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Article
Publication date: 12 December 2024

Malika Neifar

Exploiting a sample of 80 conventional banks (CBs) and 35 Islamic banks (IBs), this study aims to distinguish the IBs’ performance from their conventional peers in 7 Middel East…

Abstract

Purpose

Exploiting a sample of 80 conventional banks (CBs) and 35 Islamic banks (IBs), this study aims to distinguish the IBs’ performance from their conventional peers in 7 Middel East and North Africa (MENA) economies over the period 2005–2014 covering the 2008 GFC.

Design/methodology/approach

To avoid misleading results, this research used panel-corrected data from outliers effects by quantile method. Then, following the use of the two-sided Student’s t-test and the discriminant function analysis (DFA), we adopt nonlinear panel models (Random Logit and Pooled Probit) to further distinguish between banks. Then, we focus on the stability side through dynamic Generalized method of moment (GMM) linear models and interaction variables to capture the 2008 global financial crisis (GFC) impact on IB performance.

Findings

Univariate tests show that IBs are, on average, less profitable, more liquid and capitalized, less stable, have higher credit risk and are more solvent than CBs. In addition, the difference between the two types of banks was significant pre- and post-GFC; IBs are more profitable pre-GFC and more solvent post-GFC. In accordance with the univariate t-test results, the nonlinear pooled probit model (random logit) confirms that banks, which have more liquidity, are better capitalized, more solvent and less stable (less stable) are more likely to be IBs. From the DFA, stability was the first financial ratio important to discriminate between the two types of banks. In line with the DFA results, from the dynamic models, once the interaction variables are integrated, the GMM estimation result suggests that stronger macroeconomic stability and higher profitability, capital adequacy ratio (CAP) and liquidity are linked to increased IBs stability in the 7 MENA economies post-2008 GFC.

Originality/value

The present study contributes to the ongoing debate by conducting a formal empirical analysis, taking account of a range of considerations (outliers correction, interaction variables and 2008 GFC impacts) that to the best of our knowledge have not been considered by prior studies for the MENA zone.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2054-6238

Keywords

Article
Publication date: 8 January 2025

Muhammad Umar Islam, Baharom Abdul Hamid and Muhammad Naeem Shahid

This study aims to investigate whether banks’ environmental, social and governance (ESG) activities impact their profitability and stability. The authors also explore whether…

Abstract

Purpose

This study aims to investigate whether banks’ environmental, social and governance (ESG) activities impact their profitability and stability. The authors also explore whether banking industry competition and the country’s regulatory quality moderate the impact of banks’ ESG on their profitability and stability.

Design/methodology/approach

The sample includes data from 46 banks in 11 Organization of Islamic Countries (OIC) from 2010 to 2020. The authors have used the generalized method of moments (GMM) as the primary estimation model, with robustness tests to validate research findings.

Findings

The results show that neither ESG nor its components impact bank profitability. Instead, ESG and its social component decrease bank stability. The findings neither support the stakeholder theory nor the risk-management view, which proposes that ESG activities improve financial performance and reduce unnecessary risks. However, an increase in market power (reduced competition) frees resources for banks, such that they focus more on ESG activities, which improves profitability, albeit at reduced stability levels. This finding supports the competition-related differentiation hypothesis. Finally, a country’s regulatory quality change does not influence bank ESG to impact its profitability or stability. This finding does not support the institutions-ESG proposition.

Research limitations/implications

This study has several limitations. First, constrained by data availability, the authors could not examine Islamic banks in OIC countries. Examining the ESG outcomes in Islamic banks would be interesting based on Islamic ethics and corporate social responsibility perspectives. The data set could also be more recent so that the differential impact of COVID-19 on bank ESG and financial performance could be estimated. The coverage of OIC countries was limited in our sample; this could be improved in future research.

Practical implications

Banks should evaluate the focus and scope of their ESG activities, communicate their long-term strategic benefits with stakeholders and align ESG with their strategy and business model to offer innovative ESG-based products. They should also recalibrate ESG in their risk management framework to catalyse stability and stakeholders’ trust. Policymakers should control the level of competition so banks can foster ESG without sacrificing financial performance. Also, banks should be given regulatory incentives so ESG becomes integral to bank growth, direction and stability.

Social implications

ESG should be part of banks’ strategy and business model, to maximize its benefits for stakeholders, while maintaining competition and providing regulatory incentives.

