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Article
Publication date: 15 February 2024

Aamir Rashid, Rizwana Rasheed, Abdul Hafaz Ngah, Mahawattage Dona Ranmali Pradeepa Jayaratne, Samar Rahi and Muhammad Nawaz Tunio

Supply chain (SC) management is more challenging than ever. Significantly, the pandemic has provoked global and economic destruction that appeared in the manufacturing industry as…

Abstract

Purpose

Supply chain (SC) management is more challenging than ever. Significantly, the pandemic has provoked global and economic destruction that appeared in the manufacturing industry as a “black swan.” Therefore, the purpose of this study was to examine the role of information processing and digital supply chain in supply chain resilience through supply chain risk management.

Design/methodology/approach

This study examines SC risk management and resilience from an information processing theory perspective. The authors used data collected from 251 SC professionals in the manufacturing industry, and the authors used a quantitative method to analyze the data. The data was analyzed using partial least squares-structural equation modeling. To confirm the higher-order measurement model, the authors used SmartPLS version 4 software.

Findings

This study found that information processing capability (disruptive orientation and visibility in high-order) and digital SC significantly and positively affect SC risk management and resilience. Similarly, SC risk management positively mediates the relationship between information processing capability and digital SC. However, information processing capability was found to have a more substantial effect on SC risk management than the digital SC.

Research limitations/implications

This study has both academic and practical contributions. It contributed to existing information processing theory, and manufacturing firms can improve their performance by proactively responding to SC disruptions by recognizing the pivotal role of study variables in risk management for a resilient SC.

Originality/value

The conceptual model of this study is based on information processing theory, which asserts that synchronizing information processing capabilities and digital SCs allows a firm to deal with unplanned events. SC disruption orientation and visibility are considered risk controllers as they allow the firms to be more proactive. An integrated model of conceptualizing the disruption orientation, visibility (higher-order) and digital SC with information processing theory makes this research novel.

Details

Journal of Global Operations and Strategic Sourcing, vol. 17 no. 2
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 17 April 2024

Muhammad Bilal Zafar

This paper aims to meta-analyze the results of the prior studies related to the relationship of human capital and financial performance in Islamic banking.

Abstract

Purpose

This paper aims to meta-analyze the results of the prior studies related to the relationship of human capital and financial performance in Islamic banking.

Design/methodology/approach

To examine the relationship between human capital and financial of Islamic banks, 23 empirical studies having sample of 15,607 are considered for the meta-analysis. Moreover, different measures related to financial performance including return on assets (ROA), return of equity (ROE) and Tobin’s Q have been taken as moderating for further subgroup analysis.

Findings

The results of meta-analysis reveal a positive correlation between human capital and financial performance with an effect size of 0.268. The subgroup analyses showed significant positive associations of human capital with ROA and ROE, insignificant with Tobin’s Q.

Originality/value

This study suggests Islamic banking should prioritize human capital development, maintain consistency and adopt a long-term perspective. Future research should consider context-specific factors and harmonize human capital and financial performance measurements for consensus.

Details

Accounting Research Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1030-9616

Keywords

Article
Publication date: 26 March 2024

Syed Quaid Ali Shah, Fong Woon Lai, Muhammad Tahir, Muhammad Kashif Shad, Salaheldin Hamad and Syed Emad Azhar Ali

Intellectual capital (IC) is a paramount resource for competitiveness in the knowledge-based financial sectors of the economy. As financial technology advances, specifically in…

Abstract

Purpose

Intellectual capital (IC) is a paramount resource for competitiveness in the knowledge-based financial sectors of the economy. As financial technology advances, specifically in the banking industry, it is vital to understand the effect of IC on financial performance. This study aims to investigate the effect of IC on return on equity (ROE), with a unique emphasis on the moderating role of board attributes. Previous studies have overlooked this moderating role.

Design/methodology/approach

The study sample consists of 17 banks and a panel data set spanning 2016–2021, extracted from annual reports. Antel Pulic’s value-added intellectual coefficient (VAIC) model is used to compute IC. To analyze the data, a generalized least squares analysis is conducted. The robustness of the analysis is ensured by using the two-stage least squares (2SLS) econometric technique.

