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Article
Publication date: 3 June 2024

Alex Fahrur Riza and Dwi Marlina Wijayanti

This study aims to determine the factors that influence the actual behavior of Islamic digital banking customers based on the users’ perspectives during the recovery from the…

Abstract

Purpose

This study aims to determine the factors that influence the actual behavior of Islamic digital banking customers based on the users’ perspectives during the recovery from the COVID-19 pandemic crisis.

Design/methodology/approach

This study used a causal exploratory method with quantitative and qualitative approaches presented in two parts. The first study (Study 1) was empirical testing of the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) used WARP-partial least square by modifying the variables of customer trust and satisfaction. A. Hayes’s PROCESS procedures were applied to examine the moderating effects of age, gender and experience. The second study (Study 2) explored the obstacles and solutions to improve digital banking services. The survey was conducted on 897 Islamic bank customers throughout Indonesia.

Findings

The results showed that all the hypotheses about the direct effect of the modification of the UTAUT2 model were supported empirically except for the effect of price value and hedonic motivation on behavioral intention, and there was just one moderating effect in this study. The other results show that 35 factors became obstacles to using digital banking.

Research limitations/implications

This study had limited qualitative data collection techniques that were less deep and comprehensive. This happened because respondents were given complete confidence to fill in the open questions without any follow-up to customer answers. For further research, an in-depth interview method can be added to crucial information from the customer and expert side to get in-depth and complementary data regarding constraints and solutions. This study only used a sample of customers of Islamic banks; further research is expected to use customers of Islamic banks and conventional banks to compare their preferences for digital banking.

Practical implications

This study offered seven strategies that could encourage increased digital banking transactions to accelerate crisis management, mitigate cybercrime and communicate the positive impact of digital banking effectively and efficiently.

Social implications

This study offered seven strategies that could encourage increased transactions using digital banking to accelerate crisis management, mitigate cybercrime and communicate the positive impact of digital banking effectively and efficiently.

Originality/value

Most of the existing studies focused on the modification model of the UTAUT2 model. The study is unique because it has proposed the obstacle and solution to improve digital banking service in Islamic Bank in Indonesia.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 3 May 2024

Rami Zeitun and Ousama Abdulrahman Anam

This paper aims to investigate the effect of product offering and other service quality (SQ) dimensions on the satisfaction of the customers of both Islamic and conventional…

Abstract

Purpose

This paper aims to investigate the effect of product offering and other service quality (SQ) dimensions on the satisfaction of the customers of both Islamic and conventional banks, using evidence from an oil-based economy that is based on a prolonged SERVQUAL model with 11 dimensions and other statistical analysis methods.

Design/methodology/approach

The data were collected from 461 Islamic and conventional bank customers in Qatar via a survey and several tests were used to test certain hypotheses. Component analysis, factor analysis and gap and ascendency analysis were used in this study. Afterward, a correlation analysis and regression model were used to examine the hypotheses and validate the instruments used.

Findings

The results show that regardless of the type of bank, customers always have greater expectations of the services than they had perceived. A customer’s expectation of the product on offer is the only dimension that is significantly different in relation to the two types of banks. However, reliability, competence, responsiveness, credibility and empathy dimensions are significantly different of the two types of banks in customers’ perception of quality. In addition, the results suggest that both types of banks need to concentrate their efforts on the product offering, competence and courtesy dimensions.

Research limitations/implications

The size of our sample of Islamic and conventional banks is unequally balanced. Future studies might therefore choose an equally balanced sample.

Practical implications

Bank managers in both types of banks need to continue improving the quality of their service including product offering and to adopt advanced methods to enhance customer satisfaction (CS) and reduce the gaps in quality in the dimensions used. Furthermore, managers in both types of banks need to put more emphasis on product offering, competence, courtesy and communication if they wish to improve SQ. Moreover, Islamic banks must guarantee that they possess competent, highly trained personnel who are familiar with Islamic finance products, so as to enhance the quality of service and attract customers.

