IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v14y2023i2d10.1007_s13132-022-00933-y.html
   My bibliography  Save this article

Investigation on the Effects of Customer Knowledge, Political Support, and Innovation on the Growth of Islamic Banking System: a Case Study of Pakistan

Author

Listed:
  • Maira Abrar

    (Konkuk University)

  • Sohail Abbas

    (Department of Geography, Konkuk University)

  • Shazia Kousar

    (Lahore College of Women University (LCWU))

  • Muhammad Mushtaq

    (Imperial College of Business Studies)

Abstract

This study aims to investigate the impact of customer knowledge, political support, and innovative advancement on the development of Islamic bank. There is a strong microeconomics ground of Islamic financing for the economy-wide conduct of good monetary issues, and issues including the procedure structure. Islamic bank clients limit the dangers related to premium-based obligation financing, and simple credit, which tormented regular banks amid the sub-prime home loan emergency. In short, when there will be sufficient knowledge and information about the Islamic banking services and products, then it will help to develop the Islamic banking system, and similar is the case for advanced innovations. Meanwhile, strong political support can also play an influential role in the development of the Islamic banking system. This study collects the data through self-administered survey from managers of Islamic banks located in the Lahore region. The results of regression analysis are obtained through SPSS. The findings revealed that customer knowledge, innovations, and political support positively and significantly influence the growth of Islamic banks in Pakistan. In other words, good knowledge, innovations, and political support can result in more Islamic banking system development. Conclusively, general monetary development of Islamic banking in Muslim nations will drive the development of Islamic money-related administrations, prompting further in Sharia-consistent system.

