The Effect of Service Quality and Sharia Governance on Loyalty through Member's Satisfaction in Sharia Cooperatives

Abstract

This study aims to analyze the effect of service quality and shariah governance on the loyalty of sharia cooperative members with satisfaction as a mediating variable. The mediation variable serves to determine the direct and indirect effect of service quality and shariah governance on member loyalty. Data were collected from a survey with a questionnaire as an instrument. The research sample is a member of the Islamic Cooperative totaling 110 members. Hypothesis testing using descriptive test and structural equation model (SEM) test. The results of the descriptive test showed that the loyalty of the members was good. While the results of the SEM test show that the role of service quality and shariah governance has a significant effect on member satisfaction, and indirectly service quality and shariah governance also affect member loyalty. The relationship of the four variables in this study can be shown by the mediating effect of member satisfaction variables which play a role in mediating the effect of service quality and shariah governance on member loyalty with a partial mediating role.