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Book part
Publication date: 6 May 2024

Ahmed Hassanein and Hana Tharwat

This chapter explores the concept of corporate social responsibility (CSR) from an Islamic Shari'ah-compliant perspective. It provides a comprehensive literature review on CSR…

Abstract

This chapter explores the concept of corporate social responsibility (CSR) from an Islamic Shari'ah-compliant perspective. It provides a comprehensive literature review on CSR with an explicit focus on the Islamic perspective of CSR, Islamic models of CSR, CSR practices in conventional and Islamic banks, and the consequences of CSR to Islamic banks. This chapter's main contribution lies in considering the current CSR literature from a Shari'ah perspective. Likewise, it identifies gaps in the current literature and suggests potential areas for future research. This chapter attempts to improve the understanding of how Islamic banks integrate social responsibility into their operations. The insights from this chapter are helpful to practitioners and academic scholars in Islamic finance, accounting, and CSR. This chapter emphasizes the importance of incorporating Islamic values and principles into CSR practices and encourages further research and investigation in this area.

Details

The Emerald Handbook of Ethical Finance and Corporate Social Responsibility
Type: Book
ISBN: 978-1-80455-406-7

Keywords

Article
Publication date: 16 April 2024

Ekrem Yilmaz

This study aims to investigate the viewpoints of heterodox economic thoughts and Islamic economic thought concerning the concept of waste. Additionally, it explores the shared…

Abstract

Purpose

This study aims to investigate the viewpoints of heterodox economic thoughts and Islamic economic thought concerning the concept of waste. Additionally, it explores the shared criticisms that both perspectives hold against mainstream economic thought in relation to waste.

Design/methodology/approach

First of all, the concept of waste is examined and the global effects of waste are investigated. Criticisms directed in the context of waste in mainstream economics in the context of heterodox school thoughts are examined. Likewise, criticisms directed in the context of waste in mainstream economics in the context of Islamic economic thoughts are examined. Finally, the common and different aspects of heterodox and Islamic economic thoughts were discussed, and the common criticisms of mainstream economic thought’s point of view toward waste were examined. This study is a theoretical, qualitative study.

Findings

Although both ideas have different aspects, heterodox and Islamic economic thoughts believe that the mainstream economy, which is based on capitalism and materialism, creates waste by ignoring the long-term social and environmental consequences of economic activity. They argue that the pursuit of profits and growth, without considering the impact on society and the environment, leads to an inefficient and unsustainable use of resources.

Originality/value

The best author’s knowledge, by emphasizing the common and different aspects of Islamic economics and heterodox thoughts, this study is the first to examine the concept of waste in the context of the common aspects of these ideas.

Details

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

Keywords

Article
Publication date: 15 February 2024

Abbas Ramdani, Ridwan Raji and Mohd. Khairie Ahmad

The acceleration of globalized commerce and economic activities has meant that conventional and Shariah (Islamic law) compliant organizations transact and negotiate among…

Abstract

Purpose

The acceleration of globalized commerce and economic activities has meant that conventional and Shariah (Islamic law) compliant organizations transact and negotiate among themselves. Therefore, this study aims to explore the concept of corporate negotiation and the communicative principles that guide the negotiation process among Shariah-compliant organizations.

Design/methodology/approach

The study uses a qualitative method through an inductive interpretative approach by conducting 20 in-depth interviews among four groups of experts. These consist of three muftis, ten academicians in Islamic assets, finance and asset jurisprudence; three practitioners in charge of inter-organizational negotiation and decision-making; and four shariah board members of selected Islamic banks.

Findings

The findings reported that business negotiation is used by Islamic organizations for reconciliation, consultation, resolving disagreements and as a means of achieving spiritual satisfaction. Furthermore, the key communicative principles of the negotiation process consist of the credibility of informational exchange, flexible interactions and the openness and truthful disclosure of information.

Research limitations/implications

The empirical data discussed in this study supports the claim that macro-environmental factors and social and cultural values should be considered when examining business negotiating behaviors. However, this study focuses only on the banking/service organization negotiation. Therefore, future research should focus on the Islamic negotiation process in the context of diplomatic and international relations.

