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1 – 10 of 51Hayat M. Awan and M. Ishaq Bhatti
Recently, ISO 9000 and its associated versions are rapidly becoming a “license to compete” worldwide. Its standards are generic in the way that they can be applied to all…
Abstract
Recently, ISO 9000 and its associated versions are rapidly becoming a “license to compete” worldwide. Its standards are generic in the way that they can be applied to all functions and all industries in various areas of human endeavor. They have been described as the “one size fits all” standards. In developing countries like Pakistan, adoption and implementation of ISO 9000 quality management system is slow due to lack of awareness and initiatives. The present study is an attempt to analyze different practices of ISO 9000, like its status, problems faced (before, during and after implementations), benefits gained, its impact, certification cost, the next step after ISO’s 9000 certification, critical success factors, the role of training, consultancy, top management support, use of ISO 9000 in the international markets, future prospects and in particular, general practices of ISO 9000 in the Sports Industry of Pakistan. In this study, detailed case studies clearly explain the current status and existing practices of ISO 9000 in the sports industry.
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M. Ishaq Bhatti, M. Zafarullah, Hayat M. Awan and Khuram S. Bukhari
Internal organizational orientation of service quality and its impact on service delivery performance of the employees have received considerable attention from financial…
Abstract
Purpose
Internal organizational orientation of service quality and its impact on service delivery performance of the employees have received considerable attention from financial management literature. The purpose of this paper is to address this issue by conducting empirical research focusing on the Pakistani Islamic banking industry. It conceptualizes and measures key determinants of internal organizational orientation of service quality from the employees' perspective.
Design/methodology/approach
The data were collected from a sample of 150 employees of pure Islamic banks and conventional banks with IBBs (Islamic Banking Branches or windows) across the entire country. The paper uses principal component factor analysis and regression methods.
Findings
Statistical results demonstrate that the employee perceptions of organizational service quality orientation mainly depends upon four main predictors: employees' perception about training and development; development and positioning of Islamic banking products/service concept; customer service orientation; and employees' service quality performance. Principal component factor analysis results indicate four predictive internal organizational service quality orientation factors (ISQF) where 16 per cent of the variation is being explained by employee perception of organizational orientation towards employees' training and development (ISQF1), 13 per cent variation explained employee perception of organizational orientation towards development and positioning of Islamic banking products/service concept (ISQF2), 11 per cent variation explained by employee perception of organizational service quality orientation towards customer service orientation (ISQF3), and 10 per cent variation explained employee perception of organizational service quality orientation towards employees' service quality performance (ISQF4).
Originality/value
Management of Islamic Banks in Pakistan need to be mindful about the fact that ISQFs identified by this study have the potential to indirectly influence customer perceptions through effective employees' recruitment and selection criteria, complemented by training to improve service oriented skills and knowledge development about Sh´ria principles related with the products/services offered by Islamic banks in Pakistan.
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Sharmila Jayasingam, Safiah Omar, Norizah Mohd Mustamil, Rosmawani Che Hashim and Raida Abu Bakar
Khuram Shahzad Bukhari, Hayat M. Awan and Faareha Ahmed
The purpose of this paper is to explore the perceived importance of management about various corporate governance dimensions being practiced in the Pakistani Islamic banking…
Abstract
Purpose
The purpose of this paper is to explore the perceived importance of management about various corporate governance dimensions being practiced in the Pakistani Islamic banking context.
Design/methodology/approach
AHP is applied to analyze the corporate governance indexes and its dimension of five Islamic banks and 12 conventional banks which are providing Islamic banking facilities (Islamic bank window) throughout Pakistan. These dimensions included board of directors (BOD), Shari'ah supervisory board (SSB), audit, investment account holders (IAH), and information disclosure & transparency.
