Sayeda Zeenat Maryam, Mian Saqib Mehmood and Chaudhry Abdul Khaliq
Islamic banking (IB) is growing rapidly not only in Islamic countries but also in all over the world. The purpose of this paper is to stumble on the features that have an impact…
Abstract
Purpose
Islamic banking (IB) is growing rapidly not only in Islamic countries but also in all over the world. The purpose of this paper is to stumble on the features that have an impact on Islamic banking adoption (IBA) in case of Pakistan.
Design/methodology/approach
The identification of the factors that affect IBA has made by extending the theory of reasoned action (TRA). However, the conceptual model for this study includes knowledge (K), business support (BS), government support (GS), reputation (Rep), religious obligation (RO), cost-benefit (CB) and social influence (SI) as the independent variables. To test the conceptual framework data were collected through a survey by distributing the 400 questionnaires among users- and non-users of Islamic banks. Multiple regression analysis was applied to test the hypothesis of this study.
Findings
The findings of the study suggest that Rep, CB, RO and SI has a highly significant and positive influence on IBA. On the other hand, K, GS and BS have insignificant influence on IBA. The bottom line of this study suggests that more the ROs will be adopted by Islamic banks, more will be the tendency to adopt it by a bank customer in case of Pakistan.
Research limitations/implications
The generalizability of the findings of this research is limited to IB.
Practical implications
Findings of the study present worthy insight especially for the practitioners to develop significant strategies to bridge the gap between industry and academia in case of IB.
Originality/value
This study is an extension of TRA.
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Naveed Iqbal Chaudhry, Asif Mehmood and Mian Saqib Mehmood
The purpose of this paper is to find out empirically the relationship between foreign direct investment (FDI) and economic growth and it will also highlight the relationship…
Abstract
Purpose
The purpose of this paper is to find out empirically the relationship between foreign direct investment (FDI) and economic growth and it will also highlight the relationship status between the variables included in the model, either long‐ or short‐run in case of China.
Design/methodology/approach
This study uses secondary data obtained from World Development Indicators over the period 1985‐2009, whose viability has also been checked through the World Bank and IFS. An Augmented Dickey‐Fuller (ADF) unit root test is used to estimate an autoregressive distributive lag (ARDL) approach to co‐integration as the variables in the model are in I(1) and I(0) form and the Schwarz Bayesian Criterion (SBC) is used in this study to find out the estimated lags of the model, which are ultimately used to find out the short‐ and long‐run relationship of the variables included in the model. The error correction model (ECM) was also applied which basically provides information about the causal factors that may affect the variables included in the model.
Findings
The results provide evidence that there is an empirical relationship among FDI and economic growth. The computed value of F‐statistics is greater than the upper bond value described by Pesaran, M.H. et al., which depicts evidence against the null hypothesis of no effect and hence long‐run relationship among the variables is concluded at bottom line. Empirical evidence reveals that FDI has a positive effect on economic growth. An error correction model (ECM) is applied and the error correction term was negative and significant. This indicates that there exists a relationship between the variables. Diagnostic tests showed a lack of heteroscedisticity, confirming the validity of the model; CUSUM and CUSUMSQ tests were used to reveal the model's stability.
Practical implications
The Government of China should keep keen emphasis on the ingredients of this study so that China could reap maximum share of FDI through the achievement of positive spillovers of foreign investment, which ultimately results in its economic growth. However, the ingredients of this study depict the expenditures on security status, growth options as well as on infrastructure. This study also gives better impending in decision making about FDI in case of China.
Originality/value
This study bridges the gap between theory and practice and proves empirically the relationship between FDI and economic growth through auto regressive distributive lag approach (ARDL) to co‐integration in case of China. This research includes most dominating factors in the model which differentiate it from all previous empirical researches related to FDI's relationship with economic growth. However, this study not only pin points the new dominating factors related to this kind of relationship, but also set up a new horizon in the field of research to get groundbreaking results – in case of other countries – by following the footings set by this research.
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Tahira Iram, Ahmad Raza Bilal, Rida Khan, Saqib Mehmood and Harish Kumar
This paper investigates the mediating role of employee awareness of artificial intelligence (AI) in the relationship between technological turbulence and knowledge hiding, with a…
Abstract
Purpose
This paper investigates the mediating role of employee awareness of artificial intelligence (AI) in the relationship between technological turbulence and knowledge hiding, with a focus on the moderating impact of change leadership.
Design/methodology/approach
The survey study adopted a quantitative approach to propose and test a model based on predictors of knowledge hidings. The survey approach received 320 respondent firms in the hotel management sector. The structural and measurement model was calculated using SmartPLS.
Findings
Employee AI awareness mediates the relationship between technological turbulence and knowledge hiding. Change leadership significantly moderates this relationship, reducing knowledge hiding by promoting innovative discussions and collaboration. High employee AI awareness can lead to knowledge hiding due to perceived threats to job security, but effective leadership mitigates this by fostering a collaborative environment.
Originality/value
The study highlights the importance of effective leadership in reducing knowledge hiding and emphasizes the need for a collaborative environment where employees view external partnerships as opportunities for learning and acquiring AI knowledge.
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Yasir Ashraf and Mian Sajid Nazir
The income structure of banks has undergone a notable change in recent decades; therefore, non-interest-based activities have gained much attention. This paper aims to examine…
Abstract
Purpose
The income structure of banks has undergone a notable change in recent decades; therefore, non-interest-based activities have gained much attention. This paper aims to examine the impact of income diversification on bank performance in Pakistan.
Design/methodology/approach
A balanced panel data set of 20 Pakistani commercial banks is used from 2007 to 2020. The random effect model is employed to test the relationship between income diversification and financial performance.
Findings
The empirical results indicate a significant positive impact of income diversification of banks on risk-adjusted returns on assets and equity. Moreover, while banks' risk-adjusted profit performance improves with the increase in bank size, equity ratio and loan ratio, it deteriorates with high credit risk and technology. However, geographical diversification does not explain financial performance in all the risk-adjusted return on equity models. Among the macroeconomic factors, the interest rate influences bank risk-adjusted returns positively, whereas gross domestic product and inflation rate have a negative effect on banks' financial performance.
Originality/value
To the best of the author's knowledge, this study is the first to empirically investigate the relationships between income diversification and the risk-adjusted profits of Pakistani-listed commercial banks. This study has implications for regulators and policymakers of commercial banks.