Islamic principles for Jamaat collaboration and sustainable business: how organizational learning and financial capacity shape environmental outcomes

Purpose The Islamic way of life promotes balance, encouraging collaboration and sustainable business practices. As a result, this study aims to examine how Islamic principles influence triple bottom line business performance among Muslim entrepreneurs through the underlying mechanisms of Jamaat collaboration and sustainable business practices. Moreover, this study assessed the moderating role of financial capacity in the relationship between Jamaat collaboration and sustainable business practices. Design/methodology/approach This research used a quantitative approach, beginning with an exhaustive literature review and structured questionnaire development, followed by a survey of 376 practicing Muslims in Karnataka, India. And finally, the mediation and moderation were analyzed using confirmatory factor analysis to check the model fit and Structural Equation Modelling to test hypothetical relationships. Findings The findings of this study collectively demonstrate that Islamic principles create a driving force instigating ethical entrepreneurship and, in turn, promoting long-term economic, social and environmental performances through mechanisms such as Jamaat collaboration and sustainable business practice. Moreover, results validate that as Jamaat collaboration increases, the sustainable business practices hike eventually for business men with high financial capacity. Practical implications This study acts as a roadmap for Muslim entrepreneurs and policymakers dedicated to promoting Jamaat collaboration while advancing organizational learning and strengthening financial resilience for sustainable growth over time. Originality/value Unlike previous research, this research analyses grassroots-level business partnerships in the networks of Jamaat. It connects theoretical Islamic finance principles to real-life applications in the area of business sustainability, making new contributions to the academic community and the industry practitioners.