This paper reports the performance measurement practices of four Japanese banks. The research is a field study informed by the new institutional sociology theory. It sought to understand and explain what factors affected the design and use of non-financial performance measurement systems in the banks studied. The results indicate that several institutional forces influenced the banks to implement a particular performance measurement system. Of these, economic constraints appeared to be the most forceful factor, followed by the central bank's regulatory control, accounting standards/financial legislation, management's strategic focus, bank size, competition, and organizational tendency to copy best practices from others.

PurposeTheological perspectives in ethics, values and their functional application in the real world are vividly covered by the theory and practice of Islamic banking in recent times. This paper seeks to formalize the theological paradigm of the unity of God (Tawhid) and to make the groundwork of unity of knowledge in the context of the money, finance and real economy linkages.Design/methodology/approach – The paper combines narrative with argument and analysis.Findings – On the basis of this the structure of the balance sheet of Islamic banks with no interest rate as an ethical condition of Islamic financing is delineated. This topic is followed by a discussion on the experience of Islamic banks in recent times in the area of mobilizing resources and gaining profitability, popularity and stability by the Islamic financing methods and the direct mobilizing of financial resources into the real economy. In this way, the Islamic banks are shown to attain the much‐needed complementary relations between social well‐being for clients and financial efficiency for the banks.Originality/value – Adds insights to the theory and practice of Islamic banking.

The inadequacies of conventional management accounting (MA) systems increase the need of upto-date MA information. However, critical non-financial success factors are emerging in highly competitive technologically advanced business organisations, especially in the service sector with its increasing contribution to advanced economies and employment markets. As a result, the importance of the role of MA in measuring emerging non-financial performance (NFP) is increasing in services, but comparatively little is known about non-financial MA measures in services, and almost nothing in banks/financial institutions (BFI). This study attempts to review/investigate the practice of MA in NFP measurement of BFIs within the context of``new institutional sociology'' theory and, consequently, to modify theory for further research that fits the dynamic nature of NFP in the financial services industry.

The importance of the role of management accounting (MA) in measuring emerging non‐financial performance (NFP) is increasing, especially in the service sector. However, there are a number of studies concerning NFP measures, but comparatively little is known about non‐financial MA measures in services and almost nothing in banks/financial institutions (BFI). Taking into consideration the need for studying MA practices in measuring emerging NFP in the service industry, an attempt has been made in this paper to investigate the practice of MA in NFP measurement in Finnish BFI. Several factors have been identified, in the context of “New Institutional Sociology” theory that influence NFP measures, of which economic impact is the most influential, followed, subsequently by coercive, normative and mimetic pressures. Accordingly, the empirical findings of this research are evaluated, and consequently, it has been used to modify the theory for further research that fits with the dynamic nature of NFP in the financial industry.

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