Context Of Islamic Banks Research Articles

You want my loyalty? Treat me fairly! A study of Islamic banking customers in South Africa

Purpose The purpose of this study is to investigate possible drivers of loyalty amongst Islamic banking customers in Gauteng, South Africa. We ponder the relationships of service fairness (a secondorder reflective construct) with perceived value, satisfaction, and loyalty. Design/methodology/approach Data were obtained from Islamic banking customers in South Africa using interview-administered questionnaires. A total of 350 responses were perceived as being suitable for data analysis. The measurement and structural models were measured through structural equation modelling. Findings Service fairness and perceived value were found to be important drivers of loyalty within this context. Research limitations/implications This study demonstrates that service fairness and perceived value are precursors to the future loyalty intentions of Islamic banking customers. As such, they should be nurtured as key elements of the relationship building process. Practical implications The study guides South African Islamic banks and South African banks with Islamic windows to better understand how service fairness (interactional, procedural and distributive) fosters satisfaction, perceived value and loyalty (attitudinal and behavioural). Originality/value Enhancing comprehension of the relationship between service fairness and customer loyalty, with satisfaction and perceived value playing intermediary roles, represents an unexplored avenue in academic research within the context of Islamic banking in an emerging African market.

Navigating through pandemics: a bibliometric analysis of research trends in Islamic finance and Islamic banking

Purpose This study aims to provide a bibliometric analysis of 1,104 journal articles to explore the multifaceted research field of Islamic finance and banking, explicitly emphasising the impact of the COVID-19 pandemic. Design/methodology/approach Insights into the evolving trends and dynamics within the academic discourse are presented. Findings The research highlights different patterns and collaborative networks through co-authorship, co-occurrence and thematic map analyses. Prior to the pandemic, research focused primarily on customer satisfaction and compliance with Shariah principles. However, the pandemic heralded an increased discourse on sustainability, fintech and the financial crisis. Research limitations/implications This review describes the prevailing academic terrain and identifies potential avenues for future research, particularly those that examine the socio-economic impact of the pandemic within the context of Islamic finance and banking. Originality/value Prominent author such as M. Kabir Hassan, leading institution such as the International Islamic University Malaysia and esteemed journal such as the International Journal of Islamic and Middle Eastern Finance and Management have been instrumental in shaping academic discussions and creating synergies in research. Moreover, Malaysia’s strong commitment to spatial research, evidenced by its robust global collaborations, underscores its pioneering role in the academic world of Islamic finance and banking.

Impact of Internet of Things, Cloud Computing, Artificial Intelligence, Digital Capabilities, Digital Innovation, IT Flexibility on Firm Performance in Saudi Arabia Islamic Bank

This study delves into the impact of technological advancements on firm performance within the Islamic banking sector in Saudi Arabia, focusing on the roles of Internet of Things (IoT) capabilities, Cloud Computing Capabilities (CCC), and Artificial Intelligence (AI) capabilities. It explores how these technological dimensions influence operational efficiency, customer engagement, and competitive positioning, thereby affecting overall firm performance. The research further investigates the mediating role of digital innovation in translating technological capabilities into performance outcomes and examines the moderating effects of digital capabilities and IT flexibility on this relationship. Through empirical analysis, the study demonstrates that IoT, CCC, and AI capabilities are crucial drivers of firm performance, offering significant opportunities for process optimization, service innovation, and market differentiation. Digital innovation is identified as a key mediator that enables Islamic banks to harness the full potential of these technologies, suggesting that the strategic integration of digital innovation practices is vital for realizing performance gains. Additionally, the findings highlight the importance of robust digital capabilities and a flexible IT infrastructure in maximizing the benefits of technological advancements, underscoring their role in facilitating adaptation to technological changes and fostering a culture of continuous innovation. The study contributes to the literature on technology management and banking performance by providing insights into the strategic value of technological capabilities and digital innovation within the Islamic banking context. It offers practical implications for banking executives and policymakers in Saudi Arabia, emphasizing the need for a comprehensive approach that encompasses technological adoption, innovation management, and capability development to achieve enhanced firm performance in the digital era.

Corporate governance and risk management: An evaluation of board responsibilities in western and Islamic banks

This research aims to explore the role of the board in cor-porate governance (CG) and risk management within the context of Islamic banking. Given the global reach of fi-nancial institutions, it is important to compare and evalu-ate the unique position of Shari’ah committees or Shari’ah Supervisory Board (SSB) in addressing the unique risks of Islamic banks. Using a comparative analysis, this study evaluated risk management guidelines in the CG codes of the United Kingdom, Germany, Saudi Arabia, and Malaysia. It found that board were ultimately responsible for risk management, regardless of the governance structure, and Shari’ah-related risks fell under the board’s purview. An innovative blend of Western CG frameworks and Islamic principles enhanced governance robustness through the strategic collaboration between board and SSBs.

