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1 – 10 of over 3000Sabeeh Ullah, Muhammad Haroon, Shahzad Hussain and Ajid Ur Rehman
Islamic label of an organization attracts Muslims for investment. There is a rising concern with a huge profile of corporate governance related to the Islamic rules (principles)…
Abstract
Purpose
Islamic label of an organization attracts Muslims for investment. There is a rising concern with a huge profile of corporate governance related to the Islamic rules (principles). In this context, this study aims to examine the effect of Islamic labelling on corporate governance in the Pakistani setting.
Design/methodology/approach
This study used a panel data set comprising 120 non-financial Shariah-compliant and non-Shariah-compliant Islamic firms listed on the Pakistan Stock Exchange over the period 2013–2020. For analysis, this study used static panel data estimation techniques. Moreover, for robustness check, this study also applied the system generalized method of movements procedure.
Findings
The findings deduced from empirical estimations reveal that Islamic labelling is positively associated with corporate governance. Overall, results indicate that Islamic labelling promotes corporate governance practices in Pakistan.
Originality/value
It is of utmost importance in terms of both theoretical and empirical context that Pakistan is a Muslim country having a 96.5% Muslim population, and it is evident that Muslims are allowed to execute their business under the guidance of Shariah principles. This study is unique because most of the previous literature provides empirical support related to the impact of corporate governance on capital structure, profitability and firm performance in conventional and Islamic firms. Practically, there is scarce literature on this issue.
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Sophie Nivoix and Fatima Zahra Ouchrif
The comparative analysis of the characteristics of both crowdfunding and Islamic finance shows that there is little divergence between these financing tools. In fact, an “Islamic…
Abstract
The comparative analysis of the characteristics of both crowdfunding and Islamic finance shows that there is little divergence between these financing tools. In fact, an “Islamic crowdfunding” has recently emerged, with activities in several countries, despite a conceptual status which has to be confirmed because of the absence of consensus about its exact name. Meanwhile, platforms of “Islamic crowdfunding” are quite heterogeneous as far as the proposed financing type and the reference to Sharia are concerned.
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The purpose of this paper is to analyze the political and economic dilemma that Islamic finance (IF) poses on some Muslim Governments of either encouraging or restraining this…
Abstract
Purpose
The purpose of this paper is to analyze the political and economic dilemma that Islamic finance (IF) poses on some Muslim Governments of either encouraging or restraining this global phenomenon; in spite of their awareness of the developmental role that IF plays. Egypt, in this concern represents a peculiar example where government's policies apparently determine the performance of Islamic financial institutions.
Design/methodology/approach
The paper begins with an overview of IF and the momentums that catalyzed the development of IF in general and in Egypt in specific. It then analyses the policies of the Egyptian Government towards Islamic financial institutions since its inception in 1963 until 2007, with a specific focus on Islamic banks and Islamic companies. This is followed by a discussion on the current practices of these institutions in the Egyptian economy. Finally, the paper presents a prospect vision of the future path of Egypt in the field of IF.
Findings
The paper finds that the shares of IF in the Egyptian economy are modest at local, regional and global levels. Such backward position could be justified in the light of the governmental policies and their manipulation over the legal, economic and religious institutions in a way that restrain the performance of Islamic financial institutions. However, the responsibility is not solely the government's; Islamic financial institutions share part of such retreat due to their practices that divert them from their mission.
Practical implications
The paper concludes that the nature of the Egyptian Government's attitudes towards IF stems from its tendency to maintain the stability of its economic system besides its suspicion to the nature of Islamic financial institutions and their links with Islamist groups. In addition, Islamic financial institutions suffer from administrative and legal problems that shape their practices and reveal their divergence from their Islamic and developmental role that they are supposed to play.
Originality/value
In the final analysis, the paper offers an insight into prospective development of IF in Egypt on both local and external levels.
Vidia Gati, Iman Harymawan and Mohammad Nasih
This study aims to examine the relationship of Indonesia’s Sharia Stock Index (ISSI) firms on environmental, social and governance (ESG) disclosure. This study is interesting…
Abstract
Purpose
This study aims to examine the relationship of Indonesia’s Sharia Stock Index (ISSI) firms on environmental, social and governance (ESG) disclosure. This study is interesting because ISSI firms are supposed to comply with Islamic values as this has been reflected in good corporate governance activities, demonstrating responsibility to others and participating in preserving nature/environmental activities.
Design/methodology/approach
The authors use sample firms that are listed on the Indonesia Shariah-compliant Stock Index (ISSI) from 2011 to 2020, which also published sustainability reports.
Findings
The study found that sharia firms are positively related to ESG disclosure. The authors also found that ESG disclosure of sharia firms is more pronounced in the reporting section of general, economic, environmental and social. Other findings suggest differences in the segments reported in the COVID and pre-COVID periods. This result is also robust by conducting a self-selection bias test with Heckman’s two-stage regression and Coarsened Exact Matching regression.
Practical implications
For policymakers, these results indicate that different characteristics of firms can affect ESG disclosure, and economic conditions will determine which sectors are disclosed the most.
