Toward theocentric entrepreneurship: The tawadhu framework for value-based governance in a pesantren ecosystem

Santoso, Budiyono, Suprayitno, Eko ORCID: https://orcid.org/0000-0002-5289-3918, Djalaluddin, Ahmad ORCID: https://orcid.org/0000-0001-7062-663X and Johari, Fuadah (2026) Toward theocentric entrepreneurship: The tawadhu framework for value-based governance in a pesantren ecosystem. JFATWA Journal of Fatwa Management and Research, 31 (3). pp. 236-257. ISSN 0127-8886

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Abstract

Previous research on Islamic entrepreneurship has primarily focused on halal business practices, ethical conduct and social enterprise, but it lacks an adequate description of the way Islamic values are operationalised and internalised to sustain compliance with fatwa principles at the institutional level. This study addresses this gap by developing a conceptual and empirical framework of value-embedded entrepreneurship based on Islamic principles and investigates how these values contribute to fatwa-oriented governance. The study employed a qualitative phenomenological approach using in-depth interviews, participant observation and document analysis in the Pesantren Riyadlul Jannah, Indonesia. Data were analysed using interpretative phenomenological techniques and normatively validated based on maqasid al-shariah. The results reveal that pesantren-based entrepreneurship is a spiritually embedded socio-economic system that is structured through the TAWADHU framework—Tarbiyah, Wathaniyah, Dakwah, Hamasatul Jihad, and Uswah—that work collectively as mechanisms of value formation, social orientation, moral communication, spiritual resilience, and ethical standardisation. These dimensions constitute the basis of Value-Based Fatwa Compliance (VBFC). This is the application of Sharia principles in a way that is sustained by internalised moral consciousness rather than external enforcement alone. This study contributes to the literature on Islamic entrepreneurship by conceptualising the internalisation of values as a governance mechanism at the micro-level that links entrepreneurial behaviour to institutional fatwa compliance, and by showing how maqasid al-shariah can be operationalised through organisational culture and daily entrepreneurial practices. Thus, the TAWADHU framework positions pesantren as a strategic micro-ecosystem for enhancing sustainable sharia compliance and aligning entrepreneurship with fatwa, maqasid al-shariah, and ethical governance.

Item Type:	Journal Article
Keywords:	theocentric entrepreneurship; tawadhu framework; value-based fatwa governance; maqasid al-shariah; islamic entrepreneurship
Subjects:	15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1503 Business and Management > 150304 Entrepreneurship 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1503 Business and Management > 150314 Small Business Management
Divisions:	Faculty of Economics > Department of Accounting
Depositing User:	Dr. Ahmad Djalaluddin
Date Deposited:	02 Nov 2026 09:41

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