Antecedents and outcome of commitment in Islamic banking relationships – an emerging African market perspective

2020 ◽  
Vol 11 (6) ◽  
pp. 1851-1871
Author(s):  
Mornay Roberts-Lombard
Keyword(s):  
Conflict Management ◽  
Islamic Banking ◽  
Content Type ◽  
Trust Relationship ◽  
Relationship Expectations ◽  
Descriptive Research ◽  
Customer Commitment ◽  
Management Commitment ◽  
Banking Relationships ◽  
Retail Banks

Purpose This study aims to investigate how the commitment of Islamic banking customers is influenced by trust, relationship expectations and conflict management. In turn, the influence of their commitment on future satisfaction is determined. Design/methodology/approach A descriptive research design was applied and responses were obtained from Islamic banking customers through the application of self-administered questionnaires. A total of 350 completed questionnaires were used in analysing the data. An exploratory factor analysis established the interrelationships of the scales used to measure the study’s constructs. In addition, both the measurement and structural models were evaluated. Findings Trust and relationship expectations significantly and positively influence customer commitment, while conflict management has no significant influence on the commitment of Islamic banking customers to their bank. In addition, commitment significantly and positively influences the satisfaction experiences of Islamic banking customers. Research limitations/implications The tested model validates the hypothesised relationships between the trust, relationship expectations, commitment and satisfaction of Islamic banking customers. However, the relationship between conflict management, commitment and satisfaction was not established. Commitment is linked to trust and relationship expectations, as well as its outcome, satisfaction. However, commitment could not be linked to antecedent conflict management. Practical implications The findings could assist retail banks servicing Islamic banking customers in offering in-depth knowledge of how trust and relationship expectations can foster customer commitment, eventually securing the positive satisfaction of customers. Originality/value The study focussed on Islamic banking customers and determined the interrelationships between commitment and related constructs. Few studies, however, have examined how commitment relates to its precursors and outcome from an Islamic banking perspective in an emergent African economy.

Loyalty towards Islamic banking: service quality, emotional or religious driven?

2019 ◽  
Vol 11 (1) ◽  
pp. 66-80 ◽  
Author(s):  
Dwi Suhartanto ◽  
Christopher Gan ◽  
Ira Siti Sarah ◽  
Setiawan Setiawan
Keyword(s):  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Islamic Banking ◽  
Emotional Attachment ◽  
Islamic Banks ◽  
Content Type ◽  
Perceived Service Quality ◽  
Islamic Bank ◽  
Bank Managers

Purpose This paper aims to integrate and examine three loyalty routes (i.e. service quality, emotional attachment and religiosity) in developing customer loyalty towards Islamic banking. Design/methodology/approach Data were collected from 412 Islamic bank customers from Indonesia. Variance-based structural equation modelling was applied to evaluate the association between service quality, emotional attachment, religiosity and customer loyalty. Findings This study reveals that customer loyalty is more driven by emotional attachment and religiosity rather than by perceived service quality. Although not directly affecting customer loyalty, service quality strengthens customer satisfaction towards Islamic banks. Practical implications This study provides an opportunity for Islamic bank managers to increase their customer loyalty through the development of emotional attachment and religiosity. To improve customer loyalty, this study suggests that Islamic banks have to provide prompt, accurate and non-personal service. It is also important for Islamic bank managers to keep the bank operation compliant with the Sharia law. Originality/value This study is the first attempt to assess the three loyalty routes simultaneously in influencing customer loyalty.

Is Islamic bank profitability driven by same forces as conventional banks?

