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.
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Yenti Afrida, Harif Amali Rivai, Laura Syahrul and Hendra Lukito
This paper aims to investigate Islamic work ethics and adaptability towards change readiness of Islamic Bank employees in Indonesia with commitment as a mediating variable. This…
Abstract
Purpose
This paper aims to investigate Islamic work ethics and adaptability towards change readiness of Islamic Bank employees in Indonesia with commitment as a mediating variable. This study focuses on the Sharia banking industry, which is facing transformation from Sharia business units to Sharia commercial banks by preparing its human resources, thus minimizing resistance.
Design/methodology/approach
This study is based on a survey of 135 Bank Syariah Indonesia employees via an online questionnaire. PLS-SEM is used to analyze data and test hypotheses using SMART-PLS.
Findings
The results of the study show that adaptability does not have a positive and significant effect on readiness for change in Indonesian Sharia banks and organizational commitment. Meanwhile, Islamic work ethics have a positive and significant effect on the change readiness of Islamic bank employees in Indonesia as well as organizational commitment. This study also found that organizational commitment mediates the impact of Islamic work ethics on the change readiness of Islamic bank employees in Indonesia.
Research limitations/implications
This research uses a sample of employees at Sharia commercial banks (BUS) in Indonesia, so it is still limited to certain types of banks. Future research needs to test the model in different contexts, such as banks that still have Sharia business unit (UUS) status. In addition, further research needs to use other variables such as leader support for transformational change readiness. Future research also needs to control more variables and use a more complex scale than a binary scale (e.g. percentage of share ownership or area within a province or district/city). This study recommends that employee change readiness is very necessary to avoid resistance and resistance to the transformation and acceleration of Sharia banking in Indonesia.
Originality/value
This research looks at employee readiness for change in Indonesian Sharia banks through the lens of adaptability Islamic work ethics and organizational commitment.
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Nurul Ain Shahar, Anuar Nawawi and Ahmad Saiful Azlin Puteh Salin
This paper aims to examine the extent of the Shari’a corporate governance disclosure in the annual report of Islamic financial institutions (IFIs) in Malaysia to determine the…
Abstract
Purpose
This paper aims to examine the extent of the Shari’a corporate governance disclosure in the annual report of Islamic financial institutions (IFIs) in Malaysia to determine the significant differences in this disclosure between the local and foreign-owned IFIs, small and large size IFIs and IFIs belong to Islamic and conventional holding companies.
Design/methodology/approach
All 16 IFIs in Malaysia were selected to analyse the extent of disclosure in their annual reports on issues related to Shari’a corporate governance. For this purpose, an index of Shari’a corporate governance disclosure for IFIs was created based on adapting Sulaiman et al. (2015). The index consists of 127 items classified into 14 dimensions. The scoring of the disclosed items is binary, where a score of “1” if disclosed and “0” if it was not disclosed in the annual report.
Findings
The result shows no significant differences in the Shari’a corporate governance disclosure between the local and foreign-owned IFIs, small and large size IFIs and IFIs belonging to Islamic and conventional holding companies. However, further examination shows that there was a significant difference in the disclosure of the risk management committee dimension between the large and small IFIs and investment account holders dimension between the conventional and Islamic holding companies.
Research limitations/implications
The results provide new emerging evidence that deviates from many prior empirical research studies, which document the domination of Islamic-based IFIs in the corporate governance practices, as compared with their conventional financial institutions that venture into Islamic finance. This study, however, was conducted on only 16 IFIs in a one-year period, i.e. 2013. Future research should consider data from a larger number of IFIs that involve a number of countries with more than one year of data to have a better understanding of the extent of Shari’a corporate governance disclosure.
Practical implications
This study provides an indicator to the stakeholders of Islamic finance that the Islamic-based IFIs and conventional IFIs are equal and cannot be differentiated based on the Shari’a corporate governance disclosure. For Islamic-based IFIs, as a pioneer in Islamic banking and finance industry, they need to take more efforts in adopting the Shari’a governance framework issued by the Central Bank of Malaysia (BNM), namely, the Shari’a review, audit and risk management.
Originality/value
This study is original, as it includes the latest requirements by the Shari’a governance framework issued by the BNM, namely, the Shari’a review, audit, risk management and research functions in its research instrument. In addition, this research also scrutinised the disclosure in detail of all the dimensions constructed in the governance index.
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Muhammad Bilal Zafar and Mohd Fauzi Abu-Hussin
This study aims to dissect and understand the latent themes of Islamic work ethic (IWE) and explore the driving factors of IWE research.
Abstract
Purpose
This study aims to dissect and understand the latent themes of Islamic work ethic (IWE) and explore the driving factors of IWE research.
