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Article
Publication date: 23 April 2024

Hajira Liaqat, Ishfaq Ahmed and Sheikh Usman Yousaf

This study aims to explore the phenomenon of Islamic religious communication and how Islamic banks in Pakistan use religion-based communication, along with its expected outcomes.

Abstract

Purpose

This study aims to explore the phenomenon of Islamic religious communication and how Islamic banks in Pakistan use religion-based communication, along with its expected outcomes.

Design/methodology/approach

Transcendental phenomenology approach is opted using a multi-stage data collection strategy consisting of observations, documentary reviews and semi-structural interviews to get deep into the phenomenon in a particular context.

Findings

Findings highlight Islamic religious communication as workplace Islamic da’wah that is majorly categorized into compulsive da’wah, objectics da’wah and impulsive da’wah, serving its role in bringing spirituality to work through work-faith integration.

Research limitations/implications

The finding of the study can be used in planning, formulating and implementing Islamic da’wah-based model to induce spirituality at work.

Originality/value

This study is the first of its type exploring Islamic da’wah in an organizational context as a mean to bring spirituality at work.

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: 30 April 2024

Nurfarahin Mohd Haridan, Ahmad Fahmi Sheikh Hassan and Sabarina Mohammed Shah

This study aims to investigate the pragmatic issues on the radical call for the establishment of an external Shariah auditor (ESA) in the governance framework of Islamic banks…

Abstract

Purpose

This study aims to investigate the pragmatic issues on the radical call for the establishment of an external Shariah auditor (ESA) in the governance framework of Islamic banks (IBs).

Design/methodology/approach

From 11 well-established Malaysian IBs, 16 internal auditors were interviewed to provide an in-depth understanding on how ESA can provide greater assurance to stakeholders in Malaysian IBs.

Findings

This study reported mixed acceptance from internal auditors on the proposed additional governance layer to be undertaken by the ESA. Generally, internal auditors reluctantly agreed that Shariah auditing by the ESA would enhance the quality of Shariah assurance but maintain several practical concerns regarding lack of guidelines on Shariah auditing, the additional cost to be borne by IBs and the possible tensions between the ESA and Shariah board (SB) amid the diverse Shariah interpretations available for experts in the field.

Practical implications

The critical point on the manifestation of an ESA in the contemporary IB practice brought by this study highlights the need for regulation and policy promulgation that embrace a comprehensive approach to Shariah audit process within the religio-ethical dogma of Islamic banking and the pragmatic approach to banking.

Originality/value

This study provides evidence on the expected role and competency of an ESA and explores the implications produced by its implementation in Malaysian IBs. This study also clarifies how IBs should delineate the role of Shariah assurance from SB to ESA.

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

Muhammad Bahrul Ilmi, Muslim Har Sani Mohamad and Ros Aniza Mohd. Shariff

This study aims to investigate the growth of Indonesian Islamic banks and explores organisational growth determinants from different perspectives, namely, organisational climate…

Abstract

Purpose

This study aims to investigate the growth of Indonesian Islamic banks and explores organisational growth determinants from different perspectives, namely, organisational climate, intellectual capital (IC) and organisational service orientation. The study also attempts to develop a model to measure the growth of Islamic banks and uncovers the root causes of the stagnancy in Indonesian Islamic banking.

Design/methodology/approach

The study used survey questionnaires distributed to Islamic bank managers, who were considered representative experts in the field of Islamic banking. The data collected were analysed using the Statistical Package for Social Sciences (SPSS Version 21.0), and two analyses were performed with different strategies to build the regression model, namely, multiple linear regression and automatic linear regression.

Findings

The study found that IC significantly affected Islamic banks’ growth in Indonesia; however, organisational climate and service orientation did not predict such growth. Concerning service orientation as a mediating model, climate or IC had no indirect effect on growth.

Research limitations/implications

This study’s results contribute to fill the gap by analysing the growth of Islamic banks. Hence, the study results will be especially practical and helpful for Islamic bank managers and policymakers to help develop mechanisms for Islamic banks in Indonesia.

Originality/value

By combining the aspects of organisational climate, IC and service orientation from earlier studies and categorising them by organisational growth, together with a comprehensive literature review, the study proposes a model specific to Islamic banks. It also offers new insight and discussion for determining organisational growth in Indonesian Islamic banks.

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: 30 April 2024

Md. Siddique E. Azam, Anis Najiha Ahmad and Haruna Babatunde Jaiyeoba

The purpose of the study is to measure the performance level of halal compliance practices by the halal-certified restaurants in Malaysia and rank and rate them based on several…

Abstract

Purpose

The purpose of the study is to measure the performance level of halal compliance practices by the halal-certified restaurants in Malaysia and rank and rate them based on several dimensions of halal compliance.

