M. Ishaq Bhatti

Islamic banking and finance: on its way to globalization

Purpose – The main objective of this paper is to highlight the unprecedented growth of Islamic banking and finance in the contemporary finance world. It captures the advancements of Islamic banking and finance industry across the tools, systems, sectors, markets and over 75 countries from Africa, Asia, Europe and North America.Design/methodology/approach – The paper deals with the paradigm of Islamic banking and finance. It constitutes a general review that bears special features, facts and figures over the recent developments of Islamic banking and finance across the globe. It takes stock of the growing institutional and infrastructure support for the Islamic banking and finance system in Muslim countries and Western financial markets.Findings – The findings of the paper hold that Islamic banking and finance industry has been making breakthrough improvements to become a truly viable and competitive alternative to conventional systems at the global level. Islamic banking and finance institutions have acqu...

Development in Islamic banking: a financial risk‐allocation approach

Purpose - The core objective of this paper is to direct worldwide attention towards the unparalleled development in Islamic banking, its infrastructures and supporting institutions in recent years. This paper articulates the case for Islamic banking in a very comprehensive and effective manner. It depicts Islamic banking as a growing discipline adding more ethical, competitive and diversified tools and systems into global finance. It highlights the paradigm, theory and practice, achievements, pitfalls and future prospects of Islamic banking. Design/methodology/approach - The paper deals with the Islamic paradigm of borrowing, lending and investment. It presents the conceptual model and practice of Islamic banking. It covers other related issues over the recent development of Islamic banking across the globe. Findings - The paper observes that Islamic banking has made unprecedented progress over recent years. The Middle East, South Asia and the Indian Subcontinent have emerged as hubs of Islamic banking. Western conventional regulators and investors and other agents have also shown a greater interest in and a receptive attitude towards Islamic banking. Despite all this, Islamic banking has been facing some core problems and challenges that will have deep impacts on its future growth and development. Research limitations/implications - The paper deals with concepts, information and other facts on Islamic banking that are not supported by any statistical analysis and empirical evidence. Thus this paper may be regarded as being subjective in its real essence. Originality/value - The paper educates Western market players about Islamic banking tools and systems in their own language so as to bridge the gap between conventional and Islamic banking disciplines. It suggests that Islamic banking is an equity-based system with conventional features. It makes an important point – that the main players from both the Islamic and conventional streams have a good opportunity to pool their expertise and resources to come up with better solutions in business, investment and finance.

An evaluation of ISO 9000 registration practices: a case study of sports goods industry

Recently, ISO 9000 and its associated versions are rapidly becoming a “license to compete” worldwide. Its standards are generic in the way that they can be applied to all functions and all industries in various areas of human endeavor. They have been described as the “one size fits all” standards. In developing countries like Pakistan, adoption and implementation of ISO 9000 quality management system is slow due to lack of awareness and initiatives. The present study is an attempt to analyze different practices of ISO 9000, like its status, problems faced (before, during and after implementations), benefits gained, its impact, certification cost, the next step after ISO’s 9000 certification, critical success factors, the role of training, consultancy, top management support, use of ISO 9000 in the international markets, future prospects and in particular, general practices of ISO 9000 in the Sports Industry of Pakistan. In this study, detailed case studies clearly explain the current status and existing practices of ISO 9000 in the sports industry.

Principal component analysis for grouped data—a case study

Two of the most popular descriptive multivariate methods currently employed are the principal component analysis and canonical variate analysis methods. Canonical variate analysis is the most appropriate technique to use whenever the multivariate data are grouped and to discriminate group differences using multiple variables. Principal component analysis, on the other hand, is used to develop linear combinations that successively maximize the total variance of a sample where there is no known group structure. However, when there are more variables than within-group degrees of freedom, due to the singularity of the within-group covariance matrix, canonical variates cannot be derived. The main aim of this paper is to explore such situations with an example from a biodiversity study and a further computer simulation; principal component analysis can be a viable substitute, if the between-group differences are prominent. Copyright

