Jumaiyah

Digital transformation in village financial management has become a strategic issue in modern governance, but research on digital transformation is still limited and not well systematic. This study aims to analyze the evolution and development of digital transformation research in village financial management through systematic bibliometric analysis from 2015 to 2024. The paper uses bibliometric analysis of 507 documents from journals in the Scopus database processed using RStudio software with the biblioshiny package. The research findings reveal gaps in theoretical development, especially in the integration of local governance frameworks with digital innovation models. The research landscape shows a growing focus on accountability mechanisms (28 articles) and transparency systems (24 articles) but lacks comprehensive studies on implementation challenges and success factors. Although local governance has emerged as a dominant research stream (89 articles), there is still less attention to critical areas such as digital literacy, cybersecurity, and change management in the rural context. The analysis identifies three future research directions: the need for a specific digital transformation framework for village-level financial systems, mechanisms for integrating traditional governance with digital innovation, and evaluation metrics for the success of digital transformation in rural settings. These findings contribute to the development of theoretical understanding and practical implementation of digital transformation in village financial management.

Type of the article: Research Article

Abstract
The rapid development of Islamic banking in Indonesia faces challenges in managing Non-Performing Financing (NPF), requiring an innovative approach based on Islamic values. Mabda’ At-Ta’awun, an Islamic cooperative principle that emphasizes collaboration between banks and customers to resolve problem financing, presents a promising alternative solution. This study aims to analyze the effectiveness of implementing Mabda’ At-Ta’awun in increasing the recovery rate and reducing the NPF ratio in Indonesian Islamic banking, as well as to evaluate the influence of bank characteristics on financing risk management performance. The research methodology uses a quantitative approach with panel data analysis from five Indonesian Islamic banks: PT Bank Muamalat Indonesia, PT Bank BCA Syariah, PT Bank BTPN Syariah, PT Bank Mega Syariah, and PT Bank Syariah Bukopin for the period 2016–2024 (45 bank-year observations). Fixed Effects Panel Regression, Seemingly Unrelated Regression (SUR), and Granger Causality Tests are used to identify causal relationships between variables. The results of the study demonstrate the effectiveness of Mabda’ At-Ta’awun in improving the performance of problem financing management: the financing recovery rate increased by 18.47% and the problem financing ratio decreased by 2.34%. Large banks face implementation flexibility constraints, while banks with high profitability demonstrate superior recovery performance. This study provides empirical evidence that implementing the Ta’awun principle can create a sustainable competitive advantage in Islamic banking financing risk management through a win-win solution approach that integrates Sharia compliance aspects with business effectiveness.