Islamic banking in the United Arab Emirates: Is embeddedness a contextual antecedent of performance and corporate governance outcomes?

2019 ◽  
Vol 9 (3) ◽  
pp. 227-247
Author(s):  
Roshni Das
Keyword(s):  
Corporate Governance ◽  
Business Model ◽  
United Arab Emirates ◽  
Business Models ◽  
Transaction Cost Economics ◽  
Performance Outcomes ◽  
Islamic Banking ◽  
Thick Description ◽  
Cultural Aspects ◽  
And Performance

Research issue and theoretical foundation<br/> Embeddedness refers to the financial, operational and structural mooring of an organisation in a particular social system or community. It presents itself as a central tenet of Williamson's (1975) classic theory of Transaction Cost Economics (TCE) and as such is a concept long overdue attention. In this paper, this concept is problematised as a macro- or organisation-level construct, and the paper also explores some of its consequents.<br/> Findings of the study<br/> Using a thick description approach, case study evidence is built for the Islamic Banking (IB) business model. It is shown how this indigenous business model (i.e., IB) has leveraged the power of social networks to build a profitable portfolio of investments over time, in the specific context of the UAE (United Arab Emirates) and its unique socio-political and cultural aspects. Dimensions of the embeddedness construct are proposed. Further, causal linkages are theorised with two distinct but inter-related consequents of embeddedness: corporate governance and performance outcomes of the organisation. It is envisaged that both linkages are mediated by the construct of board interlocks.<br/> Implications<br/> Proximally, this study has the potential to extend scholarship in the domains of business relations, trust and indigenous business models. As a distal possibility, researchers might use it to build on the organisational ecosystem paradigm.<br/> Scope and contributions<br/> The main contribution is to develop the concept of embeddedness. Additionally, this study uses the concept to build contextualised theory pertaining to the network characteristics of an indigenous business model.

Corporate governance practices and firm performance: a configurational analysis across corporate life cycles

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hala M. Amin ◽  
Ehab K.A. Mohamed ◽  
Mostaq M. Hussain
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Analytical Approach ◽  
Research Study ◽  
Performance Outcomes ◽  
Life Cycles ◽  
Related Activity ◽  
Content Type ◽  
And Performance ◽  
Country Specific

Purpose This study aims to explore corporate governance (CG) practices that can lead to firms’ better performance in different organizational life cycles. The authors propose a configurational approach to explore how a set of CG practices combine in bundles to achieve high performance outcomes for firms across their corporate life cycles. Design/methodology/approach Fuzzy-set qualitative comparative analysis was used to analyze a sample of data of 21 countries and 9 industries. Data referred to the period of 9 years extending from the year 2005 to the year 2013. Findings This study reveals that there are multiple CG practices that exist through firms that can achieve high firm performance. Moreover, CG practices combine in different ways for firms in their growth, maturity and declining stages. Research limitations/implications This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles. Practical implications The current study draws attention to the policymakers’ need to assess the current level of regulatory and competitive development of their countries and form policy accordingly. The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Social implications The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Originality/value This study broadening the focus of CG studies to include a rigorous explanation of the global CG phenomena and to provide effective solutions for the practitioners. Contribution to Impact This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles.

scholarly journals MENILAI TINGKAT KESEHATAN BANK DENGAN ANALISIS METODE RISK PROFILE, GOOD CORPORATE GOVERNANCE, EARNINGS, CAPITAL PADA BANK SYARIAH DI INDONESIA

2020 ◽  
Vol 6 (1) ◽  
pp. 139-160
Author(s):  
Hendra Galuh Febrianto ◽  
Amalia Indah Fitriana
Keyword(s):  
Corporate Governance ◽  
Optimal Level ◽  
Risk Profile ◽  
Business Strategies ◽  
Islamic Banking ◽  
Risk Profiles ◽  
Good Corporate Governance ◽  
And Performance ◽  
Financial Research ◽  
Bank Soundness

