Muhammad Iqmal Hisham Kamaruddin, Sofiah Md Auzair, Mohd Mohid Rahmat and Nurul Aini Muhamed
The purpose of this study is to examine the role of financial governance practices in influencing both financial management and Islamic work ethic practices to affect Islamic…
Abstract
Purpose
The purpose of this study is to examine the role of financial governance practices in influencing both financial management and Islamic work ethic practices to affect Islamic social enterprises (ISEs) accountability.
Design/methodology/approach
Questionnaires were administered to financial officers of 102 Malaysian ISEs. Data was analysed using Smart-PLS to examine the relationships between financial management, Islamic work ethic, financial governance and accountability.
Findings
Results of this study indicate direct relationship only exist between Islamic work ethic and accountability. The relationship between financial management and accountability are indirect through financial governance. Hence, the data proves that financial governance has a mediating role on both the relationships between financial management and Islamic work ethic with the accountability of the ISEs.
Research limitations/implications
The study has highlighted the greater role of financial management, Islamic work ethic and financial governance practices over accountability to achieve public trust, especially for Malaysian ISEs.
Practical implications
ISEs need to have good financial governance practices besides financial management and Islamic work ethic practices to achieve good accountability.
Originality/value
The study contributes to the field of management and social accounting by providing empirical evidence on the ISEs practices specifically on financial management, Islamic work ethic, financial governance and accountability. This framework thus presents amongst the first attempts in studying accountability issues in ISEs.
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Muhammad Iqmal Hisham Kamaruddin and Sofiah Md Auzair
This study aims to present an effort to construct a measurement instrument to capture Islamic accountability from “accountability for what” aspect. These measurement instruments…
Abstract
Purpose
This study aims to present an effort to construct a measurement instrument to capture Islamic accountability from “accountability for what” aspect. These measurement instruments are developed by considering both social and economic natures in Islamic organisations.
Design/methodology/approach
This study defined the concept of Islamic accountability from the perspective of “accountability for what”. It is decomposed into specific items that suit an Islamic social enterprise (ISE). Next, these items are operationalised into scale items and re-composed empirically through factor analysis on data obtained from ISE stakeholders in Malaysia.
Findings
This study successfully developed an Islamic accountability measurement instruments from the “accountability for what” perspective for ISE. A total of 25 items are recognised and validated under four accountability dimensions, namely, accountability for input, accountability for output, accountability for procedural and accountability for Islamic principles and values.
Research limitations/implications
Not all measurement instruments are fit for every Islamic organisation type because of the different characteristics of Islamic organisations.
Practical implications
Developed items can be used as part of Islamic accountability index, especially by ISE and other similar organisations to measure their accountability practices. Besides, these developed items can also be adopted for reporting purposes. In the case of Malaysia, respective government agencies, such as the Companies Commission of Malaysia , the Registry of Society, the Ministry of Entrepreneur Development as well as the Malaysia Institute of Accountant, should have a look at the developed items to be considered into their respective guidelines or standards.
Originality/value
This study is believed to be a pioneering study in developing measurement instruments of Islamic accountability specific for ISE. It proposes measurement instruments of Islamic accountability that can be re-used for future research and is among the few studies of ISE.
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Rosane Maria Seibert and Clea Beatriz Macagnan
This paper aims to explain the extent of social responsibility disclosure by Brazilian philanthropic higher education institutions (PHEIs). This paper assumes that there is…
Abstract
Purpose
This paper aims to explain the extent of social responsibility disclosure by Brazilian philanthropic higher education institutions (PHEIs). This paper assumes that there is information asymmetry between these organizations and their stakeholders.
Design/methodology/approach
The presence of indicators on the organizations’ webpage generated a disclosure index for each PHEI of the sample. Afterwards, this paper performed regression tests, which identified the determinants of PHEIs social responsibility disclosure extent.
Findings
The results support the legitimacy theory as a theoretical basis for social responsibility disclosure extent. The evidenced indicators and the non-rejected hypotheses, related to complexity, diversification, regional factor, specific event and quality, confirm the concern with transparency and accountability of commitments assumed by the social contract.