Practical implications

The findings reported in this study offer insight for negotiators operating among Islamic organizations to understand the principles and process of negotiation in the purview of Shariah standards and principles.

Originality/value

In terms of theoretical implications, this study reveals a clear conceptual difference between the conventional concept and the Islamic perspective of corporate negotiation. Also, this study highlights the impact of organizational culture, specifically Islamic management strategies, on the business negotiation process and business communication principles.

Details

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

Keywords

Article
Publication date: 28 September 2022

Halil Zaim, Erdem Erzurum, Selim Zaim, Burhan Uluyol and Gökhan Seçgin

This study aims to propose a practical, virtue-centric model of leadership based on Islamic principles. The structure of the Islamic leadership construct is validated through…

Abstract

Purpose

This study aims to propose a practical, virtue-centric model of leadership based on Islamic principles. The structure of the Islamic leadership construct is validated through confirmatory factor analysis. Its relationship with performance and organizational commitment is examined and the mediating role of organizational commitment is assessed.

Design/methodology/approach

Islamic leadership model is tested using confirmatory factor analysis with data collected from employees working in the services sector in Turkey. Relationships between Islamic leadership, organizational commitment and performance are examined through a path analysis.

Findings

The factor analysis results presented a good fit for the proposed Islamic leadership model, which consists of wisdom, religiosity, justice and kindness dimensions. Regarding path analysis, findings indicated a positive relationship between Islamic leadership and job performance. Moreover, organizational commitment partially mediated the relationship between Islamic leadership and job performance.

Originality/value

Previous studies on Islamic leadership contain a very little number of empirical models. This study proposes a valuable empirical model of Islamic leadership consisting of moral values, spirituality, ethics and wisdom. In addition, the proposed model is supported with empirical pieces of evidence. Evidence of the partial mediating role of organizational commitment between Islamic leadership and job performance is also revealed by the study.

Details

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

Keywords

Open Access
Article
Publication date: 30 April 2024

Abderahman Rejeb, Karim Rejeb and Suhaiza Zailani

This study aims to address the noted gap in comprehensive overviews detailing the developmental trajectory of Islamic finance (IF) as an interdisciplinary academic field.

Abstract

Purpose

This study aims to address the noted gap in comprehensive overviews detailing the developmental trajectory of Islamic finance (IF) as an interdisciplinary academic field.

Design/methodology/approach

The study introduces a unique approach using the combined methodologies of co-word analysis and main path analysis (MPA) by examining a broad collection of IF research articles.

Findings

The investigation identifies dominant themes and foundational works that have influenced the IF discipline. The data reveals prominent areas such as Shariah governance, financial resilience, ethical dimensions and customer-centric frameworks. The MPA offers detailed insights, narrating a journey from the foundational principles of IF to its current challenges and opportunities. This journey covers harmonizing religious beliefs with contemporary financial models, changes in regulatory landscapes and the continuous effort to align with broader socioeconomic aspirations. Emerging areas of interest include using new technologies in IF, standardizing global Islamic banking and assessing its socioeconomic effects on broader populations.

Originality/value

This study represents a pioneering effort to map out and deepen the understanding of the IF field, highlighting its dynamic evolution and suggesting potential avenues for future academic exploration.

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: 3 April 2024

Minhajul Islam Ukil, Ehsanul Islam Ukil, Muhammad Shariat Ullah and Abdullah Almashayekhi

Islam describes business as a legitimate means of halal income. However, little is known about what attracts people towards Islamic entrepreneurship or halalpreneurship. By…

Abstract

Purpose

Islam describes business as a legitimate means of halal income. However, little is known about what attracts people towards Islamic entrepreneurship or halalpreneurship. By applying the theory of planned behaviour, this study aims to contribute to this underexplored area by investigating the factors that affect Islamic entrepreneurial intention (IEI).

