scholarly journals The Role of Skills in Islamic Financial Innovation: Evidence from Bahrain and Malaysia

2020 ◽  
Vol 6 (3) ◽  
pp. 47 ◽  
Author(s):  
Jessie Poon ◽  
Yew Wah Chow ◽  
Michael Ewers ◽  
Razli Ramli
Keyword(s):  
Continuous Improvement ◽  
Financial Institutions ◽  
Service Innovation ◽  
Financial Innovation ◽  
Technical Skill ◽  
Islamic Finance ◽  
Islamic Financial Institutions ◽  
Negative Effect ◽  
The Relationship

A body of work has emerged that examines human capital from the perspective of skills to better understand the types of expertise that influence innovation. The relationship between skill and financial innovation, however, is poorly understood in the context of Islamic financial institutions (IFIs). IFIs are distinct from their conventional counterparts by their compliance with Shariah law. Based on a survey of IFIs in Bahrain and Malaysia, this paper examines the effect of different skills on IFI innovation. The findings indicate that while skill in Islamic finance positively influences innovation, skill in Shariah law does not. Cognitive-technical skill is also highly significant, but marketing skill has a negative effect. The results suggest that Islamic financial innovation relies on continuous improvement that sustains markets, product and service innovation. Sustaining innovation lends itself to abilities that are oriented towards problem solving and computation of Shariah and business risks. This favors skills of programming and expertise in Islamic finance over marketing and Shariah legal proficiency.

Can Islamic Work Ethics and Ethical Climate Reduce Counterproductive Work Behavior?

2018 ◽  
Vol 1 (2) ◽  
pp. 95-101
Author(s):  
Keumala Hayati ◽  
Yuningsih Yuningsih ◽  
Indra Caniago
Keyword(s):  
Financial Institutions ◽  
Ethical Climate ◽  
Work Ethic ◽  
Counterproductive Work Behavior ◽  
Work Behavior ◽  
Work Ethics ◽  
Islamic Work Ethic ◽  
Islamic Financial Institutions ◽  
Negative Effect

This study examines the effect of Islamic Work Ethic (IWE) and Ethical Climate (EC) on Counterproductive Work Behavior (CWB). The sample was 115 employees of Islamic financial institutions in Lampung, Indonesia. The analysis shows that IWE has a negative effect on CWB, EC also has a negative effect on CWB. This finding shows that CWB can be reduced by IWE and EC. EC influence is slightly higher than IWE shows that although IWE plays a good role in reducing CWB, the role of the ethical climate in the organization has slightly greater in reducing CWB.

scholarly journals Model Pembiayaan Syariah Dalam Mengatasi Praktik Sistem Tebasan Di Sentra Padi Nasional

AL-TIJARY ◽  
2019 ◽  
Vol 4 (2) ◽  
pp. 81-94
Author(s):  
Nono Hartono
Keyword(s):  
Human Resources ◽  
Financial Institutions ◽  
Research Method ◽  
Islamic Law ◽  
Qualitative Approach ◽  
Islamic Finance ◽  
Islamic Financial Institutions ◽  
Long Time ◽  
Main Factors

The objectives of this study to identify the implementation of tebasan practices, analyze the contribution of the role of Islamic financial institutions and develop a sharia financing model to solve the practice of tebasan. The research method used with a qualitative approach, through interviews with farmers and Islamic financial institutions. The results showed that the practice of the tebasan in Indramayu had been carried out for a long time by the community, this was due to the lack of understanding of Islamic law which made the farmers continue to carry out the practice. In addition, the contribution of Islamic financial institutions to solved the practice has not yet existed. The absence of limited capital human resources and businesses that have large risks are the main factors of Islamic financial institutions have not contributed. Islamic finance which can be a solution to solve the practice of tebasan source non-commercial financing (Al-Qardhul Hasan) and commercial financing (Salam, Musyarakah or Mudharabah).

scholarly journals Shar¯ı‘ah Resolution and Islamic Finance: A Review

2021 ◽  
Vol 11 (01) ◽  
pp. 29-39
Author(s):  
Zakir Hossen Shaikh ◽  
◽  
Adel M Sarea ◽  
Abdelrahman Al-Saadi ◽  
Iqbal Thonse Hawaldar ◽  
...  
Keyword(s):  
Financial Institutions ◽  
Qualitative Method ◽  
New Products ◽  
Detailed Examination ◽  
Central Banks ◽  
Islamic Finance ◽  
Islamic Banks ◽  
Legal Response ◽  
Islamic Financial Institutions

