Designing Islamic Entrepreneurial Orientation for Digital Ventures

Abstract

This paper develops a conceptual model of Islamic Entrepreneurial Orientation (IEO) tailored to digital ventures competing within the expanding Halal Economy. Grounded in Islamic normative constructs (taqwa, akhlaq, shura, amanah, maqāṣid) and contemporary entrepreneurship theory (Entrepreneurial Orientation, Resource-Based View, Institutional Logic), the model integrates three core IEO pillars  Ethics, Governance, and Innovation to explain how faith-rooted orientation shapes decision-making, digital design choices, stakeholder trust, and sustainable performance. The paper synthesizes insights from sustainable entrepreneurship, impact evaluation, and governance literatures (including design science approaches to venture assessment) to propose testable propositions on the mediating roles of ethical decision-making and digital innovation capability and the moderating role of Shariah governance strength. The framework advances theory by embedding normative Islamic principles into EO, and offers practical guidance for Muslim founders, Islamic venture capital, and regulators in designing ventures and investment practices that deliver halal-compliant value while achieving competitive advantage.