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Article
Publication date: 24 July 2024

Muhammad Zarunnaim Bin Haji Wahab, Asmadi Mohamed Naim and Mohamad Hanif Abu Hassan

The practices of sustainable and responsible investment (SRI) among Islamic financial institutions (IFIs) nowadays still rely on the existing environmental, social and governance…

Abstract

Purpose

The practices of sustainable and responsible investment (SRI) among Islamic financial institutions (IFIs) nowadays still rely on the existing environmental, social and governance (ESG) criteria. However, based on observation, some of the existing criteria listed by the reports of certain authorities and organizations do not seem to be aligned with Shariah principles. Therefore, this study aims to investigate those criteria to help develop Islamic-SRI (i-SRI) criteria based on the ESG concept.

Design/methodology/approach

This study adopted the qualitative method via content analysis of documents and interviews with experts.

Findings

Based on the analysis, a set of i-SRI criteria is developed based on the ESG concept, of which 33 elements are environmental, 50 elements are social and 26 elements are governance issues. Overall, this study finds that there is no obvious contradiction with the Islamic philosophy in the existing ESG criteria, with the exception of four criteria, i.e. promoting human rights, freedom of expression, freedom of censorship and freedom of association under social criteria. These four existing criteria are not aligned with Islamic teaching and not appropriate with Islamic ESG criteria.

Practical implications

The creation of Islamic ESG criteria can assist relevant authorities to improve the current ESG criteria and to embed an Islamic perspective within it.

Originality/value

This study developed a set of i-SRI criteria, which may be suitable as a source of reference to relevant parties.

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: 12 June 2024

Wahidah Shari, Asmadi Mohamed Naim, Mohamad Yazid Isa, Mohd Fikri Sofi, Nurul Aini Muhamed, Selamah Maamor and Shahrul Nizam Ahmad

This paper aims to investigate consumers’ preferences regarding the distribution channels for subscription, contribution payment and compensation claims of microtakaful scheme in…

Abstract

Purpose

This paper aims to investigate consumers’ preferences regarding the distribution channels for subscription, contribution payment and compensation claims of microtakaful scheme in Malaysia.

Design/methodology/approach

Consumers’ preferences were explored through questionnaires and focus group discussions (FGD) conducted among the bottom 40% income classification households (B40) in five zones: northern, central, eastern, southern and Sabah and Sarawak.

Findings

Empirical findings from cross-tabulation analysis revealed that takaful company is the preferred distribution channel for purchasing protection plans and making compensation claims. However, the online platform is the favoured channel to make contribution payments. Further investigation through FGD suggested that the selection of a channel for subscription, contribution payment and compensation claim is influenced by consumer trust, cost-effectiveness and simplicity of procedure.

Research limitations/implications

Limitation is pertaining to only cross-tabulation analysis used in explaining the choice of distribution channel for microtakaful among B40 group. Thus, advanced analysis is required to strengthen the findings.

Practical implications

Findings of this study would help marketers and practitioners to formulate strategies to promote their microtakaful protection to enhance subscription among the low-income population.

Originality/value

Empirical findings offer academic contributions to the existing body of knowledge on microtakaful area as the primary data collected will eventually allow future researchers to explicate the contribution of the current study to understand the important of distribution channel for microtakaful from the perspective of subscribers and potential subscribers.

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: 15 July 2024

Fazal Haleem, Muhammad Ilyas and Muhammad Jehangir

The study explores the pivotal role of green information technology and sustainable business processes and their impact on organizational value in an underdeveloped economy. It…

Abstract

Purpose

The study explores the pivotal role of green information technology and sustainable business processes and their impact on organizational value in an underdeveloped economy. It aims to develop a comprehensive model for driving organizational value through sustainable initiatives.

Design/methodology/approach

Data was gathered through 474 survey instruments (41% response rate) from top managers of IT firms using a convenience sampling technique. After ensuring reliability and validity, hypotheses were tested using structural equation modeling. Data analysis utilized SPSS and AMOS 21.0.

Findings

The study revealed a significant positive impact of green information technology initiatives on financial and non-financial aspects, enhancing overall organizational value. Similarly, green information technology significantly influences sustainable business processes. Furthermore, sustainable business processes, encompassing economic, social, and environmental dimensions, enhance organizational value, including financial and non-financial performance. Consequently, a multifaceted sustainable model has been developed to optimize organizational value, providing new insights.

Practical implications

The findings imply that firms should focus on acquiring new green technologies and adopting sustainable processes, leading to enhanced profits and non-financial gains. This study aids managers in strategy development and implementation and guides policymakers in formulating context-specific policies. It enriches the existing literature on green IT, business process management, and organizational value.