Originality/value

To the best of the authors’ knowledge, this is the first study to investigate the influence of bank ESG activities on their profitability and stability in OIC countries. The authors also extend the theoretical literature by connecting competition and regulatory quality to ESG-led financial performance.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 18 no. 2
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 6 February 2025

Li Zhao, Qile He, Muhammad Mustafa Kamal and Nicholas O’Regan

Using the cognitive-affective-normative (CAN) model, this study highlights the role of self-regulated learning (SRL) and organisational culture and delves into the link between…

Abstract

Purpose

Using the cognitive-affective-normative (CAN) model, this study highlights the role of self-regulated learning (SRL) and organisational culture and delves into the link between technophobia and a manager’s intention to adopt generative artificial intelligence (AI) in management practices.

Design/methodology/approach

An empirical study was conducted through a survey of 528 business managers from China.

Findings

The study reveals that technophobia is negatively related to a manager’s intention to adopt generative AI, while SRL is positively related to the intention to adopt generative AI. Moreover, SRL reduces the negative impact of technophobia on AI adoption. Open organisational cultures reduce the need for SRL.

Originality/value

This study goes beyond a purely technical perspective towards a “human-side” view on understanding managers’ adoption of generative AI. This study is an early attempt to apply the CAN model to analysing the connection between technophobia, SRL, organisational culture and the intention to adopt generative AI.

Details

Journal of Managerial Psychology, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0268-3946

Keywords

Article
Publication date: 5 July 2023

Muhammad Riaz, Wu Jie, Zulfiqar Ali, Mrs Sherani and Liu Yutong

Given the decisive role of knowledge-oriented leadership (KOL) in boosting organizational innovation capacities, the research intends to investigate the effect of KOL on…

Abstract

Purpose

Given the decisive role of knowledge-oriented leadership (KOL) in boosting organizational innovation capacities, the research intends to investigate the effect of KOL on ambidextrous innovation with the mediating effect of knowledge management capability (KMC). Furthermore, technological turbulence (TT) is regarded as a moderator in the relationship between KMC and ambidextrous innovation.

Design/methodology/approach

The data obtained from 122 Pakistani manufacturing firms were used to evaluate the proposed relationships using the partial least square structural equation modeling approach.

Findings

The empirical findings demonstrate that KOL positively affects both aspects of ambidextrous innovation, namely exploitative innovation (EII) and exploratory innovation (ERI), with a higher effect on EII. Additionally, knowledge management process capability (KMPC) partially mediates the association between KOL and both dimensions of ambidextrous innovation (EII and ERI). Similarly, knowledge management infrastructure capability (KMIC) mediates the link between KOL and ERI but does not mediate the relationship between KOL and EII. The impacts of the KMPC and KMIC on EII are also significantly moderated by TT, although the link between the two components of the KMC (KMPC and KMIC) and ERI is unaffected.

Practical implications

The research provides useful knowledge and a novel strategy for policymakers to foster KOL and invest in KMC to improve the capabilities of Pakistani manufacturing firms in terms of innovation.

Originality/value

The research has contributed significantly to the resources-based view and knowledge-based view (KBV) literature by examining the various mediation moderation mechanisms and offering greater insights into the relationship between KOL and firms, KMC, and ambidextrous innovations.

Details

European Journal of Innovation Management, vol. 28 no. 2
Type: Research Article
ISSN: 1460-1060

Keywords

Book part
Publication date: 3 March 2025

Amin Khalifeh, Husam Ananzeh, Belal Mathani, Mohammed Alrousan, Ahmad Samed Al-Adwan, Mohammad Al Khasaawneh and Fandi Omeish

This study aims to empirically examine the influence of transformational leadership on job satisfaction in Jordanian commercial banks through knowledge sharing as a mediator. The…

Abstract

This study aims to empirically examine the influence of transformational leadership on job satisfaction in Jordanian commercial banks through knowledge sharing as a mediator. The data were collected from 232 employees and then analyzed through regression analysis using SPSS. The results revealed that there is a significant influence of transformational leadership on job satisfaction, as well as a significant influence of knowledge sharing on this relationship. These findings imply that if managers adopt transformational leadership, their subordinates can be satisfied with their jobs, specifically if they facilitate knowledge sharing. This study sheds light on improving organizational performance and employee engagement in a specific context and provides excellent direction for future contributions.