Research limitations/implications
This research is limited to social responsibility disclosure related to the legitimacy theory and the interests of some stakeholders and to Brazilian PHEIs and their webpages. These limitations mean opportunities for future research studies addressing different information disclosure, foundations of other theories, interests of each specific stakeholder or other stakeholders in other communication channels and other countries, which enable comparisons of results.
Practical implications
The disclosure of extent determinants serve as the basis for the establishment of disclosure and accountability policies for PHEIs.
Originality/value
The originality of this research consists of analyzing the determinants of disclosure from the information of the stakeholders’ interest. They are able to legitimize organizations, allowing them to remain in the community where they operate.
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Mohamad Isa Abd Jalil, Sofri Yahya and Anwar Allah Pitchay
The purpose of this study is to conceptualise the relationship between information disclosure and Waqif commitment, taking into consideration the role of level of trust (mediator…
Abstract
Purpose
The purpose of this study is to conceptualise the relationship between information disclosure and Waqif commitment, taking into consideration the role of level of trust (mediator variable) and communication and type of payment (moderator variables).
Design/methodology/approach
The conceptual framework is developed from the theory of social exchange (mediated philanthropy model) and selected previous literature concerning commitment.
Findings
According to previous empirical research, a conceptual framework was developed to facilitate further analysis in the study. Nine propositions were raised in this paper where the factor of communication and payment method is proposed to no longer the factor that determined commitment but as moderator. There is five antecedent of information disclosure proposed, which is basic information, financial information, non-financial information, future information and governance information. Also, trust is offered to be the mediator variable between information disclosure and Waqf commitment.
Research limitations/implications
By realising many factors that may influence the commitment of waqf such as demonstrable utility, emotional utility and familial utility, this study only focusses on the effect of information disclosure.
Practical implications
This paper provides an opportunity for further empirical studies to prove the relationship between information disclosure and Waqf commitment. This paper also brought opportunities to investigate both conceptually and empirically, other factors that could affect Waqf commitment.
Originality/value
To the best of the author’s knowledge, few studies have been done concerning donors commitment. While there are none yet, the research examined Waqf commitment. The originality value of this study is that there is a gap in knowledge regarding the analysis of Waqf commitment, the level of trust among waqif is the information that Waqf expected, the preferred communication between Mutawalli and Waqf and type of payment that Waqf favoured. This study is believed to be a novel based on the framework developed.
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Anwar Bin Allah Pitchay, Nur Syazni Arina Mohd Hashim, Yuvaraj Ganesan and Muhammad Shabir Shaharudin
The post-disaster effect is an essential for countries to rebuild an affected place and provide basic needs for victims. However, the government fund alone is insufficient to…
Abstract
Purpose
The post-disaster effect is an essential for countries to rebuild an affected place and provide basic needs for victims. However, the government fund alone is insufficient to cover the total loss of victims. Hence, most of the non-government organisations (NGOs) will play an essential role in raising donation funds from the public. Therefore, this study aims to examine the relationship between information disclosures and giving behaviour.
Design/methodology/approach
A total of 215 responses were gathered through a self-administered questionnaire. The data is analysed using structural equation modelling technique.
Findings
The study result shows that background information, financial information, non-financial information and governance information directly affect trust. Trust is a significant mediator between background, financial, non-financial and governance information towards giving behaviour. Besides, the results illustrated that religious belief does not moderate the relationship between trust and giving behaviour.
Originality/value
This study provides significant knowledge that may be useful for NGOs to be aware of the importance of information disclosures revealed by organisations and make required decisions for potential donors to have trust in organisations handling donations and will be engaging in giving behaviour.
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This paper aims to critically examine the concept of social enterprises in Palestine. It uses the lens of institutional theory to understand how the political and economic context…
Abstract
Purpose
This paper aims to critically examine the concept of social enterprises in Palestine. It uses the lens of institutional theory to understand how the political and economic context of the society can influence certain types of entrepreneurial behaviors and be responsible for the emergence of social enterprises. The paper uses a critical perspective to deconstruct social enterprises in Palestine to shed light on reasons for their emergence, motives and agendas.