2016 ◽  
Vol 9 (1) ◽  
pp. 46-66 ◽  
Author(s):  
Hajer Zarrouk ◽  
Khoutem Ben Jedidia ◽  
Mouna Moualhi
Keyword(s):  
Dynamic Panel Data ◽  
Islamic Banking ◽  
Subprime Crisis ◽  
Islamic Banks ◽  
Mena Region ◽  
Bank Profitability ◽  
Content Type ◽  
Large Sample ◽  
Islamic Bank ◽  
Conventional Banks

Purpose The purpose of this paper is to ascertain whether Islamic bank profitability is driven by same forces as those driving conventional banking in the Middle East and North Africa (MENA) region. Distinguished by its principles in conformity with sharia, Islamic banking is different from conventional banking, which is likely to affect profitability. Design/methodology/approach The paper builds on a dynamic panel data model to identify the banks’ specific determinants and the macroeconomic factors influencing the profitability of a large sample of 51 Islamic banks operating in the MENA region from 1994 to 2012. The system-generalized method of moment estimators are applied. Findings The findings reveal that profitability is positively affected by banks’ cost-effectiveness, asset quality and level of capitalization. The results also indicate that non-financing activities allow Islamic banks to earn higher profits. Islamic banks perform better in environments where the gross domestic product and investment are high. There is evidence of several elements of similarities between determinants of the profitability for Islamic and conventional banks. The inflation rate, however, is negatively associated with Islamic bank profitability. Practical Implications The authors conclude that profitability determinants did not differ significantly between Islamic and conventional banks. Many factors are deemed the same in explaining the profitability of conventional as well as Islamic banks. The findings reported in the current paper might be of interest for policy makers. It is recommended to better implement non-financing activities to improve Islamic bank profitability. Originality/value Unlike the previous empirical research, this empirical investigation assesses the issue whether Islamic banks profitability is influenced by same factors as conventional model. It enriches the literature in this regard by considering the specificities of Islamic banking to identify the determinants of profitability. Moreover, this study considers a large sample (51 Islamic banks) through a different selection of countries/banks than previous studies. In addition, the period of study considers the subprime crisis insofar it ranges from 1994 to 2012. Hence, this broader study allows the authors to draw more consistent conclusions.

Managing multichannel coordination in retail banking: the influence of customer participation

2006 ◽  
Vol 24 (5) ◽  
pp. 327-345 ◽  
Author(s):  
Loïc Plé
Keyword(s):  
Organizational Design ◽  
Retail Banking ◽  
Customer Participation ◽  
Content Type ◽  
Quantitative Studies ◽  
Retail Banks ◽  
The Impact ◽  
Depth Interviews

PurposeThe purpose of this research is to explore the combining of marketing and organizational literature. This paper seeks to evaluate the relationships between multichannel coordination and customer participation, as seen through the lens of potential customer opportunism. It aims at showing the impact of this opportunism on the organizational design of multiple channels structures.Design/methodology/approachThe research reports on an exploratory case study in a French retail bank. A total of 25 in‐depth interviews were conducted, and the use of other sources enabled data triangulation.FindingsThe results show first that an increase in the number of distribution channels is liable to favor customer opportunistic behavior. To counter this, the bank mainly relies on impersonal coordination modes. An emerging result highlights the role of the customer as a “perceptual filter” between the different channels of employees.Research limitations/implicationsCustomer opportunism is studied via channels employees perceptions. An investigation using a customer survey may help to better understand this construct, e.g. to identify its antecedents, and to measure it precisely. Moreover, further qualitative and/or quantitative studies with larger sample sizes are needed to try and generalize these results.Practical implicationsIt is recommended not to forget that customers can facilitate or hinder multichannel coordination. Retail banks have the power to use them conveniently, provided that they are fully conscious of the scope of the “partial employee” role played by the customer.Originality/valueThis paper broadens understanding of how multichannel distribution structures are coordinated, and in a way belies traditional organizational design literature. The emerging result gives birth to the concept of “reversed interactive marketing”, which has interesting theoretical and practical repercussions.

