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1 – 10 of over 2000Unnikammu Moideenkutty, Y.S.R. Murthy and Asya Al-Lamky
The purpose of this study was to explore the relationship between localization (Omanization) practices and financial performance in Oman.
Abstract
Purpose
The purpose of this study was to explore the relationship between localization (Omanization) practices and financial performance in Oman.
Design/methodology/approach
Firms listed in the Muscat Securities Market were surveyed. Data were obtained from 73 firms. Financial performance data (average ratio of market value to book value) were obtained from published records.
Findings
Results indicated that localization practices were related to financial performance after controlling for size, type of firm, average price earnings ratio of the industry and Omanization levels.
Research limitations/implications
The measure of localization did not specify the level at which Omanization practices are focused on. This is a limitation of this study, and future research must measure localization practices for different levels in the organization.
Practical implications
From a practical perspective, the results of this study suggest that organizations in the Arabian Gulf can enhance their performance by implementing systematic localization human resource management practices. The authors believe that this study makes a significant preliminary contribution to the understanding of localization practices and financial performance in the Arabian Gulf region.
Social implications
These results are encouraging for managers who argue for integrating locals into the workforce rather than engaging in localization practices for public relations purposes. Sincere localization efforts develop local human capital.
Originality/value
Study was conducted in the Sultanate of Oman, an Arabian Gulf country. To the authors’ knowledge, this is the first study of localization practices and financial performance in the Arabian Gulf. This study therefore contributes to and extends the growing literature on localization practices in the Arabian Gulf in general and Oman in particular.
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Moch. Doddy Ariefianto, Irwan Trinugroho, Evan Lau and Bruno S. Sergi
This study aims to cover an important yet largely under-explored topic: the dynamic process of bank liquidity management in a vast developing economy by considering pool of funds…
Abstract
Purpose
This study aims to cover an important yet largely under-explored topic: the dynamic process of bank liquidity management in a vast developing economy by considering pool of funds hypothesis, signaling hypothesis and risk management hypothesis.
Design/methodology/approach
The authors apply the dynamic common correlated effect (DCCE) method with an error correction model format to a long panel datasets of 84 Indonesian banks from January 2003 to August 2019, resulting in 16,800 observations.
Findings
The authors obtain convincing evidence of dynamic liquidity management with an error correction mechanism. The time needed to adjust to a liquidity shock ranges from 2.5 to 3.5 months. The empirical results strongly support the pool of funds and signaling hypotheses, whereas risk management motive appears to have secondary importance.
Practical implications
The regulator should also encourage banks to diversify liquidity management to include interbank money market and off-balance-sheet instruments. The current condition shows that bank liquidity management is strongly correlated with intermediation dynamics and thus is contracyclical. Banks could end up with tight liquidity in a booming economy, which would pose a severe risk to their financial standing.
Originality/value
To authors’ knowledge, this study is the first to analyze bank liquidity management behavior empirically using a panel error correction mechanism. Here, the authors also try to combine a practitioner perspective with a scientific one.
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Ashish Kumar, Shikha Sharma, Ritu Vashistha, Vikas Srivastava, Mosab I. Tabash, Ziaul Haque Munim and Andrea Paltrinieri
International Journal of Emerging Markets (IJoEM) is a leading journal that publishes high-quality research focused on emerging markets. In 2020, IJoEM celebrated its fifteenth…
Abstract
Purpose
International Journal of Emerging Markets (IJoEM) is a leading journal that publishes high-quality research focused on emerging markets. In 2020, IJoEM celebrated its fifteenth anniversary, and the objective of this paper is to conduct a retrospective analysis to commensurate IJoEM's milestone.
Design/methodology/approach
Data used in this study were extracted using the Scopus database. Bibliometric analysis, using several indicators, is adopted to reveal the major trends and themes of a journal. Mapping of bibliographic data is carried using VOSviewer.
Findings
Study findings indicate that IJoEM has been growing for publications and citations since its inception. Four significant research directions emerged, i.e. consumer behaviour, financial markets, financial institutions and corporate governance and strategic dimensions based on cluster analysis of IJoEM's publications. The identified future research directions are focused on emergent investments opportunities, trends in behavioural finance, emerging role technology-financial companies, changing trends in corporate governance and the rising importance of strategic management in emerging markets.
Originality/value
To the best of the authors' knowledge, this is the first study to conduct a comprehensive bibliometric analysis of IJoEM. The study presents the key themes and trends emerging from a leading journal considered a high-quality research journal for research on emerging markets by academicians, scholars and practitioners.
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Abdulazeez Y.H. Saif-Alyousfi, Asish Saha and Rohani Md-Rus
The purpose of this paper is to investigate and compare the impact of oil and gas prices changes on bank deposits at the aggregate as well as at the level of commercial and…
Abstract
Purpose
The purpose of this paper is to investigate and compare the impact of oil and gas prices changes on bank deposits at the aggregate as well as at the level of commercial and Islamic banks in Qatar over the period 2000–2016.