Originality/value

To the best of the author’s knowledge, this is the first study to investigate the effect of product offering and other dimensions of SQ on CS in both Islamic and conventional banks by using 11 dimensions of SQ. In addition, it provides evidence of gaps in SQ, at the dimensions level, for both types of banks in an oil-based economy. The results of this study are valuable in helping decision-makers and bank managers who wish to raise the level of SQ and improve CS and in validating the results from other countries with a dual financial system.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 6 May 2024

Burak Pirgaip and Ozgur Arslan-Ayaydin

This study aims to fill a gap in the literature by providing evidence for a “greenium” in the primary Sukuk market. The term “greenium” is defined in the study as the lower cost…

Abstract

Purpose

This study aims to fill a gap in the literature by providing evidence for a “greenium” in the primary Sukuk market. The term “greenium” is defined in the study as the lower cost of capital or reduced yields that green Sukuk may offer compared to non-green Sukuk, reflecting investor willingness to accept lower returns for green investments. Therefore, the main aim of this study is to investigate the potential role of “greenium” as an incentive for issuers to fund eco-friendly projects, contributing to a sustainable environment.

Design/methodology/approach

This study uses propensity score matching techniques to provide an accurate comparison of pricing differences between green and non-green Sukuk issued in global primary markets during the period 2017–2022.

Findings

The results reveal that green Sukuk signify a “greenium” effect. This suggests that investors find green Sukuk attractive, willing to accept lower returns. Given the positive investor response to green initiatives in the market, issuers can capitalize on the growing demand for green Sukuk, leading to low-cost funding.

Originality/value

This study makes an important contribution to the literature at the interface of Islamic finance and environmental sustainability. In particular, it stands out by focusing on the pricing dynamics in the green Sukuk market and highlights the potential benefits of issuing green Sukuk to help achieve sustainability goals while providing access to lower cost of capital for the transition to a low-carbon economy.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 21 May 2024

Wei Liu, Bobo Zhang, Rui Sun and Shuwen Li

As coaching assumes an increasingly critical role in satisfying employees' demands for growth, the function of coaching has progressively shifted towards direct supervisors. This…

Abstract

Purpose

As coaching assumes an increasingly critical role in satisfying employees' demands for growth, the function of coaching has progressively shifted towards direct supervisors. This study seeks to investigate the distinct effects of managerial coaching behaviors on employee outcomes from an emotional perspective. Specifically, we aim to explore whether leaders' encourage-to-explore and guide-to-learn behaviors impact employees' creativity and performance through discrete emotional mechanisms upon appraisal theory of emotion.

Design/methodology/approach

We conducted two studies to test our proposition. In study 1, an experiment using coaching scenarios was performed with 128 students majoring in management. In study 2, data were collected from 311 supervisor-subordinate dyads.

Findings

The results indicate that encourage-to-explore behaviors are positively related to employee creativity by fostering feelings of inspiration, and guide-to-learn behaviors are positively related to employee performance by alleviating anxiety. These findings suggest that different leaders’ coaching behaviors influence employee outcomes through different emotional processes. The theoretical and practical implications of the findings are also discussed.

Originality/value

These findings suggest that different leaders’ coaching behaviors influence employee outcomes through different emotional processes. The theoretical and practical implications of the findings are also discussed.

Details

Leadership & Organization Development Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0143-7739

Keywords

Article
Publication date: 28 May 2024

Cheong Kim, Jungwoo Lee and Kun Chang Lee

The main objective of this study is to determine the factors that have the greatest impact on travelers' opinions of airports.

Abstract

Purpose

The main objective of this study is to determine the factors that have the greatest impact on travelers' opinions of airports.

Design/methodology/approach

11,656 customer reviews for 649 airports around the world were gathered following the COVID-19 outbreak from the website that rates airport quality. The dataset was examined using hierarchical regression, PLS-SEM, and the unsupervised Bayesian algorithm-based PSEM in order to verify the hypothesis.