Originality/value
This study provides empirical evidence that Indonesian Shariah-compliant stock index firms carried out their mission to disclose more information about their environmental and social responsibilities and governance issues.
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Yusuf Karbhari, Abdelhafid Benamraoui and Ahmad Fahmi Sheikh Hassan
The study applies Erving Goffman's (1974) “frame analysis” principles to examine how Sharia governance is practiced in Islamic banks and explores the interaction and strategies…
Abstract
Purpose
The study applies Erving Goffman's (1974) “frame analysis” principles to examine how Sharia governance is practiced in Islamic banks and explores the interaction and strategies adopted by bank managers to influence the decisions of Sharia scholars. The study also aims to identify inherent flaws in the Sharia compliance review system.
Design/methodology/approach
The study employs the principles of Goffman as a lens to critically analyse a rich dataset obtained through interviews undertaken with 46 key players operating in the governance framework of the Malaysian Islamic banking industry due to its progressive Islamic governance framework.
Findings
The study demonstrates that managers of Islamic banks may engage in “passing” and “covering” strategies while interacting within the governance structure. Concurrently, Sharia boards (SBs) implement “protective practices” during their interactions, adding complexity to their responsibilities within the banks. Consequently, SBs cannot merely be viewed as instruments for legitimising banking operations. This raises questions about the “impression management,” “concealment” and “competence” strategies employed by managers and SB members, as suggested by Goffman's framework. These findings indicate that there is room for further enhancement in the governance practices of Islamic banks.
Research limitations/implications
Future research could explore aspects related to the governance of Islamic banks, such as investigating the independence and effectiveness of internal Sharia officers. Examining the strategies employed during their interactions with external Sharia boards and other stakeholders could provide further valuable insights.
Practical implications
By highlighting shortcomings in the governance and compliance review process, the findings could serve as a valuable resource for policymakers. The insights derived could inform the development of regulations aimed at reducing opportunistic behaviour and promoting accountability in the Islamic banking sector.
Originality/value
This study uniquely employs Goffman's concepts of “frontstage” and “backstage” strategies to offer insights into the interactions between Islamic bank managers and SBs and the impact of these interactions on Sharia compliance. The study contributes to the understanding of the dynamics between key players in the governance of Islamic banks and the factors influencing their adherence to Sharia principles.
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Yunice Karina Tumewang, Indri Supriani, Herlina Rahmawati Dewi and Md. Kausar Alam
This study aims to identify the significant scientific actors, reveal the intellectual structure and explore essential features for future research direction in Sharia governance…
Abstract
Purpose
This study aims to identify the significant scientific actors, reveal the intellectual structure and explore essential features for future research direction in Sharia governance studies.
Design/methodology/approach
The study applies a hybrid review combining bibliometric analysis and content analysis. It uses Rstudio (biblioshiny), VOSviewer and Microsoft Excel to analyze 457 articles published in 206 journals indexed by Scopus and/or Web of Science during the period of 1985 until the end of 2022.
Findings
The paper discovered four distinct streams of Sharia governance studies: structure of Sharia governance, Sharia governance and risk management, Sharia governance and sustainability and the effect of Sharia governance toward firm’s financial performance. Furthermore, it derives and summarizes 26 main research questions for future studies.
Research limitations/implications
In terms of theoretical implications, the finding contributes to the general literature on Sharia governance by conducting bibliometric analysis and content analysis. In terms of practical implications, this study suggests that Sharia governance should be strengthened by the management of Islamic banks and other Islamic-based businesses.
Originality/value
To the best of the authors’ knowledge, this study is among the early studies using a hybrid review on the topic of Sharia governance, allowing future researchers in this field to capture the trends and progress of current literature as well as the research gaps to be filled in by future researchers.
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Farah Syahida Firdaus, Ridho Bramulya Ikhsan and Yudi Fernando
This paper aims to model Muslim consumers' purchase behaviour that predicts the impacts of behavioural factors of spirituality, emotional value, image, trust and satisfaction on…
Abstract
Purpose
This paper aims to model Muslim consumers' purchase behaviour that predicts the impacts of behavioural factors of spirituality, emotional value, image, trust and satisfaction on Halal-labelled food products. The model was used among Muslim consumers in Indonesia and France.
Design/methodology/approach
A survey was conducted among Indonesian and French Muslim consumers who had bought Halal-labelled food products. The model was examined using Partial Least Squares Structural Equation Modeling (PLS-SEM) with multi-group analysis (PLS-MGA) to test specific differences between sample groups.
Findings
All proposed hypotheses were accepted, except for the trust in purchasing behaviour. It was not significantly different in the two sample groups. The linkage from image to purchasing behaviour was not significantly related to the French sample group, and emotional value did not influence Halal-labelled food product purchase behaviour in the Indonesian sample group. The MGA results found a significant difference in spirituality, emotional value image and trust among Indonesian and French Muslim consumers.
Practical implications
The guarantee of Halal food through a Halal label can fulfil the spirituality of Muslim consumers in carrying out Allah’s (SWT) command to consume Halal food, creating a product image, trust, satisfaction and emotional value that encourages positive buying behaviour. The finding shows that Muslim spirituality has extended the Islamic marketing literature to predict Muslim consumer behaviour. The company can emphasise in advertisements that the Halal-certified logo reflects the quality of products.
