A review of the critical factors affecting Islamic market mechanisms in Malaysia
Purpose – The purpose of this paper is to explore the critical factors that influence Muslim consumers’ motivation towards the Islamic market mechanism. Design/methodology/approach – The paper also attempts to formulate Ibnomer Mohamed Sharfudddin’s “Islamic Administrative theory and Klaus Hurr...
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English English |
| Published: |
Emerald Publishing Group
2015
|
| Subjects: | |
| Online Access: | http://irep.iium.edu.my/50822/ http://irep.iium.edu.my/50822/ http://irep.iium.edu.my/50822/1/50822_A_review_of_the_critical_factors_affecting_Islamic_market_mechanisms_in_Malaysia.pdf http://irep.iium.edu.my/50822/4/50822_A_review_of_the_critical_factors_affecting_Islamic_SCOPUS.pdf |
| id |
iium-50822 |
|---|---|
| recordtype |
eprints |
| spelling |
iium-508222017-02-07T05:55:45Z http://irep.iium.edu.my/50822/ A review of the critical factors affecting Islamic market mechanisms in Malaysia Ali, Md Arphan Rahman, Muhammad Khalilur Rahman, Mahfuzur Albaity, Mohamed Jalil, Md. Abdul BP1 Islam HB Economic Theory HD28 Management. Industrial Management Purpose – The purpose of this paper is to explore the critical factors that influence Muslim consumers’ motivation towards the Islamic market mechanism. Design/methodology/approach – The paper also attempts to formulate Ibnomer Mohamed Sharfudddin’s “Islamic Administrative theory and Klaus Hurrelmann’s socialization theory” based on the “productive processing of reality (PPR)” model. The data were collected by distributing a self-administered questionnaire to a sample of 147 participants residing in the major cities in Peninsular Malaysia. The constructs and items used in the questionnaire were derived from the basic guidelines provided in the literature review and Al-Qur’an and Sunnah (Prophet’s deeds) on the conduct of Malaysian business practices. Findings – The results suggest that while awareness of the Islamic market mechanisms exists amongst businesses, in practice, not many obey such rules. However, a significant relationship does exist between the Muslim consumer motivational factors and Islamic market mechanisms. Research limitations/implications – First, limitation in scope as only two main components (productive service and commodity market) practices was examined. Future research may include other types of variables practices in the Islamic market mechanism. Second, the sample size is small and respondents were restricted to marketing and the academic sector. Future research should be done on bigger sample size and more on diverse sample, such as extended to the manufacturing sector and the service industry because manufacturing firms and the service sector might have different Islamic market mechanism practices and outcomes compared to marketing and the academic sector. Practical implications – Productive service and commodity market have positive impact on consumers’ motivation towards the Islamic market mechanism. Government’s controlling and monitoring in the market has positive effect on consumers’ motivation in selecting the Islamic market mechanism. Social implications – There is a need for more research on how to establish the Islamic market mechanism practice. In addition, the outcomes of this paper are of particular significance to policymakers, as it better informs them as to how best to design the Islamic market mechanism to make it more practical regardless of various religious beliefs. Originality/value – This research is a rare attempt on the part of scholars and researchers in Malaysia to relate the Islamic market mechanism practices and guidelines on a specific discipline. Based on the researchers’ knowledge, it is the first study investigating the application of the Islamic market mechanism practice in Malaysia. Emerald Publishing Group 2015 Article PeerReviewed application/pdf en http://irep.iium.edu.my/50822/1/50822_A_review_of_the_critical_factors_affecting_Islamic_market_mechanisms_in_Malaysia.pdf application/pdf en http://irep.iium.edu.my/50822/4/50822_A_review_of_the_critical_factors_affecting_Islamic_SCOPUS.pdf Ali, Md Arphan and Rahman, Muhammad Khalilur and Rahman, Mahfuzur and Albaity, Mohamed and Jalil, Md. Abdul (2015) A review of the critical factors affecting Islamic market mechanisms in Malaysia. Journal of Islamic Marketing, 6 (2). pp. 250-267. ISSN 1759-0833 http://www.emeraldinsight.com/doi/full/10.1108/JIMA-05-2014-0039 |
| repository_type |
Digital Repository |
| institution_category |
Local University |
| institution |
International Islamic University Malaysia |
| building |
IIUM Repository |
| collection |
Online Access |
| language |
English English |
| topic |
BP1 Islam HB Economic Theory HD28 Management. Industrial Management |
| spellingShingle |
BP1 Islam HB Economic Theory HD28 Management. Industrial Management Ali, Md Arphan Rahman, Muhammad Khalilur Rahman, Mahfuzur Albaity, Mohamed Jalil, Md. Abdul A review of the critical factors affecting Islamic market mechanisms in Malaysia |
| description |
Purpose
– The purpose of this paper is to explore the critical factors that influence Muslim consumers’ motivation towards the Islamic market mechanism.
