Search results

1 – 10 of 13
Open Access
Article
Publication date: 19 June 2018

Abd Hakim Abd Razak

The purpose of this paper is to supply basic insights into the principle of shūrā (consultation) in Islamic banking, the idea of a centralised approach to the corporate governance…

5519

Abstract

Purpose

The purpose of this paper is to supply basic insights into the principle of shūrā (consultation) in Islamic banking, the idea of a centralised approach to the corporate governance of Islamic financial institutions (IFIs), the roles of a centralised Sharīʿah board as the highest authority on Sharīʿah issues and its distinguishing features from a de-centralised system and the advantages and disadvantages of the two governance systems.

Design/methodology/approach

In analyzing these, the paper adopts the critical legal studies approach and refers to the provisions of the Qurʾan and Sunnah, ijmāʿ (consensus) of Sharīʿah scholars and recent Islamic banking reports.

Findings

Despite the fact that the double-digit growth of the current US$2tn Islamic banking industry is a promising sign for its further expansion – expecting to cross the US$6.5tn mark by 2020 – there remains concern over the lack of standardization or rather the diversified approaches to the corporate governance of IFIs across key Islamic banking regions.

Practical implications

There has been much debate surrounding the issue of whether the Islamic banking industry requires a centralised Sharīʿah board at the state level to complement the Sharīʿah boards at the IFIs’ individual level in providing better supervision of the Sharīʿah-compliance of IFIs. The fact that the industry is already equipped with two prominent standard-setting agencies in the form of the AAOIFI, the IFSB does little to suggest that best governance practices – which centre around the themes of consistency, harmony and uniformity – are on the horizon, at least not whilst their issued standards and guidelines remain voluntary for IFIs.

Originality/value

All in all, it is aspired that this paper may assist the reader in evaluating the pros and cons of the whole concept of Sharīʿah board centralisation.

Details

ISRA International Journal of Islamic Finance, vol. 10 no. 1
Type: Research Article
ISSN: 0128-1976

Keywords

Article
Publication date: 18 July 2019

Abd Hakim Abd Razak

The purpose of this study is to examine the legal paradigm of multiple Sharia' board directorship practice from the Sharia' law concept of Maslahah Al-Mursalah (public interest).

Abstract

Purpose

The purpose of this study is to examine the legal paradigm of multiple Sharia' board directorship practice from the Sharia' law concept of Maslahah Al-Mursalah (public interest).

Design/methodology/approach

It uses a doctrinal research method that relies on the commonly referred sources of Quran and Sunnah, with a specific focus on Maslahah Al-Mursalah and, where applicable, commentaries by contemporary scholars, academics and practitioners as well as translations of classical book of Fiqh. This study scrutinises the polarity of views concerning the distinct Masyaqqah (necessity) surrounding the practice in discussion: the Masyaqqah that encourages and one that discourages the application of the practice.

Findings

This study is keen to suggest the industry to adopt a cautious approach and consider exploring a corporate governance framework that appraises the theoretical and practical Sharia' issues concerning its application in cognisance of its adversarial influence towards the sustainability of Islamic banking industry.

Originality/value

Since Murat Unal’s study of multiple Sharia' board directorships in 2009 and 2011, empirical works that scrutinise the practice from the Sharia' law perspective have remained limited or almost non-existent. It is aspired that this study may assist fellow readers and future researchers alike in evaluating and appreciating the divergent views surrounding the application of this practice in Islamic banking.

Open Access
Article
Publication date: 19 June 2018

Ashraf Md. Hashim

723

Abstract

Details

ISRA International Journal of Islamic Finance, vol. 10 no. 1
Type: Research Article
ISSN: 0128-1976

Article
Publication date: 8 March 2011

Shardy Abdullah, Arman Abdul Razak and Abd Hamid Kadir Pakir

The management of public real estate assets by government agencies has been in place for many years as government agencies own their real estate assets in order to provide…

4055

Abstract

Purpose

The management of public real estate assets by government agencies has been in place for many years as government agencies own their real estate assets in order to provide services to their communities. The management process becomes progressively complex and difficult because real estate ownership by agencies increases in amount, value and diversity over time. The purpose of this paper is to explore the current characteristics of the real estate management practice that is being implemented by the Malaysian Government agencies.

Design/methodology/approach

A qualitative approach has been used for this study where the data were collected through the use of interviews. The respondents to the study were government officers who execute real estate management functions within the ministries. The collected data were subsequently analyzed through the framework analysis method.

Findings

The results have shown that eight characteristics can be used to illustrate how the government's real estate assets are managed by the agencies. The characteristics include ad hoc management, a reactive approach, stages of implementation based on property life cycle, more focus on the maintenance management function, management by insufficient and non‐expert staff, management by fragmented departments, lack of information management systems and lack of performance measurement.

Practical implications

Most of these characteristics proved that the practice of real estate management by government agencies is not being carried out efficiently and is unsystematic. Therefore, the Malaysian Federal Government should plan, design and implement a strategic approach to ensure all the negative characteristics are eliminated because, if left unattended, this practice is bound to produce increasingly negative impacts over time.

