Said Bouheraoua and Fares Djafri
Islamic financial institutions (IFIs) are required to establish a Shariīʿah Governance Framework (SGF) to strengthen their Sharīʿah-compliance mechanism and ensure that all…
Abstract
Purpose
Islamic financial institutions (IFIs) are required to establish a Shariīʿah Governance Framework (SGF) to strengthen their Sharīʿah-compliance mechanism and ensure that all relevant IFI regulations are in line with Sharīʿah rules and principles. Effective implementation of the Shariīʿah-compliance function will further promote stakeholder confidence, as well as the integrity of IFIs, by reducing Shariīʿah non-compliance risks. This study aims to examine the internal control framework developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and explore the extent to which it can be incorporated in the Sharīʿah-compliance function of IFIs.
Design/methodology/approach
This study adopts a qualitative method of inquiry, utilizing the inductive method and content analysis to build comprehensive knowledge that will assist in exploring the framework of COSO methodology and the extent to which it can be adopted by IFIs.
Findings
The findings indicate that the existing frameworks of Sharīʿah governance, whether that of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) or Bank Negara Malaysia (BNM), need to be further developed. Therefore, the adoption of COSO methodology in the internal Sharīʿah audit of IFIs, as suggested by AAOIFI, is not only possible but desirable. The study also finds that the COSO framework places the highest priority on risk management in that it makes it an integral part of the decision-making process in all the institution's activities. As a result, incorporating the comprehensive COSO risk management structure within the Sharīʿah-compliance function will enhance risk management in IFIs.
Originality/value
This study highlights the importance of the COSO internal control framework and examines its components, principles and the possibility of its adoption by IFIs. The findings of this study are expected to contribute to enhancing the Sharīʿah-compliance function of IFIs.
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Fares Djafri and Kamaruzaman Noordin
Despite extensive studies on predictors and antecedents of organizational commitment, empirical research studies on the impact of workplace spirituality on organizational…
Abstract
Purpose
Despite extensive studies on predictors and antecedents of organizational commitment, empirical research studies on the impact of workplace spirituality on organizational commitment remain scarce. This study aims to examine the impact of the dimensions of workplace spirituality on agents’ organizational commitment in Islamic insurance (Takaful) industry in Malaysia.
Design/methodology/approach
This study used a positivist research approach, comprising a quantitative basis of enquiry, and gathered data via survey questionnaires. In total, 600 questionnaires were distributed and finally 395 usable cases were selected for analysis. Pearson’s correlation and stepwise multiple regressions analyses were used to analyze the data.
Findings
The findings indicated that spirituality in the workplace has a positive and significant effect on organizational commitment. The relationship between each and every component of workplace spirituality and organizational commitment was found to be substantial, positive and significant. The study findings will enable Islamic insurance companies to understand the importance of spirituality in the workplace and will further improve their function and performance by way of enhancing employees’ spirituality in the workplace. This study suggests developing more spiritual training, workshops, lectures and seminars on spirituality at the workplace which will help employees of takaful operators and agencies cope effectively with life problems, reduce stress, boost loyalty and enhance organizational commitment.
Originality/value
This study raises awareness on the importance of spirituality in the workplace and investigates the influence of its components to enhance organizational commitment, which will ultimately contribute to improving and sustaining human well-being and organizational performance.
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Fares Djafri, Kamaruzaman Bin Noordin and Kamil Naail Mohammed
The study aims to investigate the measurement model of four constructs, namely, spirituality at the workplace (SP), Islamic spirituality (ISP), organizational commitment (OC) and…
Abstract
Purpose
The study aims to investigate the measurement model of four constructs, namely, spirituality at the workplace (SP), Islamic spirituality (ISP), organizational commitment (OC) and organizational citizenship behaviours (OCB). The study aims to contribute new knowledge to the existing literature whereby performance determinants comprising these constructs, serve to improve employee well-being which ultimately improves organizational performance.
Design/methodology/approach
Using disproportionate stratified random sampling, the survey data used for this empirical research were drawn from 482 employees working in takaful agencies in Malaysia. After yielding an instrument to measure SP, ISP, OCB and OC, principal component analysis (PCA) using SPSS and confirmatory factor analysis (CFA) using AMOS were carried out.