Design/methodology/approach
– The paper also attempts to formulate Ibnomer Mohamed Sharfudddin’s “Islamic Administrative theory and Klaus Hurrelmann’s socialization theory” based on the “productive processing of reality (PPR)” model. The data were collected by distributing a self-administered questionnaire to a sample of 147 participants residing in the major cities in Peninsular Malaysia. The constructs and items used in the questionnaire were derived from the basic guidelines provided in the literature review and Al-Qur’an and Sunnah (Prophet’s deeds) on the conduct of Malaysian business practices.
Findings
– The results suggest that while awareness of the Islamic market mechanisms exists amongst businesses, in practice, not many obey such rules. However, a significant relationship does exist between the Muslim consumer motivational factors and Islamic market mechanisms.
Research limitations/implications
– First, limitation in scope as only two main components (productive service and commodity market) practices was examined. Future research may include other types of variables practices in the Islamic market mechanism. Second, the sample size is small and respondents were restricted to marketing and the academic sector. Future research should be done on bigger sample size and more on diverse sample, such as extended to the manufacturing sector and the service industry because manufacturing firms and the service sector might have different Islamic market mechanism practices and outcomes compared to marketing and the academic sector.
Practical implications
– Productive service and commodity market have positive impact on consumers’ motivation towards the Islamic market mechanism. Government’s controlling and monitoring in the market has positive effect on consumers’ motivation in selecting the Islamic market mechanism.
Social implications
– There is a need for more research on how to establish the Islamic market mechanism practice. In addition, the outcomes of this paper are of particular significance to policymakers, as it better informs them as to how best to design the Islamic market mechanism to make it more practical regardless of various religious beliefs.
Originality/value
– This research is a rare attempt on the part of scholars and researchers in Malaysia to relate the Islamic market mechanism practices and guidelines on a specific discipline. Based on the researchers’ knowledge, it is the first study investigating the application of the Islamic market mechanism practice in Malaysia. |
| format |
Article |
| author |
Ali, Md Arphan Rahman, Muhammad Khalilur Rahman, Mahfuzur Albaity, Mohamed Jalil, Md. Abdul |
| author_facet |
Ali, Md Arphan Rahman, Muhammad Khalilur Rahman, Mahfuzur Albaity, Mohamed Jalil, Md. Abdul |
| author_sort |
Ali, Md Arphan |
| title |
A review of the critical factors affecting Islamic market mechanisms in Malaysia |
| title_short |
A review of the critical factors affecting Islamic market mechanisms in Malaysia |
| title_full |
A review of the critical factors affecting Islamic market mechanisms in Malaysia |
| title_fullStr |
A review of the critical factors affecting Islamic market mechanisms in Malaysia |
| title_full_unstemmed |
A review of the critical factors affecting Islamic market mechanisms in Malaysia |
| title_sort |
review of the critical factors affecting islamic market mechanisms in malaysia |
| publisher |
Emerald Publishing Group |
| publishDate |
2015 |
| url |
http://irep.iium.edu.my/50822/ http://irep.iium.edu.my/50822/ http://irep.iium.edu.my/50822/1/50822_A_review_of_the_critical_factors_affecting_Islamic_market_mechanisms_in_Malaysia.pdf http://irep.iium.edu.my/50822/4/50822_A_review_of_the_critical_factors_affecting_Islamic_SCOPUS.pdf |
| first_indexed |
2023-09-18T21:11:54Z |
| last_indexed |
2023-09-18T21:11:54Z |
| _version_ |
1777411308797296640 |