ABSTRACT

The purpose of this study is to examine the role of community engagement in shaping community social identity and SMEs performance. Existing research has noted that community engagement takes a role to strengthen social identity and SMEs performance. However, there is lack of research which discuss SMEs community under LAZIS assistance. SMEs -LAZIS community is a community that has an orientation to support SMEs in order to achieve high performance. 103 SMEs under owners were involved in this research as respondents. Data was collected through questionnaire and interview. The data was analyzed using regression analysis. The result showed that community engagement improved Islamic social identity and SMEs performance. This research proved that the SMEs community created by LAZIS will support Islamic community social identity and SMEs performance. In the long term, this model will support Islamic Economics Growth.

Keywords : Islamic social identity, community engagement, SMEs performance Introduction