The prospects of Islamic banking in Southeast of Nigeria

2019 ◽  
Vol 11 (1) ◽  
pp. 251-267 ◽  
Author(s):  
Precious Chikezie Ezeh ◽  
Anayo D. Nkamnebe
Keyword(s):  
Factor Analysis ◽  
Significant Relationship ◽  
Pearson Correlation ◽  
Profit Sharing ◽  
Northern Region ◽  
Correlation Factor ◽  
Relative Advantage ◽  
Islamic Banking ◽  
Southeastern Nigeria ◽  
Content Type

Purpose With the increasing presence of Islamic banking to Nigeria’s banking space and its relative success in the predominantly Muslim Northern region, the question of its prospect in the predominantly non-Muslim southeastern Nigeria becomes legitimate and urgent. Thus, the purpose of this study is to predict the prospect of Islamic banking in Southeast Nigeria. Design/methodology/approach Three research questions were posed to address this objective. First, is there significant relationship between knowledge of Islamic banking concept and its prospects in Southeast Nigeria? Second, is there significant relationship between the relative advantage (principles) of Islamic banking concept and its prospects in Southeast Nigeria? Third, is there significant relationship between customers’ religion and prospects of Islamic banking concept in Southeast Nigeria? The study analyses using Pearson correlation, factor analysis with regression, t-test and ANOVA. Findings Knowledge of Islamic banking and prospects of Islamic banking show weak positive relationship and very low mean. In other words, Islamic banking is not well-known; therefore, the prospects of Islamic banking slightly depend on knowledge about Islamic banking. Furthermore, the relationship between Islamic principles and prospects of Islamic banking shows only 5 per cent impact, which means that factors other than Islamic principle will drive the prospects of Islamic banking in Southeast Nigeria. Two factors loading from factor analysis are “profit sharing” and “forbid of some business activities”. Finally, profit sharing influences the prospects of Islamic banking, while prospects of Islamic banking will be impeded by customers’ religion. Research limitations/implications The study was conducted in Southeast Nigeria which contains a small size of sample; the research adopted convenient sampling technique and a limited number of measures in the model. Nevertheless, the study provides new information about an emerging Islamic market. Originality/value Most previous studies concentrated on product attributes of innovation adoption or patronage. But this current study inculcated the consumers' religion, as it affects the prospects of Islamic banking in Southeast Nigeria. .

Middle-income customers and their perception of Islamic banking in Sylhet: one of Bangladesh’s most pious cities

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md. Mizanur Rahman ◽  
Mohammad Ashraful Ferdous Chowdhury ◽  
Md. Mahmudul Haque ◽  
Mamunur Rashid
Keyword(s):  
Factor Analysis ◽  
Positive Impact ◽  
Customer Engagement ◽  
Relative Advantage ◽  
Islamic Banking ◽  
Purchasing Power ◽  
Middle Income ◽  
Content Type ◽  
Islamic Bank ◽  
Selection Factors

Purpose Owing to religious and economic preferences in Muslim-dominated countries, middle-income customers are at the heart of banks’ strategic targeting. This study aims to investigate selected middle-income Islamic bank customers from Sylhet, one of Bangladesh’s top religious and cultural cities, to examine their perceptions of the Islamic banking services. Design/methodology/approach This study forwards three determinants of overall satisfaction. These are perceived relative advantage (PRA), perceived risk management (PRM) and perceived customer engagement (PCE). The study has used structured questionnaire and collected complete data on 300 middle-income Islamic bank users. The data was analysed using exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and structural equation modelling (SEM). Findings While all the three selection factors significantly influence overall satisfaction, PCE has greater positive impact on overall customer satisfaction, followed by PRA and PRM. “Convenient location”, “competitive charges” and “return on deposit despite low earnings” are the top three instruments measuring “PCE”. Religion did not qualify as a standalone selection factor. The results are robust across tests conducted by using EFA, CFA and SEM. Practical implications Gross purchasing power of middle-income class in Bangladesh grew from 7% to over 30% during the past decade, and the purchasing power of this class stood at US$100bn. Having a greater portion of this population as Muslims, banks can design products and marketing campaigns by using the three selection criteria that offer a combination of faith and non-faith-based variables. Originality/value Similar studies on the middle-income customer group have been rare, especially from the Islamic banking perspective. These findings offer a concise list of three factors for the bank managers to build their strategies. With respect to the Vision 2021, these findings carry greater socio-economic significance given the transition of Bangladesh to a middle-income country.

