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Purpose This study aims to investigate the factors that determine the customer adoption of Islamic banking in Pakistan. Design/methodology/approach This paper aims to use a sample of 540 Islamic bank customers located in the biggest city of Pakistan (Karachi). This study is based on the diffusion of innovation (DOI) theory and analyzed the role of five attributes (compatibility, relative advantage, complexity, observability and trialability) along with the consumer awareness about the customer adoption of Islamic banking. Additionally, the present research also considers Islamic banking as a new idea (innovation) in Pakistan under the framework of DOI theoretical assumptions. The exploratory and confirmatory factor analyses are applied to the sample data. The theoretical framework is then tested using structural equation modeling. Findings The findings of the study revealed that all five attributes of the DOI theory are positively and significantly related to the customer adoption of Islamic banking. The customer awareness also proved its importance in the hypothesized model by representing a positive and significant relationship. Originality/value The present study provides a useful guideline for the Islamic bank managers and the academicians to better understand the customer adoption of Islamic banking.
Purpose The main value in a culture of tolerance is wasatiyyah. The fragility of relationships and misunderstanding between Muslim and non-Muslim communities occurs when attention to values of tolerance which need more attention on moderation was not practiced especially in the life of a new Muslim convert community. Thus, the practice of moderation is one mechanism proposed by the government to ensure a harmonious continuation of life in a religious community can be achieved. For that, a qualitative study design was used to describe the current status of a phenomenon that occurs among new Muslim converts. The purposive sampling method is used to determine the applications of wasatiyyah in new Muslims’ life tolerance at Kota Kinabalu (East Malaysia) and Kuala Terengganu (West Malaysia). Although the study was conducted at two different locations, there is a relationship between religious phenomena that occur in the new Muslims community in Malaysia. The purpose of this study is to see the practical concept of moderation in the life of new Muslims and their relation with Muslims and non-Muslims. The results showed that the value of moderation was applied in the aspect of tolerance. The application of Wasatiyyah in practice of tolerance had helped non-Muslims family members to change their attitudes and perception towards Islam. This study suggests the values of wasatiyyah in the life of religious tolerance, need to be nourished especially in multiethnic society when sharing a living places, education and employment for better social development as well as a well-being pluralistic society. Design/methodology/approach The study was conducted through descriptive data qualitative methods. Purposive sampling was used which refers to a group that has the characteristics of samples required by researchers (Mohd Najib Abdul Ghafar 2003). This study applies the method of in-depth interview with the selected new Muslims around Kota Kinabalu (representing East Malaysia) and around Kuala Terengganu (representing Peninsular Malaysia/West Malaysia). Thus, data accumulation involves new Muslims (new Converts) from various ethnics (Sabahan and Sarawakian) which comprise Kadazandusun, Murut, Rungus, Sino and Iban. Secondly, those are from the Peninsular Malaysia which includes Chinese and Indian. Whereas in Kuala Terengganu, data accumulation involves new Muslims from various ethnics (Chinese, Indian, Sarawakian and others). The result of the interview is shown through descriptive narratives which display the practice of tolerance in the form of supportive interaction from the non-Muslim families towards the new Muslims in Islamic lifestyle. Findings The concept of wasatiyyah has nurturing tolerance among Muslim, newly Muslim and non-Muslim as well as fostering harmony among the diverse ethnics in Malaysia. Based on the discussion, it was observed that the concept of wasatiyyah had a great influence on the relationship among Muslim, newly Muslim and non-Muslim, as it had a strong link with the value of akhlaq that have been embedded in the Muslim community. The wasatiyyah is the main element that shapes the relationship, and it is the results of interaction with social norms, for it has bred certain social values that include tolerance, compromise, modesty, respect and cooperation as transpired when they (Muslim and newly Muslim) interact among themselves or with other communities. Furthermore, the main goal for the concept is to maintain peace and built well-being in the society as well as bracing racial ties in Malaysia, especially among Muslim, newly Muslim and non-Muslim. Originality/value Tolerance is a culture that founded the co-existence of pluralistic society in Malaysia. The culture of tolerance can only be built if ethnic tolerance and religious tolerance is accepted as a common practice – Muslims and non-Muslims alike. The description of wasatiyyah in the practice of religious tolerance among the families of new Muslims is the platform towards the acculturation of tolerance in the societal life from different faith and ethnics. It can be said that the higher the tolerance of ethnic, the higher is the religious tolerance, which is manifested through the application of wasatiyyah between people from different religions. This situation is highlighted in the relations of Muslim, newly Muslim and non-Muslim in Sabah and Terengganu where the culture of tolerance is apparent in the life together. Extensive interaction through encounters, acquaintance and co-existence that shape the friendship, brotherhood and kinship is the best formula in nurturing the culture of tolerance in the pluralistic society of Malaysia. Perhaps, the concept of wasatiyyah may be implemented in the whole aspect of life in the context of Malaysia. It is because the term wasatiyyah has the main sources of Islamic epistemology as well as sustaining the well-being pluralistic society without destroying the differences.