Purpose: The purpose of this study is to look into the Shar¯ı‘ah resolution framework in Islamic finance and see how it may be improved. This paper is based on a detailed examination of previous research into the need for a worldwide Shar¯ı‘ah Resolution mechanism to be applied across all IFIs. Methodology: A detailed analysis of past studies on the necessity of a Shar¯ı‘ah Resolution framework to be implemented globally by all IFIs was used to develop the qualitative method. Findings: Measuring the level of fatwá disclosure by specific Islamic banks through central banks Shar¯ı‘ah judgements will add to the existing literature while also filling a gap. Significance: This study is noteworthy because it lays the framework for future researchers on the topic. Using a central bank to assess the extent to which certain Islamic banks have disclosed fatwá. Limitations: These articles’ implications may aid in the explanation of Shar¯ı‘ah-related concerns in Islamic finance. Shar¯ı‘ah resolution in Islamic finance will be a significant Shar¯ı‘ah resource for new products supplied by Islamic financial institutions, as well as any existing goods given to new clients and industry practitioners. Implications: The fatwá is the legal response to the present difficulties that have arisen in the community. fatwá are used to disseminate knowledge to Muslims in order to alleviate their difficulties and misconceptions. Any fatwá-related knowledge will have an impact on individuals, societies, and organizations . As a result, this paper examined the role of fatwás in sharing information and determining how far fatwás can educate society in resolving problems.

scholarly journals NON-SHARIAH COMPLIANCE OF ISLAMIC BANKS AND CUSTOMERS COMMITMENT: TRUST AS MEDIATOR

2021 ◽  
Vol 3 (8) ◽  
pp. 28-36
Author(s):  
Muhammad Usman ◽  
Anwar Allah Pitchay ◽  
Munazza Zahra
Keyword(s):  
Financial Institutions ◽  
Quantitative Approach ◽  
Islamic Banks ◽  
Islamic Financial Institutions ◽  
The Impact ◽  
The Relationship

The purpose of this paper is to find out the impact of non-shariah compliance (NSC) of Islamic banks on the commitment of the customers and the role of trust as a mediator. The paper uses a quantitative approach by using surveys to collect data from 276 respondents. Smart PLS was used to run the analysis. Non-compliance of Islamic financial institutions with shari’ah principles significantly affects the commitment of the customers. Results of this showed that trust significantly impacts the commitment of the customers, study also indicated that trust mediates the relationship between the commitment and no-shari’ah compliance.

scholarly journals The Moderating Effect of Islamic Work Ethics on the Relationship Between Corporate Governance and Performance of Islamic Financial Institutions in Nigeria: A Proposed Framework

2018 ◽  
pp. 1041-1048
Author(s):  
S. B. Adam ◽  
A. M. H. Al-Aidaros ◽  
S. B. Ishak
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Moderating Effect ◽  
Policy Implications ◽  
Islamic Finance ◽  
Business Practices ◽  
Work Ethics ◽  
Finance Industry ◽  
Islamic Financial Institutions ◽  
The Relationship

Although the important influence of IFIs on economic growth is acknowledged, yet the contribution of Nigeria’s IFIs shows a gross underperformance. In addition, the practice of Islamic Finance is increasingly being viewed as not only serving as alternative for the Muslims but successful business practices around the world. Previous literature reveals that theoretical contributions in the area remained limited in the Nigerian, therefore, there is a need for more studies on corporate governance in the context of IFIs, especially in Nigeria, where IFI are considered as important financial institutions to the Muslims. Moreover, studies in Nigeria revealed absence of comprehensive framework for the Islamic finance industry. On the other hand, poor Islamic Work Ethics conquers a central position for the low performance of Nigerian IFIs. The paper presents a theoretical framework on the moderating effect of Islamic Work Ethics on the relationship between Islamic corporate Governance practices and the performance of Islamic Financial Institutions (IFIs) in Nigeria. If validated, the model would have policy implications to IFIs and other stakeholders in decision making.

scholarly journals Non-bank financial institutions and economic growth: Evidence from Africa’s three largest economies

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Ronald Rateiwa ◽  
Meshach J. Aziakpono
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Financial Institutions ◽  
Time Series Data ◽  
Bank Lending ◽  
Series Data ◽  
The Sustainable Development ◽  
Long Run ◽  
The Relationship