Findings

The findings indicate that both the VAIC and human capital efficiency (HCE) have a significant impact on the ROE of banks. In terms of moderation, it is observed that board size (BS) exerts a negative effect on the association between VAIC, HCE, structural capital efficiency and ROE. Additionally, BS positively compounds the connection between capital employed efficiency and ROE. Similarly, the presence of independent directors (IND) significantly moderates the effects of VAIC and its components on the ROE of banks in Pakistan.

Practical implications

Banks should focus on the HCE for a higher ROE. Moreover, banks ought to prioritize appointing more independent directors in the boardroom for effective utilization of IC and greater ROE.

Originality/value

The findings of the study, which analyzed data from Pakistan’s banking sector, are original and provide additional insights into the literature on IC and board attributes.

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: 18 April 2023

Abdul Rashid, Muhammad Akmal and Syed Muhammad Abdul Rehman Shah

This study aimed at exploring the differential effects of different corporate governance (CG) indicators on risk management practices in Islamic financial institutions (IFIs) and…

Abstract

Purpose

This study aimed at exploring the differential effects of different corporate governance (CG) indicators on risk management practices in Islamic financial institutions (IFIs) and conventional financial institutions (CFIs) of Pakistan. It also investigated the moderating role of institutional quality (IQ) in shaping the effects of CG practices on financial institutions of Pakistan.

Design/methodology/approach

A sample of 57 financial institutions including commercial banks, insurance companies and Modarba companies over the period 2006–2017 is used to carry out the empirical analysis. The authors applied the robust two-step system-generalized method of moments estimator, which is also called the dynamic panel data estimator. They also built the PCA-based composite index of CG and IQ by using different indicators to investigate the moderating role of IQ. They used three proxies for risk taking, five for CG and one for Shari’ah governance. To test the validity of the instruments, they applied the Arellano and Bond’s (1991) AR (1) and AR (2) tests and the J-statistic of Hansen (1982).

Findings

The results provided strong evidence that several individual characteristics of CG and the composite index are significantly related to the operational risk, the liquidity risk and the Z-score (a proxy for solvency risk). The results also revealed that IQ significantly and substantially contributes in reducing the level of risks. Finally, the estimation results indicated that the effects of CG on risk management are significantly different at IFIs and CFIs. This differential impact is mainly attributed to the fundamental differences in business models, operational strategies and contractual obligations of both types of institutions.

Practical implications

The findings of this study are important for enhancing our understanding of how CG relates to risk taking in Islamic and conventional financial services industries and how good quality institutions are important for formulating the governance effects on the risk-taking behavior of financial institutions. The findings suggest that a suitable size of board should be chosen to manage the risk effectively. As the findings show that the risk-taking behavior of IFIs differs from that of CFIs, the regulators and international standard setting bodies should tailor the regulatory frameworks accordingly.

Originality/value

This paper is different from the existing studies in four aspects. First, to the best of the authors’ knowledge, this is the first empirical investigation in Pakistan, which does the comparison of IFIs and CFIs while examining the impacts of CG on risk management. Second, the paper constructs the composite index of CG by considering several different indicators of governance and examines the combined effect of governance indicators on risk management process. Third, this paper adds to the growing literature on the role of IQ by investigating whether it acts as a moderator between CG structures and risk management and if yes, then whether this moderating role is different for IFIs and CFIs. Finally, the paper builds upon the existing research work on the CG effects for different types of financial institutions by proposing a single regression based analytical framework for comparing the effects across two different types of institutions, harvesting the benefits of higher degrees of freedom and avoiding/minimizing the measurement error.