Design/methodology/approach

A total of 320 halal restaurants were surveyed. The absolute measurement approach of the analytic hierarchy process (AHP) was applied to rank and rate the restaurants. Finally, ANOVA and independent t-test were applied to assess if there is any significant difference in halal compliance performance between different groups of the respondents.

Findings

The AHP application resulted in only 19 restaurants (5.94%) achieving an “Excellent” rating. A significant difference has been observed between different groups of the respondents regarding their halal compliance performance.

Research limitations/implications

An onsite audit and ranking of all the restaurants in Malaysia were beyond the scope of the study. The research was able to rank only 320 restaurants across Malaysia.

Practical implications

The findings and methodology of the study will provide policymakers with a clear roadmap for establishing a comprehensive rating system in the fields of the halal food industry to enhance the quality and integrity of the halal food management system.

Originality/value

To the best of the authors’ knowledge, this is the first time an empirical approach, like AHP, has been used to determine how Malaysia’s halal-certified restaurants stack up against one another. Similar studies can be carried out in other sectors of the halal industry as well as in similar context.

Details

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

Keywords

Article
Publication date: 17 April 2024

Mohamud Said Yusuf, Khadar Ahmed Dirie, Md. Mahmudul Alam and Isyaku Salisu

The purpose of this study is to investigate the link between corporate social responsibility (CSR) and the amount of trust customers have in Somali Islamic banks. Furthermore, the…

Abstract

Purpose

The purpose of this study is to investigate the link between corporate social responsibility (CSR) and the amount of trust customers have in Somali Islamic banks. Furthermore, the role of gender in CSR activities and Islamic bank clientele is evaluated.

Design/methodology/approach

Throughout February and March 2022, 410 clients of Islamic banks in Somalia were surveyed using a questionnaire. The partial least squares approach and the structural equation model are applied to examine the data.

Findings

Findings indicate that all variables of CSR activities, such as social product, social legal, social needs, social environment and social employees’ responsibility, are influential and significant predictors of trust in Islamic banks in Somalia. Gender inequalities moderate the relationship between social product, social needs, social environment, social employee and trust. Conversely, only social legal responsibility was unaffected by gender differences in Somalia regarding people’s trust in Islamic banks.

Practical implications

A sample from a developing country such as Somalia is useful for shedding light on the outcomes of consumers’ perceptions of and trust in businesses’ CSR in the developing world. Furthermore, this study contributes to knowledge regarding CSR and how it can help the Islamic banking industry. Its findings will be useful to policymakers and regulatory bodies in the banking industry in their efforts to improve CSR.

Originality/value

To the best of the authors’ knowledge, this study is the first empirical investigation of its kind about the understudied relationship among customer trust, CSR efforts and gender in Somalia context. Furthermore, it investigates how gender specifically moderates CSR in the Islamic banking sector in a developing country.

Details

Social Responsibility Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1747-1117

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: 17 April 2024

Annisa Adha Minaryanti, Tettet Fitrijanti, Citra Sukmadilaga and Muhammad Iman Sastra Mihajat

The purpose of this paper is to engage in a systematic examination of previous scholarship on the relationship between Sharia governance (SG), which is represented by the Sharia…

Abstract

Purpose

The purpose of this paper is to engage in a systematic examination of previous scholarship on the relationship between Sharia governance (SG), which is represented by the Sharia Supervisory Board (SSB), and the Internal Sharia Review (ISR), to determine whether the ISR can minimize financing risk in Islamic banking.

Design/methodology/approach

The literature search consisted of two steps: a randomized and systematic literature review. The methodology adopted in this article is a systematic literature review.

Findings

To reduce the risk of financing in Islamic banking, SG must be implemented optimally by making rules regarding the role of the SSB in supervising customer financing. In addition, it is a necessary to establish an entity that assists the SSB in the implementation of SG, namely, the ISR section, but there is still very little research on the role of the SSB and ISR in minimizing financing risk.

Practical implications

Establishing an ISR to assist the SSB in carrying out its duties has direct practical implications for Islamic banking: minimizing financing risks and compliance with Islamic Sharia principles. In addition, new rules regarding the role of SSBs and the ISR in reducing credit risk include monitoring customers to ensure that they fulfill their financing commitments on time. This new form of regulation and review can be used as a reference by the Otoritas Jasa Keuangan or Finance Service Authority to create new policies or regulations regarding SG, especially in Indonesia.

Originality/value

Subsequent research may introduce other more relevant variables, such as empirically testing the competence, independence or integrity of SSB and the ISR team as it attempts to minimize the risk of financing in Islamic banks. In addition, further research is expected to examine whether the SSB or the ISR team has a positive or negative influence on the risk of financing Islamic banks with secondary data.

