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Article
Publication date: 30 April 2021

Shafique Ur Rehman, Hamzah Elrehail, Abdallah Alsaad and Anam Bhatti

This study explores central questions related to the connection between intellectual capital (IC) and the innovative performance of organizations through the mediating…

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Abstract

Purpose

This study explores central questions related to the connection between intellectual capital (IC) and the innovative performance of organizations through the mediating role of management control systems (MCS) and business strategies, as well as the moderating role of innovation capabilities.

Design/methodology/approach

The data was collected from the managers of small and medium enterprises (SMEs) through a structured questionnaire. Out of 1,152 questionnaires distributed, only 415 were used for analysis purposes. Structural equation modelling (SEM) was used to test the study hypotheses.

Findings

Intellectual capital significantly influences MCS, business strategies and innovative performance. Moreover, MCS, business strategies and innovative capabilities significantly improve innovative performance. MCS and business strategies significantly mediate the relationship between intellectual capital and innovative performance. Finally, innovative capabilities significantly moderate that between intellectual capital and innovative performance.

Practical implications

The current research examines how management should use MCS, business strategies, and innovative capabilities to take maximum benefit from intellectual capital in order to improve innovative performance.

Originality/value

This is pioneering research that develops a theoretical model to incorporate intellectual capital, MCS, business strategies, innovative capabilities and innovative performance. Even though the influence of various kinds of intangible assets/resources on innovative performance has been widely examined in the literature, scant attention has been paid to the role of MCS, business strategies, and innovative capabilities in leveraging the firm's intellectual capital.

Details

Journal of Intellectual Capital, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1469-1930

Keywords

Open Access
Article
Publication date: 24 September 2021

Shafique Ur Rehman, Hamzah Elrehail, Kiran Nair, Anam Bhatti and Abdallah Mohammad Taamneh

This paper draws on resource-based theory (RBV) to examine the impact of the management control system (MCS) package on business performance through the mediating role of…

1928

Abstract

Purpose

This paper draws on resource-based theory (RBV) to examine the impact of the management control system (MCS) package on business performance through the mediating role of entrepreneurial competencies and the interaction role of business strategy in small and medium-sized enterprises (SMEs).

Design/methodology/approach

A total of 372 questionnaires were used in this research for analysis purposes using partial least square–structural equation modelling. Cluster sampling was used and nine states out of 16 states were selected randomly, including Kelantan, Johor, Sarawak, Selangor, Kedah, Kuala Lumpur, Penang, Perak and Sabah, because the nine states cover 84.4% of the total SMEs.

Findings

The results revealed that only cultural and administrative control has no relationship with business performance. Moreover, in the MCS package, all elements have a significant and positive influence on entrepreneurial competencies. Furthermore, business strategy (cost leadership and differentiation strategy) significantly moderates, while entrepreneurial competencies mediate between, cultural, planning, cybernetic, rewards and compensation, administrative control and business performance.

Originality/value

SMEs in Malaysia are contributing 36.6% to gross domestic product. Further, as this sector is important, less attention has been paid to this area of MCS package with business strategies to determine organisational performance. This study fills these gaps, and the recommendations and findings for further research are discussed in detail accordingly. Moreover, the findings of the current research provide guidelines for the management of SMEs.

研究目的

本文應用資源基礎理論,來探討管理控制系統套裝對經營績效的影響;研究的進行,乃透過探討企業家才能所扮演的中介角色以及在中小型企業裡,經營策略所扮演的交互作用角色。

研究的設計/方法/理念

研究共分析了372份調查問卷, 研究使用的方法為偏最小平方法PLS-SEM。使用集體抽樣法,從16個州屬中隨機抽取9個州,該9個州包括吉蘭丹州、柔佛州、砂拉越、雪蘭我、吉打、吉隆玻、檳城、霹靂和沙巴;這是因為該9個州已涵蓋整體中小型企業的84.4%。

研究結果

研究結果顯示,只有文化和行政管制是與業務績效沒有關聯的。而且,在管理控制系統套裝裡,所有元素對企業家才能均有顯著和正面的影響。再者,經營策略 (成本領先戰略和差導化戰略) 在文化、策劃、神經機械學、獎勵和補償、行政管制與經營績效之間起著顯著的緩和作用;而企業家才能則於當中起中介的作有。

研究的原創性/價值

在馬來西亞,中小型企業佔國內生產總值的36.6%。再者,這個部門至為重要,唯對管理控制系統套裝這範疇 (組織的業績如何取決於經營策略) 的關注則不足 。本研究彌補這研究的差距,因應為進一步研究仔細討論了建議和研究結果。另外,本研究的研究結果,為管理中小型企業提供了指引。

Details

European Journal of Management and Business Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2444-8451

Keywords

Article
Publication date: 22 December 2020

Shafique Ur Rehman, Anam Bhatti, Sascha Kraus and João J. M. Ferreira

The purpose of this study determines how environmental management control system (MCS) packages influence ecological sustainability and sustainable performance through the…

Abstract

Purpose

The purpose of this study determines how environmental management control system (MCS) packages influence ecological sustainability and sustainable performance through the mediating role of environmental strategies. Furthermore, this applies organizational capabilities as moderating variables between environmental strategies, ecological sustainability and sustainable performance in a sample of 373 construction firms.

