An Islamic perspective on entrepreneurial opportunity recognition

Abstract

The rapid growth in entrepreneurial development in Malaysia, together with the strength of Islamic principles adopted by Muslims, provides us with a somewhat unique context to investigate: How do Islamic principles shape the sourcing of entrepreneurial opportunities? To explore this question, we conducted semi-structured interviews with 15 Muslim entrepreneurs located in Kuala Lumpur. Our study highlighted Shariah compliance and the realisation of Tawhid as important factors influencing Muslim entrepreneurial opportunity recognition. More specifically we identified five Islamic spiritual principles that drove the opportunity discovery and opportunity creation processes through missing products or services in the marketplace and dissatisfaction with the current situation, respectively.

Systematic Literature Review on the Relationship Between Islam and Organizational Performance

“…Islamic entrepreneurial mind training and entrepreneurial performance have a significant beneficial link that is mediated by entrepreneurial motivation (Abdullah et al, 2015). While Shariah compliance and Tawhid realization are important factors in identifying Muslim business possibilities, they are not the only ones (Sidek et al, 2015).…”

“…Sharia compliance and Tawhid realization are significant variables in recognizing Muslim entrepreneurship opportunities (Sidek et al, 2015). They found five Islamic spiritual concepts in which Islamic beliefs influence the sourcing of business opportunities.…”

Entrepreneurship as worship: A Malay Muslim perspective

“…Our findings first identified five values that characterise Shafii interpretation of Sharia law: Fardhu Kifayah (communal obligation), Wasatiyyah (balanced), Dakwah (the call of joining the good and forbidding the bad), Amanah (trust), and Barakah (blessings); and second, how these values guided the entrepreneurship process. Our first contribution, then, identifies the values embedded in religion that act as a macro-level influence (Dodd & Seaman, 1998; Sidek, Pavlovich, & Gibb, 2015). We identified how these five values within the Shafii tradition of the Quran acted as a guide on how to live one’s life.…”

“…The three contributions noted above (the importance of context, the role of values associated with new venture creation, and work as worship) have theoretical and practical implications. By examining how Muslim values from the Shafii tradition increase entrepreneurial confidence in sourcing opportunities (Dimov, 2010; Davidsson, 2015; Sidek, Pavlovich, & Gibb, 2015), we demonstrated how religion has acted as a macro-level influence through not only cultural, but also regulatory changes. The impact of Islamisation in the 1980s and 1990s by the Malaysian Government provided a strong context to support entrepreneurship (Tayeb, 1997).…”