Why interest‐free banking and finance movement failed in Pakistan

Purpose – The main objective of the paper is to understand the reasons why Islamic banking failed in Pakistan despite lots of efforts being made to implement in contrast to its success in other parts of the world. Design/methodology/approach – The paper is based on a debatable conceptual approach. It provides a longitudinal view of the issue of replacing the interest-based financial system in Pakistan with an interest-free system by taking the religious, socio-economic and political factors of the country. Findings – The findings of the paper hold that piecemeal solutions to eliminate interest from the financial sector of Pakistan could never succeed. It concludes that all intellectual, practical, political, constitutional and legal efforts undertaken in Pakistan to enforce an interest-free system were not meant in earnest and therefore they inflicted serious damage to the cause of Islam as well as Islamic banking. Interest is prohibited in Islam for its exploitative nature. In case of Pakistan, interest institution is not only deep-rooted, but also strongly interlinked with other exploitative tools that are prevalent in the hands of some selected people to keep their control over political, economic and social spheres of Pakistan. There is an indispensable need to eradicate interest along with its allied forces from the polity of Pakistan. The practical success of interest-free banking and finance movement in Pakistan could not be materialized unless the state and polity of Pakistan are not convinced seriously to discover the paradigm of their personal and state institutions based on Islamic guidance and principles. Research limitations/implications – The contents of the paper woven around normative and social disciplines and therefore, it is not possible to devise any statistical model to empirically test the contribution of these socio-economic factors in a failure of interest-free banking and finance movement for future research and any identified limitations in the research process. Originality/value – The paper provides a broarder perspective over the issue of eliminating interest from the national economy and financial sector of Pakistan. The paper figures out some serious political, social and micro and macro economic constraints that should be first sorted out to pave the way for any viable strategy to succeed in replacing the existing system with risk-sharing and alternative interest-free mechanisms. The findings of this paper may be useful for the policy makers, researchers, academicians, financial experts, Islamic Shariah scholars, bankers, regulators, Islamic financial institutions and those Muslim countries who wish to undertake a similar kind of experiment as was attempted in Pakistan. This paper may also help the Western economist to think and debate about an alternative interest-free economic and financial system of Islam.

Review: Recent developments in the organization goals conformance using ontology

Organizational goals serve as the most important achievement target in every organization. Even though some researchers have developed the concept of the organization goals, but structuring the organization goals model is always questionable by the way it is being used. In this paper, we propose ontology to develop a unified model for the organization goals structure. We review the recent literature on the organization modelling and ontology development as an effort to evaluate the organization goals using a metrics for the achievement of the organization goals. We suggest that the metrics is important to identify the relevant organization data in relation to the organization goals conformance. In order to achieve this purpose, we investigate various associated concepts and organize the literature based on the organization goals, organization ontology and metrics model. We observe our proposed models are important for domain experts and entrepreneurs to evaluate the relevant organization data and to assist them in decision making. In summary, the contribution of this survey may serve as a first step in understanding the evaluation of the organization data for the achievement of the organization goals.

An econometric analysis of some major manufacturing industries: A case study

Recently, Bhatti and Khan considered various functional forms to see their suitability in terms of efficiency and competency in assessing production process based on agricultural data. This paper reviews some models recently used in the literature and selects the most suitable one for measuring the production process of 21 major manufacturing industries in Bangladesh. In particular, the paper estimates and tests the coefficients of the production inputs for each of the selected manufacturing industries using Bangladesh Bureau of Statistics annual data over the period 1982‐1983 through 1991‐1992.

Optimal testing for equicorrelated linear regression models

AbstractRecently, Knautz and Trenkler (1993) considered Christensen’s (1987) equicorrelated linear regression model as an example to show that S2 and

Globalization and Firm’s Quality Orientation: a Review of Total Quality Management Practices in Manufacturing Sector

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