Design/methodology/approach
A case study design was used to examine the phenomenon of social enterprises. The case study method is valuable in describing the how and why issues of a phenomenon in the present time frame. Two leading social enterprises operating within the Palestinian region were identified. The two enterprises were contacted for a series of interviews (over a period of few months) with their owners and other active members.
Findings
The empirical findings suggest that social enterprise model is still in its embryonic stages in Palestine. Their social mission of community development and sustainability is not completely sincere. The social entrepreneurs were willing to compromise social mission for economic surplus. The national structure, political framework, legal environment, social, cultural and the economic conditions of Palestine have served as suitable launching pads for social enterprises with not so authentic mission of serving the society. It has encouraged entrepreneurial philosophy and behavior, which has masked hidden economic and political agendas with exterior goals of social welfare and community development.
Research limitations/implications
This paper adopts a critical perspective and a qualitative methodology, and this raises the concern if the arguments pertaining to social enterprise raised in this paper can sustain in a developed nation with a stabilized political scenario or whether this alternative ideology is only relevant to underdeveloped countries with unstable, political conditions, such as Palestine.
Practical implications
This paper provides relevant information for students, critical academics and policymakers.
Social implications
The paper argues for a more concise definition for the model of social enterprises. It argues for clear legal guidelines which could monitor the formation of social enterprises in Palestine.
Originality/value
This paper provides an alternative perspective on social enterprises within a constrained and political unstable economy of Palestine.
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The factors contributing to skilled labor shortages in the construction industry are investigated based on relevant global literature. The potential factors are collected…
Abstract
Purpose
The factors contributing to skilled labor shortages in the construction industry are investigated based on relevant global literature. The potential factors are collected, organized and subjected to expert evaluation to determine their inter-relationships. The identified factors are integrated to determine both direct and indirect impacts, clarifying their relative importance.
Design/methodology/approach
Apart from literature reviews, the decision-making trial and evaluation laboratory (DEMATEL) method was employed to elucidate influential relationships among the factors. Intuitive assessments and DEMATEL with and without the shortage factors were used to compare the impact of various factors on skilled labor shortages.
Findings
Significant differences were observed between considering only direct effects and both direct and indirect effects. Factors identified through comprehensive evaluation were prioritized; poor overall wages, poor overall welfare and lack of retirement income security and unclear career path owing to lack of prospects and talent plans were the three important factors identified.
Research limitations/implications
The disparity between construction companies and key stakeholders, such as government agencies, public sector clients, pre-project planners, designers and consulting engineers, stems from differing priorities concerning skilled labor in the construction industry. In this study, evaluations of most experts from construction companies and the gap ratio for data reliability were implemented for the analysis. In the future, more experts from government agencies, and other groups should be included while focusing on the shortage in individual trades of skilled workers. In addition, the proposed measures require further evaluation for interactive influence and effectiveness.
Originality/value
The interactive relationship among the factors influencing skilled labor shortages is explored to determine measures to alleviate their influence. This can aid policymakers in identifying effective solutions.
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Jeffrey Boon Hui Yap and Sin Yi Cheah
The purpose of this paper is to investigate the major challenges faced by Chinese international contractors (CICs) in the Malaysian construction industry.
Abstract
Purpose
The purpose of this paper is to investigate the major challenges faced by Chinese international contractors (CICs) in the Malaysian construction industry.
Design/methodology/approach
An exploratory sequential mixed-methods research approach was adopted where following a detailed literature review and semi-structured interviews with local professionals, 20 prevalent challenges experienced by CICs are identified. Subsequently, a questionnaire survey was used to elicit the views of 100 construction practitioners. Descriptive statistics were used to prioritise the challenges, while exploratory factor analysis was conducted to uncover the underlying factors.
Findings
The five most crucial challenges identified relate to: changes of regulation, cost control, contract clauses, language barrier and quality control. Exploratory factor analysis revealed four major underlying dimensions of these challenges, in connection to financial and government policy management, organisational performance management, supplier relationship management and cross-cultural management.
