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Article
Publication date: 9 November 2018

Wan Rusni Wan Ismail, Mohhidin Othman, Russly Abdul Rahman, Nitty Hirawaty Kamarulzaman and Suhaimi Bin Ab Rahman

The purpose of this paper is to investigate the extent and the impact of negative electronic word of mouth (eWoM) on Muslim consumers’ tolerance and to look for evidence…

Abstract

Purpose

The purpose of this paper is to investigate the extent and the impact of negative electronic word of mouth (eWoM) on Muslim consumers’ tolerance and to look for evidence on whether it can pose threat to high-tolerance products and cause spillover effect on products in similar category.

Design/methodology/approach

This study used a qualitative method with purposive sampling, and data were collected from 23 Malay Muslim consumers using in-depth interviews.

Findings

Findings from this study clearly showed that consumers’ perception toward effected products can easily be distorted with negative claim which indicates that halal issues are very sensitive to Muslim consumers. The negative eWoM distorts consumers’ perception toward effected product and the effect was also found to escalate into other brands that share similar category as the effected products.

Practical implications

By examining the negative impact of eWoM, it validates the severe impact it has on Muslim consumers, and it is quite obvious that no products are really safe from it, including high-tolerance products. Evidence from this study revealed the importance and the urgency for organizations to handle any rumors immediately because further delay can result from significant loses in sales and can tarnish the brand image.

Originality/value

Negative claims related to the halal product status often sparks negative reactions, especially among Muslim consumers, and despite frequent occurrence of such event, very little information is available on its impact on consumers’ tolerance. Certain products fall under safe product category, or high-tolerance products are also found to be vulnerable to negative impact of eWoM because once the consumers’ trust is shaken, confidence will be replaced by doubt, which often leads to loss of sales and loyalty. It is commonly known that effected products and brand will suffer from this event; however, spillover effect is another side effect of negative eWoM that is not yet highlighted in previous studies.

Details

Journal of Islamic Marketing, vol. 10 no. 2
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 10 February 2021

Md. Kausar Alam, Suhaimi Ab Rahman, Mosab I. Tabash, Oli Ahad Thakur and Sharif Hosen

The main aim of this research is to ascertain the expected duties and performed roles and functions of the Shariah supervisory boards (SSBs) of Islamic banks in Bangladesh.

Abstract

Purpose

The main aim of this research is to ascertain the expected duties and performed roles and functions of the Shariah supervisory boards (SSBs) of Islamic banks in Bangladesh.

Design/methodology/approach

A semistructured face-to-face interview was applied to accomplish the research objectives. In total, data was collected from 17 respondents with a combination of regulators, SSBs, Shariah department executives and experts from the central bank and Islamic banks in Bangladesh.

Findings

This study finds that the expectations of Islamic banks toward SSB members are to provide opinions on Shariah issues, guidelines and decisions regarding the modern banking, practices and delivering of fatwas on the contemporary issues offered by the management to fulfill the demand of the numerous stakeholders. In addition, they can develop Shariah governance (SG) policies and implement those guidelines, approve and develop new products, observe and monitor banking functions, identify problems and outline solutions as well as they should ensure Shariah principles and compliance. The SSBs members perform roles and functions in monitoring and reviewing overall banking activities and functions; reviewing products, services and contracts; preparing SG guidelines; ensuring Shariah principles and compliance; providing opinions on existing SG practices and finally, delivering Shariah resolutions on the overall functions.

Research limitations/implications

This study significantly contributed to the national regulatory bodies by providing suggestions that the existing SG system should be improved to enhance the overall monitoring of SSB and ensure more Shariah compliance in the overall operations of the Islamic banks in Bangladesh.

Originality/value

This is the first research to the best of authors’ knowledge that explores the expected duties and performed roles and functions of the Islamic banks concerning Bangladesh. This study also contributes to the agency, legitimacy and stakeholder theories by outlining the expected and performed roles of SSBs to the Islamic banks and stakeholders.