ABSTRACT In the banking world of soundness, banks are very important for the formation of trust. Trust and loyalty to banks is a very helpful factor and makes it easier for bank management to develop good business strategies. Bank Soundness Levels are results issued by banks which are carried out on bank risk and performance (Bank Indonesia Regulation Number: 13/1 / PBI / 2011). If more than conventional banking with Islamic banking, conventional banking finance is better than Islamic banking. This is blessed with poor sharia banking (corporate governance) management. In order to be able to carry out its functions properly, banks must have sufficient capital, ensure the quality of their assets properly, be well managed and managed based on the principle of prudence, generate sufficient profits to maintain an increase, and support liquidity so that it can be adjusted to their needs. Therefore banks are required to be able to achieve and maintain a good and optimal level of performance, because the level of bank performance can increase the level of trust and loyalty needed by the wider community to use the products, services and financial activities of the bank. The purpose of this study is for advanced financial research with analysis of Risk Profiles (Risk Profiles), Good Corporate Governance (GCG), Profitability (Income), and Capital (Capital) which is hereinafter abbreviated as RGEC with the final aim of research for the needs of Sharia banking management in accordance with the latest Bank Indonesia and OJK regulations. This type of research uses descriptive research proposed in the RGEC analysis (Risk Profile, Good Corporate Governance, Income, and Capital) at Islamic Banks in Indonesia. from 2013 to 2017. Keywords: Risk Profile, Good Corporate Governance, Income, Capital, Bank Soundness   ABSTRAK Dalam dunia perbankan tingkat kesehatan bank sangat penting bagi pembentukan kepercayaan. Kepercayaan dan loyalitas nasabah terhadap bank merupakan faktor yang sangat membantu dan mempermudah pihak manajemen bank untuk menyusun strategi bisnis yang baik. Tingkat Kesehatan Bank adalah hasil penilaian kondisi bank yang dilakukan terhadap risiko dan kinerja bank (Peraturan Bank Indonesia Nomor: 13/1/PBI/2011). Jika dibanding antara perbankan konvensional dengan perbankan syariah, kinerja keuangan perbankan konvensional lebih baik daripada perbankan syariah. Hal ini dikarena tatakelola (good corporate governance) perbankan syariah yang masih buruk. Agar dapat menjalankan fungsinya dengan baik, bank harus mempunyai modal yang cukup, menjaga kualitas asetnya dengan baik, dikelola dengan baik dan dioperasikan berdasarkan prinsip kehati-hatian, menghasilkan keuntungan yang cukup untuk mempertahankan kelangsungan usahanya, serta memelihara likuiditasnya sehingga dapat memenuhi kewajibannya. Oleh karena itu bank dituntut untuk bisa mencapai dan mempertahankan tingkat kinerja yang baik dan optimal, karena tingkat kinerja bank yang baik dapat meningkatkan kepercayaan dan loyalitas nasabah maupun masyarakat luas untuk menggunakan produk, jasa dan aktivitas keuangan dari bank tersebut. Tujuan penelitian ini adalah untuk menilai tingkat kesehatan keuangan dengan analisis Profil Risiko (Risk Profile), Good Corporate Governance (GCG), Rentabilitas (Earnings), dan Permodalan (Capital) yang selanjutnya disingkat RGEC dengan tujuan akhir merekomendasikan kebijakan untuk memperbaiki manajemen perbankan Syariah yang sesuai peraturan Bank Indonesia dan OJK yang terbaru. Jenis penelitian ini menggunakan penelitian deskriptif yang berfokus pada analisis RGEC (Risk Profile, Good Corporate Governance, Earnings, and Capital) pada Bank Syariah di Indonesia. dari tahun 2013 sampai 2017. Kata kunci: Risk Profile, Good Corporate Governance, Earnings, Capital, Tingkat Kesehatan Bank

scholarly journals Strategic Business Model Development in Ecosystems

2021 ◽  
Author(s):  
◽  
Dominik Mann
Keyword(s):  
Business Model ◽  
Development Process ◽  
Business Models ◽  
Model Development ◽  
Entrepreneurial Ventures ◽  
And Performance ◽  
Integration Strategies ◽  
Model Components ◽  
Business Model Development ◽  
Model Development Process

