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Article
Publication date: 8 February 2023

Arsalan Najmi, Waqar Ahmed and Samia Jahangir

This study aims to consider factors that play an important role in adopting the halal food standard (HFS) among food manufacturers in Pakistan and to investigate the role of the…

Abstract

Purpose

This study aims to consider factors that play an important role in adopting the halal food standard (HFS) among food manufacturers in Pakistan and to investigate the role of the traceability system in the compliance of the halal assurance system (HAS).

Design/methodology/approach

Present study included data from a survey by 134 professionals/food technologists from the food industry, and partial least square-structural equation modeling was applied.

Findings

The results indicate that consumer pressure, industry competition, marketing functions, operational improvement and the organization’s commitment have a significant impact on HFS adoption, while government regulations have an insignificant impact. The results also indicate that the HFS’s adoption and lack of a traceability system significantly impact HAS.

Research limitations/implications

The current study’s findings are inconclusive. Hence, future researchers are suggested to further explore the studied phenomena, especially in other research settings.

Practical implications

For policymakers, the findings of this study offer valuable information as it not only benefits the industry but will also assist in providing better and safer halal food products to consumers.

Originality/value

This study highlights the importance of the adoption of HFS and compliance with HAS in a scenario where demand for Halal is increasing globally. Moreover, the findings of this study offer valuable information in motivating firms to implement HFS.

Details

Journal of Islamic Accounting and Business Research, vol. 14 no. 8
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 13 February 2024

Noor Fadhzana Mohd Noor

This study aims to investigate the extent of Shariah compliance in wakalah sukuk and Shariah non-compliant risk disclosure in the sukuk documents and to analyse the risk…

Abstract

Purpose

This study aims to investigate the extent of Shariah compliance in wakalah sukuk and Shariah non-compliant risk disclosure in the sukuk documents and to analyse the risk management techniques associated with the disclosed risks.

Design/methodology/approach

This study uses qualitative document analysis as both data collection and analysis methods. The document analysis acts as a data collection method for 23 wakalah sukuk documents selected from 32 issuances of wakalah sukuk from 2017 to 2021. These sukuk documents were selected based on their availability from relevant websites. Document analysis, both content analysis and thematic analysis, were used to analyse the data. Codes were grounded from that data through keywords search of Shariah noncompliant risk and its risk management. Besides these, interviews were also conducted with four active industry players, i.e. two legal advisors of wakalah sukuk, a wakalah sukuk trustee and a sukuk institutional issuer. These interview data were analysed based on categorical themes, on the aspects of the extent of Shariah compliance in sukuk, and the participant’s views on the risk management techniques associated with the risks or used in the sukuk documents.

Findings

Overall, the findings reveal three types of Shariah non-compliant risks disclosed in the sukuk documents and seven risk management techniques associated with them. However, the disclosure and the risk management techniques can be considered minimal in contrast to the extent of Shariah compliance in a sukuk, i.e. Shariah compliance at the pre-issuance stage, ongoing stage and post-issuance stage. On top of these, it was also found from the interviews that not all risk management techniques are workable to manage Shariah non-compliant risk in sukuk. As a result, these findings suggest rigorous reviews of the existing Shariah non-compliance risk (SNCR) disclosures and risk management techniques by the relevant parties.

Research limitations/implications

Sukuk documents used in the study are limited to corporate wakalah sukuk issued in Malaysia. Out of 32 issuances from 2015 to 2021, only 23 documents are available in relevant website. Thus, Shariah non-compliant risk disclosure and its risk management techniques analysed in this study are only limited in those documents.

Practical implications

The findings of this study suggest rigorous reviews on the existing Shariah non-compliance disclosures and risk management techniques. Other than these, future research in relation to uncommon risk management clauses, i.e. assurance, Shariah waiver and transfer of risk, are needed.