Findings
Good fit indices from CFA revealed that OC is explained by three variables, namely, normative, continuance and affective; SP is also explained by three variables comprising alignment with organizational values (AWOV), sense of community (SC) and meaningful work (MW); ISP is explained by three variables comprising belief, forgiveness and remembrance of Allah; and finally, OCB is explained by civic virtue, conscientiousness and altruism. The findings of this study will enable Islamic insurance companies to understand the importance of spirituality and Islamic spirituality on well-being and will further improve their function and performance by way of enhancing employees’ spirituality in the workplace. Moreover, Human Resource development professionals, organizational managers and government authorities may use the findings of this study to justify their efforts in designing appropriate learning and performance improvement interventions so that OC, OCB, IS and ISP among non-Muslim and Muslim employees can be monitored and further enhanced.
Originality/value
This study raises awareness on the importance of four critical constructs that can be used by corporate organizations, NGOs and other institutions, to justify their efforts in performance improvement interventions.
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This study aims to investigate the relevance of the theory of planned behaviour (TPB) in predicting the intentional behaviour of refugee entrepreneurs. This paper uses key…
Abstract
Purpose
This study aims to investigate the relevance of the theory of planned behaviour (TPB) in predicting the intentional behaviour of refugee entrepreneurs. This paper uses key components of the theory on attitude, subjective norms and perceived control to explore the willingness of refugees to participate in microenterprise support programmes (MESP) in refugee camps.
Design/methodology/approach
This study used a positivist research approach, comprising a quantitative basis of enquiry and gathered data via survey questionnaires. In total, 400 usable questionnaires were completed and used for analysis. This study uses descriptive and inferential analysis with SPSS and confirmatory factor analysis with AMOS to test three key TPB hypotheses.
Findings
The structured model revealed acceptable high goodness-of-fit indices. Also, the findings indicated that out of three hypotheses, two hypotheses (attitude and perceived control) were substantial, positive and significant. However, the relationship between subjective norms of refugees and their intention to participate in MESP was insignificant. The findings of this study indicate the low-profile refugees give to the views and opinions of the surrounding communities when it comes to determining their intentional behaviour. As such, some poignant implications may relate to microfinance and microcredit programmes targeting refugees.
Practical implications
The present study illustrates the interrelationships between the proposed variables. Also, by understanding the relationships between the selected variables, the findings would be useful for the concerned authorities to ameliorate and upgrade the well-being of refugees along with empowering their environment, which would facilitate their engagement in business and entrepreneurship.
Originality/value
This study explores the relevance of TPB and its components in the context of the intentional behaviour of refugee entrepreneurs. It further illuminates the distinction of refugee behaviour towards entrepreneurship and MESP.
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Achmad Sani and Vivin Maharani Ekowati
The purpose of this study is to analyze the influence of Islamic spirituality toward organizational citizenship behavior from Islamic perspective (OCBIP), influence Islamic…
Abstract
Purpose
The purpose of this study is to analyze the influence of Islamic spirituality toward organizational citizenship behavior from Islamic perspective (OCBIP), influence Islamic spirituality toward OCBIP in which spirituality at work and organizational commitment become mediators and influence of OCBIP toward working performance.
Design/methodology/approach
The study was categorized as an explanatory research. The setting of the study was the branch office of BRI Syariah in Malang. The population was employees of the branch office. The samples were 217 employees of BRI Syariah Malang. With an estimated population of 193 individuals and a 5 per cent confidence level, the total samples were 150 employees, including the supervisors. The sampling technique was proportional random sampling, in which all members of the population have an equal chance to become a sample based on proportion per section (Sekaran, 2003). The data were primary data obtained through questionnaires. The questionnaire consisted of question items on Islamic spirituality, workplace spirituality, organizational commitment and OCBIP. The data analysis technique was partial least squares (PLS).
Findings
Islamic spirituality is not directly influencing toward OCBIP, spirituality at work and organizational commitment as moderation variables in the influence of Islamic spirituality toward OCB IP, OCBIP had influence toward working performance. Higher OCBIP would result in better working performance accepted, and at the opposite, lower OCBIP would result in poorer working performance.