Originality/value

This paper exposes the status of real estate management practice being implemented by the Malaysian Federal Government agencies. The findings will allow the federal government to determine the advantages and disadvantages of its real estate management operations and could be used to evaluate the capabilities of its agencies. The research output may also be utilized as a reference point by other countries with similar governance structures to assist in improving their public sector real estate management processes.

Details

Journal of Corporate Real Estate, vol. 13 no. 1
Type: Research Article
ISSN: 1463-001X

Keywords

Article
Publication date: 4 February 2021

Hanif Adinugroho Widyanto and Imaduena Aesa Tibela Sitohang

This paper aims to investigate the antecedents of Muslim millennial’s purchase intention for halal-certified cosmetics and pharmaceutical products by expanding the theory of…

3594

Abstract

Purpose

This paper aims to investigate the antecedents of Muslim millennial’s purchase intention for halal-certified cosmetics and pharmaceutical products by expanding the theory of reasoned action (TRA) through the inclusion of religiousity (RG), halal knowledge and halal certification as the exogenous constructs in addition to TRA’s subjective norm, with attitude as the mediating variable.

Design/methodology/approach

A sample of 403 Muslim millennial customers of cosmetics and pharmaceutical products from the Greater Jakarta area, Indonesia. The data were analysed using partial least squares method.

Findings

Based on the study, attitude fully and/or partially mediates all the exogenous variables. RG and subjective norm are found to have no direct and significant relationship to purchase intention, but they indirectly affect the latter through attitude. Finally, both halal knowledge and halal certification have partial mediation with purchase intention through attitude as the mediating variable.

Practical implications

By understanding the relationships between the latent constructs, halal players in the industry could use the findings to better comprehend the urgency and importance of the halal aspects of their products, particularly halal certification, with regards to the Muslim millennials, and devise appropriate policies and strategies to capture the increasingly potential slice of the market.

Originality/value

The extant literature on halal products has mostly examined the food industry, and little attention has been given to the halal cosmetics and pharmaceutical products, inspite of its growing importance in Indonesia as the world’s largest halal market. Unlike earlier studies on the topic, this study also limits its focus on the Muslim millennial consumers, which is arguably the most potential and lucrative share of the halal market.

Details

Journal of Islamic Marketing, vol. 13 no. 6
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 20 January 2020

Mastura Ab. Wahab and Tajul Ariffin Masron

Throughout the extant studies on Islamic work values, many variations in the concept of Islamic work values were found. This has created some confusions and misunderstandings on…

Abstract

Purpose

Throughout the extant studies on Islamic work values, many variations in the concept of Islamic work values were found. This has created some confusions and misunderstandings on what is the core of Islamic work values that is highly emphasized by Islam. The unanimity of Islamic work values is fundamental to Islamic organizations, and businesses in particular, as it indicates ethical, effectiveness and religious reputations of the organizations. This paper aims to identify the core Islamic work values based on Islamic legal texts (the Qur‘an and the Hadith as the two main Islamic sources), the writings of Islamic scholars and then to have experts verify whether or not the identified work values are core Islamic work values.

Design/methodology/approach

The paper used a qualitative approach where Islamic legal texts (the Qur’an and the Hadith) as well as the writing of Islamic scholars were used as a main reference to identify the core Islamic work values. These identified core Islamic work values were later verified by the muftīs. The verification assessment involved six muftīs from Malaysia.

Findings

The final result revealed that 14 core Islamic work values have been verified by the muftīs. These 14 considered core Islamic work values are essential work values of Islam which are important to achieve effective work performance.

Research limitations/implications

The findings presented are useful for managers and employees in Islamic organizations to decide on what Islamic work values that should be given more precedence and to be practised in their organizations.

Originality/value

This is a novel study that combines two approaches, the Islamic legal texts and muftīs verification regarding the work values obtained that can be accepted as the core Islamic work values. Therefore, these findings can be a guide for many future studies in the area of Islamic work values.

Details

Journal of Islamic Accounting and Business Research, vol. 11 no. 1
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 28 April 2023

Syed Alamdar Ali Shah, Bayu Arie Fianto, Asad Ejaz Sheikh, Raditya Sukmana, Umar Nawaz Kayani and Abdul Rahim Bin Ridzuan

The purpose of this study aims to examine the effect of fintech on pre- and post-financing credit risks faced by the Islamic banks.

1173

Abstract

Purpose

The purpose of this study aims to examine the effect of fintech on pre- and post-financing credit risks faced by the Islamic banks.

Design/methodology/approach

This research uses primary data for fintech awareness and adoption and secondary data of various financial and economic variables from 2009 to 2021. It uses baseline regression to identify moderation of fintech controlling gross domestic products, size, return on assets and leverage. The findings are confirmed using robustness against key variable bias. It also uses a dynamic panel two-stage generalized method of moments for endogeneity.

