scholarly journals Islamic Financial Institutions And Their Impact On The Development Of Halal SMEs In Nigeria

2020 ◽  
pp. 01-24
Author(s):  
Tijanni Muhammad ◽  
Besar Bin Ngah
Keyword(s):  
Financial Institutions ◽  
Structural Equation ◽  
Positive Impact ◽  
Financial Institution ◽  
Positive Direction ◽  
Islamic Financial Institutions ◽  
Small Medium Enterprises ◽  
Effective Models ◽  
Medium Enterprises ◽  
The Impact

Islamic Financial Institution is considered Halal and Shariah-compliant institution that effectively developed and impacted the role of developing Small Medium Enterprises by sharing similar value, principle, and market activities under Shariah-compliant and business sector. Despite its similarities, there is still low penetration of Islamic financial institutions on the Halal business instrument. However, the business should not only concentrate on Halal business but also financing SMEs is essential. The purpose of the study is to investigate the impact of Islamic Financial Institutions on the development of Halal SMEs in Nigeria. A 350 survey questionnaire was distributed to the twenty (20) Halal Small Medium Enterprises using Structural Equation Modelling and random sampling as an essential investigation tool. The findings justified that the development of SMEs with a significant number of business units and financing from Islamic financial institutions indicates a positive direction and promotes the development of SMEs ' relatively and broader representation of the Halal industry. The study shows a general overview of the positive impact on Islamic financial institutions towards the financing Halal sector and addresses the rate of unemployment in Nigeria. The study recommends strategies for creating a partnership with Middle-East and Asian investors for more effective models and application techniques for financing SMEs and addresses the rate of poverty and unemployment in the country. 

Diversity and the Performance of Selected Financial Institutions of Asia

2018 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Shafaque Fatima ◽  
Saqib Sharif
Keyword(s):  
Financial Institutions ◽  
Positive Impact ◽  
Financial Institution ◽  
Gender Diversity ◽  
Business Case ◽  
Ordinary Least Squares ◽  
Cross Sectional ◽  
Age Diversity ◽  
The Impact ◽  
Nationality Diversity

Linking with the business case for diversity, this study examines whether the top management team (TMT) and the board of directors (BODs) diversity has a positive impact on financial institution (FI) performance in select countries of Asia least researched domain. We use data from 119 financial institutions across Asia for the year 2015, initially 1,447 institutions; however, incomplete data was excluded from final analysis. We use three proxies for diversity, that is, nationality diversity, gender diversity, and age diversity of TMT and BODs. To investigate the impact of TMT and BODs diversity, cross-sectional ordinary least-squares estimation is applied, using Return on Average Assets (ROAA%) as a measure of performance.  We find that nationality diversity and age diversity is positively and significantly related to FIs performance. Our evidence indicates that executives and board members with diverse exposure and younger age improve FIs profitability. However, there is no significant relationship between gender and FIs performance.

scholarly journals The Embellishment of Bottom Line through Hyperbole of Accrued Earnings: A Case of Deliberate Earnings Management of a Non-bank Financial Institution Enlisted in Dhaka Stock Exchange and Chittagong Stock Exchange

2016 ◽  
Vol 2 (4) ◽  
pp. 42
Author(s):  
Md. Thasinul Abedin
Keyword(s):  
Financial Institutions ◽  
Positive Impact ◽  
Financial Institution ◽  
Stock Exchange ◽  
Loan Loss ◽  
Accounts Receivable ◽  
Loan Loss Provision ◽  
Loan Loss Provisions ◽  
Accrued Earnings ◽  
The Impact