Originality/value

The study rigorously tested a framework for fostering organizational value through green information technology and sustainable business processes in information technology firms. The proposed framework was validated using structural equation modeling.

Details

Business Process Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 10 May 2024

Sarawut Pathomphatthaphan, Simanchala Das and Keytapark Virat

The primary purpose of this contextual study was three-fold: (1) to study the effect of HR practices on employee lifecycle (ELC) on organisational outcomes; (2) to investigate the…

Abstract

Purpose

The primary purpose of this contextual study was three-fold: (1) to study the effect of HR practices on employee lifecycle (ELC) on organisational outcomes; (2) to investigate the mediating role of employee outcomes in the relationship between HR practices and organisational outcomes; (3) to assess the differences in HR practices of the Indian and Thai food processing industries.

Design/methodology/approach

The study used random sampling to select 574 (278 Indian and 296 Thai) HR managers in food processing industries. A structured questionnaire was administered. The PLS-SEM was used to validate the relationships, while multiple group analysis (MGA) was employed to compare the HR practices.

Findings

The results revealed a significant influence of HR practices on organisational outcomes. Employee outcomes also mediate this influence. MGA results showed no significant variation in the effect of HR practices on organisational outcomes between India and Thailand.

Practical implications

HR practices must be aligned to suit country-specific business contexts to achieve organisational outcomes by improving employee outcomes. The findings would guide managers of the Indian and Thai food industries to develop tailor-made HR strategies.

Originality/value

This study contributes to comparative HRM in the Asian context by offering an empirically tested framework. Additionally, this comparative research offers insightful information on convergent best practices among Asian nations.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 21 May 2024

Fahru Azwa Mohd Zain, Siti Fariha Muhamad, Hamdy Abdullah, Sheikh Ahmad Faiz Sheikh Ahmad Tajuddin and Wan Amalina Wan Abdullah

This conceptual paper aims to delineate a comprehensive blueprint for the integration of environmental, social and governance (ESG) principles within the framework of Takaful…

Abstract

Purpose

This conceptual paper aims to delineate a comprehensive blueprint for the integration of environmental, social and governance (ESG) principles within the framework of Takaful operations, guided by the principles of Maqasid al-Shariah. The primary purpose is to establish a robust foundation for the sustainable transformation of Takaful, aligning it with ethical finance and Islamic values.

Design/methodology/approach

Using a theoretical research approach, this study delves into the multifaceted dimensions of ESG principles and the principles of Maqasid al-Shariah within the context of Takaful operations. The 17 SDGs/ESG principles and Maqasid al-Shariah are integrated to give a thorough framework for comprehending the disclosure index from western and Islamic ethical viewpoints. The research critically analyses current literature, scholarly works and authoritative sources, drawing inspiration from established approaches. Qualitative content analysis examines and compiles pertinent ideas, and the expert validates the disclosure index. It identifies key convergence, compatibility and divergence points between ESG principles and Maqasid al-Shariah to construct a comprehensive framework for Maqasid-driven ESG integration in Takaful.

Findings

The paper presents a well-defined blueprint for Maqasid-driven ESG integration in Takaful, revealing substantial areas of alignment between the two frameworks. This alignment is particularly pronounced in protecting life, religion, intellect, lineage and wealth. The blueprint underscores the potential of harmonising ESG principles with the principles of Maqasid al-Shariah, providing Takaful operators with a roadmap for enhancing their ethical credibility, societal impact and environmental stewardship.

Research limitations/implications

The blueprint outlined in this study opens new avenues for research at the intersection of Islamic ethics, responsible finance and sustainable development and signals the necessity of developing a standardised disclosure index. This index will serve as a vital tool for Takaful operators to transparently communicate their commitment to ethical and sustainable practices, facilitating a deeper understanding of Maqasid-driven ESG integration and bolstering transparency for all stakeholders. Further research into this disclosure index’s practical implementation, empirical validation and strategic implications is encouraged to advance responsible finance within the Takaful industry.

Practical implications

The proposed blueprint provides Takaful operators with a practical guide to align their operations with both ethical finance and Islamic principles. Embracing the principles of responsible governance, societal welfare and environmental sustainability, Takaful operators can enhance their product offerings, attract socially conscious stakeholders and contribute positively to both financial and ethical objectives.

Social implications

Integrating Maqasid-driven ESG principles in Takaful signifies a commitment to broader social well-being. Through initiatives aimed at safeguarding life, religion, intellect, lineage and wealth, Takaful operators can play a pivotal role in fostering social cohesion, empowering communities and actively contributing to sustainable development goals.