Originality/value

The insights presented in the analysis are of importance to sukuk issuers and the sukuk due diligence working group in enhancing the sukuk Shariah compliance and Shariah non-compliant risks disclosure and towards sukuk investors, in capturing and assessing Shariah non-compliant risks in a sukuk and to assist them to make informed investment decisions. More importantly, this study has found few areas of future study in relation to SNCR disclosures and SNCR risk management techniques.

Details

Qualitative Research in Financial Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 6 July 2023

Hawwa Abdul Mokti, Nor Azzah Kamri and Mohd Abd Wahab Fatoni Mohd Balwi

The purpose of this study is to examine and review tayyiban indicators in the context of halal food production. In Islam, food produced or manufactured must be halal and tayyiban

Abstract

Purpose

The purpose of this study is to examine and review tayyiban indicators in the context of halal food production. In Islam, food produced or manufactured must be halal and tayyiban. Even though both halal and tayyiban are always mentioned together in the Quran, the halal aspect is highlighted more than tayyiban. The discussion of tayyiban’s indicators is still vague.

Design/methodology/approach

The study was adopted based on the Preferred Reporting Items for Systematic Reviews and Meta-Analyses for the review of the current research which used two main journal databases, namely, Web of Science and Scopus. Accordingly, the search resulted in a total of 40 articles that can be systematically examined.

Findings

The results of review of these articles formulated five main themes: safety, nutrition, cleanliness, quality and authenticity. These five indicators are considered relevant enough in the context of halal food production to build a comprehensive tayyiban concept.

Originality/value

This study enriches the field of halal food research. The concept of tayyiban as a whole has been given limited attention in academic literature. At the end of this study, a number of recommendations are suggested for the reference of future scholars.

Details

Journal of Islamic Marketing, vol. 15 no. 2
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 30 May 2023

Mohammad Mominul Islam, Mohamed Syazwan Ab Talib and Nazlida Muhamad

This study aims to underline Islamic principles to the business theories for producers and policymakers and to explain halal marketing by value creation approach for halal…

Abstract

Purpose

This study aims to underline Islamic principles to the business theories for producers and policymakers and to explain halal marketing by value creation approach for halal stakeholders concerned with halal certification and its implementation.

Design/methodology/approach

This study applied inductive reasoning with the systematic literature review (SLR) of peer-reviewed published research papers, followed by the preferred reporting items for systematic reviews and meta-analyses framework. Furthermore, the content analysis with ATLAS.ti 2022 helped to undergo concept and thematic analysis that show the theoretical lenses for the upstream halal businesses.

Findings

Among 360 papers, the SLR from 2012 to 2022 found 32 papers dealing with the halal theory–based studies on certification, standards, producers and policymakers and halal supply chains. Only seven studies consulted the resource-based view (RBV), a strategy theory and the institutional theory (IT) connected to halal. This study further underpinned qualitative Quranic verses to add to the current body of RBV and IT, resulting in halal sustainable competitive advantage and halal certification institutionalization.

Practical implications

Islamic principles can guide halal stakeholders to create and manage valuable resources through halal certification. Also, academics can synthesize conventional theories as value-creation mechanisms compliant with Islamic codes.

Originality/value

To the best of the authors’ knowledge, this novel study was the first to contribute to the current body of RBV and IT with Islamic principles. It has primarily concentrated on the upstream halal businesses to create and manage halal value, certification and competitive advantages for halal marketing.

Details

Journal of Islamic Marketing, vol. 15 no. 1
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 13 April 2023

Shahbaz Khan, Abid Haleem, Abdul Hafaz Ngah and Mohd Imran Khan

Halal logistics play a crucial role in maintaining a product’s “halal integrity” from farm to fork. These logistics operations are exposed to risks during transportation, storage…

Abstract

Purpose

Halal logistics play a crucial role in maintaining a product’s “halal integrity” from farm to fork. These logistics operations are exposed to risks during transportation, storage and handling, that negatively affect the halal supply chain’s operational efficiency and integrity. Therefore, the main purpose of this research is to propose a risk assessment framework for halal logistics.