Does Intellectual Capital Efficiency Translate in the Post-pandemic Era for Islamic Banks in Indonesia?

PURPOSE: This study aims to identify the key determinants of financial performance in Islamic banks, specifically focusing on the Financing to Deposit Ratio (FDR) and Capital Adequacy Ratio (CAR). Additionally, it explores the applicability of these determinants in a post-pandemic environment. DESIGN/METHODOLOGY/APPROACH: The research utilizes data from two prominent Indonesian Islamic banks, Bank Syariah Indonesia (BSI) and Bank Muamalah Indonesia (BMI), for the pre-pandemic period (2016-2020). Ordinary Least Squares (OLS) regression analysis is employed to investigate the influence of Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), and Capital Employed Efficiency (CEE) on both FDR and CAR. FINDINGS: The model analyzing determinants of FDR explains a significant portion (48.99%) of the variance. Interestingly, only Capital Employed Efficiency (CEE) exhibits a statistically significant negative relationship with FDR. Conversely, the model for CAR lacks a statistically significant fit. ORIGINALITY: This research contributes by examining the impact of intellectual capital components (HCE, SCE, CEE) on financial performance ratios (FDR, CAR) within the Indonesian Islamic banking context. RESEARCH LIMITATIONS: The study is limited to data from two Indonesian banks during a specific timeframe. Further research with a broader sample size and encompassing the post-pandemic era would enhance generalizability. PRACTICAL IMPLICATIONS: The findings offer valuable insights for stakeholders in Indonesian Islamic banking, particularly regarding the importance of efficient capital utilization for managing financing activities and maintaining healthy FDR levels. SOCIAL IMPLICATIONS: By enhancing the financial performance of Islamic banks, this research indirectly contributes to the development of a more robust Islamic financial system that caters to the ethical and social banking needs of the community.

Examining the Role of FinTech Services on Customers Retention of Islamic Banks in Pakistan: An Empirical Assessment

The objective of this research is to examine the influence of several variables, such as fintech payments, advisory services, and fin-tech financing, on the retention of customers in Islamic banks. The researcher used quantitative research design and positivistam philosophy to conduct this research. The target population comprises Islamic banking customers, with the sample drawn from 300 individuals holding accounts in the Punjab province of Pakistan. Data collection was facilitated through an adopted questionnaire administered to respondents. The findings reveal a significant impact of FinTech Payments, Advisory Services, and FinTech Financing on customer retention within the Islamic banking industry, showcasing the importance of these elements in shaping customer loyalty. This study stands out for its comprehensive examination of various facets related to FinTech and their direct and indirect effects on customer retention within the unique context of Islamic banking. However, it's crucial to acknowledge a limitation regarding the generalizability of the results beyond the studied population. Despite this constraint, the research offers valuable insights for Islamic financial institutions aiming to bolster customer retention through strategic utilization of FinTech-related elements and the cultivation of trust among their clientele. By embracing these findings, Islamic banks can enhance their customer relationship management strategies and maintain a competitive edge in the evolving financial landscape.

Twenty years of Islamic banking literature by Indonesian researchers: A hybrid reviews

Purpose – The emergence and growth of Islamic Banking in Indonesia have significantly increased over the past few decades. Consequently, there is a pressing requirement for a thorough examination to analyze the present state of IB literature, including its development and conceptual framework.Methodology – This study utilizes a bibliometric methodology and Systematic Literature Review (SLR), applying content analysis techniques to uncover the intellectual framework of IB literature produced by Indonesian researchers, as documented in the Scopus database. This study utilized 418 articles published between 2003 and 2023, resulting in a total of 418 articles. Data were analyzed using various software applications, including Publish or Perish (PoP), Excel, VOS-Viewer, and Biblioshiny-R.Findings – This study identifies the institutions, authors, journals, and articles that have had the most influence on IB literature published by academics in Indonesia. Additionally, this study sought to uncover patterns of research collaboration within this body of literature. Moreover, this study discovered four main clusters: comparing Islamic and conventional banks, examining the interaction between Islamic banks and their customers, exploring corporate social responsibility (CSR) and accounting practices, and examining the impact of Covid-19 within the context of Islamic banking. Implications – The findings of this study will assist researchers in identifying a range of potential topics for future research that Indonesian researchers can explore.Originality – Applying bibliometrics and SLR methodologies enables this study to comprehensively assess literature development in the IB in Indonesia by incorporating quantitative and qualitative analyses.