Design/methodology/approach

The authors apply quantitative questionnaire data from construction firm representatives (from project, sales and construction managers and contract managers, executive directors and engineers) to structural equation modeling and SmartPLS for our analysis.

Findings

The results demonstrate that recourse to environmental MCS packages significantly influence ecological sustainability, sustainable performance and environmental strategies. Additionally, environmental strategies and organizational capabilities significantly influence ecological sustainability and sustainable performance. Moreover, environmental strategies mediate between environmental MCS packages, ecological sustainability and sustainable performance. Organizational capabilities significantly moderate the relationship between ecological sustainability and sustainable performance.

Practical implications

This research highlights the issue of how the management of construction organizations deploy environmental MCS packages, organizational capabilities and business strategies to measure ecological sustainability and improve their sustainable performance. This study fills a gap in the literature and facilitates the management of construction organizations in strengthening their internal resources in terms of environmental MCS packages, environmental strategies and organizational capabilities able to help improve their ecological sustainability and sustainable performance.

Originality/value

There are few studies building theoretical frameworks for incorporating environmental MCS packages, organizational capabilities, environmental strategies, ecological sustainability and sustainable performance into a single study. Although the influence of various types of intangible resources on ecological sustainability and sustainable performance receive considerable examination in the literature, there is a dearth of attention paid to understanding the role of environmental MCS packages, environmental strategies and organizational capabilities in determining the ecological sustainability and sustainable performance of construction organizations.

Article
Publication date: 2 April 2021

Anam Bhatti, Haider Malik, Ahtisham Zahid Kamal, Alamzeb Aamir, Lamya Abdulrahman Alaali and Zahir Ullah

In the field of business, digital transformation is the integration of digital technology into all areas of business, from generating to deliver value to customers. This…

1243

Abstract

Purpose

In the field of business, digital transformation is the integration of digital technology into all areas of business, from generating to deliver value to customers. This concept is essential for sustainable growth of a company and its overall economy. Based on this fact, this authentic and informative research is conducted whose major aim is to examine the importance of digital transformation within a business through big data, the Internet of things and blockchain-based capabilities for overall strategic performance within the telecom sector in China.

Design/methodology/approach

For that aim, data quality and technology competence are considered as independent variables, strategic performance as dependent variable and big data analytics capabilities, Internet of things capabilities and blockchain capabilities routinization acted as mediators within this paper. In its data collection mechanism, an online survey was conducted in which questionnaires are randomly distributed to the telecom sector's professionals in which only 343 of them gave their valid outcomes. After collecting primary data, confirmatory factor analysis (CFA) and structural equation modeling (SEM)–based statistical outcomes have been generated.

Findings

Results indicate that there is a significant relationship between data quality and strategic performance and between technological competence and strategic performance. Also, the big data analytics and Internet of Things capabilities acted as significant mediating role between both independent and dependent variables. But blockchain capabilities routinization is that variable that acts as an insignificant mediator between independent and dependent variables' relationship.

Originality/value

Overall, this study is an informative and attractive source for the Chinese government, its telecom industry, administrative body and related ones to understand the importance of such IT capabilities' implications within their operating activities for their strategic performance management. Also, related field scholars can utilize its reliable data in their research analysis. Its major limitations are (1) lack of qualitative/ mixed method of research and (2) lack of comparative analysis that may impact the acceptability factor of this paper, and this weakness can be overcome by upcoming scholars in their research.

Article
Publication date: 28 May 2020

Mohd Shukor Harun, Khaled Hussainey, Khairul Ayuni Mohd Kharuddin and Omar Al Farooque

This study aims to explore the corporate social responsibility disclosure (CSRD) practices of the Islamic banks in the Gulf Cooperation Council (GCC) countries during the…

2047

Abstract

Purpose

This study aims to explore the corporate social responsibility disclosure (CSRD) practices of the Islamic banks in the Gulf Cooperation Council (GCC) countries during the period 2010-2014 and examines the determinants of CSRD and its effects on firm value.

Design/methodology/approach

Based on the Accounting and Auditing Organization for Islamic Financial Institutions Governance Standard No. 7 guidelines and using content analysis, the paper develops a comprehensive CSRD index for GCC Islamic banks. The study applies ordinary least squares regression analysis for hypothesis testing and for finding determinants of respective dependent variables.

