Syed Ahmed Salman and Rusni Hassan
The purpose of this study is to examine the perception and acceptability of insurance policyholders to introduce takāful in India. The primary focus of this research is insurance…
Abstract
Purpose
The purpose of this study is to examine the perception and acceptability of insurance policyholders to introduce takāful in India. The primary focus of this research is insurance policyholders because they currently have insurance policies and it is believed that they are familiar with the concept of insurance, compared to the people who do not have any insurance policy.
Design/methodology/approach
New product diffusion theory is used in developing the hypothesis and a questionnaire. In this research, the population is unknown, and hence, the non-probability sample is used. Quota sampling and snowball sampling methods are used in this survey, with a sample size of 909 respondents, including Muslim and non-Muslim policyholders. The external factors that motivate potential policyholders to participate in takāful are the independent variable here; while the respondents’ actual willingness to participate in takāful is the dependent variable. Regression analysis is performed to analyse the data.
Findings
Based on 909 respondents, it is found that the factors such as cost vs benefits, marketing and promotion and social and religion play a significant role in a consumers’ decision-making at 1% significant level overall. The attribute of agents can influence the consumers at a 10% significant level overall. However, other factors, namely, accessibility, availability and service quality, product features and reputation of the company cannot pursue the consumers in India.
Research limitations/implications
The questionnaires are distributed in 10 cities from nine states out of 28 states in India. Thus, it covers only one-third of the states. Future research can expand the respondents from other states that have not been researched.
Practical implications
India is opening to foreign investments in the Indian insurance industry, and thus, the findings are useful for industrial players, investors, policymakers for the development of takāful in India.
Originality/value
Limited research has been done in previous studies and this research is the pinnacle within-depth survey regarding takāful in India.
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Syed Ahmed Salman, Hafiz Majdi Ab. Rashid and Sheila Nu Nu Htay
Insurance is a modern risk-management tool. Although the idea is novel, its practice is not free of interest, uncertainty and elements of gambling. Takaful has been introduced as…
Abstract
Purpose
Insurance is a modern risk-management tool. Although the idea is novel, its practice is not free of interest, uncertainty and elements of gambling. Takaful has been introduced as an alternative to modern insurance. India has an established insurance industry, and although the country has the second largest Muslim population in the world, takaful has not been introduced there. Moreover, no research has examined how internal forces affect policy-holders to buy new insurance products such as takaful in India. This study aims to examine whether internal factors influence individual insurance policy-holders to open up to takaful. As internal factors reflect the innovative nature of policy-holders, this paper seeks to determine whether there is significant difference in the innovative nature of two independent sample groups (e.g. between Muslims and non-Muslims) in participating in takaful.
Design/methodology/approach
New product adoption theory is used in developing the hypotheses and a questionnaire. Snowball sampling method is used in this survey, with a sample size of 909 respondents, including Muslim and non-Muslim policy-holders. The internal forces that encourage potential policy-holders to participate in takaful is the independent variable here, while the respondents’ actual willingness to participate in takaful is the dependent variable. Religion and level of education are used as control variables, and regression and T-tests are performed to analyze the data.
Findings
Results show that the internal factors have significant impact at 1 per cent on the acceptance of takaful by policy-holders. There is also a significant difference in the innovative nature between Muslims and non-Muslims. Mean values from the T-test show that Muslims are more innovative than non-Muslims in India, offering a good sign for India to start offering takaful, as Muslims could be the core customer base.
Research limitations/implications
This study focuses on internal factors influencing individual policy-holders’ willingness to participate in takaful. The findings can be the starting point for future research exploring the influence of external factors on such willingness to participate with potential benefits to local authorities, investors, insurance companies and the public in India.
Originality/value
This study provides crucial information about the demand side of takaful in India. The innovative nature of Indian policy-holders signals positive potential for operators to offer takaful in India and to concerned regulatory bodies to expedite its introduction to the market.
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Yukichika Kawata, Sheila Nu Nu Htay and Ahmed Syed Salman
This study aims to examine whether citizens of non-Muslim countries accept products with a “halal” logo. In the era of globalization, one of the most crucial issues for Muslim…
Abstract
Purpose
This study aims to examine whether citizens of non-Muslim countries accept products with a “halal” logo. In the era of globalization, one of the most crucial issues for Muslim travelers is reliable halal foods when visiting non-Muslim countries. If people in non-Muslim countries accept imported products containing halal certification logos, and such products are readily available in shops, this issue could be substantially improved.
Design/methodology/approach
Malaysia and Japan were selected as Muslim and non-Muslim countries, respectively, to conduct a choice experiment (CE) for 656 non-Muslim subjects, and estimated willingness to pay (WTP) for mineral water with and without the halal logo. A random parameter logit model was used for estimation.
Findings
The difference between the WTP for mineral water with and without the halal logo was ¥5; however, the associated coefficient is not statistically significant. This implies that the halal logo has no impact on non-Muslim subjects’ purchasing behavior. From this, we can infer that the halal products with certification logo would be accepted in Japanese shops, which may foster foreign Muslim visits.
