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Article
Publication date: 8 April 2022

Edi Suandi, Herri Herri, Yulihasri Yulihasri and Syafrizal Syafrizal

This paper aims to investigate the influence of Islamic marketing ethics and convergence marketing on competitive advantage and bank performance.

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Abstract

Purpose

This paper aims to investigate the influence of Islamic marketing ethics and convergence marketing on competitive advantage and bank performance.

Design/methodology/approach

This study is based on a survey of 204 Indonesian branch managers from the Islamic banking industry. Results were produced with the partial least square approach.

Findings

Results revealed that Islamic marketing ethics and convergence marketing have sufficient confidence to have significant influences on competitive advantage, producing a positive association with a competitive advantage. However, Islamic marketing ethics and convergence marketing did not influence bank performance directly. Competitive advantage positively mediated the relationship. Furthermore, organizational digital literacy did not moderate the relationship between convergence marketing and bank performance.

Research limitations/implications

This study contributes to the conceptualization of convergence marketing and the identification of its effects on competitive advantage and bank performance. The identification of convergence marketing in this dissertation contains dimensions of mobile, security, foreign currency, holistic and interactivity as different aspects from the steps of Islamic banks to digitize their services to the internet in a single application. The results also indicate that convergence marketing does not have a direct effect on bank performance but has an indirect effect through competitive advantage. Convergence marketing must first create a bank advantage over its competitors to have a good effect on bank performance.

Practical implications

This study offers many opportunities for Islamic bank marketers to improve performance. Many Islamic banks currently do not implement Islamic marketing ethics consistently and thoroughly. The results of this study encourage Islamic banks by showing that the more intensive and consistent they are in implementing Islamic marketing ethics, the better their competitive advantage and the higher the performance. This effort can be done in various ways, such as offering tariffs/ratios of services transparently to customers, not exaggerating the benefits of the products offered to distort customer expectations, building brands that can strengthen customer confidence in Islamic banks and only offering products and services with high-quality standards.

Limitation and future research

This study uses a sample of Islamic banking so that it is still limited to certain types of banks. Future research needs to conduct model testing in different contexts such as conventional banking. In addition, further research needs to use the capabilities or capabilities of bank IT as a moderator in the effect of convergence marketing on bank performance. Future research also needs to control for more variables and use a scale that is more complex than the binary scale (for example, the percentage of share ownership or territory in the scope of the province or district/city).

Originality/value

This research views the Islamic bank competitiveness through the lenses of Islamic ethical theory and convergence marketing theory.

Article
Publication date: 13 June 2023

Shinaj Valangattil Shamsudheen, Saiful Azhar Rosly and Aishath Muneeza

This study aims to portray the ethical disposition of Islamic financial institutions (IFIs) globally by investigating the ethical gap identified in the empirical literature to…

Abstract

Purpose

This study aims to portray the ethical disposition of Islamic financial institutions (IFIs) globally by investigating the ethical gap identified in the empirical literature to date.

Design/methodology/approach

Two methods of analysis used in this study are content analysis and ratio analysis. While the former was conducted to identify the main themes of empirical studies and to gauge the gap between theory and practice of ethical principles and business practice in the Islamic banking and financial industry, the latter quantified the intensity of the gap identified.

Findings

The findings indicate that global ethical practices were found to be above medial, and the South East Asian region stood out with a relatively better performance along with the subpar performance of the African region. Among the ethical parameters, the praxis of marketing ethics was found to be distinctly aligned with the principles, and the organizational ethical decision-making behaviour was held to be least harmonized with the norms.

Practical implications

The findings of this study help researchers and regulators to better understand the issues and provide practical solutions to address the shortfalls of ethics in Islamic finance in practice.

Originality/value

In spite of the vast literature, comprehension of the overarching ethical standing of IFIs is still equivocal. This study contributes to the growing literature of ethical and/or Islamic finance primarily in two ways. Firstly, it provides a comprehensive depiction of the ethical standings of the IFIs all around the globe, which can be treated as a guiding document for regulators and industry practitioners to better understand the issues and provide practical solutions to address the shortfalls of ethics in Islamic finance in practice. Secondly, it helps researchers identify research gaps and provides a systematic direction for future studies in the area of ethics in Islamic finance.