Findings

The results show a very low level of CSRD among the sample Islamic banks in GCC countries. When using corporate governance characteristics to examine the determinants of CSRD, this study provides evidence of a significant positive association between board size and CSRD practice in Islamic banks and a significant negative relationship of chief executive officer (CEO) duality with CSRD, as per expectation. For the economic consequences of CSRD, the study documents an inverse performance effect of CSRD while board size, board composition and CEO duality indicate significant positive effects on firm value.

Research limitations/implications

The relatively small sample size of GCC Islamic banks may limit the application of the findings to other Islamic financial institutions such as Takaful and the Islamic unit trust company.

Practical implications

The findings of this study initiate the global debate on the need for corporate governance reform in Islamic banks by providing insights on the role played by corporate governance mechanisms in encouraging and enhancing CSRD practices among Islamic banks. The findings also have important implications for investors, managers, regulatory bodies, policymakers and Islamic banks in the GCC countries.

Social implications

The results of the study do not support the idea that Islamic banks operating on Islamic principles can meet their social responsibilities through promoting corporate social responsibility (CSR) activities and by differentiating themselves from non-Islamic banks.

Originality/value

This is the first study to examine the determinants of CSRD in GCC Islamic banks using comprehensive CSRD and corporate governance variables and, therefore, adds value to the existing CSR literature in banking.

Article
Publication date: 31 March 2022

Ejaz Aslam, Muhammad Saleem Ashraf and Anam Iqbal

The prime objective of this study is to examine the impact of sight cues and corporate social responsibility (CSR) activities of the Islamic banks on loyalty by improving…

Abstract

Purpose

The prime objective of this study is to examine the impact of sight cues and corporate social responsibility (CSR) activities of the Islamic banks on loyalty by improving the corporate image (CI) of the Islamic banks. This study also examines the mediating effect of a CI along with moderating impact of religion and collectivism on loyalty.

Design/methodology/approach

The data were obtained through the purposive sampling method by distributing questionnaires among the customers of Islamic banks. A total of 550 questionnaires were surveyed from six full-fledged commercial Islamic banks and eight Islamic windows of the commercial bank in Pakistan using variance-based structural equation modelling (partial least squares) to test the hypothesis.

Findings

The results of the study reflected that sight cues and CSR activities have a significant impact on CI and keeping the customer’s loyalty. Additionally, religion and collectivism also moderate the relationship between CI and loyalty.

Research limitations/implications

From a managerial perspective, the study finding exhibits the significant effect, both directly and indirectly, of religiosity on the loyalty intention of the customers of Islamic banks. Hence, persuading the client that the bank is in complete compliance with (Shariah) will forestall their clients switching to another bank.

Originality/value

This study is unique in its nature because it revealed the factors that lead to customer loyalty towards Islamic banks. The study found sight cues and CSR are the new indicators used to build CIs of Islamic banks.

Details

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

Keywords

Article
Publication date: 13 February 2017

Nevine Sobhy Abdel Megeid

This research aims to analyze and compare the effectiveness of liquidity risk management of Islamic and conventional banking in Egypt to ascertain which of the two banking…

4022

Abstract

Purpose

This research aims to analyze and compare the effectiveness of liquidity risk management of Islamic and conventional banking in Egypt to ascertain which of the two banking systems are performing better.

Design/methodology/approach

A sample of six conventional banks (CBs) and two Islamic banks (IBs) in Egypt was selected. Using the liquidity ratios, the investigation involves analyzing the financial statements for the period of 2004-2011. The data were obtained from Bank scope database.

Findings

The research found that in Egypt, CBs perform better in terms of liquidity risk management than IBs. The liquidity risk management significant differences between IBs and CBs could be attributed more cash availability to CBs than to IBs, in addition, Egyptian Central Bank regulations on capital and liquidity requirements for IBs disconcert IBs’ performance.

Practical implications

This research facilitates the bankers, academician, scholars and bankers to have an alluded picture about Egyptian banking developments in liquidity risk management. The results can be used by bankers’ policy decision-makers to improve and enhance their consideration for liquidity risk management.

Originality/value

This research covers a period and a country that compares CBs’ and IBs’ liquidity risk management. Its value is attributed to the increasing differentiation between CBs and IBs.

Details

Journal of Islamic Accounting and Business Research, vol. 8 no. 1
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 14 October 2019

Suzanna ElMassah, Ola AlSayed and Shereen Mostafa Bacheer

The purpose of this study is to investigate the main factors that affect liquidity risk in the UAE Islamic banks.

Abstract

Purpose

The purpose of this study is to investigate the main factors that affect liquidity risk in the UAE Islamic banks.

Design/methodology/approach

The study examines the annual data of the seven UAE Islamic banks over the period 2008-2014. Random effects panel data model is used to estimate the impact of four bank-specific variables and two macroeconomic ones on the liquidity risk of the UAE Islamic banks via their impact on five alternative liquidity ratios.