Dispute resolution in the Islamic banking industry of Tanzania: learning from other jurisdictions

2016 ◽  
Vol 9 (1) ◽  
pp. 125-142 ◽  
Author(s):  
Abdul-Nasser H.R. Hikmany ◽  
Umar A. Oseni
Keyword(s):  
Dispute Resolution ◽  
Dispute Settlement ◽  
Banking Industry ◽  
Banking System ◽  
Legal Framework ◽  
Policy Framework ◽  
Islamic Banking ◽  
Court System ◽  
Content Type ◽  
Good Policy

Purpose This paper aims to examine the prospects of a dispute resolution framework for the Islamic banking industry in Tanzania under the existing legal framework. Design/methodology/approach This paper is based on comparative study by drawing significant lessons from other jurisdictions, and argues that to avoid some of the initial drawbacks in the dispute resolution framework for Islamic banking transactions in more advanced jurisdictions like Malaysia and United Kingdom, it is important for Tanzania to get it right from the onset to effectively manage Islamic banking disputes. Findings The study finds that apart from the court system which provides the main avenue for Islamic finance litigation, other processes such as arbitration and mediation which are deemed to be more sustainable could also be developed for effective dispute management. Research limitations/implications The study focuses on Tanzania banking system with comparison to other jurisdictions. Practical implications An increase of Sharī’ah-compliant products in Tanzania has led to the establishment of a number of Islamic banks. This study demonstrates the need for Tanzania to make use and/or make adjustment of its laws for effective dispute settlement of banking-related disputes. Originality/value This study appears to be the first paper to draw significant experiences from other jurisdictions to resolve Islamic banking disputes in Tanzania. It is expected to provide a good policy framework for the stakeholders in the Islamic banking industry in Tanzania.

scholarly journals The role of affects in conflict frames and conflict management

2015 ◽  
Vol 26 (4) ◽  
pp. 427-449 ◽  
Author(s):  
Mei-Yu Yang ◽  
Fei-Chun Cheng ◽  
Aichia Chuang
Keyword(s):  
Conflict Management ◽  
Hierarchical Linear Modeling ◽  
Management Strategy ◽  
Mood State ◽  
Linear Modeling ◽  
Content Type ◽  
Positive Trait ◽  
The Right ◽  
Trait Affectivity ◽  
Conflict Frames

Purpose – The purpose of this paper is to identify the roles of trait affectivity and momentary moods in conflict frames and conflict management. This paper goes beyond affect induction and focuses on the affective – rather than rational – antecedents of the choice of conflict management strategy. Design/methodology/approach – This paper adopts a within- and between-person approach and uses hierarchical linear modeling to test the hypotheses with group-mean centering. Over the course of 12 days within a three-week period, the authors collected participants’ momentary moods and how they thought about and would respond to conflict scenarios. Data were gathered from 1,545 observations, involving 180 individuals. Findings – After controlling for anger raised from the conflict scenario, both positive trait affectivity and positive momentary moods were found to be positively related to a compromise frame. Surprisingly, neither negative trait affectivity nor momentary mood was related to the win frame. A compromise frame predicted a cooperative strategy, and a win frame predicted a competitive strategy. The relationships between trait and momentary affects and conflict management strategy were partially mediated by conflict frame, but only for positive affects. Practical implications – If seeking a constructive resolution, choose the right person (i.e. an individual with positive trait affectivity) and the right moment (i.e. the individual is in a positive mood state) to communicate disagreements. Originality/value – This paper sheds light on the prediction of conflict frame and conflict management behavior by testing trait affectivity and momentary mood simultaneously.

Organizational barriers to employee training and learning: evidence from the automotive sector

2018 ◽  
Vol 32 (3) ◽  
pp. 8-10 ◽  
Author(s):  
Alex Anlesinya
Keyword(s):  
Quantitative Research ◽  
Survey Design ◽  
Employee Training ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Organizational Barriers ◽  
Cultural Systems ◽  
Management Commitment ◽  
Common Barriers

Purpose This study examines the factors that hinder employee training and learning in the automotive industry in Ghana, Africa. Design/methodology/approach The study adopts quantitative research methodology and cross-sectional survey design. Eighty-nine usable questionnaires from employees of an automotive organization in Ghana are used. Descriptive statistics and one-sample t-test are used for the analyses. Findings The results indicate that organizational culture, poor management commitment to training, inadequate promotion prospects, and lack of transparency and fairness in trainees’ selection are the most common barriers to employee training and learning. Practical implications Top management should provide opportunities to employees to apply new skills and knowledge they acquired. Fair and transparent procedures should be used to select training beneficiaries. Finally, organizations should develop cultural systems that encourage continuous learning motivation among their employees. Originality/value In this era of knowledge-driven economy, this research highlights factors that inhibit employees’ motivation to learn.

