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This study aims to investigate the growth of Indonesian Islamic banks and explores organisational growth determinants from different perspectives, namely, organisational climate, intellectual capital (IC) and organisational service orientation. The study also attempts to develop a model to measure the growth of Islamic banks and uncovers the root causes of the stagnancy in Indonesian Islamic banking.

The study used survey questionnaires distributed to Islamic bank managers, who were considered representative experts in the field of Islamic banking. The data collected were analysed using the Statistical Package for Social Sciences (SPSS Version 21.0), and two analyses were performed with different strategies to build the regression model, namely, multiple linear regression and automatic linear regression.

The study found that IC significantly affected Islamic banks’ growth in Indonesia; however, organisational climate and service orientation did not predict such growth. Concerning service orientation as a mediating model, climate or IC had no indirect effect on growth.

This study’s results contribute to fill the gap by analysing the growth of Islamic banks. Hence, the study results will be especially practical and helpful for Islamic bank managers and policymakers to help develop mechanisms for Islamic banks in Indonesia.

By combining the aspects of organisational climate, IC and service orientation from earlier studies and categorising them by organisational growth, together with a comprehensive literature review, the study proposes a model specific to Islamic banks. It also offers new insight and discussion for determining organisational growth in Indonesian Islamic banks.

The purpose of this paper is to create a model that connects drivers between organizational innovation and business model innovation (BMI) to guide empirical research and the design of innovation management strategies.

The model was designed based on the results of a systematic literature review over the past 25 years that provides common predictor variables to build bridges between these two types of innovations.

It is a conceptual relationship between organizational innovation and BMI based on processes, new structures and customer relationship management. Moreover, there are five bridges from common predictors: strategy, top management, exploratory learning, technological innovation and environmental complexity.

The relationships between organizational innovation and BMI have been neglected in the literature. The model fills this gap by proposing hypotheses for empirical research and critical variables and relationships to steer organizational and business model innovation.