Originality/value

This conceptual paper contributes to the field by presenting a unique blueprint for integrating ESG principles within Takaful operations, guided by Maqasid al-Shariah. The novelty of this approach lies in its holistic perspective on ethical finance, aligning Islamic values with contemporary global ethical imperatives. The blueprint offered here represents an original framework for responsible Takaful practices that resonate with evolving ethical standards and the enduring principles of Islamic finance.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 17 no. 3
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 6 June 2024

Muhammad Ashraf Fauzi, Noor Saadiah Mohd Ali, Nazirah Mat Russ, Fazeeda Mohamad, Mohamed Battour and Nor Nadiha Mohd Zaki

This study aims to evaluate the knowledge structure of halal certification in food and beverages. The growth of the Muslim population and the expanding economic activities among…

Abstract

Purpose

This study aims to evaluate the knowledge structure of halal certification in food and beverages. The growth of the Muslim population and the expanding economic activities among the Muslim community have necessitated extensive and comprehensive halal certification, particularly in food and beverage products.

Design/methodology/approach

Through a science mapping approach, this study explores the knowledge structure based on past publications in food and beverages and its association with halal certification, logos and brands. Applying bibliographic coupling and co-word analysis, the present and future trends of halal certification in food and beverages are explored by presenting a network visualization to present the underlying themes and research streams.

Findings

The main finding from recent and emerging themes shows that the pivotal perspective is increasing consumers’ knowledge and awareness of halal-certified food products. Future trends stemming from the co-word analysis suggest the importance of exploring consumer halal food product determinants.

Originality/value

This study is relevant to stakeholders, scholars and practitioners, particularly in disseminating information and voice on the importance of halal-certified food products that are recognized as having better quality and contributing to environmental sustainability.

Details

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

Keywords

Article
Publication date: 23 September 2024

Aishath Muneeza, Sherin Kunhibava, Ismail Mohamed and Zakariya Mustapha

The primary objective of this research is to introduce a pioneering takaful model that provides both provision and protection to the aging population by combining the concept of…

Abstract

Purpose

The primary objective of this research is to introduce a pioneering takaful model that provides both provision and protection to the aging population by combining the concept of cash waqf with takaful. This model is designed to align with Shariah principles, ensuring sustainability and enduring impact.

Design/methodology/approach

This research adopts a qualitative methodology, where a focus group discussion was conducted with six stakeholders. The participants consisted of takaful operators, legal experts and other industry players. The participants were presented with the proposed cash waqf takaful model and their feedback was recorded. Legal issues related to linking waqf with takaful were also identified and discussed.

Findings

The study highlights the need for innovative financial solutions to support Malaysia's aging population. It proposes a cash waqf takaful model, leveraging crowd funding for sustainability. Legal hurdles and recommendations for overcoming them are discussed, along with suggestions for future research on quantitative validation and regulatory frameworks. Ultimately, the study emphasizes the holistic approach of the proposed model in addressing the well-being of Malaysia's senior citizens.

Practical implications

The proposed takaful model presents opportunities for takaful operators to integrate Islamic social finance into their operations, enabling easier access to takaful for the elderly community. By eliminating financial barriers, it can transform the takaful landscape, ensuring inclusivity and financial security for aging populations. Moreover, policymakers see it as a blueprint for sustainable financial solutions and social welfare enhancement globally.

Originality/value

The study introduces a novel cash waqf takaful model to support Malaysia's aging population, leveraging crowdfunding for sustainability. It addresses legal challenges unique to Malaysia and proposes collaboration with State Islamic Religious Authorities. Furthermore, it emphasizes the need for further research to validate the model's effectiveness and explores its potential global policy implications.

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: 13 October 2023

Rakhi Singh and Priyanka Sihag

This study evaluated the bundled impact of high performance work practices (HPWPs) on Generation Y (Gen Y) employee engagement (EE) while considering empowering leadership (EL) as…

Abstract

Purpose

This study evaluated the bundled impact of high performance work practices (HPWPs) on Generation Y (Gen Y) employee engagement (EE) while considering empowering leadership (EL) as a mediator.

Design/methodology/approach

The data for the study are received from 404 Gen Y frontline service employees from three to five star Indian hotels and examined using structural equation modeling.

Findings

Gen Y employees' perception of HPWPs directly explains their engagement, and EL partially mediates the link between HPWPs and Gen Y EE.

Research limitations/implications

This study suggests managers to gain from implementing HPWPs and their impact on Gen Y engagement to boost their organizational performance.

