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Article
Publication date: 27 February 2024

Muhammad Iqbal, Lukmanul Hakim and Muhammad Abdul Aziz

This study aims to analyze the factors that influenced the stability of Islamic banks in Asia.

Abstract

Purpose

This study aims to analyze the factors that influenced the stability of Islamic banks in Asia.

Design/methodology/approach

The panel data consisted of 16 Asian countries operating Islamic banks from 2010 to 2019. The data were analyzed through dynamic panel regression using Arellano–Bond generalized method of moments (GMM).

Findings

This study provides novel insights into the factors influencing the stability of Islamic banks in Asia. The findings suggest that past financial stability, liquidity risk, loan risk, inflation, gross domestic product, government effectiveness, rule of law and control of corruption are all significant contributors to Islamic bank stability. Notably, political stability, voice and accountability and regulatory quality did not show a significant association.

Research limitations/implications

The current study’s focus was solely on Islamic bank stability in Asian countries, which leaves room for further exploration. Future research could benefit from expanding the scope to encompass all nations with active Islamic banking institutions. In addition, incorporating a broader range of macroeconomic variables, such as exchange rates, interest rates, profit-sharing equivalents and investment rates, could provide deeper insights into the factors influencing Islamic bank stability across diverse contexts.

Practical implications

This study has significant practical implications for policymakers, bank managers and regulatory authorities seeking to enhance the stability of Islamic banks in Asia. By implementing robust risk management frameworks, adopting prudent regulatory policies, and actively fostering economic growth, policymakers can create an environment conducive to the sustained development and prosperity of Islamic banking institutions. Notably, promoting good governance practices and instituting effective crisis prevention measures can further bolster the resilience of the Islamic banking sector, enabling it to play a more dynamic role in contributing to the overall development and welfare of Asian societies.

Social implications

The findings of this study carry significant social implications, highlighting the need for governments in Asian countries to prioritize public policies that promote good governance and ethical practices within the banking industry. Such policies, coupled with efforts to attract foreign investments and foster a stable and transparent banking sector, have the potential to generate far-reaching positive effects on society. Through economic growth stimulated by a robust Islamic banking sector, Asian countries can create new employment opportunities, improve living standards and ultimately enhance the overall well-being of their citizens.

Originality/value

This study contributes to the ongoing discourse on Islamic banking stability by offering novel insights and expanding the empirical knowledge base in this field. The dual application of robust regression methodologies – namely, GMM dynamic panel data models – presents a unique analytical framework for investigating the complex interplay between diverse variables and Islamic bank stability. This methodological choice fosters deeper understanding of the dynamic relationships at play, advancing our understanding of how specific factors influence the sector's resilience and performance. In addition, the study uses rigorous empirical techniques and engages with the extant literature to provide fresh perspectives and nuanced interpretations of the findings, further solidifying its contribution to the field's originality and richness.

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: 7 October 2021

Mohamed Haffar, Khalil Ahmad Al-Hyari, Ramdane Djebarni, Ahmed Al-Shamali, Muhammad Abdul Aziz and Sarah Al-Shamali

This paper aims to report the results of a comprehensive literature review concerned with exploring the distinctive roles of the underlying multidimensional psychological…

Abstract

Purpose

This paper aims to report the results of a comprehensive literature review concerned with exploring the distinctive roles of the underlying multidimensional psychological mechanisms through which organizational culture (OC) affects TQM.

Design/methodology/approach

A thorough review of the relevant existing studies focusing on the direct and indirect links between OC, employee readiness for change (ERFC), employee commitment to change (ECC) and TQM implementation was conducted. To identify studies to include in the review, electronic searches of prominent databases and journals were carried out for the period 1980 to 2020.

Findings

The thorough analysis of relevant studies indicates that various types of OC influence TQM through certain psychological mechanisms namely ERFC dimensions and employee affective commitment to change. As a consequence, the paper develops a set of propositions and a novel integrative conceptual framework to explain the mediating roles of ERFCs and EACC in the OC–TQM relationship and then concludes by suggesting future lines of research and highlighting practical managerial implications.

Originality/value

Drawing on academic perspectives from multiple literature streams, this study offers a more advanced understanding of the relationship between OC and TQM implementation via exploring multiple mediating paths.

Details

The TQM Journal, vol. 34 no. 5
Type: Research Article
ISSN: 1754-2731

Keywords

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 for both…

11558

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

Keywords

Article
Publication date: 18 May 2020

Ihsan Effendi, Miftahuddin Murad, Ahmad Rafiki and Mitra Musika Lubis

The Islamic rural banks have the potential to grow in Indonesia. It is important to learn and study the consumer behaviors toward the Islamic rural banks’ services to plan for…

Abstract

Purpose

The Islamic rural banks have the potential to grow in Indonesia. It is important to learn and study the consumer behaviors toward the Islamic rural banks’ services to plan for future strategies. The purpose of this paper is to test the applicability of the theory of reasoned action in predicting the customers’ decision to use the Islamic rural banks’ services.

Design/methodology/approach

The descriptive and structural equation model analyses were used to analyze the data. A random sampling technique is adopted with a sample size of 180 consumers of the Islamic rural banks. There are variables to be tested such as Sharia system compliance, product knowledge on Sharia, promotion, services, attitude, subjective norms, intention and customer decisions to use the Islamic rural banks’ services.

Findings

The results found that the Sharia system compliance, promotion, services, attitude, subjective norms and intention variables have a significant effect on the use of services at Islamic rural banks. Only product knowledge on Sharia variable has been found to be insignificant.

Originality/value

The model can be used to prepare better strategies to attract more customers as well as increase public awareness toward Islamic rural banks’ products and services. The results are useful as a benchmark for policymakers to improve the establishment of Islamic rural banks particularly in Indonesia.

