The Genesis of Islamic Economics : Revisited

Islahi, Abdul Azim

doi:10.12816/0015019

Cited by 15 publications

(8 citation statements)

References 10 publications

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“…As GFC 2008 did not have any IMEFM 16,2 effects on Islamic banks liquidity (Boumediene, 2015) and vice versa of this is applicable for accounts payable component. According to Abuhommous and Abuhommous (2017), banks should help firms to achieve target accounts payable by offering financial services in lieu of an interest under "Murabaha Guarantee" (Fiqh Academy, 1992;Saadallah, 1994).…”

Section: Working Capital Management Perspectives -Islamic Finance Con...mentioning

confidence: 99%

Islamic Finance an alternative mode for short term financing – working capital management

Kayani¹

2022

IMEFM

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PurposeThis paper aims to review and compare the conventional and Islamic perspectives of working capital management (WCM) to devise the best option of financing for managing working capital (WC) in South Asia. The paper also aims to help the business world for running its operations more smoothly by devising an alternative source of financing especially during crises such as the global financial crisis 2008 and the COVID-19 pandemic.Design/methodology/approachThe divergence approach is used for a critical analysis of existing literature to derive the best possible alternative to the conventional system of financing.FindingsThis paper identifies that Islamic financing is an appropriate mode of financing as compared to conventional financing for meeting WC requirements in South Asia. Furthermore, under Islamic financing, the best available alternative way for managing WC needs is theMudarabahIslamic mode of financing.Research limitations/implicationsThis is a theoretical paper and thus does not include empirical results.Practical implicationsThis paper provides conventional and Islamic perspectives of WCM. The Islamic banks in South Asia may devise policies to encourage and convenience firms for usingMudarabahmode for meeting their WC needs instead of conventional sources. This paper also identifies that small and medium enterprises may be targeted by Islamic banks in Asian markets for providing funds for their smooth operations especially during a financial crisis when conventional banks refuse to lend. This will help managers to run businesses more efficiently and effectively especially during any kind of financial crisis in the future.Originality/valueTo the best of the author’s knowledge, this is the first study that studies the relationship between WCM and Islamic financing in comparison to conventional financing. Although prior studies identify an alternative to conventional financing as Islamic financing, no one studied while considering the WC as the main variable. This paper informs practitioners and researchers about a “state of the art” Islamic perspective of WCM.

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Section: Working Capital Management Perspectives -Islamic Finance Con...mentioning

confidence: 99%

Islamic Finance an alternative mode for short term financing – working capital management

Kayani¹

2022

IMEFM

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“…Parallel to the intellectual movement of IOK was the Islamic economics, banking and finance (IEBF) development. For some, it is an even earlier response to the western style of reasoning and development or the western interest-based economic, banking and financial practices than IOK (Islahi, 2015;Siddiqi, 1987). However, Sardar (1989) considered IEBF to be the best application of IOK.…”

Section: Contemporary Relevance Of Islamic Economics Banking and Fina...mentioning

confidence: 99%

“…Like IOK, distinct economic, banking and financial Muslim practices and services were promising success in this world and hereafter (falah) (Kahf, 2003(Kahf, , 2004. Islahi (2015) eloquently outlined the development of IEBF through the categorization of few generations. The earliest generation translated many western works on economics, banking and finance for later generations to digest and enrich with Islamic perspectives, avoid abhorrent and reject prohibited practices.…”

Section: Contemporary Relevance Of Islamic Economics Banking and Fina...mentioning

confidence: 99%

The Integration of Knowledge (IoK) Methodological Approach to Reforming the Development of Islamic Economics, Banking, and Finance (IEBF) in Light of Maqasid (Objectives) and Sustainable Development Goals (SDGs)

