BUILDING A PATTERN OF MUTUAL TRUST RELATIONSHIPS AND COLLABORATION BETWEEN ISLAMIC FINANCIAL INSTITUTION IN CENTRAL JAVA BY INCREASING GOOD INTENTION AND TECHNICAL COMPETENCE

The background of this research is the cooperation between Islamic financial institutions (BMT) in Indonesia that have not been well developed and conceptualized. The encouragement from Bank Indonesia as the initiator to encourage Islamic financial institutions has not yet made a significant contribution. This research aimed to prove the effect of mutual trust and collaboration variables on organizational performance on BMT in Central Java. The respondents in this research were 100 BMT leaders in Central Java who are the members of the Central Java Puskopsyah (Islamic Cooperative Center). The analysis tool used is Smart PLS 3.0. The result of this research is that good intention and technical competence influence mutual trust while mutual trust influences collaboration. Then, mutual trust and collaboration influence the organizational performance.