Syed Moudud-Ul-Huq, Tanmay Biswas, Md. Abdul Halim, Miroslav Mateev, Imran Yousaf and Mohammad Zoynul Abedin
This study aims to show the relationship between competition, financial stability and ownership structure of banks in the Middle East and North African (MENA) countries.
Abstract
Purpose
This study aims to show the relationship between competition, financial stability and ownership structure of banks in the Middle East and North African (MENA) countries.
Design/methodology/approach
This study uses the generalized method of moments (GMM) estimators to generate research results. This study uses an unbalanced panel dynamic data set. It covers the period 2011 to 2017 in MENA banks.
Findings
This study implies that there is a significant and positive relationship between market power and the financial stability of banks in MENA countries. It explains a competitive market focus on credit risk, which turns them risky. From the bank’s ownership view, Islamic banks are in a less risky position which means Islamic banks are more stable than other ownership structures. On the other hand, government specialized institute displays their poor financial stability and risky from other ownership structures. Unfortunately, there is no significant impact of ownership structure on competition unless Islamic banks prove that they (Islamic banks) perform better in market power.
Practical implications
The empirical findings of this study suggest that MENA banks should improve the process of managing and monitoring the non-performing loan (loan segment business). It reduces the level of credit risk, which leads to achieving more profit. It also recommends that loan quality should improve immediately in this region for declining financial disruption. Based on the ownership structure, policymakers and stakeholders should adjust their risk and financial stability. Notably, the stakeholders can focus on Islamic banks in this region as this type of ownership structure showing superiority over other ownership structures.
Originality/value
This study is based on the latest data set and produced outcomes by using a GMM estimator. It also uses multiple measures of competition and risk variables to get robust results. Moreover, to the best of the knowledge, this study is the pioneer to examine the competition, risk (financial stability) and ownership structure of banks in the MENA countries.
Details
Keywords
This paper aims to examine people's preferences for alternative cyclone vulnerability reduction measures in cyclone prone areas of Bangladesh.
Abstract
Purpose
This paper aims to examine people's preferences for alternative cyclone vulnerability reduction measures in cyclone prone areas of Bangladesh.
Design/methodology/approach
A choice experiment (CE) method has been implemented based on the pressure and release (PAR) vulnerability model. Data were collected from a sample of households in two districts of Bangladesh in winter 2008.
Findings
The results of a choice experiment (CE) method conducted in selected areas of Bangladesh prone to cyclone hazards indicated that access to resources is viewed as the most influential factor in cyclone vulnerability reduction options. Findings support the pressure and release model (PAR) of vulnerability analysis. Access to training and education and cyclone warning systems are also found to have significant impacts on households' choices of cyclone vulnerability reduction. Structural mitigation measures and access to power and decision making, though significant, were found to have the least impact.
Research limitations/implications
The paper shows that the choice experiment method is a good technique for understanding people's preferences for vulnerability reduction measures.
Practical implications
The paper concludes with a policy recommendation for governmental and non‐governmental agencies to focus on vulnerability reduction measures that tackle the root causes of vulnerability.
Originality/value
This is the first time that the choice experiment method has been used for cyclone vulnerability analysis, and it provides quantitative supports for the PAR model.
Details
Keywords
Islamic finance and Halal product sectors are thriving successfully. This chapter is a general review of the perception of Asian consumers on Islamic finance and Halal sectors in…
Abstract
Purpose
Islamic finance and Halal product sectors are thriving successfully. This chapter is a general review of the perception of Asian consumers on Islamic finance and Halal sectors in the global Halal economy.
Methodology/approach
The first section will briefly describe the Halal concept in both Islamic finance and Halal industries, and the growth of both sectors in Asian countries. The second part highlights the review of Asian consumers’ perception towards Islamic finance products and Halal products.
Findings
The review found that the consumers’ perception towards the Islamic finance products and Halal products is distinctive. This is due to the diversity of Asian countries in terms of geography, religion, culture, ethnic, school of thoughts (madzahib), income per capita and government’s involvement.
Originality/value
The third part of the chapter concentrates on planning towards Halal marketing, which involves the move and future challenges in different layers of industries to gear up and strengthen the Halal economy.
Details
Keywords
This paper aims to fill the noticeably fragmented zakat literature repertoire by empirically exploring stakeholders’ views toward zakat management performance issues based on a…
Abstract
Purpose
This paper aims to fill the noticeably fragmented zakat literature repertoire by empirically exploring stakeholders’ views toward zakat management performance issues based on a selected zakat institution (ZI) operating on a corporatized platform with corporate administrative style.
