Abstract

This study investigates the relationship between governance dimensions and the level of commitment to the Shariah (Islamic law) governance framework in Saudi banks. To understand the intricacies of governance dimensions in shaping Shariah governance practices in depth, this study also examines the mediating role of executive procedures between governance dimensions and commitments to the Shariah governance framework. Structural equation modeling is used to test the hypotheses regarding the relationship between studied variables. The findings underscore the significance of the availability of executive procedures and disclosure and transparency in fostering commitments to the Shariah governance framework, with both constructs exhibiting substantial direct effects on the Shariah governance commitment level. Additionally, monitoring, auditing, and accountability emerged as crucial determinants of governance in banks, highlighting the importance of robust oversight mechanisms in ensuring adherence to Shariah principles. Meanwhile, organizational structure exhibited a minor decrease in its direct effect on commitment to Shariah governance. The findings of this study can guide the strategic decision-making process for promoting ethical and sustainable Shariah governance practices in Saudi banks.

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