Details

Journal of Islamic Accounting and Business Research, vol. 15 no. 3
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 12 April 2024

Mohammad Saud Khan, Bronwyn Pamela Wood, Sarfraz Dakhan and Asif Nawaz

This paper aims to examine female entrepreneurship perceptions at the nexus of understandings of Muslim behaviour in Pakistan, the “formula” of Shapero for considering…

Abstract

Purpose

This paper aims to examine female entrepreneurship perceptions at the nexus of understandings of Muslim behaviour in Pakistan, the “formula” of Shapero for considering entrepreneurial intentions and the viewpoints of young Pakistani women.

Design/methodology/approach

Data collected from 555 women between 18 and 30 years of age, undertaking tertiary-level business studies in Pakistan constitute the sample of the study, and structural equation modelling was used to test the hypotheses.

Findings

This study finds that the respondents’ perceptions of Islam positively impact the formula at the feasibility component, whilst also inverting the desirability component, therefore, resulting in a “does not equal” outcome for intentions.

Originality/value

To the best of the authors’ knowledge, this work is one of the first to empirically examine the role of Islamic perception in shaping entrepreneurial intentions through the individual components of desirability, feasibility and propensity to act. It puts forth contextual deliberations for a meaningful heterodoxy in light of female entrepreneurship in an Islamic country.

Details

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

Keywords

Article
Publication date: 15 May 2023

Annisa Adha Minaryanti and Muhammad Iman Sastra Mihajat

The purpose of this paper is to systematically review the study of the relationship between sharia governance (SG), which is represented by the Sharia Supervisory Board (SSB), and…

Abstract

Purpose

The purpose of this paper is to systematically review the study of the relationship between sharia governance (SG), which is represented by the Sharia Supervisory Board (SSB), and internal sharia compliance, and whether it can affect the performance of Islamic banking.

Design/methodology/approach

Literature search consists of two steps: random literature review and systematic literature review. The methodology adopted in this article is a systematic literature review.

Findings

The variable of internal sharia compliance, sharia risk and internal sharia audit on one of the indications of SG newly researched variable which will later be used as a new paradigm, to measure the implementation of Islamic sharia principles in sharia banking.

Practical implications

The development of a conceptual framework by using measurement of the new SG has practical implications for sharia bank, which can later be applied to also increase sharia banking performance by complying with Islamic sharia principles. This new concept can be used as a reference by the Financial Service Authority (Otoritas Jasa Keuangan) to establish regulations regarding SG framework, especially in Indonesia.

Originality/value

Further research can add more of it or replace it with other variables that are more relevant, in such a way that it could be empirically tested on how the independence and remuneration (lit. performance allowance) of SSB and the internal sharia control team can affect the performance of sharia banks.

Details

Journal of Islamic Accounting and Business Research, vol. 15 no. 4
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 3 April 2024

Muhammad Nazir and Shahab E. Saqib

Considering the speedy growth of Islamic finance and limited research work on Muslim behavior regarding Islamic Banking, this study aims to investigate to comprehend the stimulus…

Abstract

Purpose

Considering the speedy growth of Islamic finance and limited research work on Muslim behavior regarding Islamic Banking, this study aims to investigate to comprehend the stimulus of religiosity on customer’s behavior.

Design/methodology/approach

A conceptual model is developed on existing literature. The key dimensions of religiosity in the model include practice, knowledge, experience and consequences to capture the whole religiosity of customers. Model of the study investigates the impact of customer’s religiosity on their behavior in decision-making about selection of Islamic bank. Analysis of the study is based on the sample of 370 customers of Islamic banks from District Nowshera Khyber Pakhtunkhwa, Pakistan. The data for the study collected through random sampling by a comprehensive survey questionnaire. Binary logistic model is used to test the data for statistical analysis.

Findings

The key findings of the study suggest that religiosity influence customer behavior positively in decision-making regarding Islamic finance. Service standards of Islamic banking has also significant impact on customer perception, while the financial education of the customers has insignificant impact on customer behavior.

Research limitations/implications

This study mainly focused on the curiosity of the customer religious commitment, so religiosity is a vast phenomenon; there are deep sections in each dimension of religiosity, so further study is suggested for the comprehensive capture of each dimension of religiosity.