Findings

The paper finds that bank size has a negative impact on liquidity risk according to two liquidity ratios only, and an insignificant impact according to the other three. Both capital adequacy and London interbank offered rate have significant negative impacts on liquidity risk for three liquidity ratios, and insignificant impacts on two. The effect of credit risk is negative for all adopted ratios, while that of return on assets is negative for one ratio only. Finally, real GDP has a positive effect on two ratios and an insignificant one on the others.

Research limitations/implications

The study provides insights for policymakers and practitioners to choose appropriate liquidity management procedures. It emphasizes that identifying efficient procedures or policies depends on the liquidity ratio that is used as a proxy of liquidity risk and its definition, in addition to the correlation between the liquidity ratio and liquidity risk. The study also provides some guidance to Islamic banks in the UAE concerning the main factors impacting their liquidity, which can eventually enable them to support their liquidity management policies, in a way that would expand their customer base according to profitability aspects, and not only religious ones.

Originality/value

The paper adds to the relatively limited literature on liquidity risk in Islamic banks. It also is the first study that investigates the determinants of liquidity risk facing Islamic banks in the UAE using five alternative liquidity ratios.

Details

Journal of Islamic Accounting and Business Research, vol. 10 no. 5
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 22 March 2013

Khuram Shahzad Bukhari, Hayat M. Awan and Faareha Ahmed

The purpose of this paper is to explore the perceived importance of management about various corporate governance dimensions being practiced in the Pakistani Islamic…

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Abstract

Purpose

The purpose of this paper is to explore the perceived importance of management about various corporate governance dimensions being practiced in the Pakistani Islamic banking context.

Design/methodology/approach

AHP is applied to analyze the corporate governance indexes and its dimension of five Islamic banks and 12 conventional banks which are providing Islamic banking facilities (Islamic bank window) throughout Pakistan. These dimensions included board of directors (BOD), Shari'ah supervisory board (SSB), audit, investment account holders (IAH), and information disclosure & transparency.

Findings

The study reveals that the most significant dimensions which affect the corporate governance in Islamic banks are BOD and SSB, while the significant factors for Islamic banking windows are almost all dimensions of corporate governance. The correlation, regression, and ANOVA tests are applied to check the contributions of various factors of corporate governance mechanisms. These results indicate that there is a significant difference between Islamic banks and Islamic banking windows regarding the BOD and SSB. On the other hand, no significant difference is seen for the rest of the factors. The dissatisfaction level of customers reduces with the increase in the audit and BOD governance and all other factors have no impact in the case of Islamic banking windows; whereas in Islamic banks, in addition to audit and the SSB, information disclosure also significantly reduces the dissatisfaction level of customers. The concern of customers decreases significantly with the increasing level of IAH in the case of Islamic banking windows whereas in the case of Islamic banks a significant impact is seen for BOD, information disclosure, audit and IAH, but improvement in the governance of these rather increases the concern of customers toward compliance of Shari'ah and SSB has no contribution towards the concern of customers.

Originality/value

This study has practical significance for conventional and Islamic banking policy makers for understanding the requirements of their stakeholders and aligning them with the fundamentals of Shari'ah compliance according to the guidelines provided by the code of corporate governance so as to get better insight into the relationship between customers' motives behind using Islamic banking products.

Article
Publication date: 11 August 2020

Hanna Kociemska

This paper aims to describe cooperation between public and private market players from different legal and religious orders. The author argues that such public–private…

Abstract

Purpose

This paper aims to describe cooperation between public and private market players from different legal and religious orders. The author argues that such public–private partnerships (PPPs) enable the development of a possible convergence between selected areas of mainstream public finance and the Islamic moral economy (IME).

Design/methodology/approach

This paper explores the theory of both mainstream finance and the IME, and using deductive reasoning from axioms, develops the assumptions of a theoretical approach to heterodox PPP. The proposed method affects the ability to find common platforms between mainstream public finance and the IME, through the example of public–private investment projects.

Findings

This endeavour is subject to trade-offs between profit maximisation and social justice values on the basis of long-term PPP contracts. The author shows the assumptions under which this compromise would be beneficial to public entities, multicultural societies and conventional and Islamic investors. It is proposed to distribute profit to the owners up to a predetermined value, above which the PPPs would finance public services for persons otherwise excluded from them.

Originality/value

The success of this approach must depend on a compromise between profit maximisation as the sole investment objective and investment guided by social justice values. Private investors can achieve a capped level of profit on a long-term contract basis, and public partners can obtain long-term contracts for providing public goods. Both would undertake a project with a strong emphasis on corporate social responsibility, with particularly large opportunities in developing Islamic countries.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 13 no. 4
Type: Research Article
ISSN: 1753-8394

Keywords

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