Findings

The results showed that people’s intentions to recommend airports are significantly influenced by their opinions of how well the servicescape, staff, and services are.

Practical implications

By encouraging air travelers to have positive intentions toward recommending the airports, this research offers airport managers decision-support implications for how to improve airport service quality. This will increase the likelihood of retaining more passengers.

Originality/value

This study also suggests a quick-to-implement visual decision-making mechanism based on PSEM that is simple to understand.

Details

Information Technology & People, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0959-3845

Keywords

Article
Publication date: 23 May 2024

Muhammad Abubakr Naeem, Shabeer Khan and Mohd Ziaur Rehman

This study investigates the dynamic interdependence between Islamic and conventional stock markets in the Gulf Cooperation Council (GCC) economies and the influence of global…

Abstract

Purpose

This study investigates the dynamic interdependence between Islamic and conventional stock markets in the Gulf Cooperation Council (GCC) economies and the influence of global financial uncertainties on this interconnection.

Design/methodology/approach

The study employs the time-varying parameter vector autoregressions (TVP-VAR) technique and analyzes daily data from December 1, 2008 to July 14, 2021.

Findings

The research reveals robust interconnectedness within individual countries between Islamic and conventional stock markets, particularly during crises. Islamic stock markets exhibit greater susceptibility to spillover effects compared to conventional stocks. The UAE and Kingdom of Saudi Arabia (KSA) stock markets are identified as net transmitters of spillovers, while Oman, Bahrain and Kuwait receive more spillovers than they transmit. Global financial uncertainty measures (GVZ, USEPU and UKEPU) positively influence financial market interconnectedness, with EVZ exhibiting a negative impact while VIX and OVX remain statistically insignificant.

Practical implications

Investors and portfolio managers in Oman, Bahrain and Kuwait should carefully evaluate the UAE and KSA markets before making investment decisions due to the latter's role as net transmitters in the region. Additionally, it is emphasized that Islamic and conventional stocks should not be considered interchangeable asset classes for risk hedging.

Social implications

Investors must be aware that Islamic and conventional stocks cannot be used as an alternative asset class to hedge risk.

Originality/value

The present article offers valuable insights for practitioners and researchers delving into the comparative analysis of Islamic and conventional stock markets within the GCC context. It enhances our comprehension of the dynamic interdependence between Islamic and conventional stock markets in the GCC economies and the impact of global financial uncertainties on this intricate relationship.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 4 June 2024

Yosra Ridha BenSaid and Majdi Anwar Quttainah

The purpose of this paper is to examine how the board of directors effectiveness (BODE), financial determinants, Takaful-specific determinants and the Takaful firms’ financial…

Abstract

Purpose

The purpose of this paper is to examine how the board of directors effectiveness (BODE), financial determinants, Takaful-specific determinants and the Takaful firms’ financial stability are related to the Shari’ah Supervisory Board’s quality (SCQ).

Design/methodology/approach

Using hierarchical regression analysis, the authors examine the determinants of financial stability of Takaful insurance and the authors test the moderator role of SCQ over 2016–2022 on a sample of 19 listed Takaful firms in 10 countries in the Middle East and South Asia region.

Findings

The findings reveal that SCQ negatively moderates the positive relationship between BODE, the Takaful model, diversification strategy, solvency, liquidity and Takaful financial stability. Shari’ah governance plays a crucial role in improving the financial soundness and the Shari’ah compliance of Takaful insurance.

Research limitations/implications

This paper includes two main limitations. The results are restricted to the Middle East region and South Asia and may not be generalized to other areas. The study presents data from only 19 Takaful firms.

Practical implications

This kind of investigation is of immense relevance to enhance the understanding of governance and soundness of Takaful companies. Furthermore, it serves as a guide to the recruitment of Shari’ah board members, the choice of Takaful model and appropriate strategy to increase its financial stability.

Originality/value

This research studies the financial stability of Takaful insurance and the moderating role of SCQ, unlike the majority of other works that focus on financial performance.

Details

Journal of Islamic Accounting and Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0817

Keywords

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