Surviving trust from conflict in the construction industry: an interaction between conflict handling behaviors, behavioral outcomes, conflict and trust

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yousong Wang ◽  
Fangfang Liu ◽  
Yangbing Zhang ◽  
Enqin Gong
Keyword(s):  
Conflict Management ◽  
Structural Equation ◽  
Behavioral Outcomes ◽  
Equation Model ◽  
Hierarchical Regression ◽  
Content Type ◽  
Trust Development ◽  
Relational Conflict ◽  
Relational Degree ◽  
Conflict Handling

Purpose This paper aims to reveal the role of conflict management in the process of trust development. Specifically, this study investigates how the salience of conflict varies with different conflict-handling behaviors and behavioral outcomes and how the variation of the salience of conflict influences the trust development between contracting parties. Design/methodology/approach A questionnaire survey was undertaken to collect data from 310 experienced project practitioners. Hierarchical regression analysis and bootstrapping with a structural equation model were mainly used to test the hypotheses. Findings This paper finds that the relational degree of conflict handling behaviors can influence the salience of conflict and furthermore to influence trust between contracting parties, with this relationship mediated by the behavioral outcomes; however, all these relationships are contingent on the stage where relational conflict handling behaviors are adopted and the specific type of outcomes the behaviors result in. Practical implications This study provides some specific directions for the practitioners to conduct relational conflict handling behaviors and generate positive outcomes to keep trust developing between contracting parties in conflictual situations. Originality/value This study contributes to the knowledge of inter-organizational trust development as well as conflict management, by investigating the relationship between conflict and trust in a direction, which is less examined and revealing the process of conflict management, where the conflict handling behaviors influence behavioral outcomes to further manage conflict, in trust development.

The consumers’ commitment and materialism on Islamic banking: the role of religiosity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Junaidi Junaidi ◽  
Ready Wicaksono ◽  
Hamka Hamka
Keyword(s):  
Structural Equation ◽  
Survey Study ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Positive Effects ◽  
Islamic Bank ◽  
Muslim People ◽  
The Impact

Purpose This paper aims to investigate whether and how religiosity (e.g. extrinsic and intrinsic) influences the mediator variables (consumers’ commitment and materialism) in the Islamic bank consumers context. It also examines how the mediators should be influence consumers’ preferences. Design/methodology/approach In total, 658 Muslim people and Islamic bank consumers were recruited for a survey study and structural equation modeling was used to test the research hypotheses. Findings The empirical results indicate that religiosity (e.g. extrinsic and intrinsic) has significant and positive effects on consumers’ commitment and materialism, whereas intrinsic religiosity has no significant effect on consumers’ commitment which subsequently influences consumers’ preference. Furthermore, mediator variables (e.g. consumers’ commitment and consumers’ materialism) have partial mediators between religiosity and consumers’ preferences. Research limitations/implications The current study was limited to Indonesian Muslim people; there is a future need to study consumers’ attitudes and engagement in religious products and services (e.g. Islamic brands). It is can help practitioners, regulators and researchers to observe the dynamic behavior to elaborate on the impact of religion and Islamic products on consumers’ preference. Practical implications The bank managers and regulators should enhance the information of products and services Islamic banks and the difference principle between conventional banks. Moreover, enlighten the consumers about the principle operation of Islamic banks from the perspective of marketing and religiosity. Originality/value This study contributes to consumers’ behavior literature and, specifically, for the decision-making process through developing and testing a model of religious determinants toward Islamic bank products, as well as offers new insights into the determinants of religion and consumers’ decision process toward Islamic banking.

