The Influence of Product Innovation and Service Innovation on Interest in BMT Sarana Wiraswasta Muslim through Trust as an Intervening Variable

Aims: This study aims to determine the influence of Product Innovation and Service Innovation on Interest in Baitul Maal Wa Tamwil (BMT) Sarana Wiraswasta Muslim with Trust as an Intervening Variable.

Study Design: This study uses a quantitative approach with primary data types.

Place and Duration of Study: Respondents in this study were 100 traders who were classified based on location, namely at the Upper Dinoyo Market, Lower Dinoyo Market, Side Landungsari Market, and Edge Landungsari Market in Malang City.

Methodology: The sampling technique in this study used the proportionate stratified random sampling technique. Data collection for this study was conducted offline using interviews and closed questionnaires with a Likert scale featuring four response options. The data analysis included both outer and inner model analyses and hypothesis testing, conducted using software like Microsoft Excel and SmartPLS.

Results: Based on the results of the analysis carried out, it was obtained that Product Innovation and service innovation had a significant effect on the Interest of Baitul Maal Wa Tamwil (BMT) Sarana Wiraswasta Muslims, Product Innovation, and service innovation had a significant effect on the Trust of Baitul Maal Wa Tamwil (BMT) Sarana Wiraswasta Muslim, Trust had a significant effect on the Interest of Baitul Maal Wa Tamwil (BMT) Sarana Wiraswasta Muslim’s. Furthermore, trust can mediate the influence of product innovation on the Interests of Baitul Maal Wa Tamwil (BMT) Sarana Wiraswasta Muslim. However, Trust cannot mediate the influence of Service Innovation on the Interest of Baitul Maal Wa Tamwil (BMT) Sarana Entrepreneurs.

Conclusion: The variables of Product Innovation and Service Innovation have a significant effect on Interest and also increase Trust in Baitul Maal Wa Tamwil (BMT) Sarana Wiraswasta Muslim. Trust is proven to mediate the relationship between Product Innovation and Interest, indicating that trust strengthens the influence of product innovation on interest. However, Trust does not mediate the relationship between Service Innovation and Interest, implying that trust formed among members plays a more important role in determining interest, regardless of service innovation.