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Article
Publication date: 2 August 2013

Mohamed Ali Azouzi and Anis Jarboui

This paper deals with the relationship existing between the emotional aspect and decision‐making processes. More specifically, it examines the links between emotional

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Abstract

Purpose

This paper deals with the relationship existing between the emotional aspect and decision‐making processes. More specifically, it examines the links between emotional intelligence, decision biases and effectiveness of the governance mechanisms. The primary purposes of this paper are to: consider emotional intelligence as new research ideas that make important contributions to society; offer suggestions for improving manuscripts submitted to Consortium for Research on Emotional Intelligence in Organizations; and discuss methods for enhancing the validity of inferences made from research.

Design/methodology/approach

The paper explains that the main cause of organization's problems is CEO emotional intelligence level. The authors use three models (linear regression and logistic binary regression) to examine this relation: every model treats the relationship between emotional intelligence and one of efficiency criteria of the board. Emotional intelligence has been measured according to Schutte et al.'s Shutte Self Report Emotional Intelligence Scale (SSREI), with a high internal validity level. The four cognitive biases have been measured by means of a questionnaire comprising several items and the selected sample was composed of some180 Tunisian executives (belonging to 60 firms).

Findings

The results revealed that the presence of a high emotional intelligence rate is not always positively correlated with the executives' suggestibility with respect to behavioural biases. They have also affirmed the existence of a complementarity relationship between emotional intelligence and the directors' board. Authors need to consider that emotion which minimizes CEO emotional biases and provides director's board effectiveness.

Research limitations/implications

This article has implications for the development of CEO emotional intelligence capacity. Also, some psychological aspects of a theoretical nature could not be wholly approached in a complete empirical way.

Practical implications

The paper pushes organizations to select managers based on their levels of emotional intelligence (apply tests of emotional intelligence in place psychometric tests). Also, it increases the validity of inferences made from research in the field.

Social implications

This paper incites governments to establish training programs aimed at the development of learning of emotional intelligence. Thus, it has important implications for enhancing the well‐being of individuals, organizations and society as a whole.

Originality/value

Actually, for the sake improving the explanatory power of a legal‐financial approach of governance, the behavioural dimension has been integrated for a more thorough analysis of the directors' board role. The authors' goal consists in highlighting the role played by emotional intelligence as a skill or tool available for the manager or controller to minimize the behavioural biases (bias of loss aversion, optimism, over‐confidence and lack of cognitive flexibility), and achieves an effective control.

Details

Corporate Governance: The international journal of business in society, vol. 13 no. 4
Type: Research Article
ISSN: 1472-0701

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Article
Publication date: 13 October 2021

Khadijah M. Sayuti and Hanudin Amin

Using the theory of planned behaviour (TPB) as an analytical framework, this paper aims to investigate the direct effects of attitude, subjective norm, perceived…

Abstract

Purpose

Using the theory of planned behaviour (TPB) as an analytical framework, this paper aims to investigate the direct effects of attitude, subjective norm, perceived behavioural control, price fairness and Islamic altruism. It also explores how these path linkages can be moderated by Islamic altruism.

Design/methodology/approach

Data are gathered via survey questionnaires on 287 Muslim bank customers in major cities of East Malaysia. The data are then tested using partial least squares.

Findings

The results show that attitude, subjective norm, perceived behavioural control, price fairness and Islamic altruism are significantly influenced by Muslim bank customers’ intention to choose Islamic home financing products. Islamic altruism is also found to significantly moderate the relationship between price fairness and behavioural intention.

Research limitations/implications

Three limitations are available for future research that include the geographical restriction, respondents’ selection and a limited number of battery items used.

Practical implications

Essentially, the results of this study serve as a guide for Islamic bank managers or mortgage providers to improve their pertinent marketing strategies, which are vital to enhancing the acceptance rate of Islamic mortgage.

Originality/value

This study extends the TPB model by incorporating price fairness and Islamic altruism into the Islamic home financing context.

Details

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

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Article
Publication date: 8 October 2019

Syed Ali Raza, Rehan Ahmed, Muhammad Ali and Muhammad Asif Qureshi

The role of insurance is a backbone for consumers to secure their future. It is important to know where to invest and what are the benefits. Therefore, for the Muslim…

Abstract

Purpose

The role of insurance is a backbone for consumers to secure their future. It is important to know where to invest and what are the benefits. Therefore, for the Muslim segment, Islamic insurance system provides Riba (interest)-free environment where consumers invest their money and recover their losses according to sharia. This paper aims to examine the determinants that influence purchase intention of consumers toward Islamic insurance (Takaful) adoption in Pakistan with the help of the modified theory of planned behavior (TPB).

Design/methodology/approach

The authors added four specific variables related to Islamic sharia compliance in the conventional form of the TPB. The relationship among the variables is assessed by using partial least squares structural equation modeling, while the data are collected from 305 respondents.

Findings

The results suggest that attitude, subjective norm and perceived behavioral control are strong predictors of an Islamic insurance adoption in Pakistan. Moreover, factors such as compatibility, relative advantage and awareness have positive and significant impacts on takaful participation. A negative but insignificant relation is found between perceived risk and intention.

Practical implications

This paper provides insight for understanding the factors that lead to consumers' purchase intention of Islamic insurance.

Originality/value

This paper makes a unique contribution to the literature with reference to Pakistan, being a pioneering attempt to investigate the factors of Islamic insurance adoption by modifying the TPB and applying more rigorous statistical techniques like confirmatory factor analysis (CFA) and partial least square structural equation modeling.