Digital librarianship practice and open access technology use for sustainable development in Nigeria

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Omorodion Okuonghae ◽  
Edwin Iroroeavwo Achugbue
Keyword(s):  
Sustainable Development ◽  
Open Access ◽  
Technology Use ◽  
Industrial Revolution ◽  
Access Technology ◽  
Content Type ◽  
Descriptive Research ◽  
Education Fund ◽  
Social Media Tools ◽  
Practical Implications

Purpose The continuous advancement in technology has disrupted practices in many sectors, including education. Thus, this study aims to examine digital librarianship practice and open access technology use for sustainable development in Nigeria. Design/methodology/approach The survey type of descriptive research design was adopted in this study while the population of the study comprised librarians in universities in Delta State. A total of 38 randomly selected librarians from four universities in Delta State were used for this study, and the data collected were analysed using descriptive statistics. Findings This study revealed that the level of digital librarianship practice in university libraries in Delta State for sustainable development is low; just as social media tools, open source integrated library systems and Google Cloud Platforms are the most commonly used open access technologies in the libraries. Furthermore, this study showed that perennial factors such as poor funding of education, inadequate quality educational infrastructure, mismanagement of education fund among others are hindrance to sustainable development in the country’s educational sector. Research limitations/implications This study is limited in its use of only one state (out of 36 states and the Federal Capital Territory, Abuja) in Nigeria for this research. Also, social desirability bias on the part of the respondents could have influenced the pattern in which the respondents reacted to items in section D. Practical implications This study has practical implications for the sensitization and training of librarians towards leveraging on the various open access technologies in delivering effective library and information services required in the Fourth Industrial revolution. Originality/value This study seeks to pioneer a new area of focus by examining digital librarianship practice and open access technology use as enablers of sustainable development.

Does social reporting matter? Empirical evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adel Sarea ◽  
Monsurat Ayojimi Salami
Keyword(s):  
Performance Indicators ◽  
Voluntary Disclosure ◽  
Financial Institution ◽  
Negative Relationship ◽  
Social Reporting ◽  
Future Research ◽  
Islamic Banking ◽  
Cross Sectional ◽  
Content Type ◽  
Gcc Countries

Purpose This paper aims to examine the level of Islamic social reporting (ISR) disclosure of Islamic banking in Gulf Cooperative Council (GCC) countries using a checklist based on Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) standards. Design/methodology/approach A quantitative method – Tobit Model – is adopted in this study. The unweighted disclosure method used to measure the ISR disclosure checklist consist of 51 items in Islamic banks (IBs) in the GCC countries. The stakeholder theory and legitimacy theory are used to investigate the possible banking performance factors affecting the accounting practices such as ISR disclosure in IBs. Findings The findings show that the ISR disclosure index is linked to the IBs’ performance indicators in GCC countries. The result indicates both Islamic banking profitability and age establish positive and statistically significant relationship with ISR disclosure while leverage establishes significant negative relationship with ISR disclosure. This implies that Islamic banking profitability, leverage, and age are essential bank performance indicators that make ISR disclosure worthy of doing even in the presence of Islamic bank stakeholders in GCC countries. This finding linked compliance with the mandatory disclosure recommendations of AAOIFI Standard No. 7, as well as voluntary disclosure. Research limitations/implications This study used cross sectional data for the year 2019, which is considered more recent despite its being a year data analysis. However, future research should consider mix method as well as more analysis tools provided their number of observations are sufficient enough. Social implications The study identifies the factors that may enhance Islamic financial institutions, including Islamic banking in GCC countries, to comply with ISR disclosure. The application of this study supports Accounting standards setters to consider standards that support ISR disclosure in Islamic banking in different countries. Originality/value To the best of the authors’ knowledge, this study is novel in exploring the level of ISR disclosure in Islamic banking in GCC countries by using a checklist based on AAOIFI standard No. 7 and establishes the relationship between ISR disclosure index and IBs profitability, leverage, as well as age of Islamic banking in operation.

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