Tika Kartika, Achmad Firdaus and Mukhamad Najib
This study aims to investigate the drivers of loyalty in Indonesian Islamic banks, especially group of depositor vs financing customer and single vs dual customer.
Abstract
Purpose
This study aims to investigate the drivers of loyalty in Indonesian Islamic banks, especially group of depositor vs financing customer and single vs dual customer.
Design/methodology/approach
The objectives of this study were the seven major commercial Indonesian Islamic banks using the purposive sampling technique. In total, 105 questionnaires were processed, consisting of questions regarding depositors, financing, single and dual customer. Structural equation modeling using partial least squares were the analysis methods used to test the hypothesis, while in-depth interviews were conducted with Islamic bank managers to validate the findings.
Findings
Image has a significant relationship with customer satisfaction, as well as trust. Similarly, customer satisfaction has a significant relationship with trust. Trust has a significant relationship with loyalty. For a financing customer, the image is very influential on customer trust. For a depositor customer, customer satisfaction is very influential on customer trust. For single customer, customer satisfaction has a stronger influence on the image, compared to dual customer.
Practical implications
Islamic banks need to maintain good image and service quality to create strong, reliable and long-term relationships with customers, more specifically, in terms of improvement and product innovation. A bank focuses on the micro or macro segment, as well as financing. Financing products should be referred to customers’ needs. Bank reputation can be done by strengthening branding and corporate culture in marketing strategy. Shariah compliance has the highest loading factor to trust customers. Indonesian Islamic banks need to maintain customer trust by sticking to Islamic principles and continuing to ensure that its products and services are in accordance with Islamic principles. In Indonesian Islamic banks, it is very important to keep the legal aspects in all of products and services. Deposit products and services of Islamic banks should be in line with the rules of the financial services authority and Bank of Indonesia culture. Bank efforts to strengthen reputation can be done by strengthening branding and corporate culture in marketing strategy, while increasing the attractiveness of the products by way of research and development (R&D) must endeavor to make products and services attractive in terms of both product characteristics and price. Furthermore, it is necessary to support a good marketing strategy to market their products.
Social implications
Research can be used more widely in determining public policy, by strengthening the marketing strategy and public education. Islamic banks can work together with local religious departments to maximize marketing strategies to educate and convince people to be active economically under Islamic sharia guidance. Islamic banks need to maintain customer trust by sticking to the principles of sharia and continuing to ensure that products and services conform to sharia principles. Islamic bank management can strengthen customer trust by having a good risk management system, so that customers feel secure with Islamic bank transactions. In addition, sharia banks as companies must demonstrate social responsibility by distributing ZIS managed from customers and implementing CSR as a form of awareness of the surrounding community.
Originality/value
The study revealed the factors that lead to loyalty on the financing, depositor and the single and dual customers. The study found that improvement and innovation, strategic and sustainability are new indicators used to build images of Islamic banks.
Details
Keywords
The purpose of the study is twofold: first, it is to develop each aspect of maṣlaḥah ḍarūriyah (essential needs), i.e. dīn (faith/religion), nafs (soul), ʿaql (intellect), naṣl…
Abstract
Purpose
The purpose of the study is twofold: first, it is to develop each aspect of maṣlaḥah ḍarūriyah (essential needs), i.e. dīn (faith/religion), nafs (soul), ʿaql (intellect), naṣl (descendants) and mal (wealth), into various aspects of organisational essential needs; second, it is to formulate maṣlaḥah-based performance measurement.
Design/methodology/approach
The research is an exploratory study that uses a two-stage design: defining the research question and developing the research design. The research question is how each element of maṣlaḥah ḍarūriyah can become an element of organisational essential needs. The research design developed is to formulate maṣlaḥah-based performance measurement.
Findings
The study concludes that maṣlaḥah ḍarūriyah could be developed as a basis for identifying organisational essential needs. The five elements of maṣlaḥah ḍarūriyah are developed into the following organisational essential needs: worship orientation, internal process orientation, talent orientation, learning orientation, customer orientation and wealth orientation. Maṣlaḥah-based performance measurement uses five variables: strategic objective, measure, formula, target and strategic initiatives and applies the modified plan – do – check – action cycle: performance planning, performance implementation, performance evaluation and performance action.
