IDEAS home Printed from https://ideas.repec.org/a/aac/ijirss/v6y2023i4p1041-1049id2396.html
   My bibliography  Save this article

The impact of Islamic banks’ resilience and culture on market share: Evidence from Muslim countries in MENA and ASEAN

Author

Listed:
  • Andi Ayu Frihatni
  • Abdul Hamid Habbe
  • Syarifuddin Rasyid
  • Nadhirah Nagu

Abstract

This study examines whether the resilience of Islamic banks, measured using competitiveness, diversification, capitalization, and credit risk, affects market share. In particular, culture captured using Hofstede’s dimension is also included. This study covers a broader spectrum of Muslim countries in MENA and ASEAN. It used a sample of 82 Islamic banks with six years of data from 16 countries. The nexus between variables was tested using a fixed effect model. This study also employed robustness and sensitivity analysis. The empirical results show that the resilience of Islamic banks under market competitiveness plays a positive role in market share. Market competitiveness tends to lead to an increase in the level of market share; otherwise, diversification, capitalization, and credit risk are not found to influence. This study also finds that culture significantly positively affects market share. It demonstrates that the more individualistic the culture in a nation, the more likely the market share will increase. Based on the result, this study provides additional insight that the resilience dimension through Islamic banks’ competitiveness has the significant role in supporting the increase of market share. At the same time, culture is a considerable dimension in driving the improvement of market share.

Suggested Citation

  • Andi Ayu Frihatni & Abdul Hamid Habbe & Syarifuddin Rasyid & Nadhirah Nagu, 2023. "The impact of Islamic banks’ resilience and culture on market share: Evidence from Muslim countries in MENA and ASEAN," International Journal of Innovative Research and Scientific Studies, Innovative Research Publishing, vol. 6(4), pages 1041-1049.
    • Handle: RePEc:aac:ijirss:v:6:y:2023:i:4:p:1041-1049:id:2396
    as

    Download full text from publisher

    File URL: https://ijirss.com/index.php/ijirss/article/view/2396/412
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aac:ijirss:v:6:y:2023:i:4:p:1041-1049:id:2396. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalie Jean (email available below). General contact details of provider: https://ijirss.com/index.php/ijirss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.