Search results
1 – 10 of 11Faisal Abbas, Shoaib Ali and Muhammad Tahir Suleman
This study examined how economic freedom and its related components, such as open markets, regulatory efficiency, rule of law and the size of government, affect bank risk…
Abstract
Purpose
This study examined how economic freedom and its related components, such as open markets, regulatory efficiency, rule of law and the size of government, affect bank risk behavior, focusing on the Japanese context.
Design/methodology/approach
The study employs a two-step GMM framework on the annual data of Japanese banks ranging from 2005 to 2020 to empirically test the hypotheses. Furthermore, we also use the ordinary least square method to ensure the robustness of our mainline findings.
Findings
The finding suggests that economic freedom increases the banks' risk-taking, thus making them fragile. The results also highlight that out of the four main subcomponents of economic freedom, regulatory efficiency and government size increase bank risk-taking, while the rule of law and open markets decrease banks' risk-taking. Additionally, we examine how the banks' specific characteristics affect the results by creating a subsample based on capitalization and liquidity ratios. Overall, the results are consistent with the baseline findings. Moreover, the results are robust to alternative proxy measures of risk.
Practical implications
The study's findings have several implications for regulators and policymakers. The results suggest that regulators and policymakers should reconsider their strategies for economic freedom to ensure that they promote stability in the banking system and reduce banks' risk-taking inclinations.
Originality/value
Although previous studies have examined the impact of economic freedom on bank stability and risk-taking, this study is the first to do so in the Japanese context, contributing to the literature by providing new insights and empirical evidence.
Details
Keywords
Md Badrul Alam, Muhammad Tahir and Norulazidah Omar Ali
This paper makes a novel attempt to estimate the potential impact of credit risk on foreign direct investment (FDI hereafter), thereby focusing on a completely unexplored area in…
Abstract
Purpose
This paper makes a novel attempt to estimate the potential impact of credit risk on foreign direct investment (FDI hereafter), thereby focusing on a completely unexplored area in the existing empirical literature.
Design/methodology/approach
To provide a comprehensive understanding of the relationship between credit risk and FDI inflows, the study incorporates all the eight-member economies of the South Asian Association of Regional Cooperation (SAARC hereafter) and analyzes a panel data set, over the period 2011 to 2019, extracted from the World Development Indicators, using the suitable econometric techniques for the efficient estimations of the specified models.
Findings
The results indicate a negative and statistically significant relationship between the credit risk of the banking sectors and FDI inflows. Similarly, market size and inflation rate appear to be the two other main factors behind the increasing FDI inflows in the SAARC member economies. Interestingly, the size of the market became irrelevant in attracting FDI inflows when the Indian economy is excluded from the sample due to its higher economic weight. On the other hand, FDI inflows are not dependent on the level of trade openness, with most of the specifications showing either an insignificant or negative coefficient of the variable.
Practical implications
The obtained results are unique and robust to alternative methodologies, and hence, the SAARC economies could consider them as the critical inputs in formulating the appropriate policies on FDI inflows.
Originality/value
The findings are unique and original. The authors have established a relationship between credit risk and FDI for the first time in the SAARC context.
Details
Keywords
Muhammad Naveed Khan, Piyya Muhammad Rafi-ul-Shan, Pervaiz Akhtar, Zaheer Khan and Saqib Shamim
Achieving social sustainability has become a critical challenge in global supply chain networks, particularly during complex crises such as terrorism. The purpose of this study is…
Abstract
Purpose
Achieving social sustainability has become a critical challenge in global supply chain networks, particularly during complex crises such as terrorism. The purpose of this study is to explore how institutional forces influence the social sustainability approaches of logistics service providers (LSPs) in high terrorism-affected regions (HTAR). This then leads to investigating how the key factors interact with Institutional Theory.
Design/methodology/approach
An exploratory multiple-case study research method was used to investigate six cases of different-sized logistics LSPs, each in an HTAR. The data was collected using semistructured interviews and triangulated using on-site observations and document analysis. Thematic analysis was used in iterative cycles for cross-case comparisons and pattern matching.
Findings
The findings interact with Institutional Theory and the three final-order themes. First, management processes are driven by coopetition and innovation. Second, organizational resources, structure and culture lead to an ineffective organizational design. Finally, a lack of institutionalization creates institutional uncertainty. These factors are rooted in many other first-order factors such as information sharing, communication, relationship management, capacity development, new process developments, workforce characteristics, technology, microlevel culture and control aspects.
Originality/value
This study answers the call for social sustainability research and enriches the literature on social sustainability, Institutional Theory and LSPs in HTARs by providing illustrations showing that institutional forces act as driving forces for social sustainability initiatives by shaping the current management processes. Conversely, the same forces impede social sustainability initiatives by shaping the current organizational designs and increasing institutional uncertainty.