Practical implications
Organisational essential needs can be developed by Islamic financial institutions (IFIs) into performance measurement. IFIs have six essential needs that can be developed into performance variables. Key performance indicators that can be developed for each need are worship orientation (social responsibility, regulatory compliance and Sharīʿah compliance); internal process orientation (innovation process, digital adaptation and employee satisfaction); talent orientation (career development, talent pool, compensation and benefits); learning orientation (training programme, training evaluation and return on training investment); customer orientation (customer engagement, customer satisfaction, customer survey and promotion programme); wealth orientation (profitability, cost-cutting, share prices, dividends, cost efficiency and financial sustainability).
Originality/value
This paper contributes to new knowledge. The study attempts to discuss the organisational essential needs based on the maṣlaḥah ḍarūriyah concept, while previous studies discussed organisational needs based on Maslow’s hierarchy of needs. In developing performance measurement, organisational performance is measured in a balanced manner. According to the concept of maṣlaḥah, not only financial factors but also worship, internal processes, talents, learning and customers define organisational needs. Thus, organisational needs are considered not only in terms of material factors but also in terms of spiritual (worship) factors.
Details
Keywords
Nur Budi Mulyono, Noorhan Firdaus Pambudi, Lukni Burhanuddin Ahmad and Akbar Adhiutama
The lack of studies about the response time of emergency medical service during the coronavirus disease 2019 (COVID-19) pandemic in a dense city of a developing country has…
Abstract
Purpose
The lack of studies about the response time of emergency medical service during the coronavirus disease 2019 (COVID-19) pandemic in a dense city of a developing country has triggered this study to explore the factors contributing to a high response time of ambulance service to reach patients in need. An evaluation of contributing factors to the response time is necessary to guide decision-makers in keeping a high service level of emergency medical service.
Design/methodology/approach
This research employed an agent-based modeling approach with input parameters from interviews with emergency medical service staff in Bandung city, Indonesia. The agent-based model is established to evaluate the relevant contribution of the factors to response time reduction using several scenarios.
Findings
According to agent-based simulation, four factors contribute to the response time: the process of preparing crew and ambulance during the pandemic, coverage area, traffic density and crew responsiveness. Among these factors, the preparation process during the pandemic and coverage area significantly contributed to the response time, while the traffic density and crew responsiveness were less significant. The preparation process is closely related to the safety procedure in handling patients during the COVID-19 pandemic and normal time. The recommended coverage area for maintaining a low response time is 5 km, equivalent to six local subdistricts.
Research limitations/implications
This study has explored the factors contributing to emergency medical response time. The insignificant contribution of the traffic density showed that citizens, in general, have high awareness and compliance to traffic priority regulation, so crew responsiveness in handling ambulances is an irrelevant factor. This study might have different contributing factors for less dense population areas and focuses on public emergency medical services provided by the local government.
Practical implications
The local government must provide additional funding to cover additional investment for ambulance, crew and administration for the new emergency service deployment point. Exercising an efficient process in ambulance and crew preparation is mandatory for each emergency deployment point.
Originality/value
This study evaluates the contributing factors of emergency medical response time in the pandemic and normal situation by qualitative analysis and agent-based simulation. The performance comparison in terms of medical response time before and after COVID-19 through agent-based simulation is valuable for decision-makers to reduce the impact of COVID-19.
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Keywords
Vanessa Gaffar, Wenda Wahyu Christiyanto, Rivaldi Arissaputra, Abror Abror, Nurman Achmad, Esa Fajar Fajar Hidayat, Qoriah A Siregar and Aslinda Shahril
This paper aims to explore the influence of digital halal literacy and halal destination attributes on revisiting intention through satisfaction and trust as mediating variables.
Abstract
Purpose
This paper aims to explore the influence of digital halal literacy and halal destination attributes on revisiting intention through satisfaction and trust as mediating variables.
Design/methodology/approach
The study collected data from 308 domestic tourists in Indonesia who visited urban tourist destinations using a Likert-scale questionnaire, conducted between June and July 2023, and analysed using PLS-SEM for comprehensive data collection.
Findings
Digital halal literacy and halal destination attributes significantly impact tourist satisfaction and trust, potentially leading to the desire to revisit previously visited destinations. The higher the digital halal literacy and halal destination attributes, the higher the satisfaction and trust of tourists towards these destinations, potentially resulting in their intention to revisit.