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: 26 April 2024

Kazi Md Jamshed and Buerhan Uluyol

The main issue is whether customers prefer convenience over Shariah compliance or the opposite when they decide their Islamic banking needs. The purpose of this paper is to…

Abstract

Purpose

The main issue is whether customers prefer convenience over Shariah compliance or the opposite when they decide their Islamic banking needs. The purpose of this paper is to explore why customers adopt Islamic banking products and services: Shariah compliance or convenience?

Design/methodology/approach

Using convenience sampling, 310 respondents’ data were collected through online survey. For testing the fit and hypotheses of the proposed model, AMOS 25 software and Smart-PLS 4.0 software have been used.

Findings

Attitude, Islamic value and convenience have significant determinants of Islamic banking products and services. Shariah compliance has no direct or indirect influence on neither intention nor actual behaviour to adopt Islamic banking services. Furthermore, gender has no such differential effect on the adoption.

Practical implications

Managers and marketers of Islamic banks may benefit from the findings of this study, which demonstrate fresh insights regarding the factors which help in strategy formulations to promote Islamic banking services.

Originality/value

The growth of Islamic banks, branches and windows is remarkable in both Muslim-majority and Muslim-minority countries in the world. This paper postulates the behavioural finance studies in Islamic banking and finance research stream by extending the theory of planned behaviour of Ajzen (1985) as all the three new constructs (Islamic value, convenienc and Shariah compliance) are statistically fit for further studies. However, only Islamic value and convenience are the two significant factors which drive customers to take decision in the proposed model. This study gives insights to the bankers and authority about the consumer behaviour.

Details

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

Keywords

Article
Publication date: 16 April 2024

Yani Permatasari, Suham Cahyono, Amalia Rizki, Nurul Fitriani and Khairul Anuar Kamarudin

This study aims to examine the joint effect of accounting background and cross-membership of Islamic Supervisory Board (ISB) members on bank investment efficiency.

Abstract

Purpose

This study aims to examine the joint effect of accounting background and cross-membership of Islamic Supervisory Board (ISB) members on bank investment efficiency.

Design/methodology/approach

This study uses data collected from 36 Islamic banks across 15 countries globally, spanning the period from 2012 to 2021. This research uses an ordinary least squares regression and a comprehensive set of endogeneity and robustness tests.

Findings

The findings show a negative relationship between the accounting background of ISB members and investment efficiency. However, when ISB members with accounting backgrounds also have ISB cross-memberships, the banks exhibit high investment efficiency. These results suggest that ISB cross-membership plays a crucial role in facilitating Islamic banks’ access to timely information on investment opportunities. This enables ISB members with accounting expertise to thoroughly assess the benefits and risks associated with their investment prospects. These findings imply that ISB members with accounting backgrounds and cross-memberships have greater motivation and thoughtful considerations for making better investment decisions. Consequently, Islamic banks are better positioned to undertake high profitable investment projects, which enhance their investment efficiency.

Practical implications

The current study holds immense value for Islamic bank management in their selection of ISB members who possess an accounting background and cross-membership.

Originality/value

This study delves into a comprehensive investigation of the proficiency, underlying principles and unique characteristics exhibited by ISB members with an accounting background. Moreover, this study acknowledges the burgeoning global prominence of Islamic banks.

Details

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

Keywords

Article
Publication date: 4 April 2024

Novi Puspitasari, Ana Mufidah, Dewi Prihatini, Abdul Muhsyi and Imam Suroso

The purpose of this study include analyzing the conformity between the General Guidelines for the Governance of the Indonesian Sharia Entities (GGG-ISE) and the implementation in…

Abstract

Purpose

The purpose of this study include analyzing the conformity between the General Guidelines for the Governance of the Indonesian Sharia Entities (GGG-ISE) and the implementation in the field and proposing a model of corporate governance for Islamic property developers.

Design/methodology/approach

This research uses a qualitative method with a case study approach. The researcher used a structured interview method and chose a purposive technique to determine the interviewees. This study has seven interviewees representing three Islamic property developer companies in Jember Regency, East Java, Indonesia. Data collection was conducted from June to July 2023, with a duration of about 60 min for each interviewee. The interviews were conducted face-to-face in each interviewee’s residential office.

Findings

The results showed that the companies had implemented several principles of GGG-ISE, namely, ethical and responsible actors, risk management, internal control, compliance, disclosure and transparency by making financial reports, shareholder rights and stakeholder rights, both internal and external stakeholders. Furthermore, this study found that GGG-ISE does not comply with the components of the organizing organ group. This study also found that governance reports have not been implemented in GGG-ISE components. In addition, this study identified a new component that must be present and not found in GGG-ISE, namely, a statement of the use of contracts for mudharib owners and between mudharib owners and stakeholders. Based on these findings, this study proposes a governance model for Islamic property developer companies called the GGG-IPDE.

Originality/value

This research is a pioneer in proposing a corporate governance model for Islamic property developers.

Details

International Journal of Housing Markets and Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8270

Keywords

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