Outlines the characteristics of a just financial system and compares the Islamic one with others. Lists the financial instruments which enable Islamic systems to deal with the…
Abstract
Outlines the characteristics of a just financial system and compares the Islamic one with others. Lists the financial instruments which enable Islamic systems to deal with the prohibition of interest and some financial institutions. Notes the rapid increase of Islamic banks and financial institutions and believes that, if they can demonstrate their viability, the western world will become more likely to cooperate with them.
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Martini Dwi Pusparini, Sri Herianingrum, Zakaria Bahari and Hafas Furqani
The purpose of this paper is to study in depth about frugal lifestyle and analyze it within the framework of the principles of Islamic consumption ethics.
Abstract
Purpose
The purpose of this paper is to study in depth about frugal lifestyle and analyze it within the framework of the principles of Islamic consumption ethics.
Design/methodology/approach
This research uses a textual–contextual approach to explore the concepts of frugal and Islamic consumption by studying various existing literature.
Findings
The research findings highlight both similarities and notable differences between frugal and Islamic consumption. While they share aspects such as materialism, avoidance of materialism and support for sustainable consumption, the contrast lies in the fact that Islamic consumption is rooted in faith and devotion to Allah SWT. Unlike the primarily individual-focused and worldly orientation of frugal concepts, Islamic consumption is motivated by a commitment to individual desire and social balance, also well-being in both the present and the hereafter. Islamic consumption places an unique emphasis on social solidarity, a feature absent in the individualistic long-term goals of a frugal lifestyle.
Practical implications
This study offers a valuable contribution to marketers, particularly those who are engaged in the Islamic marketing field. Marketers are keen on understanding frugal consumers as a potential emerging market segment.
Originality/value
To the best of the authors’ knowledge, this study is considered the first attempt to link the idea of frugality with the Islamic ethical principles of consumption. It highlights how Muslims should comprehend the concept of frugality accurately, avoiding misinterpretations that portray it solely as a means to combat materialism and consumerism, as has been commonly understood.
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Rusnah Muhamad and Sharifah Alwi
The purpose of this paper is to discuss how the current research on the Islamic financial services industry attempts to classify its consumers and provide a fresh and critical…
Abstract
Purpose
The purpose of this paper is to discuss how the current research on the Islamic financial services industry attempts to classify its consumers and provide a fresh and critical insight into the retail Islamic banking market segmentation to harness and enhance understanding, as well as provide a guideline for a better segmentation to bank marketers.
Design/methodology/approach
This study is conceptual in nature. Based on Qur’anic verses and previous literature, the authors aim to propose an applicable model of market segmentation for the retail Islamic banking market in Malaysia. Consumer segmentation in the conventional financial service industry is analysed, and prior studies on the selection criteria of Islamic banks are evaluated.
Findings
In moving forward, taking cue from the classification of people in classical doctrinal and historical literature and the initial exploratory study conducted from the managerial perspective, the authors propose five cluster groups of consumers for the retail Islamic banking market in Malaysia, namely, religious conviction, religious and economic rationality, economic rationality, ethical observant and economic rationality and ethical observant. A discussion linking consumer segmentation to the branding in the retail Islamic banking market is discussed.
Research limitations/implications
The five cluster groups of consumers for the retail Islamic banking market in Malaysia proposed in this study pave the way for embarking on promising and relevant future research, which is needed to substantiate and enrich the academic understanding and managerial practice of linking market segmentation and brand positioning for Islamic banking market in Malaysia. Future research should focus on verifying the five proposed segments by conducting empirical studies on a larger scale among the retail banking consumers in Malaysia and globally.
Practical implications
The study provides an initial bases or dimensions of consumers of the retail Islamic banking market in Malaysia. The proposed consumers segments are useful in guiding the management of Islamic bank in Malaysia in making decisions relating to the promotion strategy as well as product and brand positioning strategy.
Originality/value
For both academia and the Islamic banking industry, this study provides useful knowledge in strategically using market segmentation to position Islamic banking products and services in Malaysia and the global market.