Research limitations/implications
This study focused on the Greater Bandung area in western Indonesia, a popular tourist destination. Future studies should explore the eastern region and its surroundings, as they do not differentiate between nature-based and man-made tourism.
Practical implications
The absence of information on halal tourism destinations hinders travellers' understanding and decision-making, particularly considering the preference for symbols as a means of communication, a crucial factor that destination managers must consider.
Social implications
Visual elements, such as symbols and signage, significantly influence tourist behaviour and experiences, leading to the decision to revisit the destination.
Originality/value
The integration of digital halal literacy and halal destination attributes offers a comprehensive understanding of halal tourism, particularly in terms of revisit intentions.
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Monica Singhania and Ibna Bhan
This study aims to systematically consolidate and quantitatively integrate the mixed empirical results on the association between ownership mechanisms and voluntary carbon…
Abstract
Purpose
This study aims to systematically consolidate and quantitatively integrate the mixed empirical results on the association between ownership mechanisms and voluntary carbon disclosure using meta-analysis and further propose potential country-level moderators of this relationship.
Design/methodology/approach
The authors apply meta-analytic procedures on 55 empirical studies conducted during 2008–2022, covering 13 countries, 85 effect sizes and 226,473 firm-year observations. To gauge the significance of the estimated mean effect size, a random-effects Hedges and Olkin meta-analysis procedure is adopted, followed by a restricted maximum likelihood based meta-regression, to test the effect of possible moderators.
Findings
Aligned with agency and stakeholder theories, the results highlight institutional and state ownership (SO) as having a significant positive impact on voluntary carbon disclosure. On the other hand, ownership concentration, managerial and foreign ownership have an insignificant effect on voluntary carbon disclosure. Based on institutional theory perspectives, the authors confirm the impact of institutional ownership on voluntary carbon disclosure to be more prominent in civil law countries and those countries that have implemented an emission trading scheme (ETS).
Practical implications
The finding that institutional and SO in firms can translate into higher voluntary disclosures deems investors and the government as crucial stakeholders in achieving carbon neutrality. Furthermore, the finding that the effect of institutional investors on carbon disclosure is heightened in ETS-implemented countries provides evidence to the regulatory authorities in favour of this scheme.
Social implications
The positive impact of institutional and government ownership on voluntary carbon disclosure highlights that these ownership structures not only have the potential to transform corporate decisions but also have implications for the wider society. As firms owned by institutional investors disclose their carbon information, it provides access to critical information about their environmental practices to the public. This fosters an environment of transparency and trust between the firm and its stakeholders (the community), leading to an overall well-informed society.
Originality/value
While prior meta-reviews studied the impact of corporate governance on voluntary disclosures, the meta-literature, as of 2024, has yet to address its influence specifically on carbon disclosures, which are pertinent amidst the ongoing global climate change crisis. The findings inform policymakers about the pivotal institutional factors that can amplify the impact of effective ownership structures on voluntary carbon disclosure. Future scope exists for investigating the effects of ownership mechanisms on firm-level sustainable investments. Furthermore, future empirical analysis could consider the moderating influence of “culture” and “ease of doing business” on the ownership-carbon disclosure relationship.
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Keywords
Halimin Herjanto, Muslim Amin and Mulyani Karmagatri
This study aims to offer a holistic halal cosmetic consumption framework by describing the current knowledge about halal cosmetics and presenting new directions for future…
Abstract
Purpose
This study aims to offer a holistic halal cosmetic consumption framework by describing the current knowledge about halal cosmetics and presenting new directions for future research.
Design/methodology/approach
The theory, method and context–attributes, decision and outcome systematic review framework was used in this study. This study addresses the halal cosmetics literature published in the Scopus database: nonpredatory journals between 2010 and 2021.
Findings
This study found seven antecedent categories that affect four halal cosmetics consumption decisions. Those decisions led to three outcomes. In addition, behavioral theories were identified as the most frequent theory used to explain this phenomenon in personal and business settings.
Originality/value
To the best of the authors’ knowledge, this is the first systematic review of halal cosmetics consumption. This study explores the relevant theories, contexts, methods, antecedents and consumer decisions. Therefore, this study offers important insights into this phenomenon.