Design/methodology/approach

Initially, the risks associated with halal logistics are identified through an extensive literature review, and then the significant ones are validated with the expert’s input. After that, an appropriate multicriteria decision-making method named best worst method (BWM) is used to prioritise the identified risks. Finally, the robustness of the obtained ranking is assessed with sensitivity analysis.

Findings

This research identifies 26 halal logistics risks and then categorises these risks into 6 significant dimensions and proposes a framework. The result obtained from the BWM analysis shows that organisational, transportation and design risks are the primary risks present in halal logistics. Among the halal logistics risks, partnership risk, risk of contamination during transportation and risks of unskilled workers are the top three halal logistics risks that need to be addressed on a priority basis for maintaining halal integrity. Furthermore, this study also suggests some valuable suggestions for mitigating these risks that the logistics providers could use.

Research limitations/implications

The proposed framework is helpful for the assessment of risks associated with halal logistics. The prioritisation of the identified risks supports the managers in formulating mitigation strategies that might reduce the effect of these associated risks in logistics operations.

Originality/value

This study focusses on halal logistics, and to the best of authors’ knowledge, this may be the first attempt to systematically examine the risks related to halal logistics.

Details

Journal of Global Operations and Strategic Sourcing, vol. 16 no. 3
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 4 April 2023

Fathullah Asni, Afiffudin Mohammed Noor and Muhamad Husni Hasbulah

The purpose of this study is to examine the management of cash waqf fund generation through the implementation of istibdal in Kedah.

Abstract

Purpose

The purpose of this study is to examine the management of cash waqf fund generation through the implementation of istibdal in Kedah.

Design/methodology/approach

The data are obtained through literature and empirical data. The authors first review the literature on the importance of waqf fundraising, the implementation factors of istibdal waqf and the relevance of istibdal method as a waqf fund generation medium to understand the extent to which the scholarly articles have discussed these topics. Furthermore, the authors conducted face-to-face interviews with two Kedah Islamic Religious Council (Majlis Agama Islam Kedah [MAIK]) officers, who were directly involved in the affairs of istibdal waqf to obtain holistic information regarding implementing istibdal waqf properties in Kedah. As a result, several themes are defined from the interview data before being analysed based on the content analysis method.

Findings

The results of the study show two istibdal implementation processes outlined by the Kedah Islamic Religious Council (MAIK), namely, the istibdal implementation process for waqf land registered title deed, and waqf land registered as reserve certificate for religious use like mosque and cemetery. The results also showed three factors in implementing istibdal in Kedah: the acquisition of waqf land by the state authority (PBN), istibdal application by the state education department (JPN) and istibdal application by the mosque committee. Out of eight cases of istibdal implementation, four have generated cash funds for MAIK through investment methods from the sale of waqf lands and rental of replaced shophouses that are able to cover the expenses of managing waqf properties in Kedah. Several suggestions are also recommended for MAIK to improve its istibdal policy, thus enabling the institution to generate cash waqf funds at the maximum rate.

Research limitations/implications

This study only focused on the implementation factors and the generation of cash waqf funds through istibdal in Kedah, while it can be expanded to other states like Terengganu, Kelantan and Penang. Furthermore, this study only interviewed officers who manage matters related to the affairs of waqf properties, as the session can actually be extended to other respondents, such as those specialising in cash fund generation investments and others.

Practical implications

This study proposed some improvements to the policy and guidelines of istibdal waqf property to MAIK after a few shortcomings were identified throughout this study. If improved, these proposals will have a significant impact, especially on the waqf properties involved in the implementation of istibdal, where it has the potential to bring cash generation and ensure the constant economic value of waqf properties.

Social implications

This study has a tremendous impact on society, in which their areas have cash waqf funds that can be developed. It can benefit the needy and increase funds for the welfare expenditure of Muslims through rental income, investment and development. Progress on waqf property provides a high indication of the efficiency of an organisation in managing the waqf property. Thus, the public, especially the rich, is motivated to fulfil their charitable practices through waqf mechanism and share their wealth with the needy.

