A review of 20 years of takaful literature using a systematic method

PurposeThe study aims to summarize the 20 years of literature published in takaful between 2000 and 2019 and propose some key areas as the directions for future research.Design/methodology/approachThe present study utilizes the systematic method of reviewing the literature. The SCOPUS database has been accessed, and 96 articles have been accounted for the analysis. The articles are grouped in their exclusive themes, such as consumer behavior, financial and nonfinancial performance, takaful models, human resources and governance.FindingsTakaful research has widely covered marketing, finance, human resource, governance and stresses on its legal issues. Both qualitative and quantitative methodologies have been employed. The research gaps have been classified based on the respective areas. Large share of current body of takaful literature consists of the studies related to the application of behavioural theories to examine the behavioural intention to take up takaful services.Originality/valueThe study enriches the literature of takaful by reviewing articles according to their respective themes, thereby contributing to the significant findings missing from existing literature surveys.

Effect of total quality management practices on nonfinancial performance: an empirical analysis of automotive engineering industry in Ethiopia

PurposeThe purpose of this study is to explore the total quality management (TQM) practices and identify their effect on the nonfinancial performance (NFP) in the automotive engineering industry in Ethiopia. Despite many studies investigating the relationship between TQM practices and NFP, rare research has been conducted on TQM in automotive industries, making this a hugely unexplored field.Design/methodology/approachThe data underlying this study was collected using more than 500 self-administered questionnaire survey, distributed to the employees working under different departments and factories under one automotive engineering industry. Extensive data screening and refinement processes for discarding irrelevant items for the questionnaire (Likert five-point scale) were carried out. The data was employed to test the proposed theoretical model, established with the objective of assessing the effect of TQM practices on the NFP in the case industry. Empirical validated relations have been proofed for previously done researches that there were positive relations between the TQM practices and NFP. Different statistical tools applied include descriptive data analysis, correlation analysis, mean scale test, reliability analysis and factor analysis, and finally, two models were developed based on structural equation modeling by using SPSS and AMOS-26 software.FindingsResults found in this study were quite surprising. Initially, there was a total of ten TQM factors. The six independent factors survived from factor analysis only two factors (employee involvement and innovation) were contributing to the NFP. The study was acted as a performance evaluation system to track the industry NFP. Although the study focused on the effect of TQM practices, for more results it is recommended to conduct a 360-degree further research study to reveal the weaknesses, strengths, opportunities and challenges of the case industry performance.Research limitations/implicationsEvery research has its own limitations. The way the analysis is conducted in this study ensures that the limitations do not compromise the validity of the results obtained. Control variables (industry type, size, age, process type and technology used) are not considered in the research which may affect the results obtained. The study included the automobile industry alone, so the obtained results cannot be generalized to other industries.Practical implicationsThe positive relationship between the TQM practices and NFP measures indicates the importance of each of these practices in improving the industry. Researchers/managers/practitioners can use this developed model periodically to understand where the industry stands in the quality management journey. They can also analyze the effect of TQM practices on financial as well as operational performance measures. The research findings can also motivate the top management of the industry for better planning of goals, to arrange resources in time, in pursuit of improving quality, employee and industry performance.Originality/valueThe Ethiopian manufacturing industry is required to improve their manufacturing and service quality, in order to enhance their productivity and boost their competitiveness in an international market, which is the basis of this study. This study signifies one of the first attempts to empirically explore this linkage between TQM and performance in the Ethiopian automotive industry context.

Spiritual leadership on organizational commitment and organizational commitment on organizational performance

Purpose: This research was administered to investigate the influence of spiritual leadership on organizational commitment and organizational commitment on organizational performance seen through multidimensions where spiritual leadership is in three dimensions namely vision, faith/hope, and altruistic love; organizational commitment in three dimensions namely affective, normative, and continuity, while organizational performance is in two dimensions which are financial and nonfinancial performance. Design/Method: The population selected in this study included 1,422 members of Village Credit Institution (LPD) in Bali Province including the chairman, secretary, and treasurer. Samples were selected by using the probability sampling technique which is a simple random sampling in which the sample size [Formula: see text] was drawn from a population of magnitude [Formula: see text], allowing each unit to have the same chance of being selected. The obtained data were then analyzed using a Structural Equation Modeling based on analysis of moment structure (AMOS), with multidimensions in each research variable. Findings: The results of the analysis show that vision, faith/hope, and altruistic love have a significant influence on affective commitment, normative commitment, and continuity commitment. On the other hand, affective, normative, and continuity commitment share a certain influence on financial performance. However, it is only the normative commitment that influences nonfinancial performance. Originality: The novelty of this research is in the effort to reconstruct the previous research model to obtain a new one that combines two research models; the spiritual leadership model and the A-Three Component Model of Organizational Commitment. The new model is expected to solve the inconsistencies of previous research results and solve various problems related to leadership and organizational commitment as variables that influence LPD performance.

