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1 – 9 of 9Muhammad Ali Jinnah Ahmad and Burhanuddin Lukman
This paper aims to examine the implications of compensation on late payment of takāful benefit imposed in the Islamic Financial Services Act 2013 on the takāful industry in…
Abstract
Purpose
This paper aims to examine the implications of compensation on late payment of takāful benefit imposed in the Islamic Financial Services Act 2013 on the takāful industry in Malaysia. It also aims to identify the issues and challenges faced by takāful operators in the implementation of the compensation and propose solutions for the benefits of the takāful industry.
Design/methodology/approach
This research uses the qualitative approach to understand the practices of claims in takāful and to analyze the implication of compensation on late payment of takāful benefit to the takāful industry in Malaysia. Data are collected through survey and interview with various takāful stakeholders.
Findings
Some of the key findings in this research are that the compensation of late payment of takāful benefit has a positive impact to the takāful industry. The research also found some Sharīʿah operational issues in terms of its implementation among takāful operators.
Research limitations/implications
The research focuses on compensation on late payment of takāful benefit claim in death and personal accident only.
Practical implications
The research offers certainty to the takāful industry and an explanation to academic and legal fraternities on the implementation of compensation on late payment of takāful benefit according to Islamic Financial Services Act (IFSA) 2013.
Originality/value
The research provides a valuable contribution to the current practices of takāful operators, identifies some issues and challenges of its implementation and proposes the solution.
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Burhanuddin Lukman and Saba’ Radwan Jamal Elatrash
This paper aims to ascertain the Sharīʿah (Islamic law) stance on the imposition of goods and services tax (GST) on tabarruʿ-based takāful (donation-based Islamic insurance…
Abstract
Purpose
This paper aims to ascertain the Sharīʿah (Islamic law) stance on the imposition of goods and services tax (GST) on tabarruʿ-based takāful (donation-based Islamic insurance) products in Malaysia. The paper aims to do so by analysing the philosophy, purposes and structure of GST on takāful products and comparing the imposition of GST on tabarruʿ-based takāful with its imposition on conventional insurance while probing into the Sharīʿah texts and opinions of classical and contemporary scholars about taxation in Islam.
Design/methodology/approach
The paper uses a qualitative research methodology. In addition to the literature and text on websites, the information on how GST is applied in practice is also obtained through interviews, discussions and documents from takāful operators. To determine the Sharīʿah position on GST, reference has been made to classical and contemporary Sharīʿah literature, including local and international Sharīʿah advisory bodies’ resolutions and standards.
Findings
This study finds that a strict interpretation of Sharīʿah does not allow for the imposition of GST; however, there is still room for the government to justify it using a broader interpretation of maṣlaḥah (public interest). Takāful has become a need for the society and is subscribed to by all income groups, and not only by the rich. Hence, the government should consider exempting takāful products from GST. The basis of tabarruʿ in takāful does not provide conclusive Sharīʿah evidence for takāful to be exempted from GST.
Originality/value
This research paves the way for the industry to propose further measures on GST for takāful products such as the exemption of GST on the tabarruʿ amount or imposition of a zero rate of GST on the relevant takāful fees and charges that are currently burdensome to consumers.
Noor Suhaida Kasri and Burhanuddin Lukman
The purpose of this paper is to analyze the practice of contra trading in Bursa Malaysia Securities Berhad. Through a critical examination of the practice, it aims to discuss the…
Abstract
Purpose
The purpose of this paper is to analyze the practice of contra trading in Bursa Malaysia Securities Berhad. Through a critical examination of the practice, it aims to discuss the issues from the angles of Sharīʿah and Malaysian common law.
Design/methodology/approach
The paper uses a qualitative research methodology. The information on the practice of contra trading is obtained through the Bursa Malaysia Securities Berhad’s website and literature as well as series of meetings and discussions held with Bursa Malaysia Securities Berhad. In comprehending and dissecting the Sharīʿah and legal issues, classical along with contemporary Sharīʿah literature including local and international Sharīʿah advisory bodies’ resolutions and standards have been referred to. The Sharīʿah analysis of these issues is further supported by reference to the statute and by-laws of Bursa Malaysia Securities Berhad as well as other related legal literature.
Findings
This paper finds that contra trading involves a real sale and purchase of shares; the shares are not taken into the possession of the contra trader, neither physically nor constructively; the liability of shares is not transferred to the contra trader; though the practice of profiting in contra trading may contradict the prohibition on profiting without bearing liability, the permissibility of contra trading could still be argued from the contextual approach of public interest (maṣlaḥah) and needs (hājah); and contra trading is not gambling.