Do innovation attributes really drive the diffusion of management accounting innovations? Examination of factors determining usage intensity of strategic management accounting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Babajide Oyewo
Keyword(s):  
Factor Analysis ◽  
Strategic Management ◽  
Management Accounting ◽  
Environmental Uncertainty ◽  
Relative Advantage ◽  
Competitive Strategies ◽  
Content Type ◽  
Future Studies ◽  
Strategic Management Accounting ◽  
Innovation Attributes

PurposeThis study investigates the usage of modern management accounting techniques popularly referred to as “strategic management accounting” (SMA), and the extent to which innovation attributes (namely relative advantage, compatibility, complexity, trialability and observability) determine SMA usage intensity.Design/methodology/approachSurvey data was obtained through a structured questionnaire from 45 out of 56 publicly listed manufacturing companies on the Mainboard of the Nigerian Stock Exchange. Descriptive statistics, one-way ANOVA, exploratory factor analysis, confirmatory factor analysis and structural equation modelling were used to analyse data.FindingsWhereas the overall usage rate of SMA as an innovation is generally moderate, there is significant difference in SMA usage intensity across industries in the manufacturing sector due to environmental uncertainty. Compatibility emerged as the strongest determinant of SMA usage intensity, implying that commercial enterprises would intensely apply SMA to remain innovative, to continuously improve and to incorporate strategy in accounting practice in a bid to survive competition. SMA will witness extensive usage if it aligns with the competitive strategies of an organisation.Research limitations/implicationsThe attributes of innovation measured treat all SMA techniques as one, but did not measure relative advantage, compatibility, complexity, trialability and observability for each of the techniques. Future studies may consider investigating how innovation attributes specifically affect each SMA technique. The dimension of compatibility investigated in the study lean towards the alignment of SMA with competitive strategies. Taking into account the multidimensionality of compatibility as an innovation attribute, future studies may examine how past experience of implementing new ideas, as well as compatibility of SMA with corporate culture and value system, affect the dissemination and diffusion of management accounting innovations.Practical implicationsThe paper proposes that although innovation attributes may partly explain SMA usage, coercive factors such as competition and environmental uncertainty may also be responsible for the decision to adopt innovative management accounting practices. The study therefore calls for a critical appraisal of how coercive institutional factors such as competition, regulation and actions of key stakeholders influence the decision of organisations to adopt an innovation.Originality/valueThis paper contributes to knowledge by challenging existing knowledge and presenting evidence that innovation attributes acclaimed to determine the spread of an innovation may be inapplicable in certain settings due to some environmental challenges. The study also contributes to knowledge by developing a composite scale for measuring innovation attributes specifically adapted to management accounting innovation, which can be used in future studies.

Islamic bank selection criteria in Nigeria: a model development

2019 ◽  
Vol 11 (6) ◽  
pp. 1837-1849
Author(s):  
Precious Chikezie Ezeh ◽  
Anayo D. Nkamnebe
Keyword(s):  
Factor Analysis ◽  
Exploratory Factor Analysis ◽  
Selection Criteria ◽  
Model Development ◽  
Reliability And Validity ◽  
Primary Data ◽  
Islamic Banking ◽  
Islamic Ethics ◽  
Content Type ◽  
Islamic Bank

Purpose The purpose of this study is to develop a model for the study of Islamic bank choice and to test the significant importance of the constructs that influence bank customers to choose Islamic bank in a pluralistic-secular nation. Design/methodology/approach Total of 348 conventional and Islamic bank customers were sampled. Five-point Likert-type question containing 27 bank selection items was used in collecting primary data. Cronbach’s alpha, composite reliability and average variance extracted are used to test the reliability and validity of the instrument. Also various descriptive statistics, exploratory factor analysis and one sample T-test are equally used in analyzing the work. Findings Exploratory factor analysis identified four factors. They are Islamic ethics, convenience, Islamic bank services awareness and physical evidence. Furthermore, the factors that show significant importance in the choice of Islamic banking are Islamic ethics and Islamic bank services awareness. The result equally shows that people are aware of Islamic banking. Practical implications This study provides insight on the factors that influence the selection of Islamic banking, an innovative banking concept. This study has obvious management and theory implications. Also, the study will assist the bank managers in developing effective marketing strategy to increase the market share. Originality/value This study reports Islamic banking selection criteria in a pluralistic-secular Nation. The study also developed a model that can be used in studying the choice of Islamic bank in special type of environment. Thus, Islamic banking is a new reality in the Nigerian financial scene.