<p>Designing and strategically developing viable business models is vital for value creation and capture and in turn for the survival and performance of entrepreneurial ventures. However, the widely held firm-centric and static business model perspective appears inadequate to reflect the realities of increasingly blurred industry boundaries, interconnected economies, and the resulting collapse of incumbent value chains. This PhD thesis adds understanding of the dynamic business model development process from an ecosystem perspective. The evolution of ten entrepreneurial ventures’ business models was documented and investigated through longitudinal in-depth case studies over twelve months. Analysing and comparing the cases revealed strategies that resulted in the development of effective interactive structures and robust value co-creation and capture mechanisms. The development of interactive structures, i.e. firm-ecosystem fits, was either supported by a focused or diversified ecosystem integration approach underpinned by heterogeneous interdependencies of value proposition and business model components across ecosystems. The obtained insights allowed the derivation of sets of capabilities that supported the business model development process and enhanced entrepreneurial ventures’ chances of survival. The findings have several implications for advancements of the business model theory. In particular they indicate what integration strategies can inform entrepreneurs’ and managers’ business model design and execution strategies for operating in increasingly complex ecosystems.</p>

Performing Enterprise Architectures Through Gamified Business Models

2019 ◽  
pp. 232-246
Author(s):  
Ricardo Pateiro Marcão ◽  
Gabriel Pestana ◽  
Maria José Sousa
Keyword(s):  
Employee Engagement ◽  
Business Model ◽  
Enterprise Architecture ◽  
Business Models ◽  
Professional Services ◽  
Good Practices ◽  
Services Sector ◽  
New Business ◽  
And Performance ◽  
New Business Models

The profitability of performance and the reduction of turnover are the main challenges of the big companies of the professional services sector. While it is not always possible to achieve all the goals of the large multinationals in each country, it is necessary to assess their development in order to do so. In this way, the steps are identified, going to the new version of new business models, under an organization perspective that can be accompanied by interesting results with a different structure. However, for the sake of management, in order to ensure the cohesion between the teams, it is necessary to create mechanisms for obtaining high income, in order to support the enterprise architecture and the intended business model, which highlights the use of the concept of gamification as one of these mechanisms. This chapter aims to review the literature on the use of architectures and performance demonstrations. In addition to using the gamification concept, the profitability of capital invested in different business activities and the improvement of employee engagement are used. It is intended to consolidate good practices for the implementation of architectures through business models.

scholarly journals The breadth of business model reconfiguration and firm performance

2020 ◽  
pp. 147612702095513
Author(s):  
Panos Desyllas ◽  
Ammon Salter ◽  
Oliver Alexy
Keyword(s):  
Business Model ◽  
Business Models ◽  
Past Performance ◽  
Business Services ◽  
Knowledge Intensive Business Services ◽  
Knowledge Intensive ◽  
And Performance ◽  
Using Data ◽  
Original Survey ◽  
The Relationship

Looking at business models as systems of interdependent elements, we study how the breadth of an incumbent firm’s business model reconfiguration influences its performance. Drawing on the metaphor of firms searching on a performance landscape, we argue that the relationship between business model reconfiguration breadth and performance should form an inverted U-shape. While firms can gain from increasing business model reconfiguration breadth, these benefits need to be traded-off against the increasing complexity of its associated changes. We further predict that this inverted U-shape will flip for highly performing firms while being amplified for firms heavily active in innovation. Using data from an original survey of knowledge-intensive business services firms, we find that, on average, business model reconfiguration has little effect on performance. However, U-shaped effects clearly emerge when accounting for the effects of past performance and innovative activity. Our findings contribute to a better understanding of the conditional nature of the advantages stemming from business model reconfiguration.

Responsible and Sustainable Business Model Innovation in the Textile Industry

2019 ◽  
pp. 204-243
Author(s):  
Katja Schneider ◽  
Marlen Gabriele Arnold
Keyword(s):  
Business Model ◽  
Textile Industry ◽  
Business Models ◽  
Social Issues ◽  
Social Sustainability ◽  
Sustainable Business ◽  
Cultural Aspects ◽  
External Pressures ◽  
Multiple Case ◽  
Industry Needs

The global textile industry offers huge potentials regarding the transformation towards sustainability. These improvements require a facilitation of business model innovations embedding shifting consumer demands. How can the textile industry drive responsible and sustainable business practices in terms of social sustainability? Tackling this question, a qualitative content-based analysis of current literature conducted highlights main themes and concepts on business model innovations, textile industry, and social sustainability. In addition, an exploratory multiple case study design was used. Results show social sustainability patterns are seldom and often linked to external pressures. This chapter proposes a reorientation towards stronger holistic and inclusive approaches for sustainability and reflects on socio-cultural aspects linked to sustainable textile business models. Progressing sustainability in the textile industry needs both a single consideration of environmental and social issues as well as an integrative and systemic perspective in academia as well as in practice.