Purpose - This research aims to investigate the extent to which business strategy mediates the relationship between reliance on integrative strategic performance measurement (RISPM) and organisational performance. Design/methodology/approach - A self-administered survey of 157 managers in Indonesian financial institutions was used to test direct and indirect effects among the hypothesised variables. Findings - The findings indicate that business strategy has a full mediating effect on the relationship between RISPM and organisational performance. Originality/value - This study indicates that performance measurement systems should be designed in conjunction with business strategies to obtain superior performance. More specifically, in the Indonesian financial institutions, applying a differentiation strategy is found to be most effective in gaining competitive advantage and superior performance.
Purpose - This paper aims to integrate Islamic and mainstream economics framework towards a more realistic understanding of Muslim consumption behaviour. Design/methodology/approach - The model incorporates some of the Islamic institutions like period-wise deduction of Zakat from endowments. It also includes bequests which could be significant given the Islamic injunctions on inheritance distribution and the significance placed on the institution of family. Furthermore, the model integrates the assumption that consumption opportunity set will axiomatically filter out the prohibited consumption goods from the consumption set in both contemporaneous and inter-temporal consumption. Findings - Zakat ensures contemporaneous redistribution from endowment surplus households (those having Zakatable endowments above Nisab) to endowment-deficient households (those having Zakatable endowments below Nisab). The lifetime resources are scaled down for endowment surplus households because of the payment of Zakat in both periods and leaving bequests in old-age period, while the lifetime resources are scaled up for endowment deficient households because of the receipt of Zakat in both periods and receiving the bequests in youth. Originality/value - The authors show how some of the Islamic principles and institutions can be integrated in the mainstream economics framework, especially in research studies where the objective is to understand and describe reality rather than persuasion and idealization.
Purpose - The purpose of this paper is to determine the impact of corporate brand equity and corporate brand credibility on customer's intention to donate the charity program. To understand the complex relationship, this study points out the moderating effect of the materialistic attitude. Design/methodology/approach - The empirical study involved a survey of young customers in Indonesia telecommunication industry. The data collection involved face-to-face interviews among 409 respondents in Jakarta Indonesia between December 2015 and January 2016. Findings - This study indicates a positive impact of corporate brand equity and brand credibility on their customers' intention to support the social charity. However, materialistic attitude slightly changes the impact direction of corporate brand on the customers' intention to participate. Research limitations/implications - This research relies on a cross-sectional observation, which was one snapshoot observation in specific time. Second, this study uses interview to help the respondents understand the questionnaires; this may imply on the level of objectiveness of respondents. Practical/implications - This paper extends the discussion on the altruism theory and corporate brands by establishing a critical linkage between materialistic attitude, corporate brand credibility and consumers' intention to charity. Under high materialistic attitude, corporations are encouraged to promote strong business ethics. Originality/value - This study makes a contribution to the deepening understanding on altruism theory and conscious corporate responsibility through raising a concern on marketing practices, which entails a potential fraud from charity ethics.