Design/methodology/approach
Using the BankScope Database as well as bank-level balance sheet and financial statements data, the authors use one-step system GMM dynamic model to examine and compare the association between oil and gas prices changes with bank deposits in Qatar. The authors also test hypotheses of direct and indirect impacts of oil and gas prices changes on bank deposits.
Findings
The results indicate that oil and gas prices changes have a direct impact on deposits of banks at the aggregate level in Qatar. However, the authors find that oil and gas price changes significantly affect deposits of Qatari commercial banks directly prompting enhanced lending by banks and the consequent business activities in the economy, while their impact on the deposits of Qatari Islamic banks is indirect, i.e. the impact is permeated through the macroeconomic and institutional characteristics of the country that are reinforced by the growing expectations and commercial sentiment of the country. The authors find that significant association between oil price changes and deposit growth during the global financial crisis 2008 has been distorted. However, the authors find that there was a sharp rise in the deposits of Islamic banks during the period of global financial crisis.
Practical implications
The results of this study necessitate policy measures that can counter the effects of changes in oil and gas prices on the effectiveness of bank deposits.
Originality/value
It is widely recognized that oil and gas prices and the level of production are of great importance to the economic development of oil and gas exporting countries. So far, however, no econometric study has been reported in the literature which analyses and compares the impact of oil and gas prices changes on bank deposits of commercial and Islamic banks and also at the aggregate level in any of the oil-exporting economies. Thus, this study provides the first empirical evidence on distinct direct and indirect channels through which oil and gas prices changes may affect bank deposits.
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Shabeer Khan, Hakan Aslan, Uzair Abdullah Khan and M.I. Bhatti
This study investigates the determinants of net interest margin (NIM) and tests the decoupling hypothesis in Turkey's Islamic and conventional banks.
Abstract
Purpose
This study investigates the determinants of net interest margin (NIM) and tests the decoupling hypothesis in Turkey's Islamic and conventional banks.
Design/methodology/approach
This study has employed a panel quantile model (PQM) to assess the net interest margin (NIM) and test the decoupling hypothesis in the dual banking system of Turkey.
Findings
The empirical results show that the impact of equity is positive for both Islamic and conventional banks but relatively more robust for Islamic banks. Moreover, it is observed that return on assets has a positive association with NIM in both types of banking systems. Interestingly, the impact increases from lower to higher quantiles, but a higher acceleration rate is observed for Islamic banks. The study also finds that, as bank stability increases, NIM decreases for both groups of banks but more stably for Islamic banks, resulting in lower margins than conventional banks. Thus, the paper confirms the decoupling hypothesis and suggests that, to increase profit margins, Islamic banks need to increase assets and equity.
Practical implications
The paper confirms the decoupling hypothesis and suggests that to increase profit margin, Islamic banks need to increase assets and equity.
Social implications
Since both equity and assets contribute positively to interest margins, policymakers in the industry need to increase the size of equity and assets to get maximum returns.
Originality/value
This is one of the first studies to investigate NIM's determinants and test the decoupling hypothesis in the Turkish dual banking system using a non-parametric MCMC panel quantile regression (QRM) model.
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Abdulkader Kaakeh, M. Kabir Hassan and Stefan F. Van Hemmen Almazor
The purpose of this paper is to investigate the effects of the following factors: image, awareness, Shariah compliance and individualism, on the attitude and intention of…
Abstract
Purpose
The purpose of this paper is to investigate the effects of the following factors: image, awareness, Shariah compliance and individualism, on the attitude and intention of customers to use Islamic banking among Bank customers in UAE, and the mediating role of attitude in that model, using a theoretical model based on the multi-attribute attitude model, the theory of reasoned actions and the theory of planned behaviour.
Design/methodology/approach
The research will focus on surveying bank customers living in UAE. The researcher will use structural equation modelling to analyse the data.
Findings
Results show that attitude and awareness affect intention directly, while image, awareness, Shariah compliance and individualism affect attitude directly and intention indirectly mediated by attitude.
Research limitations/implications
The sample size includes 178 bank customers living in three cities in UAE, hence, the rest of the country is not included.
Practical implications
The research shows the importance of Shariah compliance, individualism and image on attitude and intention and provides suggestions for banks to benefit from these aspects to widen their customer base.
Social implications
The study provides an insight into individuals’ decision making and the importance of a social approach by banks when advertising.
Originality/value
The research is the first empirical attempt to test new factors affecting attitude towards Islamic banking in UAE.
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Maqsood Ahmad, Qiang Wu and Muhammad Sualeh Khattak
This study aims to explore the mechanism by which intellectual capital and corporate social responsibility (CSR) influence the sustainable competitive performance of small and…
Abstract
Purpose
This study aims to explore the mechanism by which intellectual capital and corporate social responsibility (CSR) influence the sustainable competitive performance of small and medium-sized enterprises (SMEs), with the mediating role of organizational innovation in an emerging economy.
