Indonesian cities. A significant proportion of these establishments is owned and managed by a particular ethnic group, specifically the Madurese community hailing from East Java, who take pride in their identity as Muslim entrepreneurs. This research endeavors to investigate the fundamental factors contributing to the sustainability and expansion of Madurese-owned Muslim-run grocery stores as ethnic-based grocery stores (EGS). The data for this study were acquired through observations and in-depth interviews with key figures among EGS owners and staff. The findings highlight that the pivotal strategy for the success and growth of EGS lies in their capacity to adapt and emulate modern retail outlets. Furthermore, the principles of cooperation, familial bonds, cultural preservation, and adherence to Islamic values that have been fostered within the Madurese Muslim ethnic groups residing in urban environments play a significant role. Additionally, the distinctive relationships between store proprietors and employees contribute significantly to the swift proliferation of EGS across Indonesia.

Keywords:

• survival strategy transformation
• Islamic business development
• ethnic-based grocery store

Acknowledgments

The authors extend their sincere appreciation to the participants and all contributors who offered their invaluable support throughout the course of this research. Furthermore, the authors express their gratitude to the diligent efforts of the editors and reviewers, whose perceptive comments and recommendations significantly enriched the quality of this work. Any remaining errors or oversights, however, are solely the responsibility of the authors. This study culminates from the authors’ profound interest in the subject matter at hand and their recognition of the substantial growth potential within the realm of ethnic-based grocery stores (EGS) in the foreseeable future. Particularly, the authors envision a rapid expansion and noteworthy economic contribution from EGS establishments owned by the Muslim community from Madura, a region in East Java from which a majority of the authors hail. Presently, these EGS entities are predominantly concentrated in the urban hubs of Java. Nevertheless, it is plausible that their influence may extend to other islands, driven by the robust work ethic and unwavering determination of EGS entrepreneurs. Moreover, the incorporation of Islamic values by proprietors and caretakers holds the potential to enhance the trustworthiness and appeal of EGS among a broader clientele.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Zainal Abidin

Zainal Abidin was born on July 1, 1980, in Pamekasan, Madura, East Java. Presently, he holds the position of lecturer, specializing in Fiqh Muamalah, Islamic Economics, and the History and Thought of Islamic Economics, at the Madura State Islamic Institute (IAIN Madura). Additionally, he serves as the Dean of the Faculty of Islamic Economics and Business (FEBI) at IAIN Madura. Dr. Abidin completed his undergraduate studies (S-1) at the Sharia Study Program (ahwal al-syahsiyah) at STAIN Pamekasan. He pursued his master’s degree (S-2) in Islamic Finance at IAIN Sunan Ampel Surabaya and subsequently earned his doctoral degree (S-3) in the field of Dirasat Islamiyah in Islamic Economics at UIN Sunan Ampel Surabaya. In addition to his role as an educator, Dr. Abidin holds the position of Director in Chief of the journal Iqtishadia at IAIN Madura. Furthermore, he has actively participated in numerous international conferences hosted in various cities.