Purpose - This study aims to examine the effect of the structure of board of directors and company ownership on social responsibility disclosure of listed companies on the Tehran Stock Exchange. Design/methodology/approach - The variables of the study included independent board of directors, institutional ownership, managerial ownership, family ownership and family-managerial ownership. The study population consisted of 125 listed companies on the Tehran Stock Exchange during the years 2009-2014. Content analysis used to measure social responsibility disclosure level and test hypothesis was performed using multiple regression analysis. Findings - The results demonstrated that there was no significant relationship between any of the independent variables and the level of social responsibility disclosure. This study empirically shows managers, investors and other stakeholders that if business owners are made of different groups, namely, institutional ownership, managerial and family ownership, it will not affect the social responsibility disclosure in annual reports. Originality/value - The outcomes of the current study may bridge the gap between social responsibility disclosure and ownership structure in a developing country like Iran.
Purpose This study aims to estimate the determinants of household spending on education and nutrition. Education and nutrition are noteworthy elements for human development and welfare. Separate estimates are being provided for male and female as gender determines household welfare and gender-based analysis of household spending evaluates the aptitude of decision power as well as measures their influential role in human welfare. Design/methodology/approach Fruits, milk and dairy products are taken as proxy of substantial portion of nutrition. The study used primary urban household-level data that collected from Faisalabad city. The authors used double hurdle model. Findings The findings of the study show that females are more likely to spend on education. Household size and number of children negatively determine the household spending on education and nutrition. Number of employed household members, level of income and education are positively associated with household spending on education and nutrition by male- and female-headed households. A very low public spending on education and nutrition have led to upsurge the hurdles of households in Pakistan. Practical implications The study recommends that government should provide the employment opportunities, especially for females for stable and increased household income that leads to improve the household welfare. Originality/value Several studies have examined the education spending (Mbanefoh et al., 1997; Ichoku and Leibbrandt, 2003; Donkoh and Amikuzuno, 2011; Cisse, 2011), but these studies ignored to investigate the gender role and household spending on nutrition and education. This study is crucial in drawing suitable policy recommendations for household welfare. This study filled the gaps and scrutinized the issues that interrelated with household spending.
Purpose This study aims to examine the relationship of work–family demands with employees’ well-being, and the role of management/supervisory support in this relationship. The following hypotheses were proposed: work–family demands would be negatively related to employees’ well-being; management/supervisory support would moderate the relationship of work–family demands with employees’ well-being. Design/methodology/approach The researchers used 250 working female academicians as respondents, working in the research universities in Kuala Lumpur, Malaysia. Their ages ranged from 30 to 60 years. Findings The findings of the present study proved that the work–family demands were negatively associated with employees’ well-being. Results also revealed that management and supervisory support strengthens the relationship between work–family demands and employees’ well-being. Thus, management and supervisory support plays an important role in balancing work demands and family roles and also in increasing working female academicians’ well-being. Originality/value In this study, management and supervisory support was found to be directly related to well-being, including life satisfaction, job satisfaction and family satisfaction. However, the direct relationship between management/supervisory support and well-being was positive and significant. This study also found that management/supervisor support reduced work–family conflict and work–family demands. Also, supervisory and management support was found to have a significant and positive relationship with well-being. Given these findings, supervisory and management support plays a very important role as a moderator of work–family demands and in developing and improving well-being in working women.
