The Role of Islamic Religiosity in the Willingness to Innovate: An Institutional Theory Analysis

Introduction:

The influence of religion on human behavior has been a subject of interest since the time of Adam Smith and Max Weber, and continues to be examined in contemporary research. Studies indicate that religious principles play a significant role in economic and managerial behaviors, and religion, as an influential institution in societies, economies, and organizations, shapes individuals' attitudes toward innovation. However, limited information exists about the influence of religious institutions, especially Islam, on innovation and its mechanisms.

Some researchers argue that Islamic institutions may hinder innovation due to restrictions on freedom, property rights, and women's participation in the workforce. These limitations might impact entrepreneurial characteristics such as risk-taking. In contrast, another viewpoint suggests that Islamic teachings can enhance aspects such as business ethics, justice, and ethical entrepreneurship, thereby increasing the willingness to innovate.

Given these conflicting perspectives and the role of innovation in economic and social development, the present study examines the relationship between Islamic religiosity and the willingness to innovate using an institutional approach. The study analyzes the impact of cognitive (beliefs and teachings), normative (values and norms), and regulatory (laws and regulations) dimensions of Islamic religiosity on factors influencing innovation to gain a deeper understanding of this complex interaction.

Method:

The present study adopts a quantitative approach to examine the relationship between Islam and the willingness to innovate. The target population includes entrepreneurs and innovators actively engaged in various economic and cultural sectors in Iran, within the country’s social and religious environment. These groups include startups, knowledge-based companies, small and medium-sized enterprises, students and researchers, and government or semi-government organizations related to innovation. For sampling, the population was first divided into different strata, and random samples were selected from each stratum. Ultimately, the final sample comprised 1,200 individuals, and data collection occurred in the second half of 2023.

To ensure the accuracy and validity of the data collection instrument, two main aspects—validity and reliability—were examined. For ensuring the validity (credibility) of the questionnaire, both content validity and construct validity were used. In the first stage, content validity was verified through the opinions of experts in Islamic religiosity, innovation, and entrepreneurship. The questionnaire was designed to cover all aspects of the research topic, and the experts' suggestions for improving the items were incorporated. To assess the reliability (consistency) of the questionnaire, both Cronbach's alpha and composite reliability (CR) indices were used.

Results:

In this research, stepwise regression analysis was used to examine the relationship between the willingness to innovate and Islamic religiosity, considering the effects of control variables such as age, education, work experience, and entrepreneurial status. The results from the models indicated that Islamic religiosity, as a composite construct, and all three of its dimensions (normative, regulatory, and cognitive) had a positive and significant relationship with the willingness to innovate (p-value < 0.05). Among the control variables, age had a negative and significant impact on the willingness to innovate, while work experience and entrepreneurial status had a positive and significant impact on innovation. Furthermore, education was confirmed as an important factor in influencing innovation in the present study. The models also showed that each dimension of Islamic religiosity, both independently and in combination, had a positive and significant impact on the willingness to innovate. The results for the normative, regulatory, and cognitive dimensions of Islamic religiosity were significantly similar across different models. These findings emphasize the importance of Islamic religiosity in shaping the willingness to innovate.

Discussion and Conclusion:

This study reveals that all three dimensions of Islamic religiosity—normative, regulatory, and cognitive—have a positive and significant impact on the willingness to innovate. Specifically, the regulatory dimension of Islamic religiosity, which refers to social and individual control mechanisms, strengthens more sustainable and ethically-driven innovations. This dimension indirectly promotes innovations that are beneficial to society and aligned with the ethical principles of religion. Additionally, the cognitive dimension of Islamic religiosity, which refers to an individual's understanding of religious principles, indicates that individuals with greater religious knowledge can create innovations with social impact. In model six, all three dimensions of Islamic religiosity show a positive and significant relationship with the willingness to innovate, confirming their influence on innovation through the application of ethical and social principles. Furthermore, individual variables such as work experience and entrepreneurial status have a significant impact on the willingness to innovate. Policy recommendations include designing educational programs based on Islamic religiosity principles for innovators and researchers and organizing training courses focused on ethics and social responsibility. Additionally, organizations should design skill-building workshops to enhance innovation.