Suggested Citation

  • Maira Abrar & Sohail Abbas & Shazia Kousar & Muhammad Mushtaq, 2023. "Investigation on the Effects of Customer Knowledge, Political Support, and Innovation on the Growth of Islamic Banking System: a Case Study of Pakistan," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 946-965, June.
    • Handle: RePEc:spr:jknowl:v:14:y:2023:i:2:d:10.1007_s13132-022-00933-y
    DOI: 10.1007/s13132-022-00933-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-022-00933-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-022-00933-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hasan, Zubair, 2008. "Credit creation and control: an unresolved issue in Islamic banking," MPRA Paper 8130, University Library of Munich, Germany, revised 07 Apr 2008.
    2. repec:eme:mfppss:v:34:y:2008:i:9:p:618-643 is not listed on IDEAS
    3. Masudul Alam Choudhury, 2006. "Islamic macroeconomics?," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 33(2), pages 160-186, February.
    4. Zubair Hasan, 2008. "Credit creation and control: an unresolved issue in Islamic banking," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 1(1), pages 69-81, April.
    5. Maher Hasan & Jemma Dridi, 2011. "The Effects Of The Global Crisis On Islamic And Conventional Banks: A Comparative Study," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 163-200.
    6. Ghulam Rasool Memon, 2007. "Education In Pakistan: The Key Issues, Problems And The New Challenges," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 3(1), pages 3-5.
    7. Masudul Alam Choudhury & Mostaque Hussain, 2005. "A paradigm of Islamic money and banking," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 32(3), pages 203-217, March.
    8. Arby, Muhammad Farooq, 2004. "State Bank of Pakistan: Evolution, Functions and Organization," MPRA Paper 13614, University Library of Munich, Germany.
    9. repec:eme:hppsss:08288660610703320 is not listed on IDEAS
    10. Christos Alexakis & Alexandros Tsikouras, 2009. "Islamic finance: regulatory framework – challenges lying ahead," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 2(2), pages 90-104, June.
    11. Zubair Hasan, 2008. "Credit creation and control: an unresolved issue in Islamic banking," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 1(1), pages 69-81, April.
    12. Abdus Samad, 2004. "Performance Of Interest-Free Islamic Banks Vis-À-Vis Interest-Based Conventional Banks Of Bahrain," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 12(2), December .
    13. Roman Salmerón Gómez & José García Pérez & María Del Mar López Martín & Catalina García García, 2016. "Collinearity diagnostic applied in ridge estimation through the variance inflation factor," Journal of Applied Statistics, Taylor & Francis Journals, vol. 43(10), pages 1831-1849, August.
    14. Mariani Abdul-Majid & David Saal & Giuliana Battisti, 2011. "The impact of Islamic banking on the cost efficiency and productivity change of Malaysian commercial banks," Applied Economics, Taylor & Francis Journals, vol. 43(16), pages 2033-2054.
    15. Christos Alexakis & Alexandros Tsikouras, 2009. "Islamic finance: regulatory framework – challenges lying ahead," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 2(2), pages 90-104, June.
    16. Ghulam Rasool Memon, 2007. "Education In Pakistan: The Key Issues, Problems And The New Challenges," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 3(1), pages 47-55.
    17. Christos Alexakis & Alexandros Tsikouras, 2009. "Islamic finance: regulatory framework – challenges lying ahead," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 2(2), pages 90-104, June.
    18. Jaffar Abbas & Iftikhar Hussain & Safdar Hussain & Sabahat Akram & Imrab Shaheen & Ben Niu, 2019. "The Impact of Knowledge Sharing and Innovation on Sustainable Performance in Islamic Banks: A Mediation Analysis through a SEM Approach," Sustainability, MDPI, vol. 11(15), pages 1-25, July.
    19. Zubair Hasan, 2008. "Credit creation and control: an unresolved issue in Islamic banking," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 1(1), pages 69-81, April.
    20. Nasrin Shahinpoor, 2009. "The link between Islamic banking and microfinancing," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 36(10), pages 996-1007, August.
    21. Muhammad Naeem Anjum & Bi Xiuchun & Jaffar Abbas & Zhang Shuguang, 2017. "Analyzing predictors of customer satisfaction and assessment of retail banking problems in Pakistan," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1338842-133, January.
    22. Rao, Akshay R & Monroe, Kent B, 1988. "The Moderating Effect of Prior Knowledge on Cue Utilization in Product Evaluations," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 253-264, September.
    23. Masudul Alam Choudhury & Md. Mostaque Hussain, 2005. "A paradigm of Islamic money and banking," International Journal of Social Economics, Emerald Group Publishing, vol. 32(3), pages 203-217, March.
    24. Nasrin Shahinpoor, 2009. "The link between Islamic banking and microfinancing," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 36(10), pages 996-1007, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hassan, M. Kabir & Aliyu, Sirajo, 2018. "A contemporary survey of islamic banking literature," Journal of Financial Stability, Elsevier, vol. 34(C), pages 12-43.