scholarly journals The impact of the interaction between an entrepreneurial marketing orientation and coopetition on business performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
James M. Crick ◽  
Masoud Karami ◽  
Dave Crick
Keyword(s):  
Financial Performance ◽  
Business Model ◽  
Structural Equation ◽  
Small Firms ◽  
Business Models ◽  
Performance Outcomes ◽  
Content Type ◽  
Entrepreneurial Marketing ◽  
Marketing Orientation ◽  
The Impact

PurposeCertain small businesses do not possess the assets needed to implement a performance-enhancing entrepreneurial marketing orientation (opportunity-driven behaviours focussed on creating value for customers). Although some entrepreneurs cooperate with their competitors (coopetition) to achieve their day-to-day and long-term goals, it is unclear whether these partnerships are advantageous in this capacity. Thus, grounded in the resource-based view, the purpose of this investigation is to examine whether coopetition positively moderates the relationship between an entrepreneurial marketing orientation and financial performance.Design/methodology/approachSurvey responses were obtained from 184 small tourism and hospitality organisations in New Zealand. Following a series of robustness checks, covariance-based structural equation modelling was used to test the elements of the conceptual model.FindingsUnique insights illustrate an entrepreneurial marketing orientation yielding a negative and significant link with financial performance. Nevertheless, this result was potentially related to the entrepreneurial marketing-oriented opportunities that owner-managers pursued within the context of their sector; in particular, situations when employing an individualistic business model constrained certain decision-makers' ability to pursue “growth-oriented” objectives. However, coopetition produced a positive and significant moderating effect, enabling owner-managers to pursue opportunities via collaborative business models facilitating mutually beneficial performance outcomes.Practical implicationsOwner-managers of under-resourced small firms should be careful when implementing entrepreneurial marketing strategies utilising an individualistic business model. For example, they might pursue opportunities that are not viable and/or become over-loaded with market intelligence that they cannot handle. By collaborating with competitors, owner-managers can learn improved ways to operate within their industries, alongside being equipped with new resources and capabilities. In doing so, coopetition can help overcome some of the potential performance-limiting issues owner-managers face by being under-resourced, namely, via employing a collaborative business model.Originality/valueThis current study contributes to the extant literature by evaluating the complexities of entrepreneurial marketing practices. That is, although earlier research has focussed on the performance-driving outcomes of an entrepreneurial marketing orientation, prior studies typically overlook certain moderating factors that could influence this association. By examining the interaction between an entrepreneurial marketing orientation and coopetition on financial performance, new evidence has emerged on how owner-managers of small firms can utilise interfirm collaboration to succeed within their markets, as opposed to struggling to cope with the challenges of an individualistic business model. Specifically, an entrepreneurial marketing orientation is likely to enhance financial performance when under-resourced companies effectively collaborate with their competitors.

Building business models through simple rules

2018 ◽  
Vol 26 (4) ◽  
pp. 361-378 ◽  
Author(s):  
Sunny Li Sun ◽  
Jianqiang Xiao ◽  
Yanli Zhang ◽  
Xia Zhao
Keyword(s):  
Business Model ◽  
Development Process ◽  
Business Models ◽  
Model Development ◽  
Thick Description ◽  
Content Type ◽  
Simple Rules ◽  
Market Feedback ◽  
Business Model Development ◽  
Model Development Process

Purpose How do entrepreneurs use simple rules to build their business models? Based on an inductive study of three Chinese Internet and technology firms, the authors find that business models emerge from simple rules that entrepreneurs learn from their experience. Simple rules also guide entrepreneurs to actualize and exploit opportunities in the marketplace, and they can help business models evolve through market feedback, especially in internationalization. This paper aims to delve into the black box of entrepreneurial decision-making and offer a better depiction of the business model development process in uncertain and fast-changing environments and thus provide guidance for future entrepreneurs. Design/methodology/approach Following the case method (Eisenhardt, 1989; Yin, 2003), the authors first present a thick description of characteristics of three companies and the dynamics of their business models. They then code these descriptions into first-order measures. Finally, they aggregate these measures into abstract constructs. They constantly compare the theoretical constructs and the emerging theory with the existing literature on business models. Findings The authors generate three key insights from the findings: business models emerge from simple rules learned from entrepreneurs’ experience, simple rules help entrepreneurs exploit and actualize opportunities in the marketplace and simple rules help businesses expand and evolve business models through market feedback, especially in internationalization. Originality/value This paper falls into the intersection of strategy and entrepreneurship – an emerging new field of strategic entrepreneurship – and is concerned with how businesses create and sustain a competitive advantage while simultaneously identifying and exploiting new opportunities. The authors bring people – the individual decision-makers for businesses – back in strategy research and depict a more realistic picture of the behavior of successful entrepreneurs and their business model development process.