Managerial perceptions of cost-system obsolescence and factors that might affect it

2019 ◽  
Vol 31 (7) ◽  
pp. 2884-2913
Author(s):  
Emre Cengiz ◽  
Funda Cengiz ◽  
Muhittin Cavusoglu ◽  
Cihan Cobanoglu
Keyword(s):  
Decision Making ◽  
Factor Analysis ◽  
Significant Relationship ◽  
Hotel Industry ◽  
Competitive Environment ◽  
Equation Modeling ◽  
Additional Insight ◽  
Content Type ◽  
Cost System ◽  
Insight Into

Purpose This study aims to report the descriptive statistics of cost-system obsolescence (CSO) in the Turkish hotel industry and contingent factors that affect the CSO. Design/methodology/approach To validate the reflective measurement model, first, an exploratory factor analysis in statistical package for social sciences was conducted. Then, a confirmatory factor analysis using maximum likelihood in analysis of moment structures was performed to establish the reliability and validity of the construct measurements. Findings The results demonstrate that CSO symptoms did not occur frequently in sample Turkish hotels. Turkish hotels were found to operate in intense competition and a significant relationship between competition intensity (CI) and CSO takes place. The hospitability industry has been perceived as rather uncertain. However, perceived environmental uncertainty (PEU) had no significant effect on CSO, and there was no mediation effect on the relationship between CI and CSO. Turkish hotels were found to perform market-orientated activities at a mediocre level. However, no significant relationship was found between market orientation (MO) and CSO. Additionally, Turkish hotels with decentralized decision-making structures and “prospector-type” strategies were found to have less CSO. On average, Turkish hotels have centralized decision-making structures and pursue “analyzer-type” strategies. Practical implications This study contributes to previous literature related to accounting information in the hotel industry. It also aims to give additional insight into Turkish hotels’ competitive environment, MO activities, decision-making structures and strategies and their association with CSO. Originality/value The study examined CSO in the Turkish hotel industry and factors that affect CSO. The study results provide additional insight into Turkish hotels’ competitive environment, MO activities, hotel structure and strategy. A new model to test CSO was created and validated using structural equation modeling (SEM).

Determinants of Islamic banking products and services adoption in Morocco: a conceptual framework

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amal El Mallouli ◽  
Hassan Sassi
Keyword(s):  
Conceptual Framework ◽  
Perceived Risk ◽  
Relative Advantage ◽  
Islamic Banking ◽  
Extensive Literature ◽  
Islamic Banks ◽  
Research Model ◽  
Adoption Studies ◽  
Content Type ◽  
Doi Theory

Purpose The Moroccan monetary authorities have implemented an Islamic banking system since 2017 as an alternative to the conventional system. However, the adoption of Islamic banking products and services is not widely accepted by customers. The purpose of this study is to propose a conceptual framework to understand the determinants of Islamic banking products and services adoption in Morocco. Design/methodology/approach This study develops a conceptual framework based on the diffusion of innovation theory (DOI). Thus, with reference to an extensive literature review done regarding adoption studies, the proposed research model integrates perceived attributes of innovation (relative advantage, compatibility, complexity and observability) suggested by the DOI theory. It also integrates other relevant variables that should be considered in the context of this study. These include knowledge, perceived risk and customer involvement. Findings The proposed conceptual framework demonstrates and justifies the relevance and the applicability of Rogers’ DOI to understand consumer decisions to adopt an innovation in general as well as Islamic banks in particular. Originality/value Several studies have examined the factors influencing the adoption of Islamic banks; however, those carried out in the Moroccan context remain very limited. The majority of these studies examine the intention to adopt in the future, whereas the present study seeks to establish a conceptual research model that examines the determinants of current adoption of Islamic banking in Morocco and the continuity of this adoption over time. The novelty of this study is to develop a modified model based on DOI theory which, according to the existing literature, has not yet been tested in the Moroccan context.

scholarly journals Acceptance of Islamic banking as innovation: a case of Pakistan

Humanomics ◽  
2017 ◽  
Vol 33 (4) ◽  
pp. 499-516 ◽  
Author(s):  
Muhammad Ali ◽  
Chin-Hong Puah
Keyword(s):  
Diffusion Of Innovation ◽  
Structural Equation ◽  
Relative Advantage ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
Islamic Bank ◽  
Bank Managers ◽  
Doi Theory

Purpose This study aims to investigate the factors that determine the customer adoption of Islamic banking in Pakistan. Design/methodology/approach This paper aims to use a sample of 540 Islamic bank customers located in the biggest city of Pakistan (Karachi). This study is based on the diffusion of innovation (DOI) theory and analyzed the role of five attributes (compatibility, relative advantage, complexity, observability and trialability) along with the consumer awareness about the customer adoption of Islamic banking. Additionally, the present research also considers Islamic banking as a new idea (innovation) in Pakistan under the framework of DOI theoretical assumptions. The exploratory and confirmatory factor analyses are applied to the sample data. The theoretical framework is then tested using structural equation modeling. Findings The findings of the study revealed that all five attributes of the DOI theory are positively and significantly related to the customer adoption of Islamic banking. The customer awareness also proved its importance in the hypothesized model by representing a positive and significant relationship. Originality/value The present study provides a useful guideline for the Islamic bank managers and the academicians to better understand the customer adoption of Islamic banking.