Exploring Satisfaction as a Mediator and Moderator of Customer Loyalty in Islamic Banking

This study was conducted to analyze the drivers of loyalty within the context of Islamic banking. Service quality, trust, and satisfaction were examined as exogenous variables influencing loyalty. Furthermore, this study adopted a comprehensive approach by investigating the role of satisfaction as a moderator and mediator in this relationship. The results showed that the exogenous variables significantly impacted loyalty and satisfaction, as well as moderated and mediated the links between service quality, trust, and loyalty. The implications were substantial, particularly for Islamic banks and regulatory authorities. To effectively retain customers in the face of competition, banks prioritized initiatives aimed at enhancing service quality, fostering trust, and monitoring customer satisfaction. Additionally, regulatory bodies contributed by formulating supportive policies and programs that encouraged these practices. The study also challenged conventional perspectives by conducting a thorough analysis of the multifaceted roles played by customer satisfaction, contributing to a framework for optimizing loyalty through quality and trust. Future analysis could build on the insights generated, analyzing the dynamics of customer relationships within the Islamic banking sector. This timely study elucidated pathways for sustaining the growth of Islamic banking.

Unraveling the Complex Dynamics of Islamic Social Reporting and Financial Performance: A Study of Mediating and Moderating Factors in Islamic Banks

Islamic Social Reporting (ISR) is crucial for Islamic banks as it captures the extent of their adherence to social and ethical principles, which influences their financial performance. Drawing on stakeholder theory the primary objective of this study is to scrutinize the impact of ISR on the financial performance of Islamic banks in Indonesia, with a specific focus on the mediating and moderating roles of key governance factors, namely ownership concentration, bank size, board independence composition, and leverage. The study is based on data from ten Indonesian Islamic commercial banks from 2017 to 2020, utilizing regression models and Path SEM analysis for assessment. The findings reveal a positive impact of ISR on financial performance. Additionally, it is discovered that the board independence composition and leverage significantly moderate the ISR-financial performance relationship. However, the study does not find evidence of the mediating effects of ownership concentration and bank size. While the moderating roles of board independence composition and leverage align with prior research, the absence of mediation effects contrasts with previous studies. Originality/Value: This research offers a distinct exploration of the relationship between ISR-financial and financial performance relationship within the specific context of Indonesian Islamic banks. It creatively probes the mediating and moderating impacts of select governance variables, a largely unexplored territory in extant literature. The findings of this study contribute to the theoretical framework of ISR's influence on financial performance and provide actionable insights for policy and strategic decisions in Islamic banks. It underscores the potential of such studies to drive sustainable growth, thereby laying the groundwork for future research.

Interactive marketing and relationship quality in Islamic banking: A Parepare case study

Purpose − This research aims to analyze the effects of interactive marketing and relationship quality on customer satisfaction and loyalty in Islamic banking.Methodology − A quantitative research approach was employed, and data was collected through a survey questionnaire administered to customers of Islamic banks in Parepare. The data analysis method used in this study is Partial Least Squares-Structural Equation Modeling (PLS-SEM).Findings − The study findings indicate that, indirectly, interactive marketing and relationship quality do not have a direct significant influence on customer loyalty in Islamic banks. However, it is observed that interactive marketing and relationship quality can affect customer loyalty through satisfaction. These findings suggest that the process of maintaining and enhancing customer loyalty in Islamic banks requires careful attention to multiple factors and stages.Implications − This research emphasizes the significance of integrating interactive marketing strategies, fostering relationship quality, and prioritizing customer satisfaction in the context of Islamic banks. These factors are essential for maintaining and strengthening customer loyalty, ultimately contributing to the long-term success and competitiveness of Islamic banks in Kota Parepare.Originality − The originality of this research lies in its contextual focus and integration of variables. Firstly, the study specifically examines the impact of interactive marketing and relationship quality on customer satisfaction and loyalty within the context of Islamic banks in Kota Parepare. Secondly, the study integrates multiple variables, including interactive marketing, relationship quality, customer satisfaction, and customer loyalty, providing a comprehensive understanding of the factors that contribute to customer loyalty in the context of Islamic banks.

