
Abstract Purpose: This editorial explores the impact of globalization and Islamic finance on SMEs' performance, aiming to understand the challenges and opportunities faced by SMEs operating under Islamic financial principles in a globalized market. Design/Methodology/Approach: This editorial perspective is developed through a review and synthesis of existing literature and current trends in the fields of globalization, Islamic finance, and SME performance. It integrates insights from various studies, reports, and expert opinions to present a cohesive viewpoint on how these factors interplay and impact SME performance. Findings: Globalization positively impacts SME performance by increasing international market access and competitiveness. It enhances innovation and operational efficiency. Adopting Islamic finance principles fosters financial stability and resilience for SMEs. Sharia-compliant financing options provide ethical capital for sustainable growth. Leveraging both strategies offer synergistic benefits, including enhanced market diversification and reduced dependency on local economic conditions, thereby improving SME sustainability. Research Limitations/Implications: The findings may be limited by global SME contexts and regulatory environments, and the dynamic nature of globalization and Islamic finance necessitates ongoing adaptation. Future research should explore scalability and long-term effects. Practical Implications: The editorial discusses the strategic implications of globalization and Islamic finance on SMEs, suggesting strategies to support growth, resilience, and inclusive economic development amidst globalization. Social Implications: Understanding SMEs' use of Islamic finance in globalization enhances academic discourse, informs policymakers, and promotes inclusive economic development, thereby enhancing economic growth and stability. Originality/Value: This editorial synthesis explores the relationship between globalization, Islamic finance, and SME performance, offering valuable insights for scholars, researchers, policymakers, and practitioners, filling a gap in literature. Key Words: Globalization and SME Performance; Islamic Finance and SME Performance; Combined Impact of Globalization and Islamic Finance
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