Findings

The study finds that the fintech awareness and adoption are not the same across all Islamic countries. The Asia Pacific region is far ahead of the other two regions where Indonesia is ahead in terms of fintech awareness and adoption, and Malaysia is ahead in terms of reaping its benefits in credit risk management. Fintech affects prefinancing credit risk significantly more than postfinancing credit risk. Also, the study finds that Islamic banks suffer from the problem of “Adverse selection under Shariah compliance.”

Practical implications

This research invites regulators to introduce fintech in Islamic banks on war footing. Similar studies can be conducted on the role of other risks such as operational and market risks. Fintech will also help in improving the risk profile and stability of Islamic banks against systemic risks and financial crises.

Originality/value

This research has variety of originalities. First, it is the pioneering study that addresses the effect of fintech pre- and post-financing credit risks in Islamic banks. Second, it identifies “Adverse selection under Shariah compliance” for Islamic banks. Third, it helps identify how fintech can be useful in reducing credit risk that will help in reducing capital charge for regulatory capital.

Details

Journal of Science and Technology Policy Management, vol. 14 no. 6
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 16 February 2024

Dina Hanifasari, Ilyas Masudin, Fien Zulfikarijah, Aniek Rumijati and Dian Palupi Restuputri

This paper aims to investigate the impact of halal awareness on the relationship between halal supply chain knowledge and purchase intention for halal meat products in the…

1245

Abstract

Purpose

This paper aims to investigate the impact of halal awareness on the relationship between halal supply chain knowledge and purchase intention for halal meat products in the millennial generation.

Design/methodology/approach

The quantitative approach with the respondents of 177 millennial generations in Indonesia is selected to understand the relationships between variables. Structural equation model-partial least square is used to analyze the relationship between variables.

Findings

The findings of this study found that the purchase intention of halal products in the millennial generation is influenced by several factors such as halal supply chain knowledge, halal certification and logo and religious beliefs. However, the results of this study also show that concern for halal products failed to moderate the relationship between these three main variables on the purchase intention of halal products.

Originality/value

This study provides insights into the concern that strengthens the relationship between the main variables on the intention to purchase halal meat products for the millennial generation.

Details

Journal of Islamic Marketing, vol. 15 no. 7
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 29 November 2022

Sharifah Norzehan Syed Yusuf, Nur Hanida Sanawi, Erlane K. Ghani, Rifqi Muhammad, Dalila Daud and Eley Suzana Kasim

This study aims to examine the factors influencing the effectiveness of zakat distribution to university students. Specifically, it examines technology improvement, procedural…

1085

Abstract

Purpose

This study aims to examine the factors influencing the effectiveness of zakat distribution to university students. Specifically, it examines technology improvement, procedural application and governance on Sarawak university students’ zakat distribution effectiveness.

Design/methodology/approach

This study used the questionnaire as a research instrument and divided it into five parts. Part A gathers demographic information of respondents. Part B measures the respondent’s opinion on current technology improvement. Part C measures university students’ opinion on zakat application procedures. Part D measures the governance concept of the zakat institution. Part E measures the effectiveness of zakat distribution.

Findings

This study found technology improvement and governance significantly influence the effectiveness of zakat distribution to university students. This study provides no significant influence of the procedural application on zakat distribution’s efficacy to university students.

Research limitations/implications

This study suggested that technology plays an essential role in zakat distribution effectiveness by providing faster data processing, easier retrieval of information and time reduction to complete a task. The enforcement of good governance by zakat institutions allows them to be competitive, meets the stakeholders’ demand and serves them better.

Practical implications

This study provides understanding to the zakat institutions in developing appropriate zakat distribution strategies and strengthening their management and governance system.

Originality/value

This paper integrates technology improvement, procedural application and governance in zakat distribution.

Details

International Journal of Ethics and Systems, vol. 40 no. 1
Type: Research Article
ISSN: 2514-9369

Keywords

Article
Publication date: 4 June 2024

Atie Rachmiatie, Erik Setiawan, Kiki Zakiah, Muhammad Saud and Ferra Martian

This study aims to investigate the components of a halal tourism ecosystem and how to establish a model for an effective halal tourism ecosystem. Therefore, each component can…

Abstract

Purpose

This study aims to investigate the components of a halal tourism ecosystem and how to establish a model for an effective halal tourism ecosystem. Therefore, each component can play a role in encouraging the productivity of halal tourism.

Design/methodology/approach

A qualitative approach was applied through in-depth interviews and focus group discussion (FDGs) with representatives of stakeholders who are associated with the development of halal tourism in Indonesia.

Findings

The results show that the effectiveness of the halal tourism ecosystem is primarily determined by the role of the government as an initiator and a policymaker. The halal tourism ecosystem must be run with universal Islamic norms, and it must be avoid exclusive rules.

Originality/value

This research concludes that the symbols in the halal ecosystem are not components that can glue the differences between various organizations and institutions in the context of tourism. However, the role of adhesive is substituted by its practice or implementation that can accommodate shared understandings of Sharia norms.

Details

Journal of Islamic Marketing, vol. 15 no. 11
Type: Research Article
ISSN: 1759-0833

Keywords

1 – 10 of 13