Design/methodology/approach
Structural topic modeling (STM), a sophisticated machine learning technique, was used to analyze a corpus of 205 articles sourced from the Scopus database. These articles cover the 36 years of research on IWE, from 1988 to 2024. Moreover, negative binomial regression was applied to examine the driving factors of IWE research.
Findings
The STM analysis unfolds ten topics in conjunction with IWE including individual success, workplace dynamics, organizational work ethics, knowledge management, employee citizenship behavior, financial ethics, job satisfaction, organizational commitment, performance enhancement and leadership. The further STM outputs included word clouds, prevalence proportions, correlation matrix, heatmap, relationship of topics with metadata, topic prominence in the publishing journals and, finally, illustrating trends and future prospects of research on IWE. The results of negative binomial regression reveal that number of authors, article age, journal indexing, authors from multiple countries and number of references are strong drivers of fostering research in IWE, by having significant positive impacts on total citations.
Social implications
The insights from this study provide valuable guidance for businesses and organizations looking to integrate IWE principles into their operations. By promoting values such as fairness, hard work and ethical behavior, organizations can foster a more inclusive and morally grounded workplace culture. This, in turn, may lead to enhanced employee satisfaction, greater organizational commitment and improved overall performance. Additionally, the emphasis on ethical practices can contribute to broader societal benefits, such as increased trust in business practices and a stronger alignment with social responsibility initiatives.
Originality/value
This is a unique study that explores the latent themes and characteristics of the IWE literature through STM and provides insights on the future research directions. In addition, this study also examines the driving factors of IWE research.
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Md. Kausar Alam, Suhaimi Ab Rahman, Mosab I. Tabash, Oli Ahad Thakur and Sharif Hosen
The main aim of this research is to ascertain the expected duties and performed roles and functions of the Shariah supervisory boards (SSBs) of Islamic banks in Bangladesh.
Abstract
Purpose
The main aim of this research is to ascertain the expected duties and performed roles and functions of the Shariah supervisory boards (SSBs) of Islamic banks in Bangladesh.
Design/methodology/approach
A semistructured face-to-face interview was applied to accomplish the research objectives. In total, data was collected from 17 respondents with a combination of regulators, SSBs, Shariah department executives and experts from the central bank and Islamic banks in Bangladesh.
Findings
This study finds that the expectations of Islamic banks toward SSB members are to provide opinions on Shariah issues, guidelines and decisions regarding the modern banking, practices and delivering of fatwas on the contemporary issues offered by the management to fulfill the demand of the numerous stakeholders. In addition, they can develop Shariah governance (SG) policies and implement those guidelines, approve and develop new products, observe and monitor banking functions, identify problems and outline solutions as well as they should ensure Shariah principles and compliance. The SSBs members perform roles and functions in monitoring and reviewing overall banking activities and functions; reviewing products, services and contracts; preparing SG guidelines; ensuring Shariah principles and compliance; providing opinions on existing SG practices and finally, delivering Shariah resolutions on the overall functions.
Research limitations/implications
This study significantly contributed to the national regulatory bodies by providing suggestions that the existing SG system should be improved to enhance the overall monitoring of SSB and ensure more Shariah compliance in the overall operations of the Islamic banks in Bangladesh.
Originality/value
This is the first research to the best of authors’ knowledge that explores the expected duties and performed roles and functions of the Islamic banks concerning Bangladesh. This study also contributes to the agency, legitimacy and stakeholder theories by outlining the expected and performed roles of SSBs to the Islamic banks and stakeholders.
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This paper aims to examine GCC companies' use of visual images to interplay modernity and globalism with tradition, Islam and local culture. The analysis aims to bring attention…
Abstract
Purpose
This paper aims to examine GCC companies' use of visual images to interplay modernity and globalism with tradition, Islam and local culture. The analysis aims to bring attention to the way that businesses in the GCC use visual images to engage with or influence debates in their societies concerning the tension between modernity, globalisation and traditional values in the Arab‐Islamic world.
Design/methodology/approach
The analysis is critical and discursive and based on a close reading of the visual images reported in the 2005 annual reports of companies listed on GCC stock markets.
Findings
The analysis suggests that GCC companies on many occasions used visual images to depict and represent the possibility of a successful profitable, modern and global business that is also sympathetic to tradition and operates within the framework of Islamic principles.
Originality/value
While visual images are increasingly used in companies' annual reports they have been largely ignored in accounting research. Furthermore, when this research manifests, it has been concerned with investigating Anglo‐American and Western contexts. This paper instead emphasises the significance of researching the use of visual images in a variety of contexts and locations. It critically and contextually explores the use of visual images in a largely unexplored, non‐Western and a significantly Islamic context.
