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Abstract
Based on mimetic isomorphism, this study aims to develop a conceptual model of various concepts to form Islamic ethical and innovative MSMEs. MS ME is a type of individual or organizational business that is typically formed through mimetic processes. As a result, Islamic business ethics and innovation are required to provide characteristics and competitive advantages for MSMEs that take both internal and external factors into account. There are few studies that pay special attention to the process of forming MSMEs as a result of a mimetic process and the need for Islamic ethics and innovation that takes internal and external factors into account. The specialized goals of this study are to comprehend the mimetic process in the formation of MSMEs, the process of Islamic business ethics used by MSMEs, the MSME innovation process, and the processes of internal and external factors taken into account. Future research can use a quantitative approach to validate the conceptual model and test it with empirical data.
Key Word: Coercive Isomorphism, Mimetic Isomerism, Normative Isomorphism, Islamic and innovative ethics
Introduction
A swift advancement of science and technology has resulted in the formation of numerous organizations with various goals. Institutional pressure can lead to the formation of an organization, which then leads to institutionalization (Meyer and Rowan 1977). The power of isomorphism causes the process of institutionalization in the formation of an organization. Coercive isomorphism, mimetic isomorphism, and normative isomorphism are the three isomorphic forces that result in the formation of organizations. Coercive isomorphism is caused by formal and informal pressures, mimetic isomorphism is caused by uncertainty, which leads to imitation, and normative isomorphism is caused by pressure from prevailing norms (DiMaggio and Powell 1983). Despite the fact that organization is built on three isomorphic strengths, ethics and innovation are required for its formation. This is required in order to provide characteristics of the newly formed organization. Particularly if the organization was formed by imitating other organizations.
Isomorphism's power has been linked to various fields within an organization (Zhang and Hu 2017; Alm and Storm 2019; Riahi and Khoufi 2019; Yang and Kang 2019; Depoers and Jérôme 2020; Latif et al. 2020; Gutierrez, Cormier, and Magnan 2020; Barnett, Xiao, and Zhou 2021; Canello 2021; Yoon et al. 2021). This...