Findings
The study reveals that the most significant dimensions which affect the corporate governance in Islamic banks are BOD and SSB, while the significant factors for Islamic banking windows are almost all dimensions of corporate governance. The correlation, regression, and ANOVA tests are applied to check the contributions of various factors of corporate governance mechanisms. These results indicate that there is a significant difference between Islamic banks and Islamic banking windows regarding the BOD and SSB. On the other hand, no significant difference is seen for the rest of the factors. The dissatisfaction level of customers reduces with the increase in the audit and BOD governance and all other factors have no impact in the case of Islamic banking windows; whereas in Islamic banks, in addition to audit and the SSB, information disclosure also significantly reduces the dissatisfaction level of customers. The concern of customers decreases significantly with the increasing level of IAH in the case of Islamic banking windows whereas in the case of Islamic banks a significant impact is seen for BOD, information disclosure, audit and IAH, but improvement in the governance of these rather increases the concern of customers toward compliance of Shari'ah and SSB has no contribution towards the concern of customers.
Originality/value
This study has practical significance for conventional and Islamic banking policy makers for understanding the requirements of their stakeholders and aligning them with the fundamentals of Shari'ah compliance according to the guidelines provided by the code of corporate governance so as to get better insight into the relationship between customers' motives behind using Islamic banking products.
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Hayat M. Awan, Ahmad Nabeel Siddiquei and Zeeshan Haider
The purpose of this paper is to identify and determine the connection of various antecedents from educational literary works with Halal purchase intention. It also aims to…
Abstract
Purpose
The purpose of this paper is to identify and determine the connection of various antecedents from educational literary works with Halal purchase intention. It also aims to investigate which antecedents, among all antecedents, have the highest possible participation toward the development of Halal food purchase intention. Consumers across the globe have an ever increasing demand for Halal items nowadays. Similarly, food stuff in Halal category has an increased acceptance across the globe. Numerous researches have therefore focused on Halal food perception, Halal understanding and its approval in various areas of the world.
Design/methodology/approach
A total of 300 respondents were taken from four major cities of Pakistan to examine the relationship of factors that influence customer’s Halal purchase intention. Data were collected through structured questionnaire having seven-point Likert scale. It was divided into eight sections with statements measuring Halal Awareness, Halal Marketing, Subjective norms, Religion and Religiosity, Attitude, Subjective norms, Perceived Behavioural control, Halal Certification and Purchase Intention.
Findings
The paper draws the findings that most of the customers rely on Halal Marketing, Personal and Societal perception and Halal certifications. On the other hand, least importance was given to their religious beliefs when making a purchase decision. The findings also suggest that customers are influenced by Halal Marketing and Branding practices of food products as they are being influenced by the sales promotions and celebrity endorsements. It has also been found that customers are willing to spend considerable efforts and money to purchase Halal food.
Originality/value
The paper clarifies the strategies for Halal food manufacturers and marketers who are following Islamic Marketing philosophy as a base for their marketing campaigns. The study also provides a detailed insight into various behavioural, societal and marketing dimensions that guides the customers about their purchase intentions.
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Hayat M. Awan and Khuram Shahzad Bukhari
Islamic banking is an emerging financial system in the contemporary world. Currently, it is found mostly in Islamic countries or in countries where OPEC oil revenues have been…
Abstract
Purpose
Islamic banking is an emerging financial system in the contemporary world. Currently, it is found mostly in Islamic countries or in countries where OPEC oil revenues have been invested. Most of the research has therefore been oriented towards macro‐environment issues, ignoring the market‐oriented problems. The purpose of this paper is to determine the conditions under which Islamic banks can successfully compete with conventional banks by understanding customer attitudes towards Islamic banking products.
Design/methodology/approach
A sample of 250 respondents was taken from four cities of Pakistan to examine customer awareness of key products/services being offered by Islamic banks, usage of those services and customer satisfaction with the service delivery mechanism being used by pure Islamic banks and conventional banks with Islamic bank branches (IBBs). Data for this study were collected by using a structured questionnaire containing two sections, where section I contains ten statements using Likert scale, for assessing customer's preferred selection criteria for Islamic banks. These statements are developed based on past literature. Section II deals with the questions related to the social and demographic profiles of respondents.