Article
Publication date: 9 December 2024

Sami Ullah, Mohit Kukreti, Abdul Sami and Muhammad Rehan Shaukat

This research explains the critical role of technological readiness and green dynamic capabilities in enhancing the sustainability performance of manufacturing firms, which is…

Abstract

Purpose

This research explains the critical role of technological readiness and green dynamic capabilities in enhancing the sustainability performance of manufacturing firms, which is pivotal for achieving the United Nations’ Sustainable Development Goals. The theoretical framework is grounded in the dynamic capability theory, positing that technological readiness enhances a firm’s green dynamic capabilities, and employee green behavior moderates the effect on the sustainability performance of manufacturing firms.

Design/methodology/approach

Quantitative data from 1,660 managerial employees of a diverse sample of manufacturing firms was aggregated at the firm level using interclass correlation and interrater agreement, ensuring robustness using at least two responses per firm. With the final dataset of 418 firms, structural equation modeling was conducted using AMOS26.

Findings

The findings reveal that technological readiness positively affects sustainability performance and enhances it through green dynamic capabilities. Furthermore, the study highlights the positive moderating role of employees’ green behavior, amplifying the impact of green dynamic capabilities on sustainability performance.

Originality/value

This research makes a novel contribution to the body of knowledge by integrating dynamic capability theory with empirical evidence on sustainability performance. It represents a significant step toward promoting a more sustainable and responsible future for organizations and society and provides comprehensive insights into the complex interplay of these variables. These insights are crucial for academia, industry practitioners and policymakers striving to foster sustainable practices within the manufacturing sector.

Details

Journal of Manufacturing Technology Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 6 December 2023

Hamdy Abdullah, Fahru Azwa Md Zain, Sheikh Ahmad Faiz Sheikh Ahmad Tajuddin, Nik Hazimi Mohammed Foziah and Muhammad Shahrul Ifwat Ishak

Many scholars have primarily disregarded employee motivation in the context of Western and Islamic ideas. To better understand employee motivation, this paper aims to explore a…

Abstract

Purpose

Many scholars have primarily disregarded employee motivation in the context of Western and Islamic ideas. To better understand employee motivation, this paper aims to explore a novel approach of fusing McClelland’s needs theory (i.e. achievement, power and affiliation) with Maqasid Shariah.

Design/methodology/approach

This study adopts a theoretical research design. There will be a thorough literature study of McClelland’s theory, Maqasid Shariah, and employee motivation. Qualitative content analysis is used to examine and compile pertinent ideas. To give a thorough framework for comprehending employee motivation from both Western and Islamic ethical viewpoints, McClelland’s theory and Maqasid Shariah are integrated.

Findings

This paper has conceptualized the integration of Maqasid Shariah’s five requirements with McClelland’s need theory. It is suggested that Maqasid Shariah and McClelland’s need theory be combined to understand employee motivation. For employees, the integration of McClelland’s need theory and Maqasid Shariah entails developing a work environment that attends to their many needs, is consistent with Islamic principles, encourages justice and equity, supports both professional and personal development and promotes social responsibility. By combining McClelland’s need theory and Maqasid Shariah, 15 propositions are developed to explain employee motivation. The study offers a measurement index to explain employee motivation based on the two theories.

Research limitations/implications

The integration of McClelland’s theory of need and Maqasid Shariah offers expected positive implications. By considering the cultural and religious context in Islamic societies, researchers can adopt a more sensitive approach to studying motivation. This blend provides a holistic understanding of motivation, incorporating individual needs and broader ethical dimensions. Studies may explore the impact on prosocial behavior, organizational values, leadership practices and employee well-being. Understanding the alignment between personal motives and ethical principles can benefit organizations in diverse workplaces, emphasizing long-term sustainability and fostering employee engagement and commitment.

Practical implications

The integration of McClelland’s theory and Maqasid Shariah shows the potential implications to increase employee motivation. This study contributes significantly to Maqasid Shariah theory in business research by guiding ethical decision-making aligned with Islamic values, fostering inclusive workplaces and offering strategies for boosting employee morale. It emphasizes ethical practices, legal compliance and community engagement, while also encouraging sustainable business models that consider societal well-being and the environment.

Originality/value

This paper provides its unique value by being among the first to integrate McClelland’s theory and Maqasid Shariah and providing an innovative approach in developing a new measurement index in the context of employee motivation.

Details

Journal of Islamic Accounting and Business Research, vol. 16 no. 1
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 18 December 2024

Martini Dwi Pusparini, Raditya Sukmana and Rodame Monitorir Napitupulu

This study aimed at exploring to what extent social media has educated and shaped public opinion regarding cash waqf. This research comprehensively analyzed the social media…

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Abstract

Purpose

This study aimed at exploring to what extent social media has educated and shaped public opinion regarding cash waqf. This research comprehensively analyzed the social media content to find the most discussed topic and highlighted the trends in cash waqf literacy.

