Adaptation of new institutional theory in Shariah governance practice, structure and process

Alam, M. K., Karbhari, Yusuf ORCID: https://orcid.org/0000-0003-4513-0928 and Rahman, M. D. 2021. Adaptation of new institutional theory in Shariah governance practice, structure and process. Asian Journal of Business Environment 11 (1) , pp. 5-15. 10.13106/jbees.2021.vol11.no1.5

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Abstract

Purpose: The study aims to delineate Shariah Governance Framework (SGF) by applying the components of New Institutional Theory (NIT) to provide an understanding of how Islamic banks theoretically influence Shariah Governance (SG) practice, structure, and process. Design/methodology/approach: As it is a conceptual paper, this paper has prepared based on an analytical approach to show how such institutions could provide a more effective system concerning the contents, procedures, and practices for the multiple users in the SG process of Islamic banks. Findings: The paper critically explores the adoption of NIT to develop SGF with its existing practice, structure, and procedure. Utilizing NIT, a proposed theoretical framework has developed for exploring the SG through its major components, i.e., 'isomorphism' and 'legitimacy'. It is stated that NIT can offer a useful framework by which homogenous structures, comprising guidelines, standards, and practices become recognized and authorized as a satisfactory standard corporate exercise. Thus, the proposed theoretical framework would be beneficial in understanding and exploring the SGF. Conclusion: The application of this SGF could help to justify the key dimensions of NIT with its overall formation, function, and practices that might also help to attain legitimacy.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
ISSN:	2765-6934
Date of First Compliant Deposit:	15 February 2023
Date of Acceptance:	5 January 2021
Last Modified:	19 Feb 2024 17:00
URI:	https://orca.cardiff.ac.uk/id/eprint/156973

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