    2. Shabnam A. Shaikh & Anna-Maija Lämsä & Suvi Heikkinen, 2023. "Collaborative Leadership in the Institution of Higher Education: A Sociocultural Context of Pakistan," South Asian Journal of Business and Management Cases, , vol. 12(1), pages 65-80, April.
    3. Muhammad Niqab & Janet Hanson & Arthur Bangert & Sathiamoorthy Kannan & Sailesh Sharma & Abdul Ghaffar & Muhammad Shujaat Mubarik, 2020. "Measuring Intellectual Capital in Schools in the Developing Country of Pakistan," International Journal of Learning and Development, Macrothink Institute, vol. 10(1), pages 1-34, March.
    4. Muhammad Niqab & Janet Hanson & Arthur Bangert & Sathiamoorthy Kannan & Sailesh Sharma & Abdul Ghaffar, 2019. "Measuring Organizational Citizenship Behaviors (OCB) in Secondary Schools in Pakistan and a Comparison with Factors of a School Growth Mindset Culture," International Journal of Learning and Development, Macrothink Institute, vol. 9(2), pages 83-115, June.
    5. Muhammad Hatim & Zerish Tasleem & Muhammad Nadeem, 2022. "The Influence Of Education And Health On Rural Household Poverty: A Moderating Role Of Culture In Punjab, Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 120-133, June.
    6. Tariq Mahmood & Najam us Saqib & Muhammad Ali Qasim, 2017. "Parental Effects on Primary School Enrolment under Different Types of Household Headship: Evidence from Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 56(3), pages 249-264.
    7. Shahid Naeem & Chunxiang Cao & Khunsa Fatima & Omaid Najmuddin & Bipin Kumar Acharya, 2018. "Landscape Greening Policies-based Land Use/Land Cover Simulation for Beijing and Islamabad—An Implication of Sustainable Urban Ecosystems," Sustainability, MDPI, vol. 10(4), pages 1-22, April.
    8. Nasrin Akhter & Muhammad Naseer Ud Din & Abdul Majeed Khan, 2018. "The Mathematics Elementary School Teachers' Perceptions of the Student-Centered Approaches and Professional Learning Experiences," Global Social Sciences Review, Humanity Only, vol. 3(4), pages 87-101, December.
    9. Kifayat Khan & Munir Khan & Abdur Rashid, 2019. "Identification of Factors Undermining the TeachingLearning Process in the Subject of Physics at Secondary Level in Pakistan," Global Regional Review, Humanity Only, vol. 4(3), pages 425-435, September.
    10. Mukhtar Ahmed & Tariq Mahmood & Muhammad Amin Ghuman & Khalil Ur Rehman Wain, 2013. "Assessing the Quality of Examination System; Aseessment Techniques Employed at Higher Education Level in Pakistan," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 2, March.
    11. Othman, Norfaizah & Abdul-Majid, Mariani & Abdul-Rahman, Aisyah, 2017. "Partnership financing and bank efficiency," Pacific-Basin Finance Journal, Elsevier, vol. 46(PA), pages 1-13.
    12. Sadia Idrees & Nor’Aznin Abu Bakar, 2018. "Public Investment in Social Sector in Pakistan: Trends and Issues," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 6(4), pages :600-611, December.
    13. Dawood MAMOON & Muhammad Rabbi AHSAN, 2017. "Short Term versus Long Term Economic Planning in Pakistan: The Dilemma," Journal of Economics Library, KSP Journals, vol. 4(1), pages 30-40, March.
    14. Aamna Khalid, 2016. "A Study of the Attitudes and Motivational Orientations of Pakistani Learners Toward the Learning of English as a Second Language," SAGE Open, , vol. 6(3), pages 21582440166, August.
    15. Izzeldin, Marwan & Johnes, Jill & Ongena, Steven & Pappas, Vasileios & Tsionas, Mike, 2021. "Efficiency convergence in Islamic and conventional banks," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 70(C).
    16. Jan Alam & Muhammad Azeem Ashraf & Samson Maekele Tsegay & Nadia Shabnam, 2022. "Early Childhood between a Rock and a Hard Place: Early Childhood Education and Students’ Disruption in Khyber Pakhtunkhwa Province, Pakistan," IJERPH, MDPI, vol. 19(8), pages 1-17, April.
    17. Kifayat Khan & Munir Khan & Abdur Rashid, 2020. "Identification of Factors that Undermine the Teaching-Learning Process in the Subject of Physics at Secondary School Level," Global Regional Review, Humanity Only, vol. 5(1), pages 243-254, March.
    18. Khan Tauseef & Ahmad Waqar & Rahman Muhammad Khalil Ur & Haleem Fazal, 2018. "An Investigation of the Performance of Islamic and Interest Based Banking Evidence from Pakistan," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 9(1), pages 81-112, May.
    19. Alexakis, Christos & Izzeldin, Marwan & Johnes, Jill & Pappas, Vasileios, 2019. "Performance and productivity in Islamic and conventional banks: Evidence from the global financial crisis," Economic Modelling, Elsevier, vol. 79(C), pages 1-14.
    20. Hafsa Fayyaz & Zainab Rauf & Umm-e-Kalsoom & Tanzila Samin, 2014. "Major Issues of Education Sector in Pakistan," International Journal of Academic Research in Progressive Education and Development, Human Resource Management Academic Research Society, International Journal of Academic Research in Progressive Education and Development, vol. 3(4), pages 361-376, October.

    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:spr:jknowl:v:14:y:2023:i:2:d:10.1007_s13132-022-00933-y. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.