Abstract:Purpose
This study aims to examine the role of financial management practices, which consist of financial disclosure, internal control, financial planning and budgeting and financial performance on Islamic social enterprises’ (ISEs) accountability.
Design/methodology/approach
Questionnaires were administered to financial officers of 102 Malaysian ISEs. Findings were analysed using Smart-PLS to examine the relationships between financial management practices and accountability.
Findings
Results of this stud… Show more
“…Sampling techniques such as stratified random sampling or cluster sampling could be employed to ensure representativeness. Primary and secondary data would be collected to analyze the impact of financial management practices on firm performance (Kamaruddin & Auzair, 2023). Primary data collection could involve surveys, interviews, or structured questionnaires administered to key personnel, such as CFOs or finance managers, within the selected manufacturing firms.…”
This study aims to examine the impact of financial management practices on the performance of firms operating in the manufacturing sector in Indonesia. In this study, we collected data from a number of manufacturing companies in Indonesia and analyzed the relationship between financial management practices and key performance indicators such as profitability, liquidity, and solvency. The findings of this study indicate that effective financial management practices have a positive impact on the performance of companies in the manufacturing sector in Indonesia. Disciplined and measurable budgeting practices have been shown to significantly contribute to increased profitability. Careful and regular financial analysis also helps companies identify performance trends, measure operational efficiency, and make better decisions. Furthermore, efficient working capital management practices have a positive impact on the liquidity of companies. Companies that are able to manage inventory effectively and implement prudent credit policies tend to have healthy cash flow and avoid liquidity problems. Additionally, making smart investment decisions based on thorough analysis also contributes to improved solvency. Companies that carefully consider risks and potential returns in investment decision-making have a healthier capital structure and are better able to meet their financial obligations. The findings provide a better understanding of the importance of effective financial management practices in enhancing the performance of companies in the manufacturing sector in Indonesia.
“…Sampling techniques such as stratified random sampling or cluster sampling could be employed to ensure representativeness. Primary and secondary data would be collected to analyze the impact of financial management practices on firm performance (Kamaruddin & Auzair, 2023). Primary data collection could involve surveys, interviews, or structured questionnaires administered to key personnel, such as CFOs or finance managers, within the selected manufacturing firms.…”
This study aims to examine the impact of financial management practices on the performance of firms operating in the manufacturing sector in Indonesia. In this study, we collected data from a number of manufacturing companies in Indonesia and analyzed the relationship between financial management practices and key performance indicators such as profitability, liquidity, and solvency. The findings of this study indicate that effective financial management practices have a positive impact on the performance of companies in the manufacturing sector in Indonesia. Disciplined and measurable budgeting practices have been shown to significantly contribute to increased profitability. Careful and regular financial analysis also helps companies identify performance trends, measure operational efficiency, and make better decisions. Furthermore, efficient working capital management practices have a positive impact on the liquidity of companies. Companies that are able to manage inventory effectively and implement prudent credit policies tend to have healthy cash flow and avoid liquidity problems. Additionally, making smart investment decisions based on thorough analysis also contributes to improved solvency. Companies that carefully consider risks and potential returns in investment decision-making have a healthier capital structure and are better able to meet their financial obligations. The findings provide a better understanding of the importance of effective financial management practices in enhancing the performance of companies in the manufacturing sector in Indonesia.
Purpose
This study aims to develop a comprehensive framework for Islamic social entrepreneurship (ISE) by synthesizing Islamic principles and social entrepreneurship concepts, bridging the gap between theory and practice.
Design/methodology/approach
Using a systematic literature review, this study focuses on scholarly works published from 1992 to 2023, uses thematic analysis and engages with subject experts to craft a framework for ISE.
Findings
The study identified 39 sub-dimensions grouped into 13 core dimensions. These findings highlight the multifaceted impact on ISE, emphasizing its commitment to ethical, socially responsible practices and achieving lasting social impact through collaborative, innovative approaches guided by Islamic principles.
Research limitations/implications
Limitations include regional focus, lack of longitudinal data and absence of quantitative testing for the framework. Future research should expand scope, use quantitative analysis and explore gender dynamics, policy implications and standardized impact metrics to enhance the framework’s robustness.
Practical implications
The study’s comprehensive framework aids ISE practitioners in aligning their ventures with Islamic ethics and social impact. As interest in ISE grows, particularly in Muslim-majority contexts, this research facilitates the integration of Islamic values into social entrepreneurship, addressing pressing societal challenges.
Originality/value
This study contributes to the field of ISE by proposing a meticulously crafted framework that synthesizes Islamic principles and social entrepreneurship concepts. It stands out as a unique endeavor that bridges the gap between theory and practice in ISE, offering practical guidance while enriching the scholarly discourse on the subject.
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