Details

Journal of Islamic Marketing, vol. 11 no. 6
Type: Research Article
ISSN: 1759-0833

Keywords

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Article
Publication date: 11 May 2020

Setiawan Budi Utomo, Ratih Sekaryuni, Agus Widarjono, Achmad Tohirin and Heri Sudarsono

The purpose of this study is to identify and explore the role of Islamic financing in supporting development of halal industry in Indonesia.

Abstract

Purpose

The purpose of this study is to identify and explore the role of Islamic financing in supporting development of halal industry in Indonesia.

Design/methodology/approach

This research is divided into two studies. The first study uses survey-based quantitative method and the second study uses focus group discussion (FGD) method. Using a purposive and proportional sampling technique in the first study, this research collected 1,985 samples of Islamic financial products of business owners (demand-side) from all parts of Indonesia. The data were analyzed using the partial least square structural equation modeling approach. The authors also conducted FGDs, involving 35 participants from government, financial, social and education institutions (supply-side) as well as business owners (demand-side) in three separated times.

Findings

In the first study, it can be identified that literacy on Islamic finance, attitude and awareness strongly affect business owners’ intention to use Islamic financial products. It is also found that subjective norm significantly influences literacy, attitude and awareness. Interestingly, religiosity does not significantly affect attitude toward Islamic financial products. According to the FGD in the second study, this research generates several factors motivating business owners’ preference to choose conventional rather than Islamic financial products, including expensive pricing, less developed technology, bad service quality and the halal status of the products. The reason for insignificant results of religiosity on attitude in the first study is explained in the second study. Most users are utilitarians who mainly perceived the products based on the sought benefits provided by the products.

Practical implications

This research offers the government a road map showing the strategy to build Islamic financial ecosystem in Indonesia. The road map integrates supply-side, which includes government, financial industries, social and education institutions and scientific organizations, and demand-side, which includes business owners or entrepreneur associations.

Originality/value

This research provides a wide range of samples derived from business owners’ respondents of halal industry in all representative islands in Indonesia. Therefore, it gives more holistic and representative findings. In addition, the analysis in this research covers not only the demand-side but also the supply-side perspective. Lastly, this research provides an Islamic financial ecosystem model that integrates all stakeholders to improve halal industry performance as a whole.

Details

Journal of Islamic Marketing, vol. 12 no. 5
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 5 October 2015

Hairul Suhaimi Nahar

The purposes of this paper are threefold. First, it aims to argue normatively how Shari’ah precepts governing Takaful operations are translated into (rightfully) different…

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Abstract

Purpose

The purposes of this paper are threefold. First, it aims to argue normatively how Shari’ah precepts governing Takaful operations are translated into (rightfully) different accounting and reporting of Takaful operators. Second, it provides a critical review of the available and applicable accounting and reporting standards and guidelines related to Takaful in the Malaysian context. The third objective which constitutes the empirical piece of this paper centred on the basic numerical evidence obtained from the survey of final-year accounting students with regards to their ability in identifying the basic (dis)similarities in accounting and reporting between Takaful and insurance based on the published financial statements.

Design/methodology/approach

A mixed-mode research approach was adopted covering archival document reviews and focused group survey.

Findings

Findings are arguably informative and relevant to diverse stakeholders. First, the missing jigsaw puzzle representing accounting and reporting in the Takaful literature is uncovered by extending the explanations of Takaful-insurance conceptual and operational differences to that of accounting and reporting. The essence primarily lies on the different operational set-up attributed to the elements of gharar, maisir and riba. Second, the comparative analysis of accounting and reporting rules indicates that AAOIFI standards are less detailed in terms of accounting treatment over certain areas of Takaful operations (e.g. Re-Takaful), but these are more holistic, focused and specific in some other relatively important reporting areas reflecting the unique nature of Takaful operations. Third, findings based on the Malaysian Takaful accounting and reporting guideline suggest that accounting and reporting between Takaful and insurance are perceived to be a coin having monographic characteristics on both sides.

Originality/value

The research explicitly extends and highlights the impact of Shari’ah precepts governing Takaful’s operational nature on its accounting and reporting. It also provides empirical evidence on the nature of Malaysian-based Takaful accounting and reporting guidelines which mirror its insurance counterpart.

Details

Journal of Financial Reporting and Accounting, vol. 13 no. 2
Type: Research Article
ISSN: 1985-2517

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Article
Publication date: 30 December 2019

Imran Mehboob Shaikh, Kamaruzaman Bin Noordin, Sindhia Arijo, Fawad Shaikh and Ahmed Alsharief

This paper aims to examine the determinants that influence the customer’s adoption towards the use of family takaful scheme by extending diffusion theory of innovation…

Abstract

Purpose

This paper aims to examine the determinants that influence the customer’s adoption towards the use of family takaful scheme by extending diffusion theory of innovation (DOI) in the context of Pakistan.

Design/methodology/approach

The published work allied to takaful studies and DOI was reviewed. Total of 282 respondents who are non-users of family takaful product were used for the purpose of primary data collection through convenience sampling.

Findings

The customer’s adoption towards Islamic insurance is determined not only by perceived relative advantage and perceived compatibility but also by awareness and religious belief. Perceived complexity, on the contrary, turns out not to be a predictor of family takaful adoption. Further, gender, age and education do not moderate the family takaful adoption by the customers.

Research limitations/implications

This research alike others have limitations in terms of sampling method used and only covers one city of Pakistan, namely, Karachi. Further studies need to be conducted in other cities as well with a large population.

Originality/value

Extended DOI is not used in the context of takaful in Pakistan as evident from scarce literature on the empirical studies. Therefore, the authors extend the DOI in the current work. Further, this paper will be a useful reference guide for the academicians, operators of takaful business and future researchers.

Details

Journal of Islamic Marketing, vol. 11 no. 6
Type: Research Article
ISSN: 1759-0833

Keywords

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