Shariah-compliant Services Research Articles

The Effect of Sharia Compliance, Attitudes, Satisfaction and Perceived Usefulness on Continued Intention to Use Sharia Digital Banking: A Study of Muslim Customer Behavior

In activities related to financial services, a Muslim has a tendency to choose Shariah-compliant services. The presence of digital banking services will certainly not escape this tendency but in a rational view, this tendency is often challenged. For this reason, research is needed that relates the behavior of a Muslim in choosing digital banking services that not only comply with sharia provisions but also provide benefits that can be felt directly. This study integrates the factors recognized in technology continuance theory with the prevailing values in Muslim behavior to provide results that match the digital characteristics of Islamic banking. Data were collected from 183 Muslim users of Islamic digital banking services in Java, Indonesia and then tested with structural equation modeling (SEM). The research findings show that sharia compliance and perceived usefulness directly have no effect on continuance intention to use Islamic digital banking services, but indirectly through attitude mediation, these two factors have a significant effect. In the direct effect, satisfaction is the most determinant factor in influencing continuance intention to use, while perceived usefulness is the most determinant factor in influencing attitude. Then in the indirect effect, attitude has a full mediation role on the effect of perceived usefulness on continuance intention to use, and partial mediation of the effect of sharia compliance on continuance intention to use

INVESTIGATING THE OPERATIONAL ISSUES OF ISLAMIC HOTEL BUSINESS IN MALAYSIA: A CONCEPTUAL PAPER

The increasing demand over Shariah compliant services since past one decade has significantly contributes to the development of Islamic hotel business in Malaysia. Several factors such as the increasing number of global Muslim population, high disposable income among Muslims and high awareness on getting Shariah compliant services becoming the main contributors to the growing of this business segmentation. However, it is reported by many scholars that this business segment is still not stable since there are loopholes mentioned by previous scholars found in the operational side of Islamic hotel business. Concerned to determine the extent to which this business segment is still not stable, several journal articles was selected and reviewed by this research. It is hope that this paper will be able to provide a comprehensive information related to the inadequacy in the Islamic hotel business in Malaysia and at the same time serving as an idea for future research in this area of interest. Keywords: Islamic Hotel Business, Muslim Friendly Services, Shariah Compliant Hotel

Empirical Research on Rate of Return, Interest Rate and Mudharabah Deposit

Islamic banking was introduced in Indonesia in 1992 with the long-term objective of having a full-fledged Islamic banking system running parallel with the existing conventional banking system. To be competitive in the dual banking system, the basic strategy that Islamic banks should have offer Shariah-compliant services which match those offered by the conventional banks. Since interest is prohibited in Islam, Islamic bank services are based on profits and other interest-free Islamic principles. Hence, Islamic banks accept demand and savings deposits based on safe-keeping (wadiah) while investment deposits based on profit sharing (mudarabah). Islamic bank financing is offered varieties of principles such as credit sale (bai bithamin ajit), profit sharing (mudarabah, musyarakah), leasing (ijarah) and hire-purchase.

Rating Tools for Shariah Compliant Hospitality and Services: Landscape Design Stage

Currently, tourism sector has become the most dynamic factor to Malaysian services economic growth. The existence of Shariah compliant hospitality and services will be an added value in promoting Malaysia as Muslim friendly Tourism Hub. Specifically to the international tourist such as Middle East, West Asian and other Islamic countries. Shariah compliant concept is not restricted to only halal food and hygienic accommodation. Utterly, hoteliers have focused mainly on the beverages and accommodation qualifications factors in order to fulfill the Shariah compliant concept. The built environment facilities such as landscape features provided at these premises is also the main contributor to the Shariah compliant philosophy. The guidelines for Shariah compliant services and hospitality is still ambiguous among the hoteliers, tourists and its’ stakeholders. Realizing that there is no standard guideline and rating tools that can audit Shariah compliant landscape design at Malaysian Tourism Accommodation Premises (TAP) therefore, the aim of this paper is to highlight the significance of rating tools and audit system for landscape design and its facilities provided at Tourism Accommodation Premises (TAP). This effort is a mean to promote Shariah compliant hospitality and services among hoteliers and tourists. With this gap in view, it is hope that this research will provide the guidelines for Shariah compliant landscape design to designers, hoteliers and all stakeholders at TAP.

Developing Shariah - Compliant Financial Services for the Muslim Customers in India

India is an attractive and growing market for shariah-compliant financial services. Therefore, the purpose of this article is to propose a systematic process for developing new shariah-compliant financial services for the growing number of Muslim customers in the big emerging market of India. This article is based on a longitudinal case study of service innovation employed by a multinational bank providing a diverse range of financial services to the Indian Muslim customers. The findings suggest that a structured new service development process must be used for developing new shariah-compliant financial services. Customer interaction during the service innovation is also important. This research is the first attempt to explore the development process of new shariah-compliant services in India. The findings of this research can be very useful to the managers of multinational financial institutions interested in marketing Islamic banking products and services in the burgeoning Indian market.

The Practice of Shariah-Compliant Hotel in Malaysia

Abstract — Over the past one decade, there has been an increasing focus on Islamic products and services research such as Halal food and Islamic banking. Halal revolution has created increasing awareness among Muslim to consume Halal product or Shariah-compliant services. In responding to this development, hotels created innovative services for Muslim guests called Shariah-compliant hotel (SCH). However, there is lack of research on the characteristics, and implementation of SCH has been carried out in the hotel industry. Therefore, the purpose of this paper is to understand the practice of SCH in Malaysia. Diffusion of innovation (DOI) theory is utilised to investigate the issues of adoption and implementation of SCH. The preliminary study uses in-depth, open-ended interviews through purposive sampling. Interviews were recorded, transcribed, and evaluated based on thematic analysis to understand the practice. The study found three issues in implementing SCH, such as the uncertainties of government regulation, difficulties to meet Halal standard, and absence of SCH standard. Along with this, two Malaysian Standards (MS1900:2005 &MS1500:2004) have been identified and strongly suggested to be used as a tool in the SCH practice.

Customers’ Preferences toward Shariah Compliant Services in Banks among Academicians and Non-Academicians in Higher Education Institutions ( Heis ) in Pahang

The purpose of this paper is to examine the main factors that influence customers to deal with Shariah compliant services particularly in a dual banking environment in Pahang. This study presents primary data collected by self-administered questionnaires involving a sample of 240 academician and non-academicians in Higher Education Institutions (HEIs) in Pahang. The study was set out to establish a ranking of the various factors which influence their bank selection decision and seek to determine homogeneous academician and nonacademician are in relation to their Shariah service selection decision. The factors are analyzed using t-test. This study revealed that the selection of Shariah compliant services appeared to be predominantly a combination between quality services and the lowest service charges by banks. More significant differences in preferences were found when academicians were compared with non-academicians in the Shariah service selection decision.

Islamic Finance and Securitization: Man-Made Tale or Reality

The core and fundamental axiom of Islamic finance is the elimination of riba which literally means interest. Islam's unconditional prohibition of riba changes the landscape of the Islamic financial system. Prohibition of interest by Islam is actually an indirect prohibition of pure debt security. Instead of debt other forms of financing based on the principle of sharing of profit and loss are recommended under Shariah (Islamic law). We will look at most of the shariah compliant services and whether that is not just a leap of faith. However Plato's Theaetetus of belief, knowledge and understanding will try to bring out some light on that issue.