Purpose The halal industry is one of the most growing industries in the world. It refers to the industry in line with Islamic principles and requirements. The emergence of this industry aims to fulfil the requirement of Islamic-compliant products and services. Surprisingly, the industry has been growing in both Muslim and non-Muslim countries. Assessing the performance of the industry will be notable for ensuring that it obtains its objectives. The proper performance measurement should highlight business perspectives and religious aspects. This study aims to explore the current issues and challenges in developing Maqashid Al-Shari’ah-based performance measurement in the halal industry. Design/methodology/approach This is a qualitative research using in-depth interviews, and uses content analysis to interpret and explain the interview result. Interviews were conducted with experts in Maqashid Al-Shari’ah and Islamic capital markets. Findings The existence of the concept of Maqashid Al-Shari’ah is to create maslahah for all human beings. The development of Maqashid Al-Shari’ah performance measurement for the business is very important. It has only been developed for Islamic financial industry. Unfortunately, it is found that the development of Maqashid Al-Shari’ah performance measurement has not been carried out comprehensively in non-financial industry. The main issue is the absence of the applicable measurements. Therefore, collective decision is required to develop the appropriate measurements. Practical implications There is a necessity for regulator to produce standards on Maqashid Al-Shari’ah-based performance measurement. The government policy plays an important role in the development and implementation of Maqashid Al-Shari’ah -based measurement index. Originality/value This paper highlights the issue of the development of Maqashid Al-Shari’ah -based performance measurement in halal business and commerce which has not much discussed in prior studies.
Purpose - The purpose of this paper is to come-up with a systematic exertion on Maqasid Shari'ah in Islamic economics, banking and finance, with a clear focus on forming an appropriate and novel framework that identifies the effort of contemporary scholars and detects the existing gap that might possibly champion new research commitments.Design/methodology/approach - A systematic approach to literature review was steered through the means propagated by the Centre for Reviews and Disseminations (DSR), but modified to the precise requirements of this review. Google Scholar was searched throughout the passage. The search criteria are confined to English documents that are within the period of 2006-2016. Articles that did not score or did not convince that the subject of Maqasid Shari'ah has been applied in Islamic economy, Islamic banking, Islamic finance, Islamic financing products and economic development are excluded. Appropriate search keys are used to gather better results.Findings - The findings inform that contemporary scholars show a robust commitment to the themes of the result during the stated period. The outcome reveals that contemporary scholars designate more interest and attention on Islamic banking and expose their potential specialty in the expanse than other themes. The study further highlighted the gap of some significant areas that are either outside the coverage of the reviewed documents or require more attention from contemporary scholars, for instance, wealth formation and management, wealth consumption, socioeconomic security, risk management, corporate governance, management policy, human resource development, prohibition of Riba, profit and loss sharing (PLS), etc.Research limitations/implications - The paper is limited to contemporary aspects of Islamic economics, banking, finance and economic development that have a link with the subject of Maqasid Shari'ah.Practical implications - A review of these scholarly reported documents has the potential to draw attention toward filling the existing gap that will likely result in salvation of current issues on the subject of Maqasid Shari'ah that has a direct association with Islamic economy, banking and finance.Originality/value - The paper is original in its nature considering the fact that it is assumed as the maiden attempt of its kind in the field. It is a treasure to all those who may cherish and find it relevant in their progressive and rounded convention or application on the matter.
Purpose - This paper aims to discuss the opinions of current Shariah scholars on the concept of debt money in the present-day fiat money system.Design/methodology/approach - Research design of this paper is a quantitative investigation of Shariah experts by distributing a questionnaire to them. As majority of Shariah scholars are also Shariah advisory of the current banking system, it is important to find out their level of knowledge on the issue of debt money created by the commercial banking system through the fractional-reserve banking (FRB) system.Findings - Based on this investigation, most Shariah scholars are unaware of and confused about the mechanics underpinning the creation of money, especially with respect to FRB as it is practiced by the conventional and Islamic banking systems.Originality/value - Based on this research, it is recommended that these scholars should improve their understanding of the operation of the fiat money system and its consequences. It is recommended that, in future, Shariah scholars should think "outside of the box" by creating Islamic financial instruments that do not resemble those of the conventional system.
