Authors : Fuad Ibrahim, Christea Frisdiantara and Ismail Suardi Wekke
Abstract: Islam considers riba as a destructive element of society economically, socially and morally. The rise of Islamic cooperative is their solution for funding the small businesses development. Islamic cooperative is the institution to improve the small business enterprises with based on Islamic principles and the principle of cooperatives. Differentiation is one of the competitive advantages of the company to win the competition. Thorough the implementation of differentiation strategy will be realized the more sustainable Islamic cooperative. The research method was descriptive qualitative method with a phenomenological approach. The data of this research were primary data, secondary data, observation, interview and documentation. Differentiation strategy for the cooperative as an important Islamic Microfinance Institutions to implement the system so the proliferation of other microfinance institutions. Side implementation of Sharia system are not biased just waiting for the interest of the public but need a mature strategy to gain customers. The result shows this differentiation strategy is a sustainable Islamic microfinance institutions. But researcher get the high problem by the differentiation of human resources. To deliver the best services, human resources place in the main player to direct. But almost in all IMFI’s have the lack management in this division. So, the differentiation does not play clearly.
Fuad Ibrahim, Christea Frisdiantara and Ismail Suardi Wekke, 2017. Differentiation Strategy of Islamic Micro Finance Institutions in Malang. Journal of Engineering and Applied Sciences, 12: 3865-3869.