Background: In order for the post-2015 world development agenda – termed the sustainable development goals (SDGs) – to succeed, there is a pronounced need to ensure that available resources are used more effectively and additional financing is accessed from the private sector. Given that traditional bank lending has slowed down, the development of non-bank financing has become imperative. To this end, this article intends to empirically test the role of non-bank financial institutions (NBFIs) in stimulating economic growth.Aim: The aim of this article is to empirically test the existence of a long-run equilibrium relationship between economic growth and the development of NBFIs, and the causality thereof.Setting: The empirical assessment uses time-series data from Africa’s three largest economies, namely, Egypt, Nigeria and South Africa, over the period 1971–2013.Methods: This article uses the Johansen cointegration and vector error correction model within a country-specific setting.Results: The results showed that the long-run relationship between NBFI development and economic growth is relatively stronger in Egypt and South Africa, than in Nigeria. Evidence in respect of Nigeria shows that such a relationship is weak. The nature of the relationship between NBFI development and economic growth in Egypt is positive and significant, and predominantly bidirectional. This suggests that a virtuous relationship between NBFIs and economic growth exists in Egypt. In South Africa, the relationship is positive and significant and predominantly runs from NBFI development to economic growth, implying a supply-leading phenomenon. In Nigeria, the results are weak and mixed.Conclusion: The study concludes that in countries with more developed financial systems, the role of NBFIs and their importance to the economic growth process are more pronounced. Thus, there is need for developing policies targeted at developing the NBFI sector, given their potential to contribute to economic growth.

scholarly journals Examining the Mediation of Job Satisfaction in the Relationship between Work Stress and Turnover Intention in Textile Company

2020 ◽  
Vol 5 (2) ◽  
pp. 113-121
Author(s):  
Romat Saragih ◽  
Arif Partono Prasetio ◽  
Bachruddin Saleh Luturlean
Keyword(s):  
Job Satisfaction ◽  
Work Stress ◽  
Turnover Intention ◽  
Sampling Method ◽  
Sampling Technique ◽  
Jel Classification ◽  
Positive Direction ◽  
Negative Effect ◽  
The Relationship

Objective – This study investigates the mediation role of job satisfaction in the relationship between work stress and turnover intention. A study about turnover intention in the textile company is still rarely done in Indonesia. This study can fill the gap regarding the topic. Methodology/Technique – A nonprobability sampling method with an accidental sampling technique was used, and we get 110 usable responses from a textile company in West Java, Indonesia. Macro Process with SPSS was used to measure the regression and the mediation. Findings – The study found that work stress has a negative effect on job satisfaction. Work stress significantly related to turnover intention in a positive direction. Job satisfaction did not have a significant relation with turnover intention. Thus, in this study, we found no mediation role in job satisfaction. Novelty – Evidently, work stress solely took part in shaping the turnover intention. Type of Paper: Empirical. Keywords: Work stress, Job satisfaction, Turnover intention, Textile Company, Mediation Reference to this paper should be made as follows: Saragih, R; Prasetio, A.P; Luturlean, B.S. 2020. Examining the Mediation of Job Satisfaction in the Relationship between Work Stress and Turnover Intention in Textile Company, J. Mgt. Mkt. Review 5(2) 113 – 121. https://doi.org/10.35609/jmmr.2020.5.2(4) JEL Classification: J28, J29, M19.

scholarly journals The Relationship Model of Sharia and Financial Authorities

2020 ◽  
Vol 20 (1) ◽  
Author(s):  
Muhammad Maksum
Keyword(s):  
Political Economy ◽  
Financial Institutions ◽  
Middle Eastern ◽  
The State ◽  
State Authority ◽  
Relationship Model ◽  
Islamic Financial Institutions ◽  
The Relationship

Political economy and religious policies affect the relationship between sharia and financial authorities. Countries that make Islam as the official religion put Sharia authorities within the scope of the state. Malaysia is one of the countries that put Sharia authorities in the structure of state authority, although it is subject to independency. In the meantime, Indonesia combines the two models of relationship: 1) granting broader independence to sharia authority (the Indonesian Ulema Council) and 2) forming sharia board to deal with sharia finance, among others. The comparison of Indonesian, Malaysian, and the Middle Eastern countries’ system shows that the independence and the effectiveness of sharia economic fatwa application are found to attract each other. This, in turn, influences the supervision of Islamic financial institutions.  AbstrakPolitik ekonomi dan kebijakan agama memengaruhi hubungan antara otoritas syariah dan otoritas keuangan. Negara yang menjadikan Islam sebagai agama resmi menempatkan otoritas syariah dalam ruang lingkup negara. Malaysia adalah salah satu negara yang menempatkan otoritas Syariah dalam struktur otoritas negara, meskipun tetap independen. Sementara itu, Indonesia menggabungkan dua model hubungan: 1) memberikan independensi yang lebih luas kepada otoritas syariah (Majelis Ulama Indonesia) dan 2) membentuk dewan syariah untuk menangani hal yang berkaitan dengan keuangan syariah. Perbandingan sistem Indonesia, Malaysia, dan negara-negara Timur Tengah menunjukkan bahwa independensi dan efektivitas penerapan fatwa ekonomi syariah terbukti saling berhubungan satu sama lain. Ini, pada gilirannya, memengaruhi pengawasan lembaga keuangan Islam.