Risk Management Practices and Firm Performance with a Mediating Role of Business Model Innovation. Observations from Jordan

This study focused on scrutinizing the influence of Enterprises Risk Management (ERM) on firm performance with a mediating role of Business Model Innovation (BMI). For the purpose, data from 228 Jordanian firms was collected and analyzed. The results indicated that the ERM practices have a significant influence on BMI and financial firm’s performance. The BMI significantly contributed to the financial and nonfinancial performance, whereas it displayed insignificant effects regarding environmental performance. The BMI fully mediated the relationship between ERM practices and financial performance, where a partial mediating effect was observed for the path between ERM practices and nonfinancial performance, while showed no mediating role between the ERM practices and environmental performance. Economies of countries like Jordan are hereby urged to implement the formal ERM practices and to financially educate their top management teams to apply the BMI to gain first-rate performance. This study also encourages the researchers from other countries to extend this model to their economies to unleash useful insights.

Measuring innovation effectiveness: a SEM-based cross-lagged analysis

Purpose The study aims to develop measures for innovation effectiveness impacting organizational performance outcomes. Substantial evidence suggests that measuring innovation effectiveness (IE) continues to be challenging because of the use of different measures across innovation’s broad spectrum. The purpose of this study is to overcome it by examining multiple drivers of IE in emerging market economies (EMEs) and predicting their impact on financial and nonfinancial performance outcomes. Design/methodology/approach Through a two-wave panel design, firms from India, Oman and the United Arab Emirates participated in the study with a time lapse of 12 months (T1n = 417, T2n = 403). Four cross-lagged competing models are tested for autoregressive, causal, reversed and reciprocal effects using structural equation modeling (SEM). Findings The findings show that the synergistic effect of multiple innovation characteristics, such as innovation degree, cost, frequency and speed determines its endogenous effectiveness. The exogenous effectiveness of innovation is further established through its impact on financial and nonfinancial performance outcomes. Furthermore, readiness for innovation (RFI) is a critical factor that moderates the relationship between drivers and IE. Practical implications The study’s findings could inform practitioners in emerging market economies about the appropriate measures of IE. It will guide managerial decisions on making an investment, evaluation, accountability and strategic choices related to innovation. Originality/value It is one of the first studies that use a time-based lens to examine IE in EMEs. It posits that given the innovation’s complexity, IE needs to be measured at multiple levels. The study explains how evolutionary dynamics in different sociocultural contexts can bring a new perspective into theory of diffusion of innovation. The moderating role of RFI brings new insights into the IE process and emphasizes its importance in objective-driven and performance-focused innovation efforts.

Sustainable Banking and Bank Performance

This research aims to examine the impact of sustainable banking practices and bank characteristics on bank performance. Structural equation models were used to analyze 11 banks listed on the Indonesia Stock Exchange that published sustainability reports consistently during the periods of 2015–2018. Results indicate that while the internalization of sustainability issues in banking business practices does not have a significant impact on bank performance, the characteristics of a bank, which are reflected by institutional and foreign ownership and bank age, have a significant effect on bank financial and nonfinancial performance. The implications of sustainable banking practices are indicated to gain legitimacy from regulators for the existence of financial entities and meet stakeholder expectations, which in practice require trade-off of interests among stakeholder groups. Keywords: sustainable banking, bank performance, bank characteristic

Direct effects of knowledge management practices on organizational performance

The relationship between knowledge management (KM) and firm performance is an interesting field for both scholars and practitioners. Despite the extant literature, more studies are required in order to clarify the abovementioned relationship. The purpose of this article is to examine the impact of KM practices on financial and nonfinancial performance. KM practices are knowledge creation practices, continuous learning practices (CLP), knowledge and feedback systems (KFS), and management of employees’ individual competencies. Methodologically the study uses partial least squares structural equation modeling. The results show that KFS affect firms’ financial performance and that CLP do not influence oneither financial or nonfinancial performance.