Details

Journal of Islamic Marketing, vol. 12 no. 5
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 1 February 2000

Ataul Huq Pramanik

The concept of welfare state gained popularity during the period when the free market mechanism already established its pre‐eminence. The free market mechanism of the west…

Abstract

The concept of welfare state gained popularity during the period when the free market mechanism already established its pre‐eminence. The free market mechanism of the west together with the personal freedom being nurtured in an environment of democratic political institutions led to the emergence of the welfare state. The reason why the welfare state gained popularity during the period when the industrialized world was enjoying economic prosperity was because of the growing need for protecting the rights of citizens from any unforseen events regardless of their existing socio‐economic conditions.

Details

Humanomics, vol. 16 no. 2
Type: Research Article
ISSN: 0828-8666

Executive summary
Publication date: 13 June 2019

MALAYSIA: Scandal will roil slated power handover

Details

DOI: 10.1108/OXAN-ES244524

ISSN: 2633-304X

Keywords

Geographic
Topical
Article
Publication date: 22 September 2021

Izra Berakon, Muhammad Ghafur Wibowo, Achmad Nurdany and Hendy Mustiko Aji

The increasing number of tourists in the Muslim world every year has encouraged digital business developers and the Sharia banking industry to integrate halal product and service…

2313

Abstract

Purpose

The increasing number of tourists in the Muslim world every year has encouraged digital business developers and the Sharia banking industry to integrate halal product and service apps with the Sharia mobile banking system. The fourth wave of the industrial revolution has changed the consumer paradigm, creating a young generation that uses digital service transaction systems in their daily lives. This paper aims to investigate the factors that determine intention to use halal tourism apps amongst Muslim tourists to provide insights promoting the development of halal tourism in Indonesia.

Design/methodology/approach

The research was conducted using an online survey approach. The sample comprised 205 Muslim Millennial and Generation Z travellers. The data collected were analysed using partial least square structural equation modelling. There were three analysis stages: evaluation of the measurement model, assessment of the structural model and hypothesis testing.

Findings

The findings indicated that trust mediated the relationship between perceived ease of use and perceived usefulness on individual intentions and that halal knowledge positively and significantly impacted individual intentions. In contrast, religiosity was not a significant influence on individual intentions.

Originality/value

The paper expanded the technology acceptance model by incorporating the key constructs of halal knowledge, religiosity and trust into an integrated research framework; this represented a novel step, especially in the context of halal tourism. The finding that trust mediated the relationship between perceived ease of use and perceived usefulness fills a gap in previous research, which has rarely included the trust construct in technology acceptance models.

Details

Journal of Islamic Marketing, vol. 14 no. 1
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 24 September 2010

Jibrail Bin Yusuf

The paper aims to examine sales promotional practices in Ghana, weighing their ethical implications from an Islamic perspective and investigates whether they meet Islam's ethical…

1981

Abstract

Purpose

The paper aims to examine sales promotional practices in Ghana, weighing their ethical implications from an Islamic perspective and investigates whether they meet Islam's ethical requirements to merit Muslims' patronage.

Design/methodology/approach

The paper uses Qur'an 5:90/2:219 as a theoretical framework to analyze relevant data to ascertain the extent of ethical legitimacy of strategies used in sales promotion in Ghana and cites other relevant references from Qur'an and sunnah as interpretative proofs and methodology.

Findings

Islam emphasizes ethical principles in business. Muslims can promote business but that must be done within the ethical framework of Islam. The current Ghanaian promotional strategies are ethically questionable. They lead to unethical earning of livelihood and unjust acquisition of wealth through gambling and other ill‐perceived means which do not promote the ethical values of Muslims.

Research limitations/implications

The paper emphasizes the necessity for further research into the ethical dimensions of business practices, in general, in Ghana to promote ethical responsibility in the society.

Originality/value

The study inculcates mutual socio‐economic and ethical responsibilities between Ghanaian sellers and buyers to save the society from the situation where love of wealth supersedes ethical interests.

Details

Journal of Islamic Marketing, vol. 1 no. 3
Type: Research Article
ISSN: 1759-0833

Keywords

Expert briefing
Publication date: 22 July 2019

Tensions in Malaysia's governing coalition.

Details

DOI: 10.1108/OXAN-DB245334

ISSN: 2633-304X

Keywords

Geographic
Topical
Article
Publication date: 11 September 2018

Shadma Shahid, Faheem Ahmed and Uzma Hasan

India accounts for the third-largest Muslim population in the world after Indonesia and Pakistan. The previous studies about halal consumption have focused on the “food and money…

2952

Abstract

Purpose

India accounts for the third-largest Muslim population in the world after Indonesia and Pakistan. The previous studies about halal consumption have focused on the “food and money industry” only. Muslim consumers are prohibited from using alcohol, pork and other items in any form; the rising awareness among Muslims has led to the rapid growth in demand of halal cosmetic products around the globe. This paper aims to present a framework of halal consumers’ purchase and explores the factors that Indian consumers consider while buying halal cosmetics.

Design/methodology/approach

The authors carried out qualitative research (focus group discussion and in-depth interviews) in Delhi, Mumbai and Hyderabad to gain deeper insight from the respondents.

Findings

The study found that religiosity and increasing awareness about halal products acts as an influencer for individuals’ halal products consumption along with halal certification and growing education level of Muslim consumers.

Originality/value

The paper has been developed based on the original research work carried out among the halal Muslim consumers in the major Muslim population in metropolitan cities of Hyderabad, Mumbai and Delhi over the past year.

Details

Journal of Islamic Marketing, vol. 9 no. 3
Type: Research Article
ISSN: 1759-0833

Keywords

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