Details

Journal of Islamic Accounting and Business Research, vol. 12 no. 2
Type: Research Article
ISSN: 1759-0817

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Book part
Publication date: 19 November 2018

Siti Nur Asmad Che Hassan and Asmak Ab Rahman

Purpose – This study analyses the potential of cash waqf for the socio-economic development of Kelantan state. A cash waqf scheme was established by the Kelantan Islamic…

Abstract

Purpose – This study analyses the potential of cash waqf for the socio-economic development of Kelantan state. A cash waqf scheme was established by the Kelantan Islamic Religious Council (Majlis Agama Islam Kelantan or MAIK) in an effort to contribute to the socio-economic development of the Muslim community in that state.

Methodology/approach – A qualitative method of data acquisition through interviews. Among the informants interviewed were persons well versed with waqf and Islamic affairs, and several relevant public persons in Kelantan.

Findings – The results indicate that the people of Kelantan are optimistic about the success of cash waqf, although the implementation of this instrument is still in its infancy there. The socio-economic development factors of the economy, education, well-being, agriculture, health and religious affairs can be improved with the implementation of cash waqf.

Originality/value – This chapter is the first attempt to discuss the potential of cash waqf in Kelantan.

Details

New Developments in Islamic Economics
Type: Book
ISBN: 978-1-78756-283-7

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Article
Publication date: 8 June 2015

Sulistyo Prabowo, Azmawani Abd Rahman, Suhaimi Ab Rahman and Asnarulkhadi Abu Samah

This study aims to explore various factors that hamper halal certification in food service industries in East Kalimantan, Indonesia. World halal business as well as…

Abstract

Purpose

This study aims to explore various factors that hamper halal certification in food service industries in East Kalimantan, Indonesia. World halal business as well as awareness in halal products and services consumption has been growing rapidly for the past few years. However, many industry players have not yet realized those huge potential concepts of halal business. Food service industries such as restaurants and caterings show less concern in putting priority on the issue of halal certification.

Design/methodology/approach

A qualitative data collection technique called nominal group technique (NGT) was used in this study. Four categories of stakeholders participated in this NGT to represent certifying body, consumers, industry player and government. Each category was given a fundamental question: “What factors are hindering restaurant and catering in East Kalimantan, Indonesia, in obtaining halal certification?”

Findings

The authors found that through NGT, the authors can obtain top priority issues to be followed up by the respecting institutions which are concerned. The lack of socialization and information have led to the lack of knowledge and awareness. This is the most important issue addressed by the participants.

Research limitations/implications

This research was conducted to collect data from various stakeholders in East Kalimantan Province of Indonesia. Considering the vast expanse of Indonesia and different level of development in each province, results of this study could not be generalized as Indonesia situation in general.

Practical implications

Halal certification in food service industry gains low interest from industries. This research presents hampering factors in various perspectives and offers some suggestions to overcome those issues accordingly.

Originality/value

It is hard to find research paper discussing halal management from the Indonesian perspective. This paper extends the use of NGT in halal management with the perspectives from many stakeholders in food service industries. It provides a relatively new finding from the Indonesian point of view.

Details

Journal of Islamic Marketing, vol. 6 no. 2
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 9 March 2015

Azmawani Abd Rahman, Ebrahim Asrarhaghighi and Suhaimi Ab Rahman

The purpose of this paper is to add to the body of knowledge about attitude and intention to choose a Halal product. Despite the importance of the Halal cosmetic market…

Abstract

Purpose

The purpose of this paper is to add to the body of knowledge about attitude and intention to choose a Halal product. Despite the importance of the Halal cosmetic market for both producers and consumers, the existing literature focusses on Halal food products, and only a limited number of studies exist about Halal cosmetic products. This study assesses the effects of knowledge and religiosity on attitudes towards Halal cosmetics products, as well as the effect of those attitudes on the intention to buy the Halal cosmetic products. This study also investigates the existence of differences between consumers’ attitudes towards Halal cosmetics and Halal food products.