Purpose This paper aims to clarify the relationship between Muslims and non-Muslims in human society, based on the concept of muwālāt (commonly translated as “loyalty”) in the Qurʾān. Design/methodology/approach The present study follows a contextual and analytical methodology. Findings This paper concludes that muwālāt is not only ideological but can be contractual too. A historical study of the Prophet’s (PBUH) interaction with non-Muslims in Mecca and Medina illustrates that as long as non-Muslims did not behave treacherously or turn to violence, a peaceful relationship was established and alliances and coalitions were formed. And this paper concludes that the categorisation of previous Muslim scholars, which was is in terms of prohibited and permitted, is inappropriate. Originality/value This paper clarifies that the categorisation of previous Muslim scholars, which was in terms of prohibited and permitted, is inappropriate, and muwālāt is not only belongs to faith.
Purpose - The purpose of this paper is to determine the framework of customers' Islamic ethical behavior in Islamic banks in Malaysia.Design/methodology/approach - This paper used a quantitative approach based on Maqasid Shariah (objectives of Islamic law) and by running exploratory factor analysis. A survey questionnaire was created. The data of 530 respondents were collected from the customers of Islamic banks located in Malaysia.Findings - The findings revealed that the theoretical framework consists of four main constructs: Islamic ethical behavior, religious obligation, reputation and profit and investment, in which all constructs are complying with Maqasid Shariah and three (i.e. Islamic ethical behavior, religious obligation and reputation) consist of two components for each construct.Research limitations/implications - There are two limitations that require further acknowledgements. First, the study population only focused on Islamic banks' customers. Second, this research highlighted only Malaysia and Malaysian citizens.Originality/value - The paper contributes to the literature on Islamic ethical behavior in Southeast Asian economy. Unlike other Islamic ethical studies where the writing is mainly theoretical in nature, this study used an empirical method to reveal what should constitute for the framework of customers' Islamic ethical behavior which is based on Maqasid Shariah.
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.
Purpose - This paper aims to attempt to present a number of higher purposes of Islamic law that include within their scope the preservation and protection of the natural environment. Such preservation is in the best interest of mankind.Design/methodology/approach - The researchers have extrapolated evidence from the Qur'an and authentic traditions of the Prophet (PBUH) that afford a sense of certainty that Islamic laws contain operative or effective causes (illa) seeking the welfare of human beings and society.Findings - The Qur'an and Sunnah have placed great importance on the preservation and protection of the environment. They have extolled the merits of treating the environment with care and compassion. Evidence of this can be found in authentic hadiths beginning with the Book of Purity and is found in many of the teachings concerning worship rituals and civic activities.Originality/value - The researchers have attempted to present a number of higher purposes of Islamic law that include within their scope the preservation and protection of the natural environment. Such preservation is in the best interest of mankind. For this, the researchers have extrapolated evidence from the Qur'an and authentic traditions of the Prophet (PBUH) that afford a sense of certainty that Islamic laws contain operative or effective causes (illa) seeking the welfare of human beings and society.
Purpose This paper aims to discuss the topic of financial speculation with special reference to forex and offers an analysis from the Maqasid Al-Shari’ah perspective, whereby authors propose to limit the outreach of speculative instruments in the financial markets. Design/methodology/approach The authors will make use of a simple textual analysis of existing materials and documents. To come up with conclusions, relevant to this study and to make them credible enough, the authors will undertake to review the existing literature in the next part of the paper and will later present his analysis of findings in light of financial crises and the objectives of Shari’ah. Findings The Maqasid Al-Shari’ah approach used in the analysis suggests that speculative financial instruments do not constitute a necessity, and their harmful practice must be limited to protect the religion, life, lineage, intellect and property. Originality/value Financial speculation in general and foreign exchange in particular must be regulated. Their current practices of financial system pose significant challenges for entire economies as well as individuals. Muslims should also avoid speculative financial instruments, such as forex, because they are a clear threat to individual and state wealth and prosperity. In addition, they threaten traditional businesses and social norms in Muslim societies.