Omercic

2022

GReviewIEB

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The contemporary world has reached a critical stage of development that imposes reforms at the highest and grassroots levels. Humanity realized that the current lifestyle increasingly threatens their welfare. Hence, we perceive that the Integration of Knowledge (IoK) methodological approach to reforming the development of Islamic economics, banking, and finance (IEBF) is central to transforming such a conventional approach to life. A reformed IEBF would focus on the maqasid (objectives) of shariah and the SDGs. The qualitative nature of this paper appraises the IoK methodological approach through a methodological pluralism recognizing rational and revelational sources of knowledge. This also involves methods of library research and critical content analysis. Firstly, an introduction reveals the distinctiveness of the IoK methodological approach as a shift from and based on the Islamization of Knowledge (IOK) movement. Its potential to reform IEBF becomes apparent because of common philosophical foundations like IOK’s. We highlight in brief the IEBF compatibility with and to reform via the IoK methodological approach and so attain targeted maqasid and SDGs. Secondly, a review of extant literature explains why the IOK and IE represent the solution to reform IEBF in contemporary times, to overcome mainstream economic, financial, and banking issues, and to fulfil maqasid and SDGs. Thirdly, findings show how the philosophical foundations of IOK represent the basis for future IEBF development via the IoK methodological approach. Moreover, we identify IoK methodological principles to appraise theories for IEBF development in light of the maqasid and SDGs agenda. Lastly, we conclude and provide actionable recommendations.

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“…In the literature of economic history, Islamic economic thought is regarded as pre-classical or medieval economic thought (Landreth and Colander, 2002;Samuels et al, 2003;Baeck, 2012). Islahi (2015) divides the development of Islamic economic thought into five phases:…”

Section: The Development Of Islamic Economic Thoughtmentioning

confidence: 99%

“…, 2003; Baeck, 2012). Islahi (2015) divides the development of Islamic economic thought into five phases:The formative period during which the sources of economic ideas originated in the Qurʾān and Sunnah. Most of the works written in this period are related to fiqh (Islamic jurisprudence), ʿilm al-kalām (theology) and ḥadīth (traditions of the Prophet SAW).…”

Section: Literature Reviewmentioning

confidence: 99%

Mind the gap: theories in Islamic accounting and finance, Islamic economics and business management studies

Mukhlisin

Ismail

Fikri³

2022

IJIF

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PurposeThis study aims to analyse whether theories and views of classical Islamic scholars are widely adopted as references in Islamic accounting and finance (IAF), Islamic economics (IE) and Islamic business management (IBM) research studies as part of their contribution to solving current economic and financial problems.Design/methodology/approachThe research adopts a qualitative meta-analysis methodology using NVivo 12 with selected data from 474 international journal articles published between 1981 and 2021. The study considers 172 IAF articles, 111 IE articles and 191 IBM articles.FindingsThe results of the study show that the use of theories and views of classical Islamic scholars is not widespread among the examined research papers. The findings show that 90% of researchers tend to acquire modern economics, management, psychological and sociological theories instead of classical theories. Both modern and classical theories have been discussed in the studied articles namely agency theory, stakeholders' theory, ḥisbah (accountability), maqāṣid al-Sharīʿah (objectives of Islamic law) and Waʿd (unilateral promise). The gaps prevail not only in the taxonomy of terms but also in the choice of paradigm references. It is found that 66% of the 474 journal articles adopt a positivist paradigm, followed by interpretivism (19%), post-structuralism (9%) and critical orientation (6%).Research limitations/implicationsThis paper considers only ABS ranking journal articles. Future research may consider other journal articles from different ranking groups such as Scopus or Thomson & Reuters.Practical implicationsThe paper sheds light on how Islamic educational institutions can develop strategies for the Integration of Knowledge (IOK) in their curriculum.Social implicationsThis paper helps to shape the Muslims' way of thinking within an Islamic worldview which will lead to an Islamic way of expressing knowledge, skill and behaviour.Originality/valueThis paper contributes to the model of IOK that has been deliberated among Islamic universities, especially those that develop IAF, IE and IBM studies.

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The Genesis of Islamic Economics : Revisited

Cited by 15 publications

References 10 publications

Islamic Finance an alternative mode for short term financing – working capital management

Islamic Finance an alternative mode for short term financing – working capital management

The Integration of Knowledge (IoK) Methodological Approach to Reforming the Development of Islamic Economics, Banking, and Finance (IEBF) in Light of Maqasid (Objectives) and Sustainable Development Goals (SDGs)

Mind the gap: theories in Islamic accounting and finance, Islamic economics and business management studies

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