Design/methodology/approach
A quantitative approach using a questionnaire survey distributed to Muslims in the State which ZI is operating was adopted. A total of 448 usable responses are used in the analysis covering descriptive and mean difference.
Findings
The results indicate that managerial reform configuration in terms of corporatization has been viewed positively by stakeholders, translated into a comforting agreement score toward ZI’s improved management performance (collection, disbursement and reporting). Such perceptions are, however, observably sensitive to demographic factors of gender and employment type. The survey also document evidence that the corporatization exercise itself had improved respondents’ confidence toward ZI being the zakat administrator in the State.
Originality/value
The research contributes to the public policy debate with respect to corporatized ZI’s management performance from the stakeholders’ perspective. The results are arguably informative at various levels, forming a basis for reality check and policy inputs for various stakeholders, including (but not limited to) the ZI itself, zakat payers and asnafs, particularly in designing relevant and necessary administrative strategies and relevant policy formulation in addressing the performance and accountability issues in ZIs.
Details
Keywords
Tanzina Akhter, Zairihan Abdul Halim, Saima Mehzabin, Ahanaf Shahriar and Md. Abul Kalam Azad
The global financial crisis of 2008 has put greater doubt on the bank risk-management effectiveness around the world. As a part of the response to such doubt, the Gulf Cooperation…
Abstract
Purpose
The global financial crisis of 2008 has put greater doubt on the bank risk-management effectiveness around the world. As a part of the response to such doubt, the Gulf Cooperation Council (GCC) region is formulating some feasible approaches to manage bank risk. In this regard, an understanding of the role of the region’s culture and economic freedom will provide immense input into this risk management approach. This study examines the impact of national culture and economic freedom on bank risk-taking behavior.
Design/methodology/approach
Data on bank risk measures, culture and economic freedom are obtained from the FitchConnect, World Bank database, Hofstede’s insights and Heritage Foundation. Generalized least squares and two step-system generalized method of moments are then used to examine the risk-taking behavior of the region.
Findings
Banks of the GCC region operating in the low power distance, high collectivism, masculine and low uncertainty avoidance cultures are susceptible to assuming more operational and insolvency risks. Furthermore, banks’ overall risk-taking inclination is positively increased once the region has considerable business and monetary freedom.
Practical implications
The governments and bank regulatory bodies may benefit from the study findings by developing the best economic freedom index and national culture that enriches risk management practices and curves excessive risk-taking inclination.
Originality/value
To the best of the authors’ knowledge, this study is the first attempt to address the interplay among culture, economic freedom and bank risk to ensure constructive risk-taking behavior for the GCC banking industry.
Details
Keywords
Khadijah Mohd Khambali@Hambali, Suraya Sintang, Azarudin Awang, Khairul Nizam Mat Karim, Nur Farhana Abdul Rahman, Wan Adli Wan Ramli, Nurhanisah Senin, Azmil Zainal Abidin, Ahmad Zuhdi Ismail, Wan Zailan Kamaruddin Wan Ali and Ruzman Md. Noor
The main value in a culture of tolerance is wasatiyyah. The fragility of relationships and misunderstanding between Muslim and non-Muslim communities occurs when attention to…
Abstract
Purpose
The main value in a culture of tolerance is wasatiyyah. The fragility of relationships and misunderstanding between Muslim and non-Muslim communities occurs when attention to values of tolerance which need more attention on moderation was not practiced especially in the life of a new Muslim convert community. Thus, the practice of moderation is one mechanism proposed by the government to ensure a harmonious continuation of life in a religious community can be achieved. For that, a qualitative study design was used to describe the current status of a phenomenon that occurs among new Muslim converts. The purposive sampling method is used to determine the applications of wasatiyyah in new Muslims’ life tolerance at Kota Kinabalu (East Malaysia) and Kuala Terengganu (West Malaysia). Although the study was conducted at two different locations, there is a relationship between religious phenomena that occur in the new Muslims community in Malaysia. The purpose of this study is to see the practical concept of moderation in the life of new Muslims and their relation with Muslims and non-Muslims. The results showed that the value of moderation was applied in the aspect of tolerance. The application of Wasatiyyah in practice of tolerance had helped non-Muslims family members to change their attitudes and perception towards Islam. This study suggests the values of wasatiyyah in the life of religious tolerance, need to be nourished especially in multiethnic society when sharing a living places, education and employment for better social development as well as a well-being pluralistic society.