The study has tried to find out the key parameters through which a non-bank financial institution can embellish its earnings. The study has found that loan loss provisions increases in line with the increase in loan and advances and interest suspense. Moreover, non-bank financial institutions always report other assets except accounts receivable figure which foreshadows an existence of deliberate inflation of earnings. The study has found a positive impact of total loan loss provisions and interest suspense on accrued income, a clear message that non-bank financial institutions always report more accrued earnings to safeguard their profit. Increase in accrued income in line with total loan loss provision and interest suspense is also validated by increase in accrued income with respect to other assets except accounts receivable figure even though the impact of other assets on accrued income is insignificant at 5% level, an accounting channel through which excess other assets except accounts receivable would be inflated for excess increase in accrued income. The study has deduced that other assets except accounts receivable is a reserve bank for discretionary inflation of earnings even though it is insignificant. The study has used time series monthly data of International Leasing and Financial Services Limited, a non-bank financial institution from 2009-2015 reported in the Statement of NBDC sent to Bangladesh Bank each month. Two-time series models have been used in this study. The first model has tried to find out the impact of loan and advances, interest suspense, and other assets except accounts receivable on total loan loss provision. In the first model, there is a significant impact of loan and advances, interest suspense, and other assets except accounts receivable on total loan loss provision. The second model has tried to discern the impact of total loan loss provision, interest suspense, and other assets on accrued income along with other independent variables namely-loan and advances, total fixed assets, and operating income. The study has found a significant positive impact of total loan loss provision and interest suspense on accrued income and insignificant impact of other assets except accounts receivable on accrued income. For both models, there is no long-run relationship among the variables.

The impact of internal and external market orientation on the performance of non-conventional Islamic financial institutions

2018 ◽  
Vol 9 (1) ◽  
pp. 132-151 ◽  
Author(s):  
Mostaque Ahmed Zebal
Keyword(s):  
Market Orientation ◽  
Financial Institutions ◽  
Significant Relationship ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Equation Modeling ◽  
External Market ◽  
Content Type ◽  
Islamic Financial Institutions ◽  
The Impact

Purpose The purpose of this study was to explore the impact of internal and external market orientations on monetary and non-monetary performances of non-conventional Islamic financial institutions. This study further aimed at proposing a conceptual framework, testing it and examining relationships among the variables. Design/methodology/approach Data for this study were collected from 132 branches of 11 non-conventional financial institutions in Bangladesh using a closed-ended questionnaire. The study considered a structural equation modeling approach for testing the proposed model. A two-step procedure was used for this purpose. First, a measurement model was analyzed through a confirmatory factor analysis; second, the structured model was evaluated to examine relationships between the constructs. Data used in this study confirmed the adequate reliability, convergent and discriminant validity. Findings The results of the study met the expectations and provided an evidence that both monetary and non-monetary business performances are functions of internal and external market orientations’ efforts. As the results are reported, all three components of internal market orientation, e.g. internal intelligence generation, dissemination and responsiveness, were found to be statistically significant and positively related to monetary and non-monetary performances, except internal intelligence responsiveness with employees’ team spirits. The study also revealed a significant relationship between all three external market orientation components, and business performance, except external intelligence responsiveness, was not found to have a significant relationship with team spirit and customer retention. The results, however, imply that the performance of non-conventional financial institutions is an integrated effort of both internal and external orientations rather than using a single approach. Originality/value Findings of this study support the theoretical arguments that non-conventional financial institutions can be successful in attaining all types of performances by initiating and adopting internal and external market-oriented activities. The study further argues the importance of the activities under each market orientation component and suggests non-conventional financial institutions to promote such an initiative if they are to be consistent in their performances.

scholarly journals Menilik Urgensi Penerapan Pembiayaan Akad Salam pada Bidang Pertanian di Lembaga Keuangan Syariah di Indonesia

2018 ◽  
Vol 8 (2) ◽  
pp. 88
Author(s):  
Widiana Widiana ◽  
Arna Asna Annisa
Keyword(s):  
Qualitative Research ◽  
Financial Institutions ◽  
Research Finding ◽  
Agricultural Development ◽  
Positive Impact ◽  
Financial Institution ◽  
Agricultural Product ◽  
Islamic Banking ◽  
Financing System ◽  
Islamic Financial Institutions