Practical implications

The results of the study have a great importance for the managers of Islamic finance industry to identify and detect the potential customers and divide the target market of banking industry on the base of religiosity. Furthermore, the study may bring significant managerial suggestions for marketing planners and can help them in market segmentation strategies.

Originality/value

The study examined the association between Muslim religiosity and Islamic banking customer’s selection behavior. This study spread the understanding of religiosity and its impact on Islamic banking customer’s behavior. Furthermore, the study is valuable to discover the level to which religiosity determines the inclinations of customers. This study helps marketing practitioners and researchers to grow their knowledge about customer’s motives in terms of religious commitment.

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 April 2024

Adeel Tariq, Muhammad Saleem Ullah Khan Sumbal, Marina Dabic, Muhammad Mustafa Raziq and Marko Torkkeli

As sustainable performance has a central role in the small and medium enterprises (SMEs) performance literature, this study aims to examine the influence of networking…

Abstract

Purpose

As sustainable performance has a central role in the small and medium enterprises (SMEs) performance literature, this study aims to examine the influence of networking capabilities in enhancing sustainable performance through knowledge workers’ productivity and digital innovation. It also examines the sequential mediating role of knowledge workers’ productivity and digital innovation on networking capabilities and SMEs’ sustainable performance relationship.

Design/methodology/approach

Data were collected from 308 knowledge workers in the information technology sector and analyzed using the Hayes Process Macro bootstrapping method to test the proposed hypotheses.

Findings

Results indicate that knowledge workers’ productivity and digital innovation individually and sequentially mediate the relationship between networking capabilities and SME’s sustainable (economic and environmental) performance, surprisingly, they do not act as a mediator between networking capability and SME’s social performance. SMEs should prioritize investments in the professional development of their knowledge workers through training and skill enhancement programs. This investment equips knowledge workers with the tools to effectively use the knowledge and resources acquired through networking. Thus, knowledge workers may improve performance by using these resources to tackle challenges.

Research limitations/implications

Although this research focused on this specific context, it is prudent to acknowledge that additional factors may also exert influence on sustainable performance within SMEs, factors that managers may consider when making decisions. Methodologically, the cross-sectional design of this research poses a potential limitation, as it does not allow for the complete elimination of endogeneity concerns. However, it is worth noting that scholars have endorsed the use of cross-sectional data in cases where management researchers aim to expand beyond well-documented and longitudinal data sets.

Practical implications

This research offers practical recommendations for SMEs to improve their sustainable performance through networking. SMEs should seek partnerships with complementary knowledge to improve operations and for other performance-oriented benefits.

Originality/value

This study adds significantly to the literature on sustainable SME performance by studying the interdependent effects of networking capabilities. It also represents the individual and sequential mediation mechanism that links networking capabilities to SME success through knowledge worker productivity and digital innovation.

Details

Journal of Knowledge Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1367-3270

Keywords

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: 12 April 2024

Jiajia Cheng, Lianying Zhang, Mingming He and Yingying Yao

Project-based organizations (PBOs) face challenges to enhance employee work engagement because of dynamic and constant role configuration. Accordingly, this study aims to explore…

Abstract

Purpose

Project-based organizations (PBOs) face challenges to enhance employee work engagement because of dynamic and constant role configuration. Accordingly, this study aims to explore how ethical leadership enhances employee work engagement from a sensemaking perspective.

Design/methodology/approach

This study used a questionnaire-based quantitative research design to collect data from 194 full-time employees in PBOs. The data were analyzed via partial least squares-structural equation modeling (PLS-SEM) technique to test hypotheses.

Findings

The findings show a positive relationship between ethical leadership and work engagement. Additionally, the relationship between ethical leadership and work engagement is mediated by two sensemaking mechanisms, i.e. goal commitment and prosocial.

Originality/value

This study deepens the understanding of how ethical leadership enhances work engagement in PBOs by providing two sensemaking mechanisms. By exploring the sensemaking process through which ethical leaders help employees construct identity, the findings contribute to the current literature on how ethical leadership enhances work engagement in PBOs.

Details

Leadership & Organization Development Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0143-7739

Keywords

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