Research limitations/implications
The challenges are considered primarily involving CICs in the context of Malaysia; further work can be extended to Western or other East Asian, such as Japanese and Korean, international contractors undertaking construction projects in Malaysia or selected developing countries around the region.
Practical implications
This study will benefit professionals involved with China-backed construction projects in countries sharing demographics and socio-economic characteristics akin to Malaysia. The outcome of the study is expected to facilitate project managers to devise proactive risk-mitigation measures to reduce the impact of these challenges and to improve project delivery.
Originality/value
The paper examined the challenges faced by CICs in the Malaysian context. This is a timely study, as China’s Belt and Road Initiative will provide considerable opportunities for Chinese companies in Malaysia.
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Pavel Král and Andrew Schnackenberg
Despite considerable evidence of the benefits of organizational transparency, policies to enhance transparency often fail or are met with resistance and unexpected results. In…
Abstract
Purpose
Despite considerable evidence of the benefits of organizational transparency, policies to enhance transparency often fail or are met with resistance and unexpected results. In part, this is due to a lack of knowledge about the drivers of organizational transparency and their interrelationships. This study examines the interplay among the forces that influence organizational transparency, and thus answers numerous calls for developing a deeper theoretical understanding of the determinants of organizational transparency. We propose three forces that influence organizational transparency and theorize how they combine in nonlinear ways to form five archetypical transparency regimes that organizations operate within. We then discuss contingencies to organizational transparency within each regime.
Design/methodology/approach
We employ configurational theorizing to capture the complexity of transparency and the nonlinear relationships among the forces of transparency.
Findings
We propose three forces that influence organizational transparency: institutional, societal, and leadership. We identify configurations of the three forces that yield five archetypical transparency regimes. We then discuss contingencies for cultivating organizational transparency within each regime. Vanguard transparency and pioneering transparency represent the desired regimes for fostering organizational transparency. In contrast, hollow transparency and deceptive transparency reveal a combination of determinants that cultivate less desirable forms of organizational transparency. Paradoxical transparency represents a regime in which socially desirable outcomes are associated with undesirable consequences for an organization.
Research limitations/implications
This paper is among the first to theorize the drivers of organizational transparency and to discuss the limits and boundaries of organizational responses to transparency determinants.
Practical implications
Despite the many benefits of transparency, we explain why efforts to enhance organizational transparency often fail or are met with mixed results. By considering the three forces, managers and policymakers can avoid unexpected and undesired organizational responses to transparency regimes.
Social implications
We propose five transparency regimes that place a spotlight on social contingencies to enhance transparency.
Originality/value
This study offers an integrative theory of organizational responses to transparency determinants and develops its theoretical foundations. The model integrates the fragmented empirical findings from previous studies on the determinants of transparency and draws attention to overlooked institutional, societal, and leadership forces that influence organizational transparency.
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Muhammad Iqmal Hisham Kamaruddin and Sofiah Md. Auzair
This study aims to examine the role of financial management practices, which consist of financial disclosure, internal control, financial planning and budgeting and financial…
Abstract
Purpose
This study aims to examine the role of financial management practices, which consist of financial disclosure, internal control, financial planning and budgeting and financial performance on Islamic social enterprises’ (ISEs) accountability.
Design/methodology/approach
Questionnaires were administered to financial officers of 102 Malaysian ISEs. Findings were analysed using Smart-PLS to examine the relationships between financial management practices and accountability.
Findings
Results of this study indicate a direct relationship exists between internal control and accountability. Relationships between other financial management practices and accountability are indirect through internal control. Hence, the data demonstrates that internal control has a mediating role on other financial management practices, which are financial disclosure and financial performance management with the accountability of ISEs.
Research limitations/implications
This study has implicated the significant role of financial management practices in ISEs in the pursuance of their accountability especially internal control to achieve public trust.
Practical implications
Appropriate financial management practices, especially internal control, are essential for the ISEs to achieve good accountability.
Originality/value
This study contributes to the field of management and social accounting by providing empirical evidence on ISE practices specifically on financial management practices and accountability. This framework thus presents among the early attempts in studying accountability issues in ISEs.