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Understanding the differences in the Islamic and Christian view of interest requires coming to terms not with the acts constitutive of the practice but the meaning of the practice…
Abstract
Understanding the differences in the Islamic and Christian view of interest requires coming to terms not with the acts constitutive of the practice but the meaning of the practice in two different views of what an economy produces and delivers. The difference in the norms that govern interest transactions differ because the metaphysical foundations about what the practice means differ. The Islamic norms are broader via public accountability for the good produced by an economy as a social good than the normative regulation of interest transactions in Christian cultures that focuses on the goods delivered by an economy to more or less independent individuals participating in an economy. However, some reconciliation of the Christian and Islamic view is possible when we recognize that the ethical accountability of interest rests on a view of economic justice as increasing the degree of economic participation in an economy as an economic and social good. When this view is taken, we see that the range of potentially illicit practices in Christian economies is larger than is actually the case in the actual regulation of interest transactions.
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Nazamul Hoque, Abdullahil Mamun and Abdullah Mohammad Ahshanul Mamun
– The purpose of this paper is to develop traits and model of entrepreneurship development from Islamic point of view.
Abstract
Purpose
The purpose of this paper is to develop traits and model of entrepreneurship development from Islamic point of view.
Design/methodology/approach
The study is descriptive, in so far as its goal is to describe a method, and the nature of the paper is conceptual. The study draws on secondary materials through library research.
Findings
In this paper both the traits as well as model of entrepreneurship are developed from Islamic perspective. The salient traits are knowledge, initiative, risk taking, customer orientation, employee involvement, strategic thinking, fear of Allah, hard working, innovativeness, excellence, honesty and truthfulness, morality, vision, optimism, patience, social welfare, Halal earnings and economical. The model would be used for developing entrepreneurship from Islamic perspective by performing various types of activities relating to the phases of preparatory and awareness development, support and motivation and feedback.
Research limitations/implications
The paper has implications for government, potential entrepreneurs and existing entrepreneurs of Muslim countries representing one fourth of the world population. It is also expected that the study will help and encourage Islamic scholars to think over the matter and make them more aware in developing entrepreneurship based on Quran and Sunna in the modern business world.
Practical implications
The findings of this research can be used as a guide to develop entrepreneurship in Muslim countries from Islamic point of view. The study could have practical implications falling within the purview of social sciences such as economics, business studies, public administration, political science, development studies, sociology, law, Quranic science, industrial management, education and human resource management.
Originality/value
While many studies, partially, have focussed on traditional entrepreneurship sparing the demand of Muslim world, in this paper, the authors open a new avenue contributing to the literature on entrepreneurship development from Islamic perspective. The proposed model will be of genuine interest and benefits to government as prime policymaker, existing entrepreneurs, potential entrepreneurs, Islamic scholars and academicians.
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Khaliq Ahmad and O.K. Ogunsola
The main purpose of the present paper is to document some Islamic leadership principles of management. The paper equally examines the leadership function as adopted by academic…
Abstract
Purpose
The main purpose of the present paper is to document some Islamic leadership principles of management. The paper equally examines the leadership function as adopted by academic administrators within the International Islamic University, Malaysia vis‐à‐vis Islamic principles of management. The whole process is an attempt to conduct an empirical study of the important role of excellent leadership from an Islamic perspective.
Design/methodology/approach
A combination of revealed sources of knowledge (the Quran and Sunnah) and literature reviews were used to document Islamic leadership principles. Then, a questionnaire‐based survey was used to examine the Islamic leadership principles, approaches, and sources of leadership principles adopted in the university. Use of the scale of statistical measurement was done to test the significance and reliability level.
Findings
It was found that academic administrators were imbued with Islamic leadership principles. The research also showed that servant‐leadership approach is preferably used in conjunction with alternative transactional and transformational styles, while the revealed sources of knowledge (Quran and Sunnah) were given the highest priority as sources of developing leadership principles.
Research limitations/implications
Islamic management is a diverse field. This study is, however, limited to Islamic leadership principles in an organization. Perhaps, this study will be little known to adherents of the conventional management principles, which may stimulate further thinking and debate on the crossing point between Islam and the management of an organization.
Originality/value
It is aimed at providing some knowledge of Islamic philosophy and practice in order to help today's employers and employees carry on everyday activities imbued with Islamic values and cultures.