Details
Keywords
Muhammad Muflih, Muhamad Zen, Radia Purbayati, Kristianingsih Kristianingsih, Hennidah Karnawati, Bambang Iswanto and Endang Hatma Juniwati
This study evaluates the integrative role of justice theory, religiosity, satisfaction and trust in influencing customer loyalty to Islamic mobile banking.
Abstract
Purpose
This study evaluates the integrative role of justice theory, religiosity, satisfaction and trust in influencing customer loyalty to Islamic mobile banking.
Design/methodology/approach
This study surveyed 370 customers who used Islamic mobile banking. The authors employed SEM-PLS to estimate the proposed model and answer the hypotheses.
Findings
Empirical facts show that distributive justice, procedural justice and interactional justice can increase loyalty through the role of satisfaction. On the other hand, distributive justice, procedural justice and religiosity can predict loyalty through the role of trust.
Practical implications
This study encourages Islamic mobile banking providers to improve the quality of benefit distribution, the application of procedures and interaction among all levels of users. In addition, religious education innovation is also important to increase customer activity in using Islamic mobile banking.
Originality/value
Until now, none of the studies have estimated the loyalty of Islamic mobile banking users based on the integrative roles of justice theory, religiosity, satisfaction and trust. It, therefore, highlights the originality of this study.
Details
Keywords
Krar Muhsin Thajil and Hadi Al-Abrrow
Following the theory of emotional events, this paper aims to use the bright triad and the dark tetrad as representations to investigate the role of positive and negative…
Abstract
Purpose
Following the theory of emotional events, this paper aims to use the bright triad and the dark tetrad as representations to investigate the role of positive and negative personality patterns in achieving positive and negative innovation. The study also examines the mediating role of emotional intelligence and abusive supervision and the interactive role of emotional exhaustion in understanding the relationship between positive and negative personality patterns and positive and negative innovation.
Design/methodology/approach
To test the hypotheses of the study model, a set of questionnaires was distributed to a sample of 500 medical officers working in different departments of public hospitals in southern Iraq. The data were analysed using the structured equation model.
Findings
The results of the current study confirm previous studies on emotional intelligence because the bright triad negatively associates with negative innovation and positively associates with positive innovation. Meanwhile, the dark tetrad positively associates with negative innovation through abusive supervision, and that emotional exhaustion reinforces the negative side and weakens the positive side of the relationships.
Originality/value
This study contributes to the literature by emphasising that the values represented by the bright triad have a strong readiness to show positive innovation and immunity to negative influence caused by abusive supervision. Meanwhile, the negative emotions of the dark tetrad pattern result in negative patterns because they correlate with negative innovation and the avoidance of positive behaviour, which is escalated by abusive supervision.
Details
Keywords
Upon the premises of social exchange theory (SET), this study aimed at hypothesizing and examining a serial mediation model that investigated the underlying mechanism through…
Abstract
Purpose
Upon the premises of social exchange theory (SET), this study aimed at hypothesizing and examining a serial mediation model that investigated the underlying mechanism through which a high-performance work system (HPWS) affects individuals’ future time perspective (FTP).
Design/methodology/approach
The hypothesized relationships were examined using responses collected from 275 employees from 15 local private banks and 40 established branches through a proportionate stratified sampling technique. The statistical package for social sciences (SPSS) PROCESS macro 3.0 and analysis of moment’s structure (AMOS) 24.0 were employed for data analysis purposes.
Findings
The study revealed that HPWS is indirectly related to the individuals’ FTP through workplace social courage (WSC) and employee well-being (EWB) sequentially. Prescriptions for theoretical and managerial implications were discussed, and future research viewpoints with limitations were acknowledged.
Originality/value
This study illuminated the underlying mechanism and theoretical logic linking HPWS and individuals’ FTP by proposing the serial mediating effect of WSC and EWB.
Details
Keywords
Muneer Ahmad, Muhammad Bilal Zafar and Abida Perveen
This study aims to investigate the comparative importance of factors influencing the customer shift behavior from conventional to Islamic banking for consumer finance in Pakistan.
Abstract
Purpose
This study aims to investigate the comparative importance of factors influencing the customer shift behavior from conventional to Islamic banking for consumer finance in Pakistan.
Design/methodology/approach
First, a comprehensive analysis of the existing literature was conducted to identify a broad range of factors related to customer shift behavior. Through an expert sampling, 14 essential factors were chosen for further investigation. Second, a questionnaire was developed using the analytical hierarchy process (AHP). This questionnaire was then distributed among customers who had previously been using conventional banking services but had made a shift toward Islamic banking. The purpose of this questionnaire was to gather data and insights regarding their motivations and decision-making process behind the shift, and a sample 215 customers are taken in the study.