The financing of salam covenant is one of sharia banking products that can be used in the field of agriculture, but this has not been used in sharia financial institutions in Indonesia. Covenant of salam has strategic potential for agricultural development. This paper aims to illustrate the potential of using salam covenant in financing which is conducted by customer and how the challenges of implementation of salam  covenant in Islamic financial institutions. This is a descriptive qualitative research. In Indonesia, both Islamic banking and Baitul Maal Wattamwil have not applied this contract, related to some risks from salam financing. Sharia financial institutions needs a strategy in order to feel the benefits of providing salam. This article describes the practice of financing system of profitable covenant agreement for the sharia financial institution and the community. The research finding showed that by optimizing salam covenant financing, it can give positive impact to farmers that is in capital aspect to develop agricultural product. Pembiayaan akad salam merupakan salah satu produk perbankan syariah yang dapat digunakan dalam bidang pertanian, namun hal ini belum digunakan dalamLembaga Keuangan Syariah (LKS) di Indonesia. Akad salam memiliki potensistrategis terhadap pengembangan bidang pertanian. Penelitian ini bertujuan untuk menggambarkan potensi penggunaan akad salam dalam pembiayaan yang dilakukan oleh nasabah dan bagaimana tantangan atas penerapan pembiayaan akad salam di lembaga keuangan syariah. Tulisan ini berpijak pada penelitian kualitatif dengan metode deskriptif analisis dari berbagai literatur. Di Indonesia, baik perbankan syariah maupun Baitul Maal Wattamwil (BMT) belum menerapkan akad ini, terkait beberapa risiko dari pembiayaan salam. Lembaga keuangan syariah membutuhkan strategi agar dapat merasakan keuntungan dari penyediaan produk salam. Dalam tulisan ini dijelaskan praktik sistem pembiayaan akad salam yang menguntungkan bagi lembaga keuangan syariah dan masyarakat. Hasil yang diperoleh menunjukkan bahwa dengan optimalisasi pembiayaan akad salam dapat memberikan dampak positif terhadap para petani yaitu pada aspek permodalan untuk mengembangkan produk pertanian 

scholarly journals Islamic Financing for Small Medium Enterprises: Challenges and Opportunities

2020 ◽  
Vol 12 (Number 2) ◽  
pp. 50-64
Author(s):  
Siti Nurain Muhamad ◽  
Wan Nur Syahida Wan Ismail ◽  
Nurul Aisyah Awanis A Rahim ◽  
Sarah Nadia Ahmad
Keyword(s):  
Financial Institutions ◽  
Islamic Banks ◽  
Slow Mode ◽  
Challenges And Opportunities ◽  
Islamic Financial Institutions ◽  
Medium Enterprise ◽  
The Government ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
Business Financing

This study attempts to discuss the challenges and opportunities of Islamic financing for Small Medium Enterprise (SMEs), as the Islamic finance industry's growth and SMEs are stimulated in this recent year. The government has introduced Islamic SME financing since 2012, and Malaysia has promoted it by granting a rebate for the participated parties, especially Islamic financial institutions. However, the government's opportunities are still in the slow mode to be grabbed by SMEs. With selected literature related to SMEs and Islamic financing, this study discussed SMEs and Islamic banks' practices in Malaysia. Based on the literature, several issues had to be highlighted, such as SMEs' readiness to have the opportunity with larger firms, SMEs' behaviours, and attitudes when dealing with external supports, as well as their awareness of business financing. Thus, this study highlights the challenges and real issues among SMEs and points out the opportunities for improvement that are expected to benefit SMEs and Islamic financial institutions in Malaysia.

scholarly journals The Impact of CRM Strategy on Customer Loyalty in SMEs

2018 ◽  
Vol 11 (11) ◽  
pp. 37 ◽  
Author(s):  
Lena Saleh ◽  
Laura El Saheli
Keyword(s):  
Customer Relationship Management ◽  
Customer Loyalty ◽  
Service Industry ◽  
Positive Impact ◽  
Customer Relationship ◽  
Long Run ◽  
Study Results ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
The Impact