Findings
Analysis of data indicated that most of the customers value product features and quality of service as major factors for making selection of Islamic banks, and give lesser importance to religious belief as influential factor in selecting an Islamic bank. Findings suggest that there is a lack of awareness about basic conventions of Islamic financing options among respondents and customers of both the pure Islamic banks and conventional banks with IBBs do believe that the bank's staff lacks ability to provide credible information about religious compliance of Islamic banking financial services.
Originality/value
The paper has practical significance for Islamic banking policy makers, for understanding the key behavioral and demographical dimensions of their customers and using these dimensions for effectively positioning Islamic banking financial instruments, developing policies; and articulating procedures to maximize customer satisfaction and to ensure better exchange of value.
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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.
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Sri Rahayu Hijrah Hati, Niken Iwani Surya Putri, Sri Daryanti, Sigit Sulistiyo Wibowo, Anya Safira and Hapsari Setyowardhani
The purpose of this study is to examine the impact of brand familiarity and profit-sharing rate on Muslim customers’ brand trust, perceived financial risk, perceived value and…
Abstract
Purpose
The purpose of this study is to examine the impact of brand familiarity and profit-sharing rate on Muslim customers’ brand trust, perceived financial risk, perceived value and intention to invest in an Islamic bank.
Design/methodology/approach
A between-subjects experimental design was applied in the study. Six experiments involving two brand familiarity levels and three profit-sharing rates were conducted using a total of 217 samples. Randomization was applied in the study, which generated unequal sample sizes for each group of experiments.
Findings
The findings of this experimental study demonstrated that Muslim customers’ familiarity with the bank’s brand has a significant impact on their brand trust and intention to invest in an Islamic bank. The study also found that the profit-sharing rate has a significant impact on the perceived value both with and without interaction with brand familiarity.
Research limitations/implications
The current study applies an independent measured design or a between-subjects experimental design, that resulted in unequal sample sizes. In addition, the study also does not control for the types of bank accounts owned by respondents. The design may invite the presence of confounding variables that exist due to individual differences and environmental variables.
Practical implications
The results show that Islamic bank managers should care about the brand familiarity issue, which strongly influences customers’ brand trust and customer intention to invest in an Islamic bank. In addition, Islamic bank managers should pay attention to the profit-sharing rate given to customers, as it interacts with brand familiarity in influencing customers’ perceived value.
Originality/value
This study examined the impact of brand familiarity and profit-sharing rate on Muslim consumers’ brand trust, perceived risk, perceived value and intention to save in an Islamic bank. The paper provides a shred of empirical evidence to the theoretical relationship between the subjective and objective cues that influence the formation of customers’ trust, perceived financial risk, perceived value and intention in the Islamic bank context.
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Mohammad Sadegh Eshaghi, Bahram Ranjbarian and Azarnoush Ansari
This study, by applying psychological life-space theory, aims to identify the role of banking activities in customers’ well-being.
Abstract
Purpose
This study, by applying psychological life-space theory, aims to identify the role of banking activities in customers’ well-being.
Design/methodology/approach
Following a quantitative approach, a two-stage method of structural equation modelling was used to test the hypotheses. Through a close-ended questionnaire, data were obtained from banks’ customers. A partial least squares regression was used to test both inner and outer models. Sample power software was used to calculate the minimum sample size of the study.
Findings
A new variable namely customer well-being stems from banking activities identified which is assumed to be influenced by bank’s image, perceived value and aroused emotions. It was tested that word of mouth and bank’s marketing activities have impacts on the bank’s image. Moreover, by differentiating the images of different entities, it was proposed that comparative images could be considered as moderating variable. Furthermore, the mediating role of perceived value and aroused emotions are documented.
Originality/value
Applying psychological life-space theory, a new concept that is not limited to the financial aspect of well-being presented and tested. Although researchers in different filed of studies applied this theory, this is the first time that a study presents nominal and operational definitions of the role of banks in customers’ well-being. Moreover, for the first time in the bank marketing literature, images of different entities including consumer’s image, image of bank’s employee and image of bank’s competitors were separated and their causal relations were statistically tested.
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