TY  - JOUR
AB  - Purpose The purpose of this paper is to identify barriers to financial product innovation in the Islamic banks (IBs) of Pakistan. This paper also aims to establish the relationship among the barriers and present them in a hierarchical model after classification.Design/methodology/approach This study is exploratory and qualitative in nature. A total of ten experts from the IBs and from academia have been interviewed to collect data. Literature has also been reviewed to identify the barriers. Interpretive structural modeling (ISM) analysis has been used to establish relationship among the barriers, to rank and to come up with a hierarchical model of barriers.Findings This research paper makes out, ranks and classifies the nine most important barriers to product innovation in the IBs in Pakistan, including high innovation cost; lack of customer awareness; difference of school of thoughts between members of Shari’ah board; non-compatibility between product design department and members of Shari’ah board; lack of research and development; non-acceptability of concept of Islamic banking; lack of training regarding a new product; imitation of a new product by competitors; and the limited use of new product development tools.Originality/value This study offers originality in its nature of being qualitative and the use of ISM technique. It is also the first research project regarding identification of barriers in the IBs in Pakistan.
VL  - 11
IS  - 2
SN  - 1759-0817
DO  - 10.1108/JIABR-05-2017-0063
UR  - https://doi.org/10.1108/JIABR-05-2017-0063
AU  - Chaudhry Naveed Iqbal
AU  - Roomi Muhammad Azam
AU  - Dar Sidra
PY  - 2020
Y1  - 2020/01/01
TI  - Barriers to financial product innovation in Islamic banks in Pakistan: An interpretive structural modeling approach
T2  - Journal of Islamic Accounting and Business Research
PB  - Emerald Publishing Limited
SP  - 346
EP  - 360
Y2  - 2024/05/09
ER  -