Design/methodology/approach

Twenty-nine videos discussing cash waqf in Indonesia from the YouTube platform were analyzed using NVivo R1 with a content analysis approach.

Findings

The research findings revealed that YouTube videos addressing cash waqf were categorized into four distinct clusters: government, ulama/influencers/professionals, nadzir (waqf manager) and TV stations, with the government cluster producing a higher number of videos (n = 11) than the other clusters. The findings also highlighted the limited involvement of nadzir in educating the public about cash waqf, as evidenced by a smaller number of videos (n = 5). Among these videos, the most frequently discussed topics included the utilization of cash waqf (n = 20), promotion of cash waqf (n = 14) and risk management (n = 13). Negative sentiment (n = 262) was observed to exceed positive sentiment (n = 107).

Practical implications

The findings of this study contribute to the fundraising aspect of cash waqf because the inclusivity of digital content in cash waqf campaigns is crucial to raise awareness of the public. In addition, these findings may help waqf managers (nadzir) assess the extent of educational content about cash waqf on YouTube and the public’s response to this content.

Originality/value

To the best of the authors’ knowledge, this study is the first to analyze the social media content, particularly from YouTube platforms, and public sentiment against cash waqf.

Details

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

Keywords

Article
Publication date: 14 February 2025

Soliha Sanusi, Rozana Saedon, Aliyu Dahiru Muhammad, Hafizah Omar Zaki and Aziatul Waznah Ghazali

This study aims to examine the determinants of cash waqf contributions among Malaysian millennials through digital platforms.

Abstract

Purpose

This study aims to examine the determinants of cash waqf contributions among Malaysian millennials through digital platforms.

Design/methodology/approach

The present study employed the Technology Acceptance Model with 328 respondents from Malaysia. A self-administrative questionnaire was developed and distributed using both online and physical survey methods. Partial least squares analysis was performed on the data using the Smart PLS 4.0 modeling package.

Findings

The results show that attitude, digital literacy, ease of use and waqf knowledge influenced Malaysian millennials to make cash contributions through digital platforms. However, trust in waqf institutions and waqf usefulness factors did not significantly affect Malaysian millennials’ decision to contribute cash waqf.

Research limitations/implications

The research findings have significant theoretical and practical ramifications for applying the Technology Acceptance Model and attracting millennials to contribute cash waqf.

Originality/value

The study adds new value to the literature. The focus of this study, which targets units of analysis among millennials, has received very little attention in the literature related to cash waqf in digital platforms.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 4 February 2025

Muhammad Waqas, Abdul Haseeb Tahir, Hussain Tariq and Ayesha Rashid Khan

We investigate how green transformational leadership (GTL) influences green innovative service behavior (GISB), particularly in the hospitality sector, which faces significant…

Abstract

Purpose

We investigate how green transformational leadership (GTL) influences green innovative service behavior (GISB), particularly in the hospitality sector, which faces significant environmental challenges. Drawing from social identity theory (SIT), we introduce green organizational identity (GOI) as a mediating mechanism through which GTL fosters GISB. Furthermore, we propose a moderated mediation model whereby a green knowledge-sharing climate (GKSC) serves as a first-stage moderator to further understand how and when GTL fosters GISB through GOI.

Design/methodology/approach

We employed a multi-study design (i.e. two independent studies across China) to test the hypothesized relationships. Study 1 involved full-time employees from the service industry in China, including healthcare, telecommunication, and insurance sectors (N = 313). Study 2 employed a time-lagged dyadic design, collecting responses from employees and their managers at three different time points in the hospitality sector (N = 419).

Findings

In Study 1, the simple mediation results demonstrate that GTL positively influences GISB through the mediating role of GOI. Moreover, in Study 2, the moderating effect of GKSC was supported, showing that in organizations with strong green knowledge-sharing climate, the indirect effect of GTL on GISB via GOI is amplified.

Originality/value

In our work, we address a critical gap in the literature by identifying both the mechanisms and contextual factors that explain how GTL influences GISB. By introducing GOI as a mediator and GKSC as a first-stage moderator, the study advances understanding of how leadership, organizational identity, and a green-supportive climate interact to promote eco-friendly innovation in service organizations. This contributes both theoretically and practically to the development of effective strategies for advancing green initiatives in the service sector.

Details

Journal of Service Theory and Practice, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2055-6225

Keywords

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