Design/methodology/approach

This study used a self-administrated questionnaire with closed-ended questions. The questionnaire was distributed using non-probability convenience sampling. At the end of data collection period, a total of 110 usable questionnaires from Muslim respondents over the age of 18 years old were used for further analysis. To assess the relationship between knowledge, religiosity, attitude and intention, a structural equation modeling technique was used. And to investigate the difference between attitude and intention for Halal cosmetic and Halal food products, the pair sample t-test were applied.

Findings

The findings of the study show that the relationship between knowledge and attitude is insignificant, but there is a significant positive relationship between religiosity and attitude. From the lens of theory of reasoned action (TRA), this study indicates that there is a positive relationship between attitude and intention to choose Halal cosmetic products. This study also found a significant difference between consumers’ attitudes towards Halal cosmetics and attitudes towards Halal food products, as well as consumers’ intentions to choose Halal cosmetics and intentions to choose Halal food products among Malaysian consumers. Moreover, the results indicate that Malaysian consumers have more positive attitudes and intentions towards Halal food products than towards Halal cosmetic products.

Research limitations/implications

Because the sample of the study is limited to consumers from one country (Malaysia), it is suggested that the future studies choose their samples from consumers in different countries.

Practical implications

The results of the study give implication to firms competing in the cosmetic industry. Religiosity is one of the main factors that should be taken into account in promoting their cosmetic products. Also, as the relationship between attitude and intention to choose Halal cosmetics is similar to the relationship for Halal foods, marketers may try similar ways to promote both the products. However, the attitude and intention to choose Halal cosmetics is still lower than Halal foods.

Social implications

The result of this study provides an insight for the Malaysian consumers to realize whether knowledge and religiosity have any relationship towards consumers’ attitudes towards Halal cosmetic products. The results also provide information to consumers that they are more likely to have stronger attitudes towards Halal food products than the cosmetic products. This study will be significant to the consumers, the importer and exporter, the producer and marketer and the researcher as well as the government.

Originality/value

This study is the first study which has assessed the antecedents and consequence of consumers’ attitude towards Halal cosmetic products in one model. Moreover, this research is among the first attempts to investigate the significant difference in Malaysian consumers’ attitude and intention between Halal cosmetic and food products.

Details

Journal of Islamic Marketing, vol. 6 no. 1
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 28 June 2011

Marco Tieman

The paper aims to describe the basic requirements of Halal food supply chains in order to ensure the integrity of Halal food at the point of consumption, which is an…

Abstract

Purpose

The paper aims to describe the basic requirements of Halal food supply chains in order to ensure the integrity of Halal food at the point of consumption, which is an obligation for Muslims.

Design/methodology/approach

This exploratory research paper is based on in‐depth interviews to better understand what is Halal, the Islamic sources that are essential for Halal supply chains, and identify the guidelines and principles which are essential for the integrity of Halal supply chains.

Findings

Halal supply chain management is based on avoiding direct contact with Haram, addressing the risk of contamination and ensuring that it is in line with the perception of the Muslim consumer. In particular, the product and market characteristics are important variables in the supply chain management of Halal supply chains. Further empirical research is needed to measure the perception of the Muslim consumer. A better understanding is also required into the principles in organising the Halal supply chain for different markets (Muslim and non‐Muslim countries). There is a need for a Halal supply chain model that is able to describe and optimise Halal supply chains.

Research limitations/implications

Since this paper is an exploratory study, it provides some insights into the considerations in organising Halal supply chains. However, further qualitative and quantitative research is needed in order to provide the industry with concrete tools to design effective Halal supply chains.

Practical implications

In response to the logistics industry that started with Halal logistics solutions, the Halal certified food industries needs to know whether and how to start with a Halal supply chain approach. This paper presented key considerations to address in organising effective Halal supply chains.

