islamic banking
169856639
Acceptance of mobile banking in Islamic banks: evidence from modified UTAUT model
PurposeThe purpose of this study is to examine the factors which affect mobile banking (M banking) acceptance in Islamic banks of Pakistan by using the modified unified theory of acceptance and use of technology (UTAUT) model. The performance expectancy, facilitating conditions, social influence, effort expectancy, perceived value, habit and hedonic motivation are taken as independent variables. Similarly, the intention to adopt M banking is taken as the mediator, and actual usage is used as the dependent variable.Design/methodology/approachThe data are collected by using the survey method, and the five point Likert scale is used for this purpose. The statistical techniques applied to the dataset were confirmatory factor analysis and partial least square structure equation modeling.FindingsThe empirical evidence shows that all the variables except for social influence have a significant positive effect on the intention which results in actual usage.Practical implicationsThis study will help the Islamic banks in boosting the M banking growth and decision makers in crafting those strategies that increase the M banking acceptance.Originality/valueThis paper makes a unique contribution to the literature with reference to Pakistan, being a pioneering attempt to investigate the factors which affect M banking acceptance in Islamic banks of Pakistan by using the modified UTAUT model.
Journal of Islamic Marketing
Syed Ali Raza Nida Shah Muhammad Ali
169510917
Measuring the effects of service quality by using CARTER model towards customer satisfaction, trust and loyalty in Indonesian Islamic banking
PurposeThere are two primary objectives of the research. Firstly, the study aims to explore the service quality dimension of Indonesian Islamic banking using a CARTER model. Secondly, the study aims to examine the relationship of service quality towards customer satisfaction, trust and loyalty in Indonesian Islamic banking.Design/methodology/approachThe conceptual framework of the study will be examined using the PLS SEM approach. Then, it will be examined using the 392 collected data from Indonesian Islamic banking customer in Surabaya.FindingsReliability becomes a key driver of customer satisfaction towards Indonesian Islamic banking. Then, customer loyalty will improve more significant if the Indonesian Islamic bank can firstly improve its customers trust.Research limitations/implicationsThe research results are questionable to represents Indonesia in general because all the sample of the research is Islamic banking customers in Surabaya, East Java Province.Practical implicationsUpdating with the newest technology in delivering integrated products or services will lead Indonesian Islamic banking satisfying its customer more. Then, Indonesia Islamic banking should develop the capability of human resources related to banking skills and understanding of Islamic principles to increase customer trust.Originality/valueThis research is essential in complementing the previous research regarding the level of contribution of compliance in Indonesia Islamic banking. Then, the research discusses how compliance becomes an essential part of service quality that could increase the market share of Indonesian Islamic banking by enhancing the level of customer trust.
Journal of Islamic Marketing
Abu Amar Fauzi Tatik Suryani
169097037
The Current Status of Corporate Social Responsibility Disclosure of Islamic Shari based Banking Companies in Bangladesh
The purpose of this study is to examine the current extent and any difference (if any) of CSR disclosure of Islamic Sharia based banking companies in Bangladesh during the period of 2011 2015. Content analysis is adopted to accumulate the data from company's annual reports. The CSR checklist comprise of sixteen dimensions (including 85 items) of CSR activities i.e. 'Environment' Disaster management, 'Sports, Shelter, Women, Disabled, Liberation war, Health, Education, Energy, Minorities, Employee, Product responsibility, IT, Community and Government. The study reveals that the grand mean disclosure of CSR information in annual report of Islamic banks is 25.89% with a standard deviation of 5.49% Empirical evidence provides that there is statistically significant difference of CSR disclosure among Islamic Sharia based banking companies in Bangladesh. But there is no significant difference of CSR disclosure of Islamic banking industry in Bangladesh year to year. Moreover, CSR disclosure of Islamic Shari based banking companies is not diversified rather concentrated on some specific dimension and items of CSR. The study is mainly based on annual reports for the financial year 2011 2015 of Islamic Sharia based banking companies in Bangladesh. Hence, the conclusion reached cannot be generalized.