Design/methodology/approach
The study was conducted through descriptive data qualitative methods. Purposive sampling was used which refers to a group that has the characteristics of samples required by researchers (Mohd Najib Abdul Ghafar 2003). This study applies the method of in-depth interview with the selected new Muslims around Kota Kinabalu (representing East Malaysia) and around Kuala Terengganu (representing Peninsular Malaysia/West Malaysia). Thus, data accumulation involves new Muslims (new Converts) from various ethnics (Sabahan and Sarawakian) which comprise Kadazandusun, Murut, Rungus, Sino and Iban. Secondly, those are from the Peninsular Malaysia which includes Chinese and Indian. Whereas in Kuala Terengganu, data accumulation involves new Muslims from various ethnics (Chinese, Indian, Sarawakian and others). The result of the interview is shown through descriptive narratives which display the practice of tolerance in the form of supportive interaction from the non-Muslim families towards the new Muslims in Islamic lifestyle.
Findings
The concept of wasatiyyah has nurturing tolerance among Muslim, newly Muslim and non-Muslim as well as fostering harmony among the diverse ethnics in Malaysia. Based on the discussion, it was observed that the concept of wasatiyyah had a great influence on the relationship among Muslim, newly Muslim and non-Muslim, as it had a strong link with the value of akhlaq that have been embedded in the Muslim community. The wasatiyyah is the main element that shapes the relationship, and it is the results of interaction with social norms, for it has bred certain social values that include tolerance, compromise, modesty, respect and cooperation as transpired when they (Muslim and newly Muslim) interact among themselves or with other communities. Furthermore, the main goal for the concept is to maintain peace and built well-being in the society as well as bracing racial ties in Malaysia, especially among Muslim, newly Muslim and non-Muslim.
Originality/value
Tolerance is a culture that founded the co-existence of pluralistic society in Malaysia. The culture of tolerance can only be built if ethnic tolerance and religious tolerance is accepted as a common practice – Muslims and non-Muslims alike. The description of wasatiyyah in the practice of religious tolerance among the families of new Muslims is the platform towards the acculturation of tolerance in the societal life from different faith and ethnics. It can be said that the higher the tolerance of ethnic, the higher is the religious tolerance, which is manifested through the application of wasatiyyah between people from different religions. This situation is highlighted in the relations of Muslim, newly Muslim and non-Muslim in Sabah and Terengganu where the culture of tolerance is apparent in the life together. Extensive interaction through encounters, acquaintance and co-existence that shape the friendship, brotherhood and kinship is the best formula in nurturing the culture of tolerance in the pluralistic society of Malaysia. Perhaps, the concept of wasatiyyah may be implemented in the whole aspect of life in the context of Malaysia. It is because the term wasatiyyah has the main sources of Islamic epistemology as well as sustaining the well-being pluralistic society without destroying the differences.
Details
Keywords
Haniruzila Hanifah, Hasliza Abdul Halim, Noor Hazlina Ahmad and Ali Vafaei-Zadeh
Innovation has become an approach to create value for the customer to remain competitive in the market. However, previous research on innovation performance particularly among…
Abstract
Purpose
Innovation has become an approach to create value for the customer to remain competitive in the market. However, previous research on innovation performance particularly among Bumiputera small and medium-sized enterprises (SMEs) had received little intention. Hence, Bumiputera SMEs need to inculcate the innovation culture to generate innovation performance. As such, the purpose of this study is to examine the ambidextrous orientation and innovation strategy on innovation culture, and how innovation culture could mediate the relationship between ambidextrous orientation and innovation strategy and innovation performance. In addition, this study also examines the role of government support as the moderator between innovation culture and innovation performance.
Design/methodology/approach
Data were collected from 140 Bumiputera SMEs and analyzed using partial least square-structural equation modeling via Smart PLS.
Findings
Findings indicated that ambidextrous orientation (alignment and adaptability) and innovation strategy (proactive creativity strategy and growth risk orientation strategy) had a significant impact on innovation culture. Besides, innovation culture mediated the relationship between alignment, proactive creativity strategy, growth risk orientation strategy and innovation performance. Surprisingly, innovation culture does not significantly mediate the relationship between adaptability and innovation performance. However, government support plays an important role to support innovation culture and innovation performance in Bumiputera SMEs.
Originality/value
This study makes both theoretical and practical contributions, especially in identifying the significant role of Bumiputera SMEs in creating an innovation culture. Besides, it explained government support as an important role in strengthening the relationship between innovation culture and innovation performance. The findings of the study will provide great help to Bumiputera entrepreneurs in formulating innovation culture in Malaysian SMEs.
Details
Keywords
Noorul Shaiful Fitri Abdul Rahman, Nur Hazwani Karim, Rudiah Md Hanafiah, Saharuddin Abdul Hamid and Ahmed Mohammed
The warehouse industry is one of the backbones in the logistics operation which involves several activities i.e. storage, receiving, picking and shipping of goods/cargoes. This…
Abstract
Purpose
The warehouse industry is one of the backbones in the logistics operation which involves several activities i.e. storage, receiving, picking and shipping of goods/cargoes. This study analyzes the most important warehouse productivity indicators for improving warehouse operation efficiency.
