Shariah compliance: the role of brand innovativeness in driving brand love and brand loyalty in Islamic banking

Purpose This study aims to examine the relationships between brand innovativeness, brand love, brand loyalty and word-of-d (WOM) in the Islamic banking sector. It explores whether brand innovativeness directly strengthens brand loyalty or whether its effects are mediated by brand love, particularly in a sector where ethical and shariah compliance are crucial in Islamic banking. Design/methodology/approach A survey was conducted with 482 respondents actively using Islamic banking services in Indonesia. Data were collected using a structured online questionnaire and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). The measurement model was tested for validity and reliability and the structural model was evaluated for hypothesis testing. Findings The findings show that brand innovativeness strengthens brand love, indicating that innovation fosters emotional attachment when aligned with ethical and religious principles. While innovativeness directly influences brand loyalty, its effect is weaker than that of brand love, highlighting the central role of emotional connection in sustaining loyalty. Brand loyalty, in turn, significantly drives WOM. Moreover, perceived risk does not significantly moderate the links between brand innovativeness, brand love and loyalty, suggesting that trust and Shariah compliance outweigh risk concerns in shaping consumer loyalty in Islamic banking. Research limitations/implications This study is limited by its use of self-reported online survey data and nonprobability sampling, which may restrict generalizability; future research should use longitudinal or probabilistic sampling approaches and include cross-country comparisons to enhance external validity. Practical implications Islamic banks should integrate innovation with Shariah compliance to enhance brand love and loyalty. Personalized engagement, ethical branding and digital transformation can reinforce consumer trust and brand attachment. Educating customers on the benefits of Islamic banking and leveraging endorsements from community leaders can further strengthen loyalty. Originality/value This study contributes to branding and Islamic finance literature by demonstrating that innovation alone does not ensure loyalty; rather, brand love driven by ethical credibility plays a critical mediating role.