scholarly journals Risk management and corporate governance failures in Islamic banks: a case study

2020 ◽  
Vol 11 (9) ◽  
pp. 1921-1939 ◽  
Author(s):  
Salah Alhammadi ◽  
Simon Archer ◽  
Mehmet Asutay
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Business Model ◽  
Financial Institutions ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Banking And Finance ◽  
Ongoing Evaluation

Purpose The purpose of this paper is to show how the choice and ongoing evaluation of a firm’s business model, as a matter of strategic guidance, are key aspects of corporate governance (CG), with particular reference to risk management (RM) in Islamic banks. Design/methodology/approach This research uses a case study approach, with a single case, which was chosen as it fits very well the purpose of this research. The data collection was based largely on documentary evidence. Company data were collected from company annual reports, press releases and legitimate web sites. The ORBIS Bank Focus database was also used to produce a comparative financial analysis. Findings The study findings illustrate how an apparently successful business model may fail due to an inherent instability that could have been identified through the application of careful risk analysis (including stress testing) in the choice and ongoing evaluation of the business model, which robust CG and strategic guidance require. In particular, Arcapita’s problems illustrate the dangers to Islamic financial institutions (IFI) from business models that involve undue exposure to liquidity risk. Practical implications The issues raised in the paper are important in that Islamic banking and finance is an integral part of the global banking and finance industry. Investors and regulators are now requesting corporate management to provide improved service to shareholders and other stakeholders alike. IFI rely on the confidence of investors and market participants, just like conventional institutions and when this confidence erodes, it may prove difficult to regain. Social implications The global credit crisis of 2008 caused significant difficulties to firms, especially financial institutions, even with substantial government intervention in the economy, which raised some issues of CG and ethics. Originality/value This paper extends the knowledge of the potential effects of weaknesses in CG and RM, with specific reference to strategic guidance in the choice and ongoing evaluation of a firm’s business model, especially in relation to the Islamic banking sector. It also provides a telling illustration of the need for the enhancements of the Basel Committee’s prudential requirements set out in the various Basel III documents.

Business model design and performance in nascent markets

2019 ◽  
Vol 58 (5) ◽  
pp. 927-947 ◽  
Author(s):  
Morten Rask ◽  
Franziska Günzel-Jensen
Keyword(s):  
Business Model ◽  
Business Models ◽  
Emerging Technologies ◽  
Product Market ◽  
Business Model Innovation ◽  
Model Design ◽  
Model Choice ◽  
Content Type ◽  
Business Model Design ◽  
And Performance

Purpose The purpose of this paper is to investigate the nascent market settings from a business model innovation perspective with the research questions: How do incumbents and start-ups make sense of an emerging technology through business model design in a nascent market setting, and how does business model choice influence firm performance? Design/methodology/approach The authors have tracked the development of four case companies in the nascent electric vehicle market from 2009 to 2018 and have conducted interviews and analyzed the archival data. Findings The authors propose a typology of business model choices and performance where the four types of business models distinguish themselves by how the companies innovate or imitate the value proposition of the current industry as well as how they innovate or imitate the business model archetype. In accordance with these different business model choices, the actors express different logics behind their new to the product market space business model choice. These logics represent different understandings of technology potential, customer needs as well as potential for value capture and contribute to and limit the translation of emerging technologies into dominant designs in diverse ways. Originality/value The business model is conceived as a focusing device that can be used to identify market applications for emerging technologies. As new disruptive technologies often require a new to the product market space business model, literature has in recent years put a premium on business model innovation. However, the linkages between emergent technologies and the choice of a novel business model are under investigated especially in relation to how business model choice affects business performance in nascent market settings. This paper aims at filling this gap.

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