The beauty service industry is one of the most flourishing industries in contemporary Beirut, the capital of Lebanon, as versatile demands from men and women have catered to this uplifting growth. A national scandal, however, lead to the suspension of several beauty centers, and conveyed a challenge for competitive small-medium enterprises (SME) to sustain relationships with customers over the long-run. The aim of this study was to understand the impact of customer relationship management (CRM) strategy on customer loyalty using the case of beauty centers in Beirut, Lebanon. The study employed a quantitative approach where data was collected by means of a questionnaire, from a sample of 103 customers. Four variables, as components of CRM, were measured in this study. Results of the statistical analysis verified that customer experience, employee behaviour, and value proposition have a positive impact on customer loyalty. This research provides recommendations for strategically improving relationship-oriented practices in Lebanese SMEs, particularly in the beauty sector.

The Impact of Micro and Macro Environment on Entrepreneurial Success: Case of J&K MSMEs

2021 ◽  
pp. 231971452110618
Author(s):  
Rabinder Singh ◽  
Rajani Kumari Sarangal ◽  
Gurmeet Singh
Keyword(s):  
Environmental Factors ◽  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Economic Benefits ◽  
Entrepreneurial Success ◽  
Jammu And Kashmir ◽  
Medium Enterprises ◽  
The Impact

The present research is focussed on examining the influence of micro- and macro-environmental factors on entrepreneurial success; and the impact of entrepreneurial success on perceived socio-economic benefits in the Jammu and Kashmir (J&K) micro, small and medium enterprises (MSMEs) sector. The information was gathered from 373 entrepreneurs of MSME from different industrial areas of J&K (India). Structural equation modelling (SEM) has been applied to study the relationship among various variables and to develop the model. The findings of the study showed that various micro- and macro-environmental factors significantly influence entrepreneurial success in J&K (India). Furthermore, the study also depicted that entrepreneurial success has a significantly positive impact on perceived socio-economic benefits in J&K (India). Finally, an entrepreneurial environmental and entrepreneurial success model was also developed for strategizing socio-economic development in J&K (India). The study suggests economists and policymakers to use entrepreneurship as an engine to stimulate economic growth, generate job opportunities and overcome poverty. The present study collected information from entrepreneurs of MSMEs operating in different districts of J&K (India). The study is imperative because of its empirical nature within the area of the business environment, entrepreneurial success and its perceived socio-economic impact on the J&K’s MSMEs sector, as little has been done in this area.

scholarly journals The performance of Shari’a supervisory boards within Islamic financial institutions in the Gulf cooperation council countries

2010 ◽  
Vol 8 (1) ◽  
pp. 247-266 ◽  
Author(s):  
Samy Nathan Garas
Keyword(s):  
Financial Institutions ◽  
Boards Of Directors ◽  
Negative Impact ◽  
Positive Impact ◽  
Gulf Cooperation Council ◽  
Internal Variables ◽  
Gcc Countries ◽  
Islamic Financial Institutions ◽  
Supervisory Boards ◽  
The Impact

This study evaluates the role and performance of Shari’a Supervisory Boards (SSB) within Islamic Financial Institutions (IFIs) of the Gulf Cooperation Council (GCC) countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates). Although the SSB has a significant impact on an IFI’s performance, there has been little empirical research on the SSB performance. This study is unique in measuring empirically the relation between five variables and SSB performance. Data has been collected through a questionnaire from 76 Shari’a Supervisory Boards, 73 Boards of Directors, and 59 shareholders of IFIs in the GCC countries during 2009. The researchers found three variables that have a positive impact on the performance of SSBs: the number of SSB meetings, the qualifications of SSB members, and the evaluation of each member. Furthermore, the work of the Shari’a control department was found to have a negative impact on SSB performance. There was no statistically relationship between SSB performance and SSB position within the IFI organization structure. This study fills a literature gap in corporate governance by evaluating the impact of a religious board upon the performance of financial institutions. The study provides a theoretical framework for measuring SSB performance using internal variables. This study offers insights to GCC regulators, central banks, and other IFI stakeholders concerning SSB performance. In addition, it provides guidance to SSB members in improving their performance and strengthening their relations with other governance organs.