Design/methodology/approach

This study examined a mediation model using two country samples. First, the hypotheses were tested on a sample recruited from a high-income economy (i.e. Saudi Arabia) using structural equation modelling in AMOS V26. The authors then conducted a replication study to investigate the robustness of the findings using a sample recruited from a lower-middleincome economy (i.e. Bangladesh) and a different analysis technique, the PROCESS mediation model in SPSS V25.

Findings

The findings suggest that IEI depends on four antecedents, namely, attitude towards Islamic entrepreneurship, general entrepreneurial self-efficacy, Islamic entrepreneurial self-efficacy and perceived halal income. These antecedents also mediate the relationship between moral judgement and IEI.

Research limitations/implications

This study offers an empirical framework that captures several perspectives on the formation of IEI. The findings contribute to entrepreneurial intention and motivation research by suggesting factors that motivate individuals to engage in Islamic entrepreneurship.

Originality/value

The findings imply that the framework of IEI can withstand diverse socioeconomic contexts. A novel perspective of this study is that Muslims who are motivated by perceived halal income show greater interest in becoming Islamic entrepreneurs.

Details

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

Keywords

Article
Publication date: 10 May 2024

Hakimu Buyondo

Micro, small and medium-sized enterprises (MSMEs) are vital for economic growth in developing countries. Yet, little research has explored the link between Islamic principles and…

Abstract

Purpose

Micro, small and medium-sized enterprises (MSMEs) are vital for economic growth in developing countries. Yet, little research has explored the link between Islamic principles and MSME performance, especially in Uganda. This study aims to investigate the relationship between Islamic financial principles and MSMEs’ performance in Makindye Division Kampala – Uganda.

Design/methodology/approach

This study used a correlational research design involving 86 respondents from 30 MSMEs between January and May 2023. Data collected through questionnaires was analyzed with Statistical Package for Social Sciences, examining three independent variables: ethicality, Halal investment and prohibition of riba, in relation to MSME performance.

Findings

The results revealed significant relationships between these variables and MSME performance. Prohibition of riba (r = 0.296, n = 86, p = 0.006), Halal investments (r = 0.308, n = 86, p = 0.004) and ethical principles (r = 0.283, n = 86, p = 0.008) all exhibited a statistically significant relationship. Regression analysis with R = 0.405, R2 = 0.164 and adjusted R2 = 0.134 indicated that all hypothesized variables were significant predictors of MSME performance. Based on findings, this study rejected the null hypothesis, confirming a moderately positive and significant relationship between Islamic financial principles and MSME performance.

Originality/value

This study underscores the importance of active involvement from key stakeholders such as the Uganda Halal Bureau, Uganda Muslim Supreme Council, Islamic financial institutions and government agencies in integrating robust support mechanisms for MSMEs into their strategic frameworks. Such efforts could enhance Uganda’s economic landscape, aligning with the experiences of Malaysia and Indonesia in leveraging Islamic principles for economic growth.

Details

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

Keywords

Article
Publication date: 1 May 2024

Mohammad Mominul Islam and Mostofa Mahmud Hasan

While the Noble Quran dictates the prohibition of interest, conventional banks promote Islamic banking by opening Islamic banking windows. Against this backdrop, this study aims…

Abstract

Purpose

While the Noble Quran dictates the prohibition of interest, conventional banks promote Islamic banking by opening Islamic banking windows. Against this backdrop, this study aims to investigate the perceived gaps between managers and clients in Islamic marketing and banking, focusing on conventional banks’ Islamic banking windows.

Design/methodology/approach

Guided by a qualitative approach, semi-structured personal interviews and observations served as the data collection methods, involving 25 banks and 50 respondents in 3 different districts, namely, Shirajganj, Rajshahi and Chapainawabganj of Bangladesh from January to October 2023. The data were analysed using ATLAS.ti 2023 to explore codes and quotations derived from 14 interview questions. Further, ATLAS.ti 2023 facilitated synthesizing content, concepts, code occurrence, network analysis and thematic analysis.

Findings

Islamic and non-Islamic banks use Quranic verses, hadiths (prophetic traditions), images of mosques, the Kaaba and Arabic texts as Islamic marketing tools. These spiritual, divine and prescriptive tools are associated with Islamic banking. However, conventional banks receive criticism for having separate Islamic banking windows to serve religiously conscious clients, which generates tension among clients and bank managers.