Details

International Journal of Law and Management, vol. 65 no. 5
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 26 September 2022

Farhan Mustafa and Vinay Sharma

This study aims to identify enablers of belief and ethics-based marketing practices, establish relationships among the factors and present them in a hierarchical model to derive…

Abstract

Purpose

This study aims to identify enablers of belief and ethics-based marketing practices, establish relationships among the factors and present them in a hierarchical model to derive critical insights. This paper emphasizes interpretations of the in-depth interviews to decipher the market pervasiveness of the evolved model.

Design/methodology/approach

In-depth interviews were conducted with individuals and small groups of informed and elite respondents pursuing marketing guided explicitly by ethics and led by belief. The interview data further corroborated with the related literature contributed to specific factors. Finally, interpretive structural modeling has been implemented step by step to develop a systematic model for enablers.

Findings

This paper contributes a structural relationship of morality and ethics, strengthening faith and belief through philosophical understanding, which traverses into the actions related to societal benefits with the support of market opportunity development while bringing in value, enhancing the demand in return and establishing market pervasiveness. The crux of this paper is that the foundation of belief will reduce the hierarchy of other related factors while strengthening their interdependencies with equity to contribute to the development of the pervasiveness of the market for such organizations.

Originality/value

To the best of the authors’ knowledge, this is the first study exploring and examining the enablers contributing to belief and ethics-based organizations’ pervasiveness along with their interrelationships. The initial intrigue that led to the inquiry was evidence of the market pervasiveness of such organizations’ products and services across various streams.

Details

Journal of Islamic Marketing, vol. 14 no. 10
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 5 December 2022

Attia Aman-Ullah and Waqas Mehmood

The purpose of this study is to examine the impact of Islamic work ethics (IWEs) on the job satisfaction, commitment and loyalty among the bank employees in Azad Jammu and…

Abstract

Purpose

The purpose of this study is to examine the impact of Islamic work ethics (IWEs) on the job satisfaction, commitment and loyalty among the bank employees in Azad Jammu and Kashmir, Pakistan.

Design/methodology/approach

Data for this study was collected using the purposive sampling from 354 bank employees of Azad Jammu and Kashmir region.

Findings

The findings of this study support all the three proposed hypotheses, with IWEs demonstrating significant positive relationships with job satisfaction, organisational commitment and employee loyalty.

Practical implications

Because of the nature of operations, banks need energetic employees who can participate actively in work activities. The implementation of IWEs enables banks to improve their employees’ satisfaction, commitment and loyalty, which will benefit the organisation in the long term through improved performance.

Originality/value

By encouraging the adoption of IWEs, organisations can increase job satisfaction, employee’s commitment and loyalty in the workplace, especially in an Islamic banking context. Therefore, managers should strengthen the mutual understanding among employees regarding IWE principles. They should be consistently applied and disseminated by Islamic banks’ management in the form of a formal code of ethics that applies to all actions within the organisation. Besides, this study contributes in terms of divine command theory which was yet to be tested with employee’s behaviour. Loyalty was another behavioural attribute which is providing novelty while testing with IWEs in banking context.

Details

Journal of Islamic Accounting and Business Research, vol. 14 no. 7
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 1 February 2022

Samira Boussema and Lotfi Belkacem

This paper aims to study the role of ethics in the social innovation process and its effect on entrepreneurial passion. It explores the factors that encourage social entrepreneurs…

Abstract

Purpose

This paper aims to study the role of ethics in the social innovation process and its effect on entrepreneurial passion. It explores the factors that encourage social entrepreneurs to innovate by examining the concepts of harmonious and obsessive passion and ethics.

Design/methodology/approach

The database consists of 97 entrepreneurs who benefited from the services offered by the support organizations for social entrepreneurs. The data are analyzed using the partial least squares structural equation modeling.

Findings

The results show that Islamic ethics has a positive effect on social innovation. This effect can be further amplified by harmonious passion (HP). Such passion certainly strengthens social entrepreneurs throughout the innovation process and consolidates the implementation phase of their projects.

Practical implications

This study highlights the importance of ethics in the process of social innovation. Ethics acts directly or through HP to stimulate social innovation. This passion enables taking actions and favors the creation of innovative social projects.