Findings
The results of AHP depicts that the religiosity is a most important factor influencing customers to shift from conventional to Islamic banking, and the second most important factor is pricing. The other subsequent important factors are reputation of the bank, marketing and promotion, service quality, behavior of banks staff, Shariah compliance, management, convenience, fastness and charges/fees. Whereas documentation, ambiance and recommendation are found least important factors to patronize Islamic banking.
Practical implications
The study recommends Islamic banks to create awareness, concentrating on religious factor to have a greater impact on growth of Islamic banking and shrinking of conventional banking. Further, it suggests Islamic banks to apply Shariah-recommended approach of doing business, to help community in best possible way and to launch differentiated marketing techniques to attract customers. It also proposes regulatory authorities to provide facilitation to Islamic banking business by providing level playing field similar to conventional banking, tax equality and conversion of public financing from conventional banking to Islamic banking.
Originality/value
The originality of this study lies in its comprehensive analysis of factors influencing consumer shift behavior from conventional to Islamic banking in the context of consumer finance in Pakistan. By using the AHP, the study provides a structured approach to understanding the relative importance of these factors. This is the uniqueness of the paper that it applies the AHP for the analysis. Furthermore, the study offers practical implications for Islamic banks and regulatory authorities to effectively address and capitalize on this consumer shift trend.
Details
Keywords
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
Keywords
Despite being a Muslim-dominated country, Bangladesh has widely embraced traditional microfinance since its inception in the mid-1970s. However, Islamic microfinance, which has a…
Abstract
Purpose
Despite being a Muslim-dominated country, Bangladesh has widely embraced traditional microfinance since its inception in the mid-1970s. However, Islamic microfinance, which has a lot to offer to the poor, is still in its infancy and has yet to gain momentum in the country. Therefore, the purpose of this study is to analyze the importance of Islamic microfinance and propose alternative Shariah-compliant microfinance models in Bangladesh.
Design/methodology/approach
This study is based on the desk research method, which relies on existing literature to collect secondary data on key concerns of traditional microfinance programs. In addition, institutional-level secondary data were also collected from the Microcredit Regulatory Authority (MRA) of Bangladesh. Guided by the Maqasid-al-Shariah, this study then proposes several Islamic microfinance models to overcome selected challenges faced by the microfinance industry in Bangladesh.
Findings
This study suggested three composite Shariah-compliant microfinance models, which are likely to help the underprivileged and thus ensure the achievement of the sustainable development goals in Bangladesh. The first model explained how the operational strategy of incumbent microfinance institutions (MFIs) could be restructured, while the second proposed the organizational strategies for establishing a new MFI. The third model used the notion of Sadaqah (charity) to address the multiple borrowing issues of the industry. Meanwhile, the successful transformation of the conventional microfinance industry to an Islamic one is dependent on the effective collaboration between the regulatory authorities, practitioners and MFIs.
Originality/value
Albeit the paucity of literature on the topic, the findings of this study will guide policymakers/practitioners in designing relevant microfinance models to help transform conventional microfinance into Islamic microfinance in Bangladesh.
Details
Keywords
Aamir Rashid, Rizwana Rasheed and Abdul Hafaz Ngah
Green practices are essential for sustainability. However, it is challenging due to the socioeconomic and environmental concerns. Similarly, after the induced SDG-12 and SDG-13 by…
Abstract
Purpose
Green practices are essential for sustainability. However, it is challenging due to the socioeconomic and environmental concerns. Similarly, after the induced SDG-12 and SDG-13 by United Nations, the pressure groups forced manufacturers to consider sustainability. Therefore, this research aims to examine the sustainability through multifaceted green functions in manufacturing is examined.
Design/methodology/approach
Data were collected from 293 supply chain professionals of manufacturers from a developing economy. Hypotheses were tested through a quantitative method using partial least squares-structural equation modeling with the help of SmartPLS version 4 to validate the measurement model.
Findings
The findings revealed that all six direct hypotheses were supported. However, out of four hypotheses of mediation, one was not supported. Besides, a sequential mediation of green supply chain environmental cooperation and green human resource management was supported. The findings illustrated that green supply chain practices positively influence all used variables.
Research limitations/implications
This research provides practical insight to practitioners to implement green practices in their supply chain networks for social, economic and environmental sustainability and compliance with SDG-12 and SDG-13. The sustainability was validated in a higher-order construct (HOC) (formative), including sequential mediation in the model with the support of resource dependency theory. Therefore, this study adds substantial literature to the existing body of knowledge.
Originality/value
This research provides an interdisciplinary framework by adding knowledge to the Resource Dependency Theory to address Sustainable Development Goals-12 (SDGs) and SDG-13. Likewise, this research provides an extension towards the body of knowledge on the issue, which can be used in future research and critical examinations for cleaner and sustainable production. So far, in Pakistan, no research has looked at the function of these integrated variables in the manufacturing industry with a diligent focus on sustainability as it was validated in a higher-order construct (formative) with one sequential mediation, which makes this research unique.
Details