Predicting the intention to use Paytech services by Islamic banking users

PurposeThis study aims to identify the factors that could explain the intention to use Paytech services within an Islamic banking context. The authors use an extended version of the technology acceptance model to develop a causal–predictive analysis.Design/methodology/approachThe research model and hypotheses were tested by applying partial least square-structured equation modeling to data collected from 214 users of Islamic banking in Saudi Arabia.FindingsThe results show that perceived trust has a highly significant direct effect on the intention to use Islamic Paytech services, whereas perceived risk has a significant indirect effect on IU.Research limitations/implicationsInternet banking behavior may not be static. In technology acceptance, during the various phases from introduction to the maturity phase, the respondent’s perceptions tend to changePractical implicationsFrom the point of view of Fintech services providers, the knowledge of the factors fostering the adoption of Fintech services would allow an international expansion without the inconvenience of establishing offices or companies in countries whose legislation does not favor the operations carried out by Islamic banks.Social implicationsThese digital payment services would allow access to financial services to the entire Muslim population regardless of their location (Islamic and non-Islamic nations) and will also reach out to the next generation of young Muslims as a majority are “digital natives” ready for digital Islamic financial solutions.Originality/valueThis study is the first to explore the intention to use Paytech services by Islamic banking users in Saudi Arabia. From a theoretical perspective, this work contributes to the academic literature by analyzing the intention to use Paytech services in an Islamic banking context. On the practical front, the study identifies the crucial factors that industry players can use to design their Paytech applications and services to increase financial inclusion in Saudi Arabia and other countries with similar cultures as well as to design an international expansion without the inconvenience of establishing offices or companies in countries whose legislation does not favor the operations carried out by Islamic banks.

Bank Interest in Islamic Law

This journal aims to examine the concept of bank interest (riba) within the framework of Islamic law (Sharia). The practice of charging and receiving interest has been a topic of significant debate and controversy among Islamic scholars and jurists. This paper provides an in-depth analysis of the philosophical underpinnings of bank interest in Islamic law, taking into account various perspectives and interpretations within the Islamic legal tradition. The journal begins by exploring the foundational principles of Islamic law and its ethical framework, highlighting the prohibition of riba as outlined in the Quran and the Hadith. It discusses the historical context and evolution of Islamic banking and finance, emphasizing the need for alternative financial mechanisms that comply with Islamic principles. The study then delves into the philosophical considerations surrounding bank interest from an Islamic legal perspective. It examines different schools of thought and the rationale behind their positions, including the arguments for and against the permissibility of bank interest. The utilitarian perspective evaluates the societal consequences of interest-based transactions, while the deontological approach emphasizes the adherence to moral principles. The contractualist viewpoint focuses on the voluntary agreements between parties, and the concept of justice and equality is examined in relation to interest-based transactions. Furthermore, the journal analyzes contemporary practices in Islamic banking and finance, including the development of Islamic financial instruments that adhere to Sharia principles. It explores the role of regulatory bodies in overseeing and ensuring compliance with Islamic law in the financial industry. The research concludes by synthesizing the diverse perspectives and providing a comprehensive understanding of the philosophical considerations surrounding bank interest in Islamic law. It emphasizes the importance of contextual interpretation and critical analysis within the Islamic legal tradition to address the challenges and complexities posed by modern financial systems.

Normative Juridical Review Regarding Bank Interest in Islamic Law

This journal aims to examine the concept of bank interest (riba) within the framework of Islamic law (Sharia). The practice of charging and receiving interest has been a topic of significant debate and controversy among Islamic scholars and jurists. This paper provides an in-depth analysis of the philosophical underpinnings of bank interest in Islamic law, taking into account various perspectives and interpretations within the Islamic legal tradition. The journal begins by exploring the foundational principles of Islamic law and its ethical framework, highlighting the prohibition of riba as outlined in the Quran and the Hadith. It discusses the historical context and evolution of Islamic banking and finance, emphasizing the need for alternative financial mechanisms that comply with Islamic principles. The study then delves into the philosophical considerations surrounding bank interest from an Islamic legal perspective. It examines different schools of thought and the rationale behind their positions, including the arguments for and against the permissibility of bank interest. The utilitarian perspective evaluates the societal consequences of interest-based transactions, while the deontological approach emphasizes the adherence to moral principles. The contractualist viewpoint focuses on the voluntary agreements between parties, and the concept of justice and equality is examined in relation to interest-based transactions. Furthermore, the journal analyzes contemporary practices in Islamic banking and finance, including the development of Islamic financial instruments that adhere to Sharia principles. It explores the role of regulatory bodies in overseeing and ensuring compliance with Islamic law in the financial industry. The research concludes by synthesizing the diverse perspectives and providing a comprehensive understanding of the philosophical considerations surrounding bank interest in Islamic law. It emphasizes the importance of contextual interpretation and critical analysis within the Islamic legal tradition to address the challenges and complexities posed by modern financial systems.

