The Importance of Information Technology Usage and Human Governance on Shariah Manufacturing Companies

This study aims to examine the extent of human governance and information technology usage able to act as a driving force for sustainability reporting to increase company performance by investigating shariah-compliant companies in Indonesia. A quantitative methodology from 70 Indonesian Islamic manufacturing companies registered in Indonesia's Islamic capital market has been chosen to achieve the study's objective. A descriptive and multiple regression analysis was used to analyze the data using companies' annual reports for 2019. The study found that Human Governance (HG) Index was positive and significantly related to sustainability reporting and sustainability reporting to business performance. However, IT usage was found not significantly related to sustainability reporting for shariah companies in Indonesia. Further sustainability reporting is also a significant mediating “variable for HG to business performance, but not for IT usage. This study contributes to the discussion of Islamic governance, human resource, and usage of IT. The findings can be used to identify the necessary mechanisms that should be enhanced to strengthen the practice of business performance.