Originality/value
There are some limitations of previous studies that examine spirituality relationships with OCB. Nasrudin et al. (2013) and Kazemipour et al. (2012) found significant correlations between spirituality with OCB, but there is an inconsistency of research findings to suggest that spirituality has no direct effect on OCB, but through individual perceptions of organization. As the study of spirituality with OCB is still limited, this study attempts to explain OCB from an Islamic perspective, to propose a framework on Islamic spirituality, spirituality at work as an individual source of OCB and moderation of organizational commitment using Djafri and Noordin’s (2017) and previous empirical studies, with an aim to integrate the spirituality and OCB in a model that can be used to better understand OCB. It is hoped that this model development will reduce the scarcity of literature on spirituality with OCB through organizational commitment. This will help the organization to understand the role of spirituality and organizational commitment to improve OCB of employees that ultimately will improve organizational performance.
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Puji Sucia Sukmaningrum, Achsania Hendratmi, Sylva Alif Rusmita and Syadiyah Abdul Shukor
This study aims to investigate the productivity level of family takaful in Malaysia and Indonesia from 2014 to 2019. Productivity can support corporate sustainability, which is…
Abstract
Purpose
This study aims to investigate the productivity level of family takaful in Malaysia and Indonesia from 2014 to 2019. Productivity can support corporate sustainability, which is one of the company’s goals.
Design/methodology/approach
The measurement of the productivity level in this study involved applying the Malmquist Productivity Index (MPI) method. The input variables used consisted of equity, total expenses and total investment. The output variables consisted of total profit and investment income. In addition, this research used the orientation of the output and intermediation.
Findings
Throughout the study period, the Indonesian family takaful had an average total factor productivity change (TFPCH) of about 0.945. In other words, it did not reach optimal productivity. It is more due to the low value of technological change (TECHCH). On the contrary, family takaful companies in Malaysia had called productivity, showing a TFPCH of about 1.041. Again, this is mainly due to an increase in TECHCH and efficiency change, but it is still low in pure technical efficiency change.
Research limitations/implications
This study focuses on factors that exist in internal takaful companies. Neither micro- nor macroeconomic variables that can affect productivity levels have been measured. In addition, this study only analyzed two countries out of the 11 countries in the Southeast Asian region.
Practical implications
Family takaful companies can use the productivity index as one of the bases of evaluation in managing their resources to enhance optimal output. Furthermore, the management of family takaful companies in Indonesia needs to focus more on technological innovation and delivery of services to increase productivity. Meanwhile, family takaful companies in Malaysia can maintain their technology usage and efficiency to operate productively. The government in both countries is expected to actively accelerate the growth of family takaful companies by producing regulatory products that strengthen the industry. Specifically, the government in Indonesia needs to make regulations that support technology improvement.
Originality/value
There is still not much research that examines family takaful’s productivity level using the MPI. The MPI is an appropriate tool to evaluate the productivity of family takaful companies. Thus, family takaful companies can improve their quality by assessing the productivity index value.
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Jarita Duasa, Suhaimi Mhd Sarif and Nur Arfifah Abdul Sabian
Four main strategies required for firms to be able to achieve their main objectives in organizations under the unified theory of the firm are technological advance, intellectual…
Abstract
Purpose
Four main strategies required for firms to be able to achieve their main objectives in organizations under the unified theory of the firm are technological advance, intellectual development, spirituality conducts and customer satisfaction concern. This study aims to explore the inclination of firms to adopt all these strategies in, factors that contribute to the adoption of all these strategies and significant relationship between these strategies of firms in the context of Malaysian firms.
Design/methodology/approach
Using primary data from the survey on a sample of firms in the financial sector of Malaysia, the study adopts several methods of analysis such as t-test for dependent sample, t-test for independent sample and correlation. Furthermore, ordinary least squares regressions are estimated to determine factors that have an impact on a particular strategy.
Findings
It is found that the strategies of the unified theory of the firm significantly contributed to the education level of managers. Highly educated managers tend to adopt strategies most of the time. It is also found that scores of customer satisfaction concern are highly related to scores of intellectual development and spirituality conduct. The correlation coefficient is also high between spirituality conduct and intellectual development.
Originality/value
The study analyzes the adoption of important strategies of a unified theory of firm among several firms using first-hand data (primary data) collected from the survey.