Originality/value

These findings add value to the previous literature by introducing ethics into the entrepreneurial passion theory and exploring new factors that promote social innovation.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 15 no. 5
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 8 August 2023

Mohsin Raza, Muhammad Khalique, Rimsha Khalid, Jati Kasuma, Waqas Ali and Kareem M. Selem

This paper investigates the effect of Islamic entrepreneurship on small and medium-sized enterprises' (SMEs) business performance and the development of a framework to…

Abstract

Purpose

This paper investigates the effect of Islamic entrepreneurship on small and medium-sized enterprises' (SMEs) business performance and the development of a framework to comprehensively investigate Islamic entrepreneurship to achieve competitive business advantages. Islamic entrepreneurship was measured through the Islamic entrepreneurial model, which is based on two unobserved constructs: business and spiritual perspectives. These two constructs were used as predictors of business performance. This paper aims to develop a new scale of Islamic entrepreneurship from business and spiritual perspectives to achieve SMEs’ successful business performance.

Design/methodology/approach

In total, 189 Muslim respondents were involved and analyzed their responses using exploratory factor analysis and confirmatory composite analysis.

Findings

The empirical findings proved that the Islamic entrepreneurial scale with two perspectives is an absolute measure. Besides, the predictive validity findings revealed that business (i.e. trustworthiness, honesty and truthfulness) and spiritual perspectives of Islamic entrepreneurship (i.e. Taqwa, good intention and respecting religious obligations) positively affected SMEs’ business performance.

Originality/value

The novelty of this study lies in expanding the existing research, developing a measurement scale and empirically testing the Islamic entrepreneurship model. To the best of the authors’ knowledge, this is the first study that contributes to the Islamic entrepreneurship literature in the SME context and offers new avenues for potential researchers. The new scale will allow SMEs to understand the halal and haram concepts in more depth and apply the Islamic rules and principles with full spirit.

Details

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

Keywords

Article
Publication date: 28 March 2024

Tarjo Tarjo, Alexander Anggono, Zakik Zakik, Shahrina Md Nordin and Unggul Priyadi

This study aims to empirically examine the influence of Islamic corporate social responsibility (ICSR) on social welfare moderated by financial fraud.

Abstract

Purpose

This study aims to empirically examine the influence of Islamic corporate social responsibility (ICSR) on social welfare moderated by financial fraud.

Design/methodology/approach

The method used was the mix method. The number of respondents was 410. They combined the moderate regression analysis with PROCESS Andrew F Hayes to test the research hypothesis. After conducting the survey, it was continued by conducting interviews with the village community and the head of the village.

Findings

The first finding of this study is that ICSR has a significant positive effect on social welfare. The second finding is that financial fraud weakens the influence of ICSR on social welfare. The results of the interviews also confirmed the two findings of this study.

Research limitations/implications

The high level of bias in answering the questions is due to the low public knowledge of ICSR. In addition, the interviews still needed to involve the oil and gas companies and government.

Practical implications

The main implication is improving social welfare, especially for those affected by offshore oil drilling. Furthermore, stakeholders are more sensitive to the adverse effects of financial fraud. Finally, to make drilling companies more transparent and on target in implementing ICSR.

Originality/value

The main novelty in this research is using of the mixed method. In addition, applying financial fraud as a moderating variable is rarely studied empirically.

Details

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

Keywords

Article
Publication date: 1 August 2023

Syed Ali Raza, Komal Akram Khan and Faiza Hakim

The study aims to inspect the impact of employees’ perception of corporate social responsibility (CSR) and their spiritual values on their affective commitment and job…

Abstract

Purpose

The study aims to inspect the impact of employees’ perception of corporate social responsibility (CSR) and their spiritual values on their affective commitment and job satisfaction, which in turn may promote organizational citizenship behavior. Furthermore, this study examines the moderating effect of Islamic work ethics to identify whether they strengthen or weaken the proposed associations.

Design/methodology/approach

A survey instrument was devised to collect data from employees. The statistical analysis of the data was conducted using the Smart PLS software. Additionally, the research uses the “Partial Least Square-Structural Equation Modelling (PLS-SEM)” technique.

Findings

The findings of the study suggest that employees’ perception of CSR exhibits a positive association with affective commitment and job satisfaction. Likewise, employees’ spiritual values demonstrate a positive and significant correlation with affective commitment and job satisfaction. Finally, the outcomes reveal that affective commitment and job satisfaction play a major role in fostering organizational citizenship behavior. Moreover, Islamic work ethics positively and significantly moderate the relationship between employee CSR perception and affective commitment and between employee CSR perception and job satisfaction.