The Mediating Effect of Brand Reliability and Assurance between Trustworthiness and Customer Satisfaction of Islamic Banking Sector of Pakistan

This study aims to analyze two key aspects within the context of Islamic banking: firstly, to explore the direct correlation between trustworthiness and customer satisfaction; secondly, to probe the intermediary influence of brand reliability and brand assurance on the connection between trustworthiness and customer satisfaction. The theoretical underpinning for this investigation lies in the theory of trust and social exchange theory. This is a double mediation model, a quantitative type of research that targeted 10 Islamic Banks located in Southern Punjab in Pakistan. 372 questionnaires distributed to targeted respondents/ Customers, 300 filled questionnaires returned and included in analysis. The Smart- Partial Least Square (PLS) Modeling Technique was used to investigate the measurement and structural models.
 The results revealed a positive link between trustworthiness, brand assurance, brand reliability, and customer satisfaction. Furthermore, this study unveiled a noteworthy correlation between brand assurance, brand reliability, and customer satisfaction. Pakistani Islamic Banking industry is changing with customer perception and religious obligations and customer’s expected satisfaction. This research marks the inaugural effort to explore the connections among trustworthiness, brand confidence, brand dependability, and customer contentment within the context of Islamic banking clients in Pakistan.

DIGITAL BANKING: OPPORTUNITY OR CHALLENGE FOR SHARIA FINANCE INDUSTRY?

Purpose - This study aims to test the TAM model to determine people's perceptions of digital banking. Although empirical research has been conducted on the introduction of digital banking, this is still minimal in the Islamic banking context, as the use of digital banking in Islamic banks is still new.Design/methodology –This study is descriptive and quantitative using survey methods to measure an individual's perception of digital banking in Islamic banks. The survey contains closed and open-ended questions to measure the perception of mobile banking users based on the Technology Acceptance Model (TAM). This survey uses a voluntary survey of respondents scattered across different cities in Indonesia. Data analysis uses SEMPLS 7.0 and SPSS23.Findings -Originality - In addition to testing the TAM digital banking model of the original Islamic bank, this study also examines the potential for new variables that emerge from customer perceptions and uses the data to create new unique to Shariah's recruitment-based banks. We propose variables / models according to the technology. We will also consider obstacles to the introduction of digital banking by Islamic banks.

Role of Islamic work ethics in shaping employees’ behaviour: evidence from the banking sector in Azad Jammu and Kashmir

PurposeThe purpose of this study is to examine the impact of Islamic work ethics (IWEs) on the job satisfaction, commitment and loyalty among the bank employees in Azad Jammu and Kashmir, Pakistan.Design/methodology/approachData for this study was collected using the purposive sampling from 354 bank employees of Azad Jammu and Kashmir region.FindingsThe findings of this study support all the three proposed hypotheses, with IWEs demonstrating significant positive relationships with job satisfaction, organisational commitment and employee loyalty.Practical implicationsBecause of the nature of operations, banks need energetic employees who can participate actively in work activities. The implementation of IWEs enables banks to improve their employees’ satisfaction, commitment and loyalty, which will benefit the organisation in the long term through improved performance.Originality/valueBy encouraging the adoption of IWEs, organisations can increase job satisfaction, employee’s commitment and loyalty in the workplace, especially in an Islamic banking context. Therefore, managers should strengthen the mutual understanding among employees regarding IWE principles. They should be consistently applied and disseminated by Islamic banks’ management in the form of a formal code of ethics that applies to all actions within the organisation. Besides, this study contributes in terms of divine command theory which was yet to be tested with employee’s behaviour. Loyalty was another behavioural attribute which is providing novelty while testing with IWEs in banking context.

