Performance Direction towards Performance Achievement: Case on Local Islamic Banks in Malaysia

Performance of a company is important for identifying its survival ranking and for its future direction, improvement and development strategy. Bank performance has conventionally been measured using financial ratios and several quantitative indicators, which appraise its financial strength. The same...

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Main Authors:	Shamsudin, Norazidah, Mohammed, Mustafa Omar
Format:	Article
Language:	English
Published:	JOEBM 2015
Subjects:	BJ Ethics BL Religion HG Finance
Online Access:	http://umpir.ump.edu.my/id/eprint/14452/ http://umpir.ump.edu.my/id/eprint/14452/ http://umpir.ump.edu.my/id/eprint/14452/ http://umpir.ump.edu.my/id/eprint/14452/1/303-BM00024%20Performance%20Direction%20Towards%20Performance%20Achievement_JOEBM.pdf

id	ump-14452
recordtype	eprints
spelling	ump-144522017-04-06T06:49:19Z http://umpir.ump.edu.my/id/eprint/14452/ Performance Direction towards Performance Achievement: Case on Local Islamic Banks in Malaysia Shamsudin, Norazidah Mohammed, Mustafa Omar BJ Ethics BL Religion HG Finance Performance of a company is important for identifying its survival ranking and for its future direction, improvement and development strategy. Bank performance has conventionally been measured using financial ratios and several quantitative indicators, which appraise its financial strength. The same yardstick is being used by Islamic banks to measure their performance. This practice gives rise to the question whether Islamic banks appear to be focusing on Maqasid al-Shari'ah in their achievements or they share the same primary intention of conventional commercial banks, which strive for maximizing shareholders’ wealth. Scholars have raised concern that Islamic banks seem to be replicating the conventional banking system and this is creating a widening gap between the theory and practice of Islamic banking. Hence, this study has used a sample of 18 banks in Malaysia to critically review the organization’s vision and mission statements based on Maqasid al-Shari'ah by embracing content analysis and behavioral science operationalization method. The results show that the majority of Islamic banks have focused on the concept of establishing justice with emphasis on the elimination of negative elements that breed injustice, whereas conventional banks have put emphasis on profitability of the bank, categorized under the maslahah concept. Since there is different focus between the conventional and Islamic banks, there is a need for Islamic banks to evaluate their performance within their own framework and using their own criteria. JOEBM 2015 Article PeerReviewed application/pdf en http://umpir.ump.edu.my/id/eprint/14452/1/303-BM00024%20Performance%20Direction%20Towards%20Performance%20Achievement_JOEBM.pdf Shamsudin, Norazidah and Mohammed, Mustafa Omar (2015) Performance Direction towards Performance Achievement: Case on Local Islamic Banks in Malaysia. Journal of Economics, Business and Management, 3 (9). pp. 889-893. ISSN 2301-3567 http://dx.doi.org/10.7763/JOEBM.2015.V3.303 DOI: 10.7763/JOEBM.2015.V3.303
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Malaysia Pahang
building	UMP Institutional Repository
collection	Online Access
language	English
topic	BJ Ethics BL Religion HG Finance
spellingShingle	BJ Ethics BL Religion HG Finance Shamsudin, Norazidah Mohammed, Mustafa Omar Performance Direction towards Performance Achievement: Case on Local Islamic Banks in Malaysia
description	Performance of a company is important for identifying its survival ranking and for its future direction, improvement and development strategy. Bank performance has conventionally been measured using financial ratios and several quantitative indicators, which appraise its financial strength. The same yardstick is being used by Islamic banks to measure their performance. This practice gives rise to the question whether Islamic banks appear to be focusing on Maqasid al-Shari'ah in their achievements or they share the same primary intention of conventional commercial banks, which strive for maximizing shareholders’ wealth. Scholars have raised concern that Islamic banks seem to be replicating the conventional banking system and this is creating a widening gap between the theory and practice of Islamic banking. Hence, this study has used a sample of 18 banks in Malaysia to critically review the organization’s vision and mission statements based on Maqasid al-Shari'ah by embracing content analysis and behavioral science operationalization method. The results show that the majority of Islamic banks have focused on the concept of establishing justice with emphasis on the elimination of negative elements that breed injustice, whereas conventional banks have put emphasis on profitability of the bank, categorized under the maslahah concept. Since there is different focus between the conventional and Islamic banks, there is a need for Islamic banks to evaluate their performance within their own framework and using their own criteria.
format	Article
author	Shamsudin, Norazidah Mohammed, Mustafa Omar
author_facet	Shamsudin, Norazidah Mohammed, Mustafa Omar
author_sort	Shamsudin, Norazidah
title	Performance Direction towards Performance Achievement: Case on Local Islamic Banks in Malaysia
title_short	Performance Direction towards Performance Achievement: Case on Local Islamic Banks in Malaysia
title_full	Performance Direction towards Performance Achievement: Case on Local Islamic Banks in Malaysia
title_fullStr	Performance Direction towards Performance Achievement: Case on Local Islamic Banks in Malaysia
title_full_unstemmed	Performance Direction towards Performance Achievement: Case on Local Islamic Banks in Malaysia
title_sort	performance direction towards performance achievement: case on local islamic banks in malaysia
publisher	JOEBM
publishDate	2015
url	http://umpir.ump.edu.my/id/eprint/14452/ http://umpir.ump.edu.my/id/eprint/14452/ http://umpir.ump.edu.my/id/eprint/14452/ http://umpir.ump.edu.my/id/eprint/14452/1/303-BM00024%20Performance%20Direction%20Towards%20Performance%20Achievement_JOEBM.pdf
first_indexed	2023-09-18T22:18:13Z
last_indexed	2023-09-18T22:18:13Z
_version_	1777415480622972928

Performance Direction towards Performance Achievement: Case on Local Islamic Banks in Malaysia

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