Social implications

Halal in non‐Muslim countries is not very well understood, where in logistics only the aspect of avoiding of contact with Haram is addressed mainly through packaging. This article presents a better understanding of Halal and the application of Halal in supply chain management.

Originality/value

There is a lack of academic research in Halal logistics and supply chain management. This exploratory research provides some basic fundamentals on the supply chain management of Halal products.

Details

Journal of Islamic Marketing, vol. 2 no. 2
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 15 November 2018

Syadiyah Abdul Shukor, Fuadah Johari, Kalsom Abd Wahab, Zurina Kefeli @ Zulkefli, Nursilah Ahmad, Mohammad Haji Alias, Asma Abdul Rahman, Nor Masitah Mohd Orip, Patmawati Ibrahim and Mohd Fauzi Abu-Hussin

This paper aims to explore the relationship between integrity, reputation, trust on awqaf institution and intention to endow cash waqf.

Abstract

Purpose

This paper aims to explore the relationship between integrity, reputation, trust on awqaf institution and intention to endow cash waqf.

Design/methodology/approach

Quantitative research using survey questionnaire was conducted. A total of 377 completed survey questionnaires were received and analyzed using structural equation modeling.

Findings

Findings show that integrity and reputation of awqaf institutions have direct impact on endowers’ trust on awqaf institution, which consequently lead to endowers’ intention to endow cash waqf.

Originality/value

This study provides practical information on how awqaf institutions could develop endowers’ trust on awqaf institutions, which will consequently increase the intention of endowers to endow cash waqf.

Details

Journal of Islamic Marketing, vol. 10 no. 2
Type: Research Article
ISSN: 1759-0833

Keywords

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Article
Publication date: 8 May 2017

Issa Salim Moh’d, Mustafa Omar Mohammed and Buerhan Saiti

This paper aims to identify the appropriate model to address the financial challenges in agricultural sector in Zanzibar. Since the middle of 1960, clove production has…

Abstract

Purpose

This paper aims to identify the appropriate model to address the financial challenges in agricultural sector in Zanzibar. Since the middle of 1960, clove production has continually and significantly decreased because of some problems and challenges that include financial ones. The financial intermediaries such as banks, cooperatives and micro-enterprises provide micro-financing to the farmers with high interest rates along with collateral requirements. The numerous programmes, measures and policies adopted by the relevant parties to find out the solutions to the dwindling clove production have failed.

Design/methodology/approach

The authors will review and examine several existing financial models, identify the issues and challenges of the current financial models and propose an appropriate Islamic financing model.

Findings

The numerous programmes, measures and policies adopted by the relevant parties to find out the solutions to the dwindling clove production have failed. This study, therefore, proposed a Waqf-Muzara’ah-supply chain model to address the financial challenge. Partnership arrangement is also suggested in the model to mitigate the issues of high interest rates and collateral that constrains the financial ability of the farmers and their agricultural output.

Originality/value

The contribution of the agricultural sector to the economic development of Zanzibar Islands is considerable. As one of the important agricultural sectors, the clove industry was the economic backbone of the government of Zanzibar. This study is believed to be a pioneering work; hence, it is the first study that investigates empirically the challenges facing the clove industry in Zanzibar.

Details

Humanomics, vol. 33 no. 2
Type: Research Article
ISSN: 0828-8666

Keywords

Content available
Article
Publication date: 21 February 2020

Aishath Muneeza and Zakariya Mustapha

The purpose of this paper is to explore the application of Kafalah in the practice of Islamic banking in Malaysia generally and ascertain applicable rules governing the…

Abstract

Purpose

The purpose of this paper is to explore the application of Kafalah in the practice of Islamic banking in Malaysia generally and ascertain applicable rules governing the application under relevant legislations and Shariah. The study also aims to examine the legislations in the light of Shariah provisions governing Kafalah and propose amendments.

Design/methodology/approach

This is a qualitative research where primary data sources mainly legislations and secondary sources comprising of articles and books on the subject of Kafalah were examined. It is an exploratory legal research that primarily focuses on library studies and adopts doctrinal approach for content analysis of data from the identified sources.