Research limitations/implications
This paper is limited in its analysis to only Sharīʿah and legal perspectives. It does not cover a thorough empirical and quantitative investigation that would measure the extent of the public needs for contra trading and the real benefits that contra trading brings about to the society in the long run. Such studies will further demonstrate whether contra trading deserves a relaxation from the strict Sharīʿah ruling thus affirming the issue of permissibility of contra trading. Moving forward, this paper recommends ways to address the predicaments faced in the contra trading practices as well important research areas that could be taken up in future.
Originality/value
This paper provides an in-depth investigation of the practice of contra trading at the Bursa Malaysia Securities Berhad from the angles of Sharīʿah and common law.
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Rizki Novanda Ridha, Burhanuddin and Budi Priyatna Wahyu
This paper aims to discuss Indonesia as a country having a young generation resource crisis in agricultural sectors, and this crisis contributes more than 32.9 per cent higher…
Abstract
Purpose
This paper aims to discuss Indonesia as a country having a young generation resource crisis in agricultural sectors, and this crisis contributes more than 32.9 per cent higher unemployment than other sectors. Therefore, creative youths are needed to build the sector through entrepreneurship activities.
Design/methodology/approach
The low condition of youth entrepreneurship intention in agricultural sectors leading the Agriculture Ministry of Indonesia launches an Agricultural Young Entrepreneurship Growing Program 2016 (Program Penumbuhan Wirausaha Muda Pertanian, PWMP 2016). Intention in growing phase is critical to avoid the program failure.
Findings
This research was aimed to analyze entrepreneurship characteristics and factors affecting the intentions. The research was conducted in three cities, Bogor, Lampung and Bandung, with 189 respondents who accepted business support from the PWMP in 2016. The accumulated data were then analyzed using descriptive analysis and structural equation model. Respondents have highly average trends on behavior belief, normative belief, motivation to comply, control belief, control belief power and intention. While, only the evaluation of the consequence to give the medium trend is about 50.26 per cent.
Originality/value
Factor affects to the entrepreneurship intention in agricultural sectors is a subjective norm or external factor, and both the attitude toward behavior and perceived behavioral control factors do not affect entrepreneurship intention in the agricultural sector.
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Iskandar Zulkarnaen and Ella Suzanna
Purpose – This study discusses the anatomical changes in the pattern of conflicts after the peace agreement and reviews Aceh’s current political situation, focusing on the…
Abstract
Purpose – This study discusses the anatomical changes in the pattern of conflicts after the peace agreement and reviews Aceh’s current political situation, focusing on the terrorism issues and post-conflict local elections, the process and development of the conflict, the compromise, and the forecast for the political and administrative system of local government in Aceh.
Design/Methodology/Approach – The data were obtained by reviewing issues on terrorism and conflicts, analyzing relevant written documents, and interviewing reliable resources.
Findings – Aceh remained stable after the peace agreement between the Government of Indonesia and the Free Aceh Movement (Gerakan Aceh Merdeka or GAM), which was signed in Helsinki on August 15, 2005. However, it does not mean that conflicts never happened. Some conflicts that were potential threats to peace in Aceh occurred many times, ranging from crime problems to social, political, and terrorism issues. Although such conflicts also happened in other places in Indonesia, they were considered very sensitive in Aceh, which always had been associated with peace threat and rebellion issues. Some religion-based terrorism actions disrupted the peace process in Aceh, but it is certain that the terrorist networks had nothing to do with GAM and Acehnese. They only used Aceh as an escape area when they were hunted by security forces in Java.
Implications – The values of Islam in Aceh are not easily penetrated by radicalism offered by the terrorist groups. Peace and stability in Aceh have been maintained up to now. After gaining considerable advantage from power sharing with the Government of Indonesia, GAM has been comfortable with the situation and forgotten the idea of independence. Conflicts and armed violence occur frequently in some places, but they have been transforming from vertical (between the Indonesian military/TNI and GAM) to horizontal lines with various reasons. The most prominent one is the question of access to power, which in turn has an impact on economic access.
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Engaged employees assure organizational competitiveness and sustainability. The purpose of this study is to explore the relationship between job resources and employee turnover…
Abstract
Purpose
Engaged employees assure organizational competitiveness and sustainability. The purpose of this study is to explore the relationship between job resources and employee turnover intentions, with employee engagement as a mediating variable.
Design/methodology/approach
Data were collected from 934 employees of eight wholly-owned pharmaceutical industries. The proposed model and hypotheses were evaluated using structural equation modeling. Construct reliability and validity was established through confirmatory factor analysis.