Design/methodology/approach
The data collection was conducted through a survey completed by 208 owners and top managers operating in the service, trading and manufacturing sector SMEs, positioned within twin cities of Pakistan. Structural equation modeling (SEM) was utilized for data analysis.
Findings
The results of the study suggest that intellectual capital and CSR have a markedly positive influence on the sustainable competitive performance of SMEs. The organizational innovation appears to mediate these relationships.
Originality/value
This study pioneers research on the links between intellectual capital, CSR organizational innovation and sustainable competitive performance of SMEs. The current research contributes to the literature by defining intellectual capital and CSR as an antecedent and organizational innovation as an intervening variable for the sustainable competitive performance of SMEs. In addition, this study underlines the significance of intellectual capital and CSR activities as valuable intangible assets for the achievement of sustainable competitive performance of SMEs.
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Bader Yousef Obeidat, Alaa Al-Hadidi, Ali Tarhini and Ra’ed Masa’deh
The purpose of this paper is to study the operational process factors that affect successful strategy implementation in the Middle East.
Abstract
Purpose
The purpose of this paper is to study the operational process factors that affect successful strategy implementation in the Middle East.
Design/methodology/approach
Five operational process factors were studied (resource availability, communication, operational planning, people, control and feedback). Data were collected using a self-administrated questionnaire from employees who implement and/or are responsible for strategy implementation in 17 pharmaceutical companies. In total, 330 questionnaires were distributed, and a total of 259 were responded with a response rate of 78 per cent.
Findings
Findings revealed that four of the operational process factors, namely, resource availability, communication, operational planning in addition to control and feedback, strongly affect the success of strategy implementation. Further, resource availability was ascertained to be the most influential factor, followed by control and feedback, then by communication, while people factor showed no effect on the implementation process.
Practical implications
It is advised that, during the implementation phase, company management should provide staff employees with the necessary training and instructions to link employee performance with the overall reward and compensation system in the organization and to strengthen effective communication and coordination.
Originality/value
This is one of the few studies that cover operational process factors and successful strategy implementation and is the first study to test the model on companies in the pharmaceutical sector in the Middle East.
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The purpose of this study is to investigate the relationship between total quality management (TQM), employee outcomes and performance. Moreover, how environmental uncertainty…
Abstract
Purpose
The purpose of this study is to investigate the relationship between total quality management (TQM), employee outcomes and performance. Moreover, how environmental uncertainty (EU) influences the relationship between employee outcomes and performance is regarded in the context of automobile part manufacturing and suppliers of Iran. Four theories namely resource-based view theory, ability, motivation, opportunity framework, contingency theory and quality management theory have been adopted in this research.
Design/methodology/approach
A research project is conducted in 191 automobile part manufacturing and suppliers plants using the questionnaire method. Confirmatory factor analysis is applied to assess the reliability and validity of the measurement instrument. The correlations between latent constructs are examined through partial least squares method.
Findings
The results show positive relationship between TQM, employee outcome and performance. The EU also moderates the relationship between employee outcome and performance.
Research limitations/implications
It is recommended that some contextual factors such as culture be noticed in future research studies. Data were collected from Iranian automobile part manufacturing and suppliers plants, which may limit the generalization of results to other organizations in other countries.
Practical implications
In this paper, some beneficial insights are addressed to assist managers in recognizing the organizational problems, which weaken implementing TQM, employee outcomes and the effect of EU on organizations.
Social implications
By improving the quality of management practices and employee outcomes, the society gains benefits such as customer satisfaction.
Originality/value
This study contributes to the TQM advance and human resource management literature and provides better foundations for employee outcomes improvement through TQM practices in the Middle East. By investigating the effect of EU, this study fills the current gap in this field.
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Saeed Rabea Baatwah, Khaled Salmen Aljaaidi, Ehsan Saleh Almoataz and Zalailah Salleh
Although the effect of culture on financial reporting practices has been addressed in earlier studies, the existing empirical evidence totally neglects an important dimension in…
Abstract
Purpose
Although the effect of culture on financial reporting practices has been addressed in earlier studies, the existing empirical evidence totally neglects an important dimension in Gulf Cooperation Council (GCC) markets: tribal culture. The authors fill this gap in the literature using Oman as the setting.
Design/methodology/approach
The authors collect data for 583 company-year observations for companies listed on the Omani capital market, 2007–2014. The authors run a two-way fixed effects panel data regression to test their hypothesis.
Findings
Tribal culture has a negative effect on financial reporting quality (FRQ), measured by both accrual-based and real earnings management. The findings are robust under a variety of sensitivity analyses. In additional analysis, the findings confirm that tribal culture negatively moderates the effectiveness of internal monitoring mechanisms and is associated with low-quality auditing. Further, the authors find tribal culture associated with delayed financial information.
Originality/value
To the authors' knowledge, the study makes several contributions to the literature because it is the first archival evidence linking tribal culture with FRQ. It is the first to show that the effect of corporate governance mechanisms on FRQ is moderated by tribal culture. The study has valuable implications for policymakers, regulators, boards of directors and auditors in GCC countries as well as in countries with similar cultures.
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