Intellectual Capital: How Do Islamic Ethics Rejuvenate It?

Abstract

In this era of knowledge-based economy, intellectual capital (IC) is considered as a critical component in an organizational effort to emphasize on accomplishing competitive advantages and enhancing value added for the organization. Besides concentrating only on new product innovations, small and medium enterprises should also be engaged in managing IC in accordance to Islamic teachings. An understanding to Islamic ethics and its upshots for superior performance facilitates entrepreneurs in managing IC strategically. This paper aims to re-scrutinize several contributions in Islamic ethics and IC in SME entrepreneurial researches, ascertain the main elements of IC as well as Islamic work ethics (IWE); and thus show how IWE is relevant for research in the area of IC.

The Role of Islamic Work Ethics Integration in Intellectual Capital for SMEs Performance Improvement

“…A Muslim is required to work and operate his business consistent with the existing principles. Business ethics helps in economic development, besides contributing to organizational success (Zin, Adnan, Hasan, & Abdullah, 2017).…”

“…As intellectual capital supports the competitive advantage of an entity, a good Muslim entrepreneur has intellectual capital related behaviours such as: persistence, commitment, dedication, creativity, cooperation and being able to compete will clearly strengthen the company's value fulfilment (Zin et al, 2017). This is due to the fact that individual development in the Islamic approach does not only accommodate the primary needs of humans, but also provides opportunities for material life which are better applied to organizational success.…”

“…Besides intellectual capital, a company can work more effectively and efficiently by upholding an ethical framework that monitors and regulates their deployment. Moreover, Islamic ethics with its principles offers the basics for impartiality and tolerance to the various needs, difficulties and challenges that a company faces (Zin et al, 2017); (Zin & Adnan, 2016).…”

“…Spesifically in term of Islamic ethics with its principles. Islamic ethics offers the basics for impartiality and tolerance to the various needs, difficulties and challenges that a company faces (Zin et al, 2017); (Zin & Adnan, 2016). It is expected that the integration of Islamic work ethics in intellectual capital will further optimize company performance.…”

The Exalted Islamic Ethics towards Conquest of Fintech

“…The technology setting through Islamic Ethics provides an inimitable chance to re-position Islamic finance and provide better solutions to cover the incapacity of Islamic Banking and Finance staff. To accomplish the Islamic FinTech, the assimilation of Islamic ethics will offer a balanced guideline as it has precise sanctions (Zin et al, 2017). The study of the accomplishment of Islamic Fintech through detailed discussion of Islamic Ethics through Maqasid al-Syariah proposes insight and solutions into the implementation of the standard.…”