Md Sumon Hossain Taposh Kumar Neogy
156086855
The Impact of Corporate Social Responsibility Disclosure on Financial Performance: Evidence from the GCC Islamic Banking Sector
This paper examines the relationship between corporate social responsibility (CSR) and financial performance for Islamic banks in the Gulf Cooperation Council (GCC) region over the period 2000 2014 by generating CSR related data through disclosure analysis of the annual reports of the sampled banks. The findings of this study indicate that there is a significant positive relationship between CSR disclosure and the financial performance of Islamic banks in the GCC countries. The results also show a positive relationship between CSR disclosure and the future financial performance of GCC Islamic banks, potentially indicating that current CSR activities carried out by Islamic banks in the GCC could have a long term impact on their financial performance. Furthermore, despite demonstrating a significant positive relationship between the composite measure of the CSR disclosure index and financial performance, the findings show no statistically significant relationship between the individual dimensions of the CSR disclosure index and the current financial performance measure except for 'mission and vision' and 'products and services' Similarly, the empirical results detect a positive significant association only between 'mission and vision' dimension and future financial performance of the examined banks.
Elena Platonova Mehmet K Asutay Robert John Dixon Sabri Mohammad
181338720
Market structure and Islamic banking performance in Indonesia: An error correction model
Article history: Received: April 15, 2019 Received in revised format: April 27 2019 Accepted: May 11, 2019 Available online: May 11, 2019 The research aims to highlight the importance of market structure and behavior on Islamic banking performance by using the Structure Conduct Performance (SCP) analysis to approximate the growth of Islamic banking performance in the short and long term using error correction model. The data used in this study is time series obtained from the financial statement of each Islamic bank, Financial Service Authority and Bank of Indonesia on Islamic banking statistics monthly reported from April, 2015 to October, 2018. Population of this study covers all Islamic commercial banks in Indonesia. The purposive sampling method is used to select samples based on criteria to get samples that are feasible to be analyzed. Error correction model is applied to characterize the joint dynamic of variables in both in the long and short term relationships. The Johansen co integration results indicate a stable long term relation between market structure and Islamic banking performance. Results show that Market structure variable outside market share of financing in the long term had a significant effect on the Islamic banking performance, but in the short term market structure, the variable had no significant effect on the Islamic banking performance in Indonesia. (c) 2019 by the authors; licensee Growing Science, Canada
Alfi Maghfuriyah S M Ferdous Azam Sakinah Shukri
159208632
The nexus of sustainability practices and financial performance: From the perspective of Islamic banking
Abstract This paper evaluated the nexus between sustainability practices and financial performance from the Islamic banking perspective. For the purpose, this study proposed a sustainability measurement framework for Islamic banking. A decade of sustainability data 2008 2017 was collected from the annual reports using a weighted content analysis technique. Results of the Generalized Method of Moments GMM statistical method showed that sustainability practices have a significant positive association with the financial performance indicators of the Islamic banks indicating management and the shareholders' perspective. The impact of sustainability practices on the financial performance of the Islamic banks measured from the market perspective was found insignificant. In depth analysis revealed that the market is not interested in banks spending for its environmental and social sustainability except for their economic sustainability practices. Based on the Islamic financial index created of management, shareholders and the market financial performance indicators, the results showed that sustainability practices have a significant positive association with the Islamic financial index as well. The finding generally implies that improvement in sustainability practices will add financial values to the management, shareholder and the market financial performance indicators of the Islamic banking industry across the world. Results of this study are also providing insights to the policymakers of the Islamic banking industry around the world regarding efficient sustainability management, achieving higher sustainability ratings, and improving the subsequent financial performance through efficient sustainability practices.
Journal of Cleaner Production
Amin Jan Maran Marimuthu Muhammad Pisol bin Mohd @ Mat Isa
21671942
A contemporary survey of islamic banking literature
This article reviews empirical studies on Islamic banking and concentrates on their main findings while highlighting future research directions. The earlier literature on Islamic banking built a foundation using normative judgment, descriptive analysis, theoretical development, and appraisal of country experiences. The paper discusses scholars' concerns that have led to a paradigm shift in the system and highlight practitioners' disquiet about recent practices. Subsequent research focuses on empirical investigations without extensive analytical and theoretical exploration in the area. Recent studies focus on the financial crisis, solvency, maqasid, disclosure and financial inclusion, and regulations. Even with the spillover effect on the Islamic banks after the crisis, a few pieces of evidence show that the system performs below its conventional counterpart. The paper discusses issues that are relevant to Islamic banking and identifies other avenues for future research.