Investigating the influence of unlearning on knowledge management in sport organizations

Kybernetes ◽  
2018 ◽  
Vol 47 (10) ◽  
pp. 2025-2040 ◽  
Author(s):  
Vahid Delshab ◽  
Saeed Sadeghi Boroujerdi
Keyword(s):  
Factor Analysis ◽  
Knowledge Management ◽  
Structural Equation ◽  
Pearson Correlation ◽  
Equation Model ◽  
Sport Organizations ◽  
Youth Organizations ◽  
Content Type ◽  
Significant Relationships ◽  
Kolmogorov Smirnov

Purpose The purpose of this study is to examine the influence of unlearning on knowledge management (KM) in sport organizations. Design/methodology/approach The research method in this study was the descriptive–correlative type. Subjects in this research included all the employees of sport and youth organizations in Iran. To analyze the research data, inferential statistics including exploratory factor analysis, confirmatory factor analysis, Kolmogorov–Smirnov test, Pearson correlation coefficient and structural equation model were used. A theoretical model was developed and tested based on the literature review. Data were analyzed via SPSS and LISREL software. Findings The results from the study illustrate that there were significant relationships among all dimensions of unlearning and dimensions of KM. Furthermore, the model of the influence of unlearning on KM, as well as the model of the influence of dimensions of unlearning on KM, illustrates proper finesses. Originality/value Through this study, the positive fundamental role of considering the processes of managing unlearning and avoiding bad habits as two coordinator tools to achieve tangible assesses in organizations is revealed and the significance of considering such studies is specified for researchers. This study supported the members of sport organizations to understand how to improve knowledge and experience of the employees through unlearning.

Analyzing financial performance by integrating conventional governance mechanisms into the GCC Islamic banking framework

2018 ◽  
Vol 44 (5) ◽  
pp. 604-623 ◽  
Author(s):  
Husam-Aldin Nizar Al-Malkawi ◽  
Rekha Pillai
Keyword(s):  
Financial Performance ◽  
Agency Theory ◽  
Significant Relationship ◽  
Generalized Least Squares ◽  
Model Parameters ◽  
Islamic Banking ◽  
Control Variables ◽  
Content Type ◽  
Gcc Countries ◽  
Innovative Products

Purpose The purpose of this paper is to integrate conventional corporate governance (CG) mechanisms into the Islamic banking framework in order to examine their impact on Islamic banks (IBs) financial performance (IBFP) within the Gulf Cooperation Council (GCC) context. Design/methodology/approach The study uses a sample of 22 full-fledged IBs operating in the GCC countries over an 11-year period from 2005 to 2015. Using panel data approach, the paper develops an empirical model consists of five CG mechanisms and three control variables. The model parameters are estimated using feasible generalized least squares framework. Findings The results show that five internal CG mechanisms have statistically significant relationship with IBFP, measured by Q-ratio. Insider shareholding is found to be positively associated with IBFP, while institutional and government shareholdings are found to be negatively related to Q-ratio, the results being consistent with the agency theory, strategic alignment theory and property rights theory, respectively. Moreover, the results reveal that large board size and CSR engagement negatively influence IBFP, once again lending support to agency theory and trade off theory, respectively. The control variables, namely, leverage, size and age are also found to have a statistically significant relationship with IBFP. Practical implications IBs are urged to ensure transparency in the provision of innovative products fundamentally in contrast to conventional banking products as well as cater to the untapped markets by weaving Islamic values into the existing CG fabric, as a feasible solution to remain competitive. Originality/value The paper examines the relationship between internal CG mechanisms and financial performance of listed and non-listed full-fledged IBs operating in the GCC countries.