Practical implications

This study suggests managers to gain from implementing HPWPs and their impact on Gen Y EE to boost their employee and hotel's performance.

Originality/value

The present research is one of the few attempts to study how HPWPs can engage the Gen Y cohort in the workplace, especially in developing countries (i.e. India).

Details

Journal of Hospitality and Tourism Insights, vol. 7 no. 4
Type: Research Article
ISSN: 2514-9792

Keywords

Article
Publication date: 10 June 2024

Agus Hartanto, Nachrowi Djalal Nachrowi, Palupi Lindiasari Samputra and Nurul Huda

This paper aims to analyze the scientific trend of research on Islamic banking sustainability (IBS) through a bibliometric study. In particular, the paper extensively investigates…

Abstract

Purpose

This paper aims to analyze the scientific trend of research on Islamic banking sustainability (IBS) through a bibliometric study. In particular, the paper extensively investigates all the articles issued through the Scopus database regarding the IBS.

Design/methodology/approach

The authors discovered 76 papers that met the function, subject and set requirements by using the phrase IBS. The authors used VOSviewer as an analytical tool and the Scopus website.

Findings

IBS publications were found in the period 2005–2022, and the publication trend of IBS research demonstrates that it is growing exponentially after 2018. Malaysia is the leading country in terms of productive authors, universities, number of documents, citations and collaboration research on IBS. The current research trends are summarized into five cluster maps for future research directions: sustainability measurement, sustainability practices, risk and governance, corporate social responsibility (CSR) and IBS theory. The Maqashid al Shariah approach conceptually influences the framework for constructing the dimensions and indicators used to measure the IBS.

Research limitations/implications

The authors retrieved data for their research from the Scopus database; using other databases might result in totally different research patterns with this IBS bibliometric research.

Practical implications

The research encompasses valuable implications for Islamic banking as it offers valuable insights on how to assess the performance of IBS. Particularly, it contributes to identifying the dimensions and indicators needed to measure IBS performance. Furthermore, this research provides strategic initiatives to promote sustainable practices in Islamic banking in terms of green financing taxonomy, services, operations, risk management and governance.

Social implications

This research is valuable for other scholars as it offers a foundation for the future growth of IBS research, focusing on important sustainability clusters obtained from selected reputable journals. This research is beneficial for regulators in enhancing the roadmap for establishing and enhancing long-term IBS with impacts on socio-economic, environmental and governance.

Originality/value

The study presents a concise review of the bibliometric study in IBS and provides recommendations for future research directions in cluster mapping of themes and subthemes. There is still insufficient research that examines the IBS, in particular, complete insights into the IBS literature review.

Details

Journal of Islamic Marketing, vol. 15 no. 9
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 31 July 2023

Nimitha Aboobaker and Zakkariya K.A.

This study investigates how the spiritual leadership style of a manager affects employees' intention to stay with the organization, taking into account the post-pandemic workplace…

Abstract

Purpose

This study investigates how the spiritual leadership style of a manager affects employees' intention to stay with the organization, taking into account the post-pandemic workplace and the expected economic downturn. Furthermore, this study aims to assess how employee voice behavior mediates the linkages between the spiritual leadership style and intention to stay and how this mediation is influenced by perceived interpersonal justice. Grounded on the self-determination theory of intrinsic motivation and social-exchange theory, this study seeks to advance the theoretical understanding of spiritual leadership and its associated outcomes.

Design/methodology/approach

The descriptive study included 379 frontline employees in India's tourism and hospitality sector. Responses were collected from selected employees using the snowball sampling method and met strict inclusion criteria. Self-reporting questionnaires were used to collect data from the participants. Confirmatory factor analysis was conducted using IBM AMOS 21.0, and hypothesis testing and drawing inferences were carried out using path analytic procedures with PROCESS Macro 3.0.

Findings

Consistent with the hypotheses presented in this paper, this study demonstrated a statistically significant indirect impact of spiritual leadership on employees' intention to stay with the organization, through indirect effects of employee voice behavior. Additionally, the conditional indirect effects of spiritual leadership on employees' intention to stay, mediated by voice behavior, were contingent upon the level of interpersonal justice as a moderator. Specifically, these effects were significant when the levels of interpersonal justice were low but not when they were high.

Originality/value

This study makes significant strides in developing and testing a pioneering model that examines the association between spiritual leadership and employees’ intention to stay with the organization. This research explores explicitly how this relationship is influenced by perceived interpersonal justice and employee voice behavior. The results of this study emphasize the criticality of cultivating a culture that inspires constructive criticism and elucidates its potential advantages, effectively bridging a gap in the existing scholarly literature.

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