M Kabir Hassan Sirajo Aliyu
13854778
Risk in Islamic banking and corporate governance
We examine the differences in risk between Islamic and conventional banks with specific attention to the role of Shariah supervisory board (SSB) composition on risk in Islamic banks. Using a sample of banks from 28 countries, we find that Islamic banks have a higher liquidity risk, lower credit risk, lower insolvency risk, but encounter similar operational risk in comparison with conventional banks. Operational and insolvency risks in Islamic banks decline with an increase in SSB size and SSB members' academic qualifications, but increase with an increase in the number of reputed Shariah scholars on the SSB. The SSB attributes do not have significant influence on liquidity and credit risks. The findings are robust to alternative risk measures, and the use of a system GMM estimator.
Abul Shamsuddin
169779642
Does the tag "Islamic" help in customer satisfaction in dual banking sector?
Purpose The purpose of this paper is to find out the importance of the tag "Islamic" in the title of banks. This will help to determine the future strategy of Islamic banks, while expanding to the countries where Islamic banking is seen as a religious banking and not an as an alternative approach to the conventional banking. Design/methodology/approach Adopting convenience sampling, a total of 596 customers of both Islamic and conventional banks were surveyed from four regions of Saudi Arabia (Makkah, Madinah, Riyadh and Dammam) using a self structured questionnaire on a five point Likert scale. Findings The results concede that Islamic banks without the tag "Islamic" and conventional banks have same customer satisfaction. There are some factors other than the tag "Islamic" which are driving customers towards Islamic banking. Those factors include physical aspects of the bank, level of satisfaction with the services, dealing and attendance by the staff and safety and security of the bank. Besides, the application of fundamental principles of Islamic banking works as a key motivation for customer satisfaction with Islamic banking. Practical implications Applying the tag "Islamic" is not as important as implementing the principles of Islamic banking. Islamic banks can survive and compete well even without using the "Islamic" tag if they implement the prime principles of Islamic banking and work on improving the factors highlighted by this study. This study can prove to be helpful in the expansion of Islamic banking in the countries where religious banking is not generally preferred by customers. Originality/value This is the first study to find out the customer satisfaction in a dual banking system (comprising of conventional banks and Islamic banks that do not use the tag "Islamic" thereby filling the existing gap in the Islamic banking literature.
Journal of Islamic Marketing
Fayaz Ahmad Lone Ulfat Rashid Bhat
169981814
What keeps Islamic mobile banking customers loyal?
Purpose This study aims to find important factors of Malaysian Islamic banking customers' loyalty or continuance intention to use Islamic mobile banking services. Design/methodology/approach The primary data are collected from the survey administered to 250 customers in the Klang Valley and the analysis is conducted using partial least squares (PLS) Findings Based on the findings, continuance intention of using Islamic mobile banking services was found to be depended on the usability of mobile banking services, customer service provided by Islamic banks towards mobile banking services, customer satisfaction on mobile banking services and trust of customers towards mobile banking services. In addition, the mediating effect of Islamic mobile banking services continuance adoption is significantly influenced by customer satisfaction and trust. Research limitations/implications The sample size and area of study become the obvious limitations, and interpretation of the results and conclusion cannot be as generalised. In addition, as the respondents of this study are existing customers who have used Islamic mobile banking services at least once, relying on the perception of one key informant might imply cognitive biases. Besides, the use of current factors might limit the ability to explore other potentially important determinants of the customers' continuance intention in using Islamic mobile banking services. Practical implications By understanding these continuance intention factors amongst the customers, it would help the industry player particularly Islamic banking to plan and strategise appropriate policies and support necessary programmes on diversifying and promoting financial transaction using mobile banking services amongst their existing and potential customers. Originality/value This paper offers an additional literature on Islamic mobile banking, especially from the Malaysian context. There is a lack of study that focuses on loyalty towards Islamic mobile banking services. The paper is considered to be the first attempt to examine the factors that influence Malaysian Islamic banking customers' loyalty or continuance intention to use Islamic mobile banking services.
Journal of Islamic Marketing
Mohamed Asmy Bin Mohd Thas Thaker Hassanudin Bin Mohd Thas Thaker Anwar Bin Allah Pitchay