Research limitations/implications
As the results are based on a couple of countries (Malaysia and Japan) and only one product (mineral water), further investigation using other products in different countries would be necessary. However, as suggested in the main text, the results enjoy a degree of generalizability.
Originality/value
The results of this study support the possibility of circulating halal products in non-Muslim countries and thus promoting Muslim travel abroad. No such study has examined this issue using CE.
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Sheak Salman, Tazim Ahmed, Hasin Md. Muhtasim Taqi, Guilherme F. Frederico, Amit Sarker Dip and Syed Mithun Ali
The apparel industry of Bangladesh is rethinking lean manufacturing (LM) deployment because of the challenges imposed by the COVID-19 pandemic. Due to COVID-19, LM implementation…
Abstract
Purpose
The apparel industry of Bangladesh is rethinking lean manufacturing (LM) deployment because of the challenges imposed by the COVID-19 pandemic. Due to COVID-19, LM implementation in the apparel industry has become more difficult. Thus, the purpose of this study is to explore the barriers to implementing LM practices in the apparel industry of Bangladesh in the context of COVID-19 pandemic.
Design/methodology/approach
For evaluating the barriers, an integrated framework that combines the Delphi method and fuzzy total interpretive structural modeling (TISM) has been designed. The application of fuzzy TISM has resulted in a structured hierarchical relationship model of the barriers with driving and driven power.
Findings
The findings reveal that “lack of synchronization of lean planning with strategic planning”, “lack of proper understanding of lean concept” and “low priority from the top management” are the three top most important barriers of LM implementation in apparel industry.
Practical implications
These findings will help the apparel industry to formulate strategy for implementing the LM practices successfully. The proposed model is expected to contribute to the sustainable development goals (SDGs) such as Responsible Consumption and Production (SDG 12); Decent Work and Economic Growth (SDG 8); Industry, Innovation and Infrastructure (SDG 9) via resilient strategies.
Originality/value
This study is one of few initial efforts to investigate LM implementation barriers during the COVID-19 epidemic in a real-world setting.
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This paper aims to discuss the views of scholarship in South Asia regarding Riba and Riba-free finance, including the conservative and realist schools in mainstream thought and…
Abstract
Purpose
This paper aims to discuss the views of scholarship in South Asia regarding Riba and Riba-free finance, including the conservative and realist schools in mainstream thought and the assimilative and interpretive schools in liberal thought.
Design/methodology/approach
The paper uses textual analysis to critically review the writings of scholars in South Asia on contemporary issues regarding Riba and Riba-free finance. It provides a critical review in the light of Islamic jurisprudence and extant Islamic economics literature.
Findings
There are several characteristics in conventional banking and finance products that do not comply with Islamic teachings. In this scenario, Islamic banking is comparatively a better alternative to conventional banking and finance products to achieve Shari’ah compliance and avoid indulging in Riba.
Practical implications
Voluntary financial exclusion to avoid Riba is significant in Muslim-majority countries. Increased penetration of Islamic finance requires clarity on what is Riba and confidence in Riba-free alternatives. Outreach efforts of Islamic financial institutions use conventional banking as a frame of reference to provide a critique of interest-based banking. However, the apprehensions within the Islamic finance literature also need to be answered to change perception and enhance people’s willingness to use Islamic banking. Doing this can expedite the process of financial inclusion as well as help in the transformation of the economy on Riba-free foundations in a reasonably quick timeframe.
Originality/value
This is the first study to critically evaluate the financial proposals presented and propagated by the contemporary interpretive school in South Asia.
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Abdul Samad, Salman Bashir and Sumaiya Syed
Growing environmental challenge awareness among consumers is today's business reality that pushes for sustainable product development. Governments, industries, and consumers'…
Abstract
Growing environmental challenge awareness among consumers is today's business reality that pushes for sustainable product development. Governments, industries, and consumers' attention are significantly moved from traditional products to eco-friendly product development. Green product development is the future for manufacturing businesses' survival in most markets. Green product development is an emerging phenomenon and, unfortunately, lacks theoretical and empirical research regarding effective organizational policies and practices for green product development. This study aims at filling research gaps towards green product development by highlighting green employee aspects influenced by leadership for sustainable business growth. The study hypothesized relations between the green effect of transformational leadership on green product development as an outcome through green behaviour, green climate, and green innovative creativity. Data was collected from small and medium enterprises (SMEs) of Karachi through a self-administered survey questionnaire. Results revealed significant support for hypothesized relations through the partial least square statistical tool. This study contributes theoretical and empirical advancement in past literature wherein leadership style influences employee behaviour that leads to predict product development from an environmental perspective. Study inferences suggest for visionary green leadership style for sustainable business growth. Limitations of this study regarding other variable inclusiveness, sampling, and geography are potential extensions for further scholarly investigation.