Originality/value

This research study endeavors to fill the gaps in the current literature by investigating two crucial aspects of employees: their perception of CSR and spiritual values. Additionally, the study includes Islamic work ethics as a moderator to provide a more comprehensive understanding of how these factors contribute to fostering organizational citizenship behavior. This work highlights the significance of spiritual values and social responsibilities in employees’ lives and how Islamic work ethics shape their behavior accordingly.

Article
Publication date: 11 October 2022

Muhammad Qamar Zia, Muhammad Naveed, Tayyaba Fasih and Abdul Rehman Meero

The increasing ethical misconduct at job place demands to understand the role of ethics in a wide variety of disciplines. This paper aims to empirically investigate the mediating…

Abstract

Purpose

The increasing ethical misconduct at job place demands to understand the role of ethics in a wide variety of disciplines. This paper aims to empirically investigate the mediating mechanism of life satisfaction and subjective happiness between Islamic work ethics – innovative work behavior (IWB) and organizational citizenship behavior (OCB).

Design/methodology/approach

The sample comprised 296 employees and 58 head of departments (HODs) of top 11 business schools in Pakistan. The data of the study were collected in three waves and from two different sources (faculty members and their HODs) through questionnaire. The statistical technique SEM analysis was applied to inspect the proposed direct and mediating hypotheses.

Findings

Taken together, the findings revealed that Islamic work ethics (IWE) improves quality of life and by following IWE at workplace, employees feel pleasure and show satisfaction from life. The results supported the mediating role of both life satisfaction and subjective happiness between IWE-IWB and IWE-OCB.

Practical implications

This study provides practical insight that Islamic business ethics plays an important role at workplace and improves quality of life and individual behavior.

Originality/value

The current research is unique, as it empirically investigates the mechanism quality of life phenomena which connects IWE and individual behavior (innovative and citizenship). The mechanism quality of life is less studied, and therefore this study fills the gap of scant literature.

Details

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

Keywords

Article
Publication date: 19 December 2023

Roni Andespa, Yulia Hendri Yeni, Yudi Fernando and Dessy Kurnia Sari

This study aims to investigate what past scholars have learned about Muslim consumer compliance behaviour in Islamic banks and identify what future research is needed. In…

Abstract

Purpose

This study aims to investigate what past scholars have learned about Muslim consumer compliance behaviour in Islamic banks and identify what future research is needed. In addition, it also explores the relationship model between the previously studied determining factors and the customer’s Sharia compliance behaviour.

Design/methodology/approach

This study used a bibliometric–systematic literature review analysis using the Preferred Reporting Items for Systematic reviews and Meta-Analyses (PRISMA) technique by reviewing the articles published from 2013 to 2023. The PRISMA procedures involved several stages, including identification, screening, eligibility, analysis and conclusion based on the findings.

Findings

The results found that customer Sharia compliance behaviour determinants in Islamic banks are attitude, subjective norms, perceived behavioural control, Islamic financial literacy, religiosity, consumer conformity, Islamic branding and behavioural intention. Interestingly, the results indicated that such factors as consumer conformity, Islamic branding and sustainable intentions are less discussed.

Practical implications

Decision-makers in Islamic banks must use digital technology to offer better service and make operations more reachable for customers to access information, complete transactions and manage their accounts by Sharia principles. Therefore, the bank needs to continually produce innovative products and services so that customers have a greater variety of options to suit their Sharia-compliant financial needs. Theoretically, this study has contributed by finding the main critical domains influencing customers’ Sharia compliance behaviour, such as attitudes, subjective norms, perceptions of behavioural control, knowledge of Islamic finance, religiosity, consumer conformity, Islamic branding and behavioural intentions. Then, it makes a theoretical contribution by establishing a model that explains how customers make decisions based on Sharia-related factors in the context of their purchases.

Originality/value

Past studies focused on the Sharia compliance behaviour in paying Zakat for takaful customers. Therefore, this study provides critical factors of Sharia compliance behaviour on conformity, Islamic branding and sustainable intention regarding unexplored consensus on the determinants and outcomes of customer Sharia compliance behaviour of Islamic banking.

Details

Journal of Islamic Marketing, vol. 15 no. 4
Type: Research Article
ISSN: 1759-0833

Keywords

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