scholarly journals Double-Sided Perspective of Business Resilience: Leading SME Rationally and Irrationally During COVID-19

2021 ◽  
Vol 6 (2) ◽  
pp. 125-136
Author(s):  
Nopriadi Saputra ◽  
Maria Grace Herlina
Keyword(s):  
Structural Equation ◽  
Workplace Spirituality ◽  
Jel Classification ◽  
Cross Sectional ◽  
Probabilistic Sampling ◽  
Business Resilience ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
The Impact ◽  
Social Leadership

Objective - This study aims to elaborate business resilience of small medium enterprises and to test the impact of rational and irrational antecedents of business resilience during COVID-19 crisis. Methodology/Technique - It is cross-sectional and causal study for testing five hypothesizes. Convenience approach was used as non-probabilistic sampling method. It involved 506 small medium enterprises in Jawa and Sumatera, the biggest islands in Indonesia. Collected data were structured with PLS based Structural Equation Modelling. Findings – The result explained that business resilience is influenced positively, directly, and significantly by business flexibility and workplace spirituality. Business flexibility is influenced by workplace spirituality, pro-social leadership, and alliance capability. Pro-social leadership of owners and/or managers influences implementation of health protocol and alliance capability. Novelty - This study has proved that business resilience has both sides of antecedents - in rational and irrational perspectives. Type of Paper: Empirical. JEL Classification: L26, L29. Keywords: Business Resilience, Small Medium Enterprise Reference to this paper should be made as follows: Saputra, N; Herlina, M.G. (2021). Double-Sided Perspective of Business Resilience: Leading SME Rationally and Irrationally During COVID-19, Journal of Management and Marketing Review, 6(2) 125 – 136. https://doi.org/10.35609/jmmr.2021.6.2(4)

scholarly journals Peran Entrepreneurial Marketing dalam Peningkatan Kinerja Pemasaran pada Industri Rumahan Kabupaten Kendal, Jawa Tengah

2017 ◽  
Vol 11 (2) ◽  
pp. 141-150
Author(s):  
Bibi Arfanly ◽  
Ma'mun Sarma ◽  
Muhammad Syamsun
Keyword(s):  
Structural Equation ◽  
Sampling Method ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Entrepreneurial Marketing ◽  
Marketing Performance ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
The Impact

As a part of Micro Small Medium Enterprises, home industry plays a very important role as new jobs provider that is expected to decrease unemployment and distribute wealth among society. Home industry development needs to be done in Kendal Regency. However in its implementation, this home industry faces many problems, one of them is marketing. It shows that there needs to be right marketing method and strategy to develop home industries. One of the approaches that is used right now by Small Medium Enterprises is entrepreneurial marketing. This research aims to (1) analyze the achievement being practiced by home industry in Kendal, (2) analyze the impact entrepreneurial marketing has towards the marketing performance of Kendal’s home industry. Respondents in this research are 67 home industry entrepreneur in Kaliwangu district and Patebon district, Kendal Regency. Sampling method uses non probability sampling method with convenience sampling technique. The data was analyzed with transformation index analysis and structural equation modeling with partial least square approach (SEM PLS). The result of the research shows that the implementation of entrepreneurial marketing has been quite good and the biggest aspect of entrepreneurial marketing is shown by strategic ability. According to SEM PLS analysis, concept, strategy, and market intelligence variables on entrepreneurial marketing are significant to marketing performance.

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