scholarly journals FRAMING THE SOCIAL RESPONSIBILITY ROLE OF ISLAMIC FINANCIAL INSTITUTIONS WITHIN A THREE-SECTOR ECONOMIC MODEL

2019 ◽  
Vol 7 (1) ◽  
pp. 180-188
Author(s):  
Mohd Nizam Barom
Keyword(s):  
Social Responsibility ◽  
Social Welfare ◽  
Financial Institutions ◽  
Economic Model ◽  
Third Sector ◽  
Welfare Provision ◽  
Integrative Framework ◽  
The Social ◽  
Islamic Financial Institutions

Purpose: This paper examines and reflects the ongoing debate on the social responsibility role of Islamic financial institutions (IFIs) in the light of the literature in the area of third sector and three-sector economic model. Subsequently, it seeks to develop a framework that can be used to conceptualise the potential interaction between the different sectors in the economy in relation to social welfare issues and locate the social responsibility role of IFIs within this framework.    Methodology: The paper uses an integrative analysis of Islamic finance and third sector literature, particularly on the American and European conceptions of the interactions between the three main sectors in the economy, i.e. public, private and ‘third’ sectors. Results: The paper develops a modified circular flow of income and expenditure model as a basis for the integrative framework for social welfare provision within a three-sector economic model. Subsequently, it locates the social responsibility role of IFIs within this framework with the understanding that social welfare burden is a collective responsibility and therefore shared among the various potential welfare providers in the economy.  Implications: The integrative framework of social welfare provision within a three-sector economic model as conceptualised in this paper highlights a multi-institutional approach towards promoting socio-economic justice and society's well-being in an Islamic economy, and hence provides a proper and reasonable context for social responsibility roles expected of IFIs.

scholarly journals PERAN PEMBIAYAAN MURABAHAH DALAM MENINGKATKAN USAHA BATU BATA (STUDI PADA BMT AS-SALAM KANTOR KAS NGERECO KANDAT KEDIRI)

1970 ◽  
Vol 5 (1) ◽  
pp. 64-76
Author(s):  
Muh Khoirul Anam ◽  
Haris Santoso
Keyword(s):  
Financial Institutions ◽  
Case Study Research ◽  
Lower Class ◽  
Qualitative Approach ◽  
Study Research ◽  
Islamic Financial Institutions ◽  
Conventional Banks ◽  
Depth Interviews

Financial institutions are currently needed by all people because financial institutions are considered to be quicker in providing business capital loans. Previously, conventional banks were the only financial institutions operating in the financial sector or loans to the community before Islamic financial institutions, now with the development of financial institutions sharia society mostly prefers sharia finance rather than conventional, plus BMT which operates in the middle to lower class, this is what causes many people to take Islamic financial institutions because they prioritize family systems, so this study focuses on: 1). How is the application of murabahah financing at BMT As-Salam to brick businesses in the Ngreco Kandat Kediri village, 2). What is the role of murabahah financing at BMT As-Salam towards brick business in the Ngreco Kandat Kediri village, 3). How did the brick business increase in the Kandat Kediri Ngreco village after obtaining murabahah financing at BMT As-Salam. Research on the role of murabahah financing in brick business uses a descriptive qualitative approach with a type of case study research that refers to the interpretive postpositivistic thinking paradigm. The technique of collecting data is in-depth interviews, observation and documentation. The results of this study indicate that the application of murabahah financing at BMT As-Salam is very different where loans for business capital of bricks that should use mudharabah or musyarakah at BMT These salads use murabaha. Besides that the role of BMT As-Salam is very influential on brick business and before BMT As-Salam arrived, brick entrepreneurs still had difficulty finding capital to improve their business but after taking murabahah financing at BMT As-Salam, their efforts experienced an increase and prosperity life.

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