Design/methodology/approach
This study presents an empirical methodology of the fuzzy analytical hierarchy process (FAHP) method, an integration between the fuzzy logic method with an analytical hierarchy process (AHP) method incorporated with the adoption of quantitative and systems theories under the modern management theory approach.
Findings
The results indicate that the weight values of the main criteria which lead by the criterion “Space (0.4005)” at the top ranking, followed by Information System (0.2445), Labor (0.2065) and Equipment (0.1484). In addition, the weight values and ranking of the 16 sub-criteria are also highlighted which the sub-criterion “Warehouse Management System (0.2445)” scores the highest weight value and followed by Storage Space Utilization (0.1043) and Throughput (0.0722) accordingly.
Research limitations/implications
Finally, this research contributed to enrich the literature, while highlighting a series of recommendations on the top three most significant productivity performance indicators that can be useful in further research.
Originality/value
A generic analysis model developed with the adoption of three study theories: quantitative, system and productivity theories.
Details
Keywords
Fauzilah Md Husain and Omer Hassan Ali Mahfoodh
This qualitative study examined English for Professionals students' experience of the internship programme and their perceptions of the relevance of the internship programme to…
Abstract
Purpose
This qualitative study examined English for Professionals students' experience of the internship programme and their perceptions of the relevance of the internship programme to their current and future courses and to their future career choices.
Design/methodology/approach
This study employed a qualitative inquiry in which qualitative data were collected using journal writing. Using purposeful sampling, 40 English for Professionals students in Universiti Sains Malaysia (USM) were selected. Data were analysed using thematic analysis.
Findings
This study revealed that the internship programme was beneficial to interns because it helped them to gain real-world experience and knowledge about the environment of real workplace. Interns' negative experience can affect their career selection. The majority of the participants revealed that the internship programme is relevant to most of their undergraduate courses. The participants revealed that the internship programme was effective as it helped them to explore their career choices and to select future courses that match their interests.
Originality/value
Taking into account students' negative experience and their perceptions of the relevance of internship to their courses and career choices, improvement of undergraduate programmes can be done. Unlike samples in previous studies, the sample in this study is English for Professionals students. The study provides significant findings which are related to interns' perceptions of the relevance of the internship programme to their career choices. Unlike all data collection methods used in previous studies, journal writing was used to collect qualitative data in this study.
Details
Keywords
Wan Rusni Wan Ismail, Mohhidin Othman, Norfezah Md Nor, Ahmad Fauzan Badiuzaman and Nik Mohd Shahril Nik Mohd Nor
Brand mere recognition is the fundamental step in brand awareness and the first hurdle that any brand needs to achieve before brand equity can come into the picture. Thus…
Abstract
Purpose
Brand mere recognition is the fundamental step in brand awareness and the first hurdle that any brand needs to achieve before brand equity can come into the picture. Thus, consumers’ ability to recognize a brand through its symbol or logo is very crucial and despite its significance, it is considered the lowest order in brand equity assessment but it reveals the initial clue on how well the brand is performing in the market. Therefore, the purpose of this study is to test how well consumers are able to identify the right Halal Malaysia brand (HMB) using Halal semiotic cues.
Design/methodology/approach
This study is an exploratory, based on a mixed method approach using qualitative and quasi-experimental design using the implicit association test (IAT) as the instrument. A total of 23 Malay Muslim consumers were involved in the first stage of the study carried out using a semi-structured interview. The second stage of this study was carried out using quasi-experimental design where IAT was used as an instrument. A total of 66 respondents participated in both states of the experiment and the response time was recorded and analysed using D-measure and descriptive.
Findings
Findings from qualitative investigation indicate that most of the respondents failed in the mere recognition test. The findings are further supported using IAT where a hesitation in response when facing the current HMB logo has provided a clear indication of lack of mere recognition for this brand. Unfortunately, the proliferation of other Halal logos that have flooded the market, comprising both recognized and unrecognized logos by Jabatan Kemajuan Islam Malaysia (JAKIM), which often adopted a similar logo design strategy, only add to the confusion. Clearly, the findings on HMB logo mere recognition also revealed that there are some problems during the transition from the old JAKIM Halal logo to the current logo, where the information related to the new logo has failed to reached targeted audiences.
Originality/value
Despite there are a lot of studies focussing on the positive impact of Halal Malaysia logo on Muslim consumers purchase decision, however there are few publications that suggest otherwise. Thus, this study will investigate the extend of this problem.