The Intersection of Shariah Compliance and Digital Innovation (Part-3)

Digital innovation becomes a critical tool that allows firms to leverage their Shariah compliance status more effectively. A Shariah-compliant company could utilize big data analytics to optimize resource consumption and minimize waste, aligning with Shariah principles that often discourage excessive consumption.

The study suggests that digital innovation will positively impact a company’s stock performance during crises, with a possible delayed effect. It also proposes that digital innovation will have a delayed moderating effect on the positive relationship between Shariah compliance and stock market performance during crises. This means that while digital innovation offers a powerful toolkit for Shariah-compliant firms, the full impact on stock performance might take time to materialize.