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Sheak Salman, Hasin Md. Muhtasim Taqi, S.M. Shafaat Akhter Nur, Usama Awan and Syed Mithun Ali
This study aims to address the critical challenge of implementing lean manufacturing (LM) in emerging economies, where sustainability complexities on the production floor hinder…
Abstract
Purpose
This study aims to address the critical challenge of implementing lean manufacturing (LM) in emerging economies, where sustainability complexities on the production floor hinder production efficiency and the transition towards a circular economy (CE). Addressing a gap in existing research, the paper introduces a path analysis model to systematically identify, prioritize and overcome LM implementation barriers, aiming to enhance performance through strategic removal.
Design/methodology/approach
The authors used a mixed-method approach, combining empirical survey data with literature reviews to pinpoint key LM barriers. Using the grey-based Decision-Making Trial and Evaluation Laboratory (DEMATEL) along with the Network Knowledge (NK) method, they mapped causal relationships and barrier intensities. This formed the basis for developing a path simulation algorithm, integrating heuristic considerations for practical decision-making.
Findings
This analysis reveals that the primary barriers to LM adoption is the negative perception and inadequate understanding of lean tools and CE principles. The study provides a strategic framework for managers, offering new insights into barrier prioritization and overcoming strategies to facilitate successful LM adoption.
Research limitations/implications
This research provides a strategic pathway for overcoming LM implementation barriers, empowering managers in emerging economies to enhance sustainability and competitive advantage through LM and CE integration. It emphasizes the significance of structured barrier management in the manufacturing sector.
Originality/value
This research pioneers a systematic exploration of LM implementation barriers in the CE context, making a significant contribution to the literature. It identifies, evaluates barriers and proposes a practical model for overcoming them, enriching sustainable manufacturing practices in emerging markets.
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Muhammad Faisal Sultan, Muhammad Raghib Zafar and Kashif Riaz
Corporate governance is one of the most important topics available in the literature related to large-sized companies. However, the topic has rarely been discussed in the case of…
Abstract
Corporate governance is one of the most important topics available in the literature related to large-sized companies. However, the topic has rarely been discussed in the case of SMEs. However, the importance of the topic and mechanism has been in the limelight for more than one and a half decades. Although lack of knowledge especially regarding theoretical implications, literature and implications is still required to optimize the mechanism as well as its implications for SMEs. Therefore, this chapter has been formulated specifically concerning corporate governance mechanisms and their implications for SMEs. Hence, the scope of this study is much broader than those studies that focused on quantitative examination of variables of interest. Thus, the significance of this study has multiple folds as it is not only important for academicians and researchers but also for managers, entrepreneurs and policymakers.
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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.
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Jamshaid Anwar Chattha, Syed Musa Alhabshi and Ahamed Kameel Mydin Meera
In line with the IFSB and BCBS methodology, the purpose of this study is to undertake a comparative analysis of dual banking systems for asset-liability management (ALM) practices…
Abstract
Purpose
In line with the IFSB and BCBS methodology, the purpose of this study is to undertake a comparative analysis of dual banking systems for asset-liability management (ALM) practices with the duration gap, in Islamic Commercial Banks (ICBs) and Conventional Commercial Banks (CCBs). Based on the research objective, two research questions are developed: How do the duration gaps of ICBs compare with those of similar sized CCBs? Are there any country-specific and regional differences among ICBs in terms of managing their duration gaps?
Design/methodology/approach
The research methodology comprises two-stages: stage one uses a duration gap model to calculate the duration gaps of ICBs and CCBs; stage two applies parametric tests. In terms of the duration gap model, the study determines the duration gap with a four-step process. The study selected a sample of 100 banks (50 ICBs and 50 CCBs) from 13 countries for the period 2009-2015.
Findings
The paper provides empirical insights into the duration gap and ALM of ICBs and CCBs. The ICBs have more variations in their mean duration gap compared to the CCBs, and they have a tendency for a higher (more) mean duration gap (28.37 years) in comparison to the CCBs (11.79 years). The study found ICBs as having 2.41 times more duration gap compared to the CCBs, and they are exposed to increasing rate of return (ROR) risk due to their larger duration gaps and severe liquidity mismatches. There are significant regional differences in terms of the duration gap and asset-liability management.
Research limitations/implications
Future studies also consider “Off-Balance Sheet” activities of the ICBs, with multi-term duration measures. A larger sample size of 100 ICBs with 10 years’ data after the GFC would be more beneficial to the industry. In addition, the impact of an increasing benchmark rate (e.g. 100, 200 and 300 bps) on the ICBs as per the IFSB 20 per cent threshold can also be established with the duration gap approach to identify the vulnerabilities of the ICBs.
Practical implications
The study makes profound contributions to the literature and suggests various policy recommendations for Islamic banks, regulators, and standard setters of the ICBs, for identifying and measuring the significance of the duration gaps; and management of the ROR risk under Pillar 2 of the BCBS and IFSB, for financial soundness and stability purposes.
Originality/value
To the best of the authors’ knowledge, this is a pioneer study in Islamic banking involving a sample of 100 banks (50 ICBs and 50 CCBs) from 13 countries. The results of the study provide original empirical evidence regarding the estimation of duration gap, and variations across jurisdictions in terms of vulnerability of ICBs and CCBs in dual banking systems.