Practical implications

The findings can theoretically assist academics in examining conventional banks’ Islamic marketing and banking practices, opening Islamic banking windows. Importantly, Shariah boards can play policy roles in safeguarding the function of Islamic marketing and banking. Managers can use the findings to anticipate client perceptions and enhance Islamic marketing and banking strategies. Likewise, the social implications include the explicit stance of Shariah to mitigate the mixture of halal and haram banking.

Originality/value

This pioneering study explores the perspectives of Islamic banking windows by non-Islamic banks. The combination of Islamic marketing and banking is a noteworthy novelty in this study and deserves recognition for its unique contribution to halal marketing and finance.

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: 19 February 2024

Hanudin Amin, Faizah Panggi, Imran Mehboob Shaikh and Muhamad Abduh

The purpose of this study is to develop a new framework to measure waqif preference of waqf-based qardhul hassan financing in Malaysia.

Abstract

Purpose

The purpose of this study is to develop a new framework to measure waqif preference of waqf-based qardhul hassan financing in Malaysia.

Design/methodology/approach

Using a maqāṣid approach, this study’s data were drawn from 286 valid usable questionnaires to examine the effects of consumer, family, ummah and humanity factors on the preference.

Findings

The study found that the said factors sourced from Attia’s maqāṣid al-Shariah were instrumental in determining waqif preference to donate in waqf-based qardhul hassan financing.

Research limitations/implications

Like others, this study’s findings are limited in terms of their generalisations and applications. The theory, context and variables used should be expanded in future works.

Practical implications

The results obtained are useful as a yardstick to enable the offered waqf-based qardhul hassan financing for improved mutual well-being among different classes of the wealth of societal groups in Malaysia. Furthermore, the results provide valuable insights into the direction for practitioners mainly managers involved in introducing waqf-based qardhul hassan financing as a new Islamic social financial instrument for poor and needy folks, at best.

Originality/value

This study is novel in terms of the proposed conceptual framework, where the waqif perspective comes into play.

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: 2 May 2024

Shatheish Maniam

Sharia-compliant financial technologies (Islamic fintech) are becoming increasingly popular among Muslims and non-Muslims. As the Islamic fintech landscape continues to grow and…

Abstract

Purpose

Sharia-compliant financial technologies (Islamic fintech) are becoming increasingly popular among Muslims and non-Muslims. As the Islamic fintech landscape continues to grow and transform, it is crucial to understand the factors that influence the acceptance or adoption of Islamic fintech services from the past literature. Therefore, this paper aims to conduct a systematic literature review (SLR) to investigate and compile factors that could influence a user to adopt Islamic fintech.

Design/methodology/approach

The current study adopted the systematic literature review approach using Preferred Reporting Items for Systematic Reviews and Meta-Analyses technique to examine research on Islamic fintech adoption. A set of inclusion criteria was applied to filter out irrelevant documents and ensure the selection of only the most relevant ones. The criteria were limited to quantitative journals published in English between 2012 and 2022, as identified in Scopus outlets.

Findings

Despite the existence of various theoretical frameworks, the technology acceptance model and Unified Theory of Acceptance and Use of Technology 2 frameworks have gained prominence as the most frequently applied frameworks in examining Islamic fintech adoption. In addition, trust is the most important self-developed construct for the adoption of Islamic Fintech.

Research limitations/implications

The current study does not segregate the intention, actual usage and retention, as the author is interested in understanding the overall adoption of Islamic fintech services. To obtain more specific analysis results, future research could potentially separate the three types of adoption exposure, i.e., consumer acceptance, intention and retention. Next, future studies can also expand their analysis and gain a better understanding of the research topic by exploring alternative data sources such as Web of Science, ERA or JSTOR.

Originality/value

To the best of the author’s knowledge, this study makes a significant contribution to the literature by providing the first systematic literature review of factors influencing fintech adoption from an Islamic perspective.

Details

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

Keywords

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