Findings

Kafalah is widely used in Islamic banking in Malaysia with primary or secondary application in structuring such products/services as personal guarantee, bank guarantee, Islamic credit card among others. The substantive law applicable to Kafalah in Islamic banking in Malaysia is the Contracts Act 1950 as decided cases indicate. However, provisions of the Act are at variance with rules of Shariah applicable to Kafalah on absolution of guaranteed debtor, multiple guarantors’ liability towards guaranteed sum as well as recourse and recovery from principal debtor.

Research limitations/implications

This research explored the practice of Kafalah in Islamic banking under Malaysian legal framework based on the available literature. The research does not embody an empirical evaluation.

Originality/value

This research suggests, with respect to the identified issues, an amendment to the Act for clarification as follows: that recourse and recovery from principal debtor is only where creditor has requested guarantor to settle outstanding debt, that presence of surety does not absolve principal debtor from his original liability and that multiple guarantors stand as having equal responsibility towards guaranteed amount. The research findings will assist policy and law makers to harmonize the relevant laws with the Shariah to facilitate sustainable development of Islamic banking.

Details

PSU Research Review, vol. 4 no. 3
Type: Research Article
ISSN: 2399-1747

Keywords

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Article
Publication date: 7 February 2020

Fathullah Asni, Mohd Amirul Mahamud and Jasni Sulong

The purpose of this paper is to implement the istibdal waqf concept using a geographical information system (GIS) for the benefit of socio-economics and Muslim cemetery…

Abstract

Purpose

The purpose of this paper is to implement the istibdal waqf concept using a geographical information system (GIS) for the benefit of socio-economics and Muslim cemetery waqf management. GIS is a technique that provides clearer, precise and faster access to a location based on actual space data. It attempts to analyze the area that one wishes to develop to establish whether it fulfills the criteria set for istibdal.

Design/methodology/approach

This research was conducted qualitatively. The study begins with the development of the concept of istibdal waqf and the concept of GIS. The concept was developed by conducting a literature review of books, articles, newspapers, fatwa and circulars related to istibdal waqf and GIS. After the concept was formed, field studies were conducted on two mosques, namely, Jamek Jelutong Mosque and Masjid Jamek Sungai Nibong because both mosques have gravesites located within their compound. To obtain information on the problems faced by the mosques Jemaah community, researchers have interviewed the Mosque Committee Members and Jemaah Community in both mosques using the unstructured interviewing method. This process is essential in managing both material and spiritual for sustaining socio-economics of the society.

Findings

The results showed that by applying GIS technique could identify new land locations according to the criteria set by istibdal. Additionally, new location environments found through the GIS application can be viewed more clearly and accurately than using the manual method. The findings also revealed that some of the mosque managers and the heirs of the waqf grave land were not open-minded in accepting the istibdal concept of the grave that had been allowed by the Syarak until the process of expanding the mosque was affected. The study also found that the maslahah consideration was considered between doing istibdal waqf and not doing istibdal waqf, the maslahah of doing istibdal waqf is greater because general (umum) maslahah should be prioritized compared to the special (khusus) maslahah. In addition, this effort can appreciate the morality and ethics of waqf donors to donate their wealth or properties for benefit of society.

Research limitations/implications

This study only focuses on Muslim cemetery waqf in Penang Island.

Practical implications

This study is expected to benefit both material and spiritual where Muslim cemetery site can be developed for expanding mosque site and consequently able to accommodate the increasing of Muslim using the mosque.

Originality/value

This study proposes the transformation of the concept of istibdal waqf from the traditional methods to modern and advanced methods using the GIS application. The study also demonstrates how the software for solving the real problem can be used, i.e. the problem of a limited mosque space for sharing space with a cemetery in Penang.

Details

Journal of Islamic Accounting and Business Research, vol. 11 no. 7
Type: Research Article
ISSN: 1759-0817

Keywords

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