Originality/value

This study contributes to comprehensive field data on the implementation factors and generation of cash waqf funds through the implementation of istibdal in Kedah. The results of this study are significant to be used by waqf property management.

Details

Qualitative Research in Financial Markets, vol. 16 no. 1
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 11 April 2023

Irwandi Jaswir, Dian Permata Sari, Mohd Radzi bin Haji Che Daud and Raditya Sukmana

This study aims to identify the factor that could be able to motivate the food industry to take part in the standardization process and analyse which motive is the most…

Abstract

Purpose

This study aims to identify the factor that could be able to motivate the food industry to take part in the standardization process and analyse which motive is the most influential one. This study also examines the relationship between the motive and the implementation itself.

Design/methodology/approach

As one of Malaysian Standard, MS1500 is focused on halal food matters. This standard was established by the Malaysian Government to realize their dream of becoming the leader in the global halal market. However, there are still many food and beverage small and medium-sized entterprises owned by Indigenous Muslims in Malaysia who still take it for granted by claiming that their products are halal without ever signing up for the halal certificate or implementing MS1500.

Findings

The findings of this study can be used as an input for the Malaysian Government, so they will be able to plan any suitable programme that can promote the implementation of this standard.

Practical implications

The halal food industry has grown significantly around the world. By category of spending, the halal food and beverages industry holds the biggest share, with a value of about US$1,303bn in 2017 and is expected to reach US$1,863bn by 2023. These big opportunities have been captured by several countries in the world, including Malaysia. As a Moslem country, Malaysia aspires to be the halal hub and has aggressively worked towards becoming the key player in delivering halal food products. By understanding the motives behind the implementation of the halal standard by the food industry, we can develop strategies to expand the growth of the halal industry itself.

Originality/value

To the best of the authors’ knowledge, this is the first study of its kind that has been conducted to explore the motives behind the implementation of halal food standards by the food industry, especially in Malaysia. From the review of the current literature, it is found that studies on halal food certification and halal logo mainly focused on the consumer side instead of the industry side. On top of that, it is also found that previous studies mostly adopted two notable theories, namely, theory of reasoned action and theory of planned behaviour. To elaborate on and use plenty of other theories in performing a halal standard research, the three isomorphism pressure from institutional theory of DiMaggio and Powell has been chosen as a pertinent theory in this study. As a result, the theoretical gap and the uneven scope of halal food standard and certification research, with particular attention on the industry or manufacturer side, are expected to be bridged. This theory is also used to identify the most dominant motive. Moreover, this study examined the relationship between the motive behind standardization and the standardization itself.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 16 no. 5
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 14 February 2023

Muhammad Taufik, Rifqi Muhammad and Peni Nugraheni

This study aims to examine how sharia supervisory board (SSB) characteristics are determinants of the maqashid sharia performance (MSP) of Islamic banks (IBs) and how MSP has…

Abstract

Purpose

This study aims to examine how sharia supervisory board (SSB) characteristics are determinants of the maqashid sharia performance (MSP) of Islamic banks (IBs) and how MSP has implications for profitability and for profit-sharing investment account holders (PSIAHs).

Design/methodology/approach

MSP is ascertained by semi-structured interviews. The SSB characteristics measured are size, cross-membership, education level, expertise, reputation, rotation and remuneration. Annual reports of Indonesian and Malaysian IBs from 2010 to 2018 are analysed using panel data regression.

Findings

In Indonesia, SSB education level attenuates MSP, while other characteristics have only minor influence. However, in Malaysia, SSB size, education and reputation reinforce MSP, while others are ineffective. MSP in both countries is pseudo-Islamic; so their customers ignore religiosity. However, MSP in Malaysia can improve profitability because sharia assurance is more transparent; meanwhile, MSP in Indonesia cannot improve profitability because sharia assurance is less transparent.

Practical implications

In order for MSP to improve in Indonesia, the regulators need to increase SSB size, reduce cross-membership and arrange the format for sharia assurance in SSB reports, while IBs need to increase SSB education and expertise.