Findings
Data supported the hypothesized relationship. The results show that job autonomy and employee engagement were significantly associated. Supervisory support and employee engagement were significantly associated. However, performance feedback and employee engagement were nonsignificantly associated. Employee engagement had a significant influence on employee turnover intentions. The results further show that employee engagement mediates the association between job resources and employee turnover intentions.
Research limitations/implications
The generalizability of the findings will be constrained due to the research’s pharmaceutical industry focus and cross-sectional data.
Practical implications
The study’s findings will serve as valuable pointers for stakeholders and decision-makers in the pharmacuetical industry to develop a proactive and well-articulated employee engagement intervention to ensure organizational effectiveness, innovativeness and competitiveness.
Originality/value
By empirically demonstrating that employee engagement mediates the nexus of job resources and employee turnover intentions, the study adds to the corpus of literature.
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Teerapong Teangsompong, Pichaporn Yamapewan and Weerachon Sawangproh
This study aims to investigate the impact of service quality (SQ), perceived value (PV) and consumer satisfaction on Thai street food, with customer satisfaction (CS) as a…
Abstract
Purpose
This study aims to investigate the impact of service quality (SQ), perceived value (PV) and consumer satisfaction on Thai street food, with customer satisfaction (CS) as a mediator for customer loyalty and repurchase intention (RI). It also explores how consumer trust (CT) in Thai street food safety moderates these relationships.
Design/methodology/approach
Structural equation modelling (SEM) was utilised to analyse the complex interrelationships between various constructs. Multi-group analyses were conducted to investigate the moderating effects of CT on the structural model, considering two distinct groups based on trust levels: low and high.
Findings
The findings revealed that SQ and PV significantly influenced CS and behavioural intention, while the perceived quality of Thai street food had no significant impact on post-COVID-19 consumer satisfaction. The study highlighted the critical role of CT in moderating the relationships between SQ, PV and CS, with distinct effects observed in groups with varying trust levels.
Social implications
The research emphasises the importance of enhancing SQ and delivering value to customers in the context of Thai street food, which can contribute to increased CS, RI and positive word-of-mouth. Furthermore, the study underscores the critical role of building CT in fostering enduring customer relationships and promoting consumer satisfaction and loyalty.
Originality/value
This research offers valuable insights into consumer behaviour and decision-making processes, particularly within the realm of Thai street food. It underscores the significance of understanding and nurturing CT, especially in the post-COVID-19 landscape, emphasising the need for effective business strategies and consumer engagement.
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Munshi Naser Ibne Afzal, Kasim Mansur and Umme Humayara Manni
The entrepreneurial capability (EC) environment refers to the general social and economic settings of a given local/regional entrepreneurship environment. The primary purpose of…
Abstract
Purpose
The entrepreneurial capability (EC) environment refers to the general social and economic settings of a given local/regional entrepreneurship environment. The primary purpose of this study is to uncover key indicators of the EC milieu and test these components empirically within the context of the Association of South East Asian Nations (ASEAN)-5 economies to elucidate the current state of their EC environments, at the regional and national levels. To this end, the aim of this study is twofold. First, this work endeavors to explicate the determinants of EC, with aims of elucidating its association to commercial opportunities in (ASEAN)-5 economies, namely, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Next, this study applies the developed theory, including the identified determinants of EC to empirically test the efficiency and imperative coefficients of variables that have an impact on perceived entrepreneurial capabilities within a given environment.
Design/methodology/approach
This research applies two frontier models, namely, the consistent estimation of fixed-effects and linear transformation stochastic frontier models, to assess the coefficients of significant EC variables for the panel sample. Data corresponding to the assessed variables were retrieved from the databases of the Global Entrepreneurship Monitor (GEM) – 2016 and the World Competitiveness Yearbook (WCY) – 2016, for the period, 2010-2016.
Findings
The attained results suggest that factors corresponding to the variables “Entrepreneurship as a good career choice” and “perceived opportunities” have played a significantly positive role on the EC environment of ASEAN 05, although findings suggest both factors may still be improved upon. Conversely, the “fear of failure rate” factor was shown to have exerted a negative impact on the efficiency of the EC environment of ASEAN 05. Other important variables – such as intellectual property rights, university education and knowledge transfer rate – were shown to generate a positive impact on the EC environment of these economies.
Originality/value
This study makes an important contribution to the entrepreneurship literature and can stimulate policymakers to rethink the EC settings of ASEAN-05 in their pursuit of an innovation-driven region.
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