The Service Performance and Customer Satisfaction Model in Islamic Banking

The purpose of this study is twofold; 1). to find the measurement scale of service performance and 2). to examine the impact of service performance dimensions on customer satisfaction in Indonesian Islamic banking context. This study employs survey method with cluster sampling technique. Self-administered questionnaire, with 408 Islamic commercial bank customers as respondents, is used to collect the data/information. Confirmatory Factor Analysis (CFA) is adopted to test the dimensionality of service performance and customer satisfaction. Structural Equation Modeling (SEM) approach is employed to examine the impact of service performance dimensions on customer satisfaction. Results reveal 5 dimensions; physical, interactions, process, technology quality and sharia-compliance reflect service performance measurement scale. It is evidence that 3 dimensions; physical, process and sharia significantly impact on customer satisfaction. Interestingly, another 2 dimensions; interaction and technology do not significantly impact on customer satisfaction.
 
 Keywords: Service Performance; Customer Satisfaction; Islamic Banks; Structural Equation Modelling (SEM)

Brand attributes, corporate brand image and customer loyalty of Islamic banks in Malaysia

PurposeThe purpose of this study is to empirically examine the antecedents and consequences of corporate brand image in the context of Islamic banks in Malaysia. The antecedents of corporate brand image are divided into three categories which are functional brand attribute, emotional brand attribute and spiritual brand attribute. The consequence of corporate brand image on the other hand is loyalty.Design/methodology/approachA self-administered survey was used to collect data from experienced Islamic banking customers. A total of 281 questionnaires were analysed using Partial Least Square-Structural Equation Modeling.FindingsThis study found a significant relationship between some aspects of the brand attributes and corporate brand image. Corporate brand image, in turn, influences customer loyalty.Research limitations/implicationsThese findings contribute to the understanding that in the context of Islamic banks, the corporate brand image is not only influenced by the functional and emotional aspects, but also the spiritual aspect especially factors related to beliefs. Practically, this study provides insight to the management on the aspects valued by customers in regards to their bank, which could be used to guide Islamic bank positioning strategy.Originality/valueThe concept of corporate brand image has been explored from the perspective of functional and emotional aspects only. This study offers a new attribute influencing corporate brand image in the Islamic banking context, which is the spiritual brand attribute.

The Protection of Spiritual Rights in the Sharia Banking Dispute Settlement: Overview of the Sharia Banking Law in Indonesia

The status of Islamic banking in dispute settlement is normatively a positive legal subject to Islamic law principles. The Financial Services Authority confirms that many conflicts involve Islamic banks and their customers. The problem of the legal and economic context of Islamic banking is more complex, considering the operational concept of Islamic banks is different from conventional banking. Islamic banking must operate based on sharia, including in dispute resolution issues. Spiritual rights are one of the interests of Islamic banking customers that require attention. This study investigates the protection of spiritual rights in the sharia banking dispute settlement based on the perspective of Indonesian sharia banking law. This study employed normative qualitative research methods on primary data, such as the sharia banking law, the consumer protection act, and the dispute resolution act. It found that Indonesia has laws to address sharia banking disputes based on Islamic principles. However, they have not been appropriately implemented. The authority of religious courts to settle disputes on sharia banking has not been effective in protecting spiritual rights because there are still processes of settlement on sharia banking through the general courts. It indicates that stakeholders’ understanding of spiritual rights is still limited.

Can Islamic work ethics encourage knowledge-sharing behaviors? The role of job embeddedness and organizational identification

PurposeThis study aims to examine the relationship between Islamic work ethics (IWE), job embeddedness and knowledge-sharing behaviors. It also tested the mediating effects of job embeddedness and the moderating effects of organizational identification on this relationship.Design/methodology/approachA total of 396 respondents from Islamic banks in Indonesia participated in this study. Data analyzes for hypothesis testing were conducted using Hayes’ PROCESS macro-based hierarchical regression.FindingsThe findings suggest that subscribing to IWEs positively and significantly impacts job embeddedness and knowledge-sharing behaviors. Moreover, job embeddedness was confirmed as a mediator in the relationship between IWEs and knowledge-sharing behavior. Finally, the effects of IWEs on knowledge-sharing behaviors are stronger when employees attain a high level of organizational identification.Practical implicationsBy encouraging the adoption of IWEs, organizations can develop job embeddedness and promote knowledge-sharing in the workplace, especially in an Islamic banking context. Therefore, managers should strengthen the mutual understanding among employees regarding IWE principles. They should be consistently applied and disseminated by Islamic banks’ management in the form of a formal code of ethics that applies to all actions within the organization.Originality/valueThis study was conducted to extend the understanding of IWE and its relationship with workplace outcomes in modern organizations. Drawing on the conservation of resources theory, social identity theory and Islamic theology, new insights are provided by explaining the psychological mechanism underlying the relationship between IWEs and knowledge-sharing behaviors while proposing organizational identification as the boundary condition.