The Role of Islamic Religiosity in Innovation Propensity: An Institutional Theory-Based Analysis

Authors

1 Assistant Professor, Faculty of Economics, Allameh Tabataba'i University, Tehran, Iran

2 Institute of Islamic Human Sciences, Al-Mustafa International University, Qom, Iran.

Abstract

Introduction: The influence of religion on human behavior has been a persistent subject of academic inquiry throughout history. As a fundamental social institution, religion plays a critical role in shaping attitudes toward innovation. However, scholarly understanding remains limited regarding the specific mechanisms through which Islam influences innovative behavior. Existing literature presents two contrasting perspectives: one emphasizing potential constraints imposed by Islamic institutions, including restrictions on individual freedoms, property rights limitations, and gender participation barriers that may inhibit entrepreneurial risk-taking; the other highlighting Islam's positive role in fostering business ethics, social justice, and value-driven entrepreneurship that may enhance innovation propensity. This study employed institutional theory to examine the relationship between Islamic religiosity and innovation propensity, with particular focus on its cognitive (beliefs and teachings), normative (values and norms), and regulatory (laws and rules) dimensions.
Methodology: Utilizing a quantitative research design, this study investigated the relationship between Islamic religiosity and innovation propensity among a stratified random sample of 1,200 entrepreneurs and innovators across various economic and cultural sectors in Iran. Data collection occurred during the second half of 2023. The research instrument underwent rigorous validation, including content validity assessment by domain experts and subsequent refinement to ensure comprehensive coverage of all theoretical constructs. Reliability was established through Cronbach's alpha (α = 0.82) and composite reliability (CR = 0.85) metrics.
Results: Stepwise regression analysis, controlling for demographic and professional variables (age, education, work experience, and entrepreneurial status), yielded several key findings:
1. Islamic religiosity demonstrated a significant positive relationship with innovation propensity (β = 0.37, p < 0.01), with all three dimensions - normative (β = 0.28), regulatory (β = 0.31), and cognitive (β = 0.25) - showing independent predictive validity.
2. Control variables revealed that:
* Age exhibited a negative correlation with innovation propensity (β = -0.18, p < 0.05)
* Work experience (β = 0.22) and entrepreneurial status (β = 0.27) showed positive relationships
* Education level emerged as a significant moderator (β = 0.19, p < 0.05)
3. The regulatory dimension proved particularly influential in promoting ethically-grounded innovations aligned with Islamic principles of social benefit.
Discussion and Implications: This study makes three principal contributions to the literature:
1. It provides empirical evidence for the positive relationship between Islamic religiosity and innovation propensity across all institutional dimensions.
2. It identifies the regulatory dimension as particularly salient in fostering sustainable, ethically-conscious innovations through social control mechanisms.
3. It demonstrates how cognitive religiosity facilitates socially impactful innovations through enhanced religious literacy.
Practical implications suggest:
* Development of faith-based training programs integrating Islamic ethics with innovation pedagogy
* Organizational interventions to enhance creative capacity through targeted workshops
* Policy initiatives to support underrepresented groups in innovation ecosystems
JEL Classification: O31, B52, Z12, L26, P51

Keywords

References

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