FINANCIAL MODEL INNOVATION IN ISLAMIC BOARDING SCHOOL BUSINESS: WIRTZ'S FRAMEWORK AND CASE STUDY OF AL ITTIFAQ ISLAMIC BOARDING SCHOOL AS A ROLE MODEL IN INDONESIA

Abstract

Background: Islamic boarding schools in Indonesia play not only a role as religious educational institutions but also as economic drivers of the community. One form of transformation is the management of business units that support the independence of students and the surrounding community. However, many Islamic boarding schools still face limitations in financial management and receive less attention from the public and government. This study aims to analyze financial strategies within the business unit of Al Ittifaq Islamic Boarding School, utilizing the Wirtz Business Model framework.

Research Method: The research employed a qualitative approach, utilizing case studies, in-depth interviews, observations, and documentation.

Results and Conclusion: The results demonstrate that the implemented financial strategies are self-sustaining and community-based, employing a low-cost and value-driven approach. Funding is provided by internal capital and non-cash grants from partners. The cost structure is managed collectively by each unit, without external benchmarking, while evaluations are conducted routinely for strategic decision-making, such as business expansion and partnerships. These findings show that the Wirtz Business Model can comprehensively describe financial strategies in the pesantren environment.

Contribution: His theoretical contribution is to expand the understanding of financial management in religious community-based institutions. Practically, this research offers a model that other Islamic boarding schools can replicate. Socially, the results show that pesantren can become a driver of the local economy through participatory and empowering financial strategies.