National context and organizational performance across three sectors

2015 ◽  
Vol 22 (3) ◽  
pp. 356-378 ◽  
Author(s):  
G. Ronald Gilbert ◽  
Mary Ann Von Glinow
Keyword(s):  
Factor Analysis ◽  
Organizational Performance ◽  
Management Practices ◽  
Free Market ◽  
Market Competition ◽  
Pearson Correlation ◽  
Assessment Instrument ◽  
Content Type ◽  
Developed Nations ◽  
Isomorphic Pressures

Purpose – The purpose of this paper is to analyze the effects of diffusional pressures as they relate to organizational performance (OP) across public, private, and not-for-profit sectors in two different national contexts. Design/methodology/approach – A review is conducted of institutional forces in the environment of two nations; one highly developed and the other developing to identify isomorphic pressures in each of the countries. An organizational performance assessment (OPA) tool is used to analyze the differences in the performance of the three sectors in the two national contexts identified. The research relies on Pearson correlation, exploratory factor analysis, confirmatory factor analysis, and MANCOVA statistical applications to validate the assessment instrument and shed light on differences across nations and sectors that can be attributed to organizational diffusion as a result of institutional pressures that exist in the countries in which the organizations are embedded. Findings – The findings indicate there is greater need to adapt to local ways of doing things when working cross-nationally within developing countries than with those that are developed where management practices are more alike than dissimilar. The results of the study suggest that when managing organizations cross-nationally, in the more developed nations organizations will perform more effectively and more alike than when working with organizations in less developed countries where the conditions for the diffusion of organizational practices are weaker. Research limitations/implications – The research focussed on two countries for comparative purposes. Due to sampling limitations, the findings are more relevant to the sectors the authors studied within countries than between the countries per se. It is recommended further research be conducted using larger samples across many national cultures. While relying on broad societal institutional dynamics, the study design does not permit the analysis of the effects of specific contextual characteristics on OP. Such an undertaking is undoubtedly a “next step” that the authors recommend. Practical implications – The extant literature finds that managing systems cross-nationally requires adaptation to local national contexts. Where there is less economic and technological development, less opportunity for free market competition (capitalism), educational opportunities, and shared standards from which the performance of organizations are judged, the more unlikely organizations will employ commonly applied management practices. A new tool is introduced that can be used to further research on OP cross-nationally. Originality/value – The study provides empirical evidence to demonstrate that in nations where stronger diffusional pressures exist, fewer differences will be found among the performance of the three sectors. Additionally, the effectiveness of organizations in these national contexts will be greater. While research among the three sectors has identified performance differences, such differences are less likely to be discernible in developed nations due to isomorphic pressures. The study is especially relevant to those who manage global organizations cross-nationally. It introduces a new tool to measure OP across national boundaries.

Investigating experts’ opinion on outsourcing decision in facilities management practice in public Universities in Nigeria

2015 ◽  
Vol 13 (1) ◽  
pp. 27-44 ◽  
Author(s):  
JOB TAIWO GBADEGESIN ◽  
Theophilus Olugbenga Babatunde
Keyword(s):  
Influencing Factors ◽  
Significant Relationship ◽  
Public Universities ◽  
Management Practice ◽  
Research Effort ◽  
Pearson Correlation ◽  
Facilities Management ◽  
Content Type ◽  
Tertiary Institutions ◽  
Outsourcing Decision

Purpose – This paper aims to empirically investigate the factors and the level of influence on facilities management practice and analyze the relationship among the factors. It also examines the level of effectiveness of outsourcing decision. Recent research effort on outsourcing identified some factors that influence outsourcing decision-making. Design/methodology/approach – Copies of instrument titled “Questionnaire on Outsourcing Decision” designed through a review of outsourcing literature, pilot-tested on the professionals, with valid reliability test results, were used to collect data. Collected data were analyzed using percentage, t-test, Pearson correlation and chi-square. Findings – Majority of the respondents reported that outsourcing is an effective decision. Except for functional characteristics, all other factors (strategic, management, technical, economical and quality) are significantly different from the group mean values. While there is a positive and significant relationship among the influencing factors, there is no significant relationship between the years of experience and the perception on the effectiveness of outsourcing decision. Research limitations/implications – This study is limited to five selected tertiary institutions. The justification for their selection is attributed to their relative adequate infrastructural facilities, the existing practice of outsourcing and the size of the institutions. The further frontier of knowledge can be extended from here. Practical implications – The findings exposed the policymakers and stakeholders in the public universities to the major factors that affect the effectiveness of outsourcing and the direction for future practical research in the area of facilities management within the tertiary institutions of learning. Originality/value – The thrust of this paper provides check and balance in the adoption of outsourcing approach with tested instrument that ranks the influencing factors in facilities management practice in a developing economy within educational institutions.

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