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Saheed Abdullahi Busari, Jelili Adegboyega Adebiyi and Miszairi Sitiris
Sadaqah, a form of Islamic charity, was widely used to mitigate the adverse consequences of the COVID-19 pandemic on people’s socio-economic conditions and well-being. However…
Abstract
Purpose
Sadaqah, a form of Islamic charity, was widely used to mitigate the adverse consequences of the COVID-19 pandemic on people’s socio-economic conditions and well-being. However, the extent to which Sadaqah served the intended purpose remains unclear. Therefore, this study aims to explore the perceived effects of Sadaqah on the situational poverty and well-being of tertiary education students in Malaysia during the pandemic. The findings of this study could provide valuable insights into whether and how Sadaqah can address situational poverty and well-being challenges during COVID-19-type emergencies.
Design/methodology/approach
This study surveyed students at three Islamic universities in Malaysia. A total of 288 complete and valid responses were collected and analysed. The study used the Kruskal Wallis test to examine the relationship between students’ socioeconomic status and their odds of receiving Sadaqah. The chi-square test was used to estimate Sadaqah’s perceived effect on students’ well-being. The repeated measure analysis of variance was used to examine the effect of Sadaqah on the situational poverty and well-being of the respondents.
Findings
The pandemic starkly magnified the situational poverty of students from underprivileged backgrounds and the well-being struggles of those from high-income households. Many students reported pandemic-induced financial and physical well-being issues, including difficulties meeting medical and food expenses. This underscores the pressing need for comprehensive support. However, the Sadaqah received by the students did not cover essential expenses such as rent, tuition and medical bills. This lack of comprehensive support could be a critical factor in Sadaqah’s limited impact on addressing situational poverty and enhancing the well-being of the students.
Originality/value
This study revealed Sadaqah’s limitations in addressing situational poverty during COVID-19-type emergencies and identified promising avenues for improvement. The findings underscore the need for a more comprehensive approach to Sadaqah, which could significantly enhance the well-being of its recipients. This insight could potentially inform policy and practice, inspiring hope for a more effective approach in the future.
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Ahmed al Janahi and David Weir
Most studies of crisis management and business failure are based on research in western economic situations and assume western institutional patterns and attitudes. These assume…
Abstract
Most studies of crisis management and business failure are based on research in western economic situations and assume western institutional patterns and attitudes. These assume that certain fundamental elements of financial rationality guide the intervention of banks and financial institutions in situations of incipient business failure. This study is based on an empirical analysis of companies in the GCC region of companies which are clients of banks which operate within the frameworks of the Islamic Banking System in the Arab Middle East. A “sharp‐bending” orientation rather than a “business failure” model is used and conclusions are reached about the role of the banks and other financial institutions and their methods of managing difficult client situations. Some typical situations relating to problem loans, loan officers’ responses and behaviour and out comes are reviewed. The role of the bank in triggering early problem‐recognition is described and the response of the bank, subsequent actions and the sequence of recovery are described. Procedures and actions which would be regarded as “irrational” in a western cultural context are interpretable as “rational” within different cultural frameworks. We argue that there is no one universally‐accepted frame work of business rationality, and that “financial rationalities” are the product of deeply‐embedded cultural frames of reference.
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Admir Meskovic, Emira Kozarevic and Alija Avdukic
This study aims to investigate the relationship between Islamic governance and the social performance of Islamic banks, pioneering a new aspect in terms of the impact of the…
Abstract
Purpose
This study aims to investigate the relationship between Islamic governance and the social performance of Islamic banks, pioneering a new aspect in terms of the impact of the National Shariah Board (NSB) on the social performance of Islamic banks. The essential body in the Islamic banks in charge of Islamic governance is the Shariah Supervisory Board (SSB). Therefore, in this study, the authors explore how the characteristics of the Shariah board and Islamic governance mechanisms influence the social performance of Islamic banks.
Design/methodology/approach
Panel data methods are applied to the annual data of 43 banks from 14 countries over the period 2012–2018 to explore the impact of Islamic governance on Islamic banks’ social performance. The authors have used all available bank annual reports in the given period. Social performance is measured by Maqasid al-Shariah (in terms of the goals of the Islamic moral economy) index using a comprehensive evaluation framework. Islamic governance is represented by the improved Islamic Governance Score (IG-Score) index, which measures the quality of Islamic governance in Islamic banks. In the research, the authors also introduce the frequency of SSB meetings in IG-Score.
Findings
The findings suggest a strong link between Islamic governance and the social performance of Islamic banks, illustrating the importance of the Shariah board in achieving maqasid. On the other hand, the research discovered that NSBs are inefficient and the existence of NSB can jeopardize the social performance of Islamic banks. The results of this research imply valuable recommendations for Islamic banks that are keen to improve their social performance.
Originality/value
Besides investigating the impact of SSB governance on the social performance of Islamic banks by using an improved IG score index, to the best of the authors’ knowledge, this is the first study that investigates the impact of NSBs on the social performance of Islamic banks.