Originality/value
To the best of the authors’ knowledge, this research is among the early study empirically confirming that spirituality and emotional value are critical domains to predict purchase behaviour between two different groups of Indonesian and French Muslim consumers.
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Nurdin Sobari, Andyan Kurniati and Hardius Usman
This study aims to analyze the behavior of Indonesian Muslim consumers toward halal wellness services, especially to determine the effect of Islamic attributes providing halal…
Abstract
Purpose
This study aims to analyze the behavior of Indonesian Muslim consumers toward halal wellness services, especially to determine the effect of Islamic attributes providing halal wellness services and customer religious commitment as a moderating variable on customer satisfaction and loyalty.
Design/methodology/approach
The study was carried out by surveying 260 respondents from 13 Muslim salon outlets in the Jabodetabek area as research samples. Furthermore, a quantitative approach with moderated regression analysis is used as an analytical tool to test the research hypothesis.
Findings
The study found that embedding Islamic attributes in a halal service correlated positively with customer satisfaction. Four of the six dimensions of Islamic attributes that provide halal wellness services have a significant influence on customer satisfaction and loyalty. In addition, it was found that the moderating effect of religious commitment variables was only significant on two Islamic attributes, namely, Muslim goods and services and halal labeled products.
Research limitations/implications
This study was conducted with samples taken from only one brand of muslimah salon in Jabodetabek area. So that generalization needs to be done with caution.
Practical implications
The paper includes implications for the marketing strategy of halal wellness services industry including the importance of experiential marketing strategy, the moderation between fiqh law compliance and customer convenience and the service customization based on customer preferences.
Originality/value
This paper gives an understanding of the behavior of halal wellness service users on how halal service attributes affect user satisfaction and loyalty.
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Ezlika Ghazali and Dilip S. Mutum
This chapter discusses whether marketing can ever be Islamic given the common view of marketing functions as unsustainable and sometimes unethical, for example, how marketing…
Abstract
Purpose
This chapter discusses whether marketing can ever be Islamic given the common view of marketing functions as unsustainable and sometimes unethical, for example, how marketing promotes materialism.
Methodology/approach
This chapter reviews extant literatures in Islamic marketing, with a particular emphasis on stakeholder orientation in marketing.
Findings
We argue that Islamic marketing is indeed compatible with the concepts of ethical and sustainable marketing encompassing social, environmental as well as economic perspectives and encourages ethical behaviour.
Originality/value
This chapter highlights that discussions on Islamic marketing should include sustainable marketing and emphasises the growing importance of stakeholder orientation in marketing.
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Eka Pariyanti, Andiana Rosid and Wiwiek Rabiatul Adawiyah
The purpose of this study is to determine whether or not Islamic Workplace Spirituality (IWS) acts as a moderator in the relationship between Organizational Justice (OJ), Job…
Abstract
Purpose
The purpose of this study is to determine whether or not Islamic Workplace Spirituality (IWS) acts as a moderator in the relationship between Organizational Justice (OJ), Job Satisfaction (JS) and Workplace Deviant Behavior (WDB).
Design/methodology/approach
This research was conducted at Islamic-based universities in Lampung, with 213 employees as respondents out of 456 population’s members. The sampling technique used was purposive sampling, and the data were collected directly from respondents using a self-administered questionnaire. The analysis method used to test the research hypothesis was moderated regression analysis (MRA).
Findings
Out of six hypotheses proposed all were supported. This study confirmed the moderating role of Islamic Workplace Spirituality on the relationship of organizational justice and job satisfaction with workplace deviant behavior.
Research limitations/implications
This study has several limitations on the self-report measures used, which may lead to general error bias. Also, because of the cross-sectional nature of data collection in this study, it can impact the inaccurate delineation of causal conclusions between the constructs examined (Clugston, 2000). Further research is suggested to conduct longitudinal research. This research was conducted in Lampung and is limited to religion-based agencies, limiting the generalizability of some findings in different places. Future studies are suggested to examine this construct in a broader scope. Generalizability problems were observed because people's responses to the questionnaires were so evident that they did not give importance to the research work, and they thought it was a waste of time to respond.
Practical implications
Since bearing the label “Islamic Higher Education” identifies them as part of Islamic education, all institutions that bear that label must follow Islamic law rulings in all of their operational activities. Islamic Spirituality in the Workplace (IWS) will make employees in organizations work on time and even manage their workload correctly. Having values related to spiritual constructs will make employees more ethical in understanding values and behavior, also increase trust among workers.
Social implications
ISW will make employees in organizations/agencies work on time and even manage their workload correctly. Management must understand that an organization needs to create a healthy environment by providing organizational justice and reducing people's deviant behavior in the organization. Positive individual behavior shall increase the quality of one's social life.
Originality/value
Most theories in human resources development in higher education came from the field of psychology while religious perspectives tend to be omitted. This study underlines some of the crucial advances and contributions in developing human resource management theory related to Islamic workplace spirituality as a strategy to mitigate employees' deviant behavior.
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