Originality/value

MSP is constructed in accordance with legal and social requirements to achieve IBs’ Islamic, economic, social and ethical objectives. Resource dependence theory is used to evaluate SSB, while PSIAH and profitability are investigated to demonstrate the impact of MSP. Finally, comparing SSB capabilities in Indonesia and Malaysia could be beneficial to regulatory and IB policies.

Details

Journal of Islamic Accounting and Business Research, vol. 14 no. 8
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 25 April 2022

Muhammad Taufik

This study aims to shed light on Shari’ah supervisory boards (SSBs) and the possibilities of Islamic banks to reduce the tax avoidance. Performance and Shari’ah compliance have…

Abstract

Purpose

This study aims to shed light on Shari’ah supervisory boards (SSBs) and the possibilities of Islamic banks to reduce the tax avoidance. Performance and Shari’ah compliance have been extensively studied; however, tax avoidance remains a challenge.

Design/methodology/approach

SSB characteristics, based on resource dependence theory, influence tax avoidance, including SSB size, educational level, expertise, reputation, remuneration and turnover. The samples were obtained from Islamic banks in Indonesia and Malaysia (2010–2020) using the data panel method.

Findings

Islamic banks avoid taxes through the effective tax rate and book tax difference. SSBs who have more expertise play a role in investigating the complexity of tax avoidance, and SSB reputation, who is a member of the Islamic bank regulator, understands immorality, resulting in reduced tax avoidance. Moreover, the recruitment system has been effective, as SSBs with more expertise have become more prevalent. Meanwhile, SSB from a Shari’ah background works only in regulated areas, simplifying Shari’ah compliance, in particular, attestation of financial reporting. A heavy workload is created by cross-membership, resulting in the neglect of the immoral value of tax avoidance. The calculation of tax avoidance also includes remuneration and bank assets.

Practical implications

Given the uniqueness of Islamic banks contributing to social welfare, tax regulators need to review the appropriateness of fees that can be treated as taxes. Tax regulators can join hands with Islamic bank regulators on this review.

Originality/value

To the best of the authors’ knowledge, this study is one of the first to examine the characteristics of SSBs and Islamic banks on tax avoidance. Separating Islamic banks by country enriches the analysis.

Details

Journal of Financial Crime, vol. 30 no. 3
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 1 February 2022

Yudi Fernando, Ika Sari Wahyuni-TD, Ahmed Zainul Abideen and Fineke Mergeresa

The purpose of this study is to investigate the impact of Halal traceability technology usage on Halal logistics performance with a Halal logistics brand as a mediator.

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Abstract

Purpose

The purpose of this study is to investigate the impact of Halal traceability technology usage on Halal logistics performance with a Halal logistics brand as a mediator.

Design/methodology/approach

An online survey was conducted to gather responses from logistics service providers (LSPs), including strategic logistics units (manufacturing/brand owners) in Malaysia, which offer Halal logistics services.

Findings

Halal traceability technology system and Halal traceability training are two critical domains to strengthen market recognition of Halal logistics brand for LSPs. The study found that the Halal logistics brand played a mediating role in connecting the usage of Halal traceability technology and logistics performance.

Practical implications

The logistics industry needs to focus on Halal logistics services as a unique proposition. The ability of LSPs to build a Halal logistics brand thru traceability technology had created positive impressions for clients. LSPs must consistently engage in Halal training and remain technologically alert to build Halal brand value. Halal-based strategic branding will assist an LSP to stand out among its competitors.

Originality/value

Even though Halal branding has been studied widely, little attention has been given to how the usage of Halal traceability technology can improve Halal logistics branding and logistics operational performance. The result suggests that LSPs need to build a Halal logistics brand and design a proper logistics business strategy to target Sharia compliance-oriented consumers.

Details

Journal of Islamic Marketing, vol. 14 no. 4
Type: Research Article
ISSN: 1759-0833

Keywords

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