IDEAS home Printed from https://ideas.repec.org/a/gei/journl/v8y2021i1p22-35.html
   My bibliography  Save this article

Do Islamic Principles moderate the Interaction between Human Resource Practices and Islamic Banking Performance in Pakistan?

Author

Listed:
  • Danish Iqbal Godil, Muhammad Usman, Naveed Naseem Siddiqui

    (Dar-ul-Madina International University)

Abstract

The purpose of this research is to investigate the reflection of human resource (HR) practices on organizational performance by utilizing the Islamic principle as a moderating variable. The sample of the research roams around the Islamic banks of Karachi, Pakistan. The convenience sampling technique has been used to gather the responses of 242 employees working in Islamic banks. Whereas, structural equation modeling was used to study the data. The overall result of the study concluded that few human resource practices are correlated with organizational performance while sharing the positive relation such as performance appraisal system, employee involvement, and selection & recruitment. The moderating effect of the application of Islamic principles results showed that compensation and performance appraisal contribute towards overall improvement however, training & development, and selection & recruitment contribute towards the reduction of organizational performance due to the application of Islamic principles. The research suggests that the HR practices are crucial for the overall organization's success therefore, the mangers at Islamic banks must put extra effort into designing the selection process that best matches the requirement of the job. The relevant job information to employees will help them performing job duties according to the management’s expectations. Lastly but importantly, managers should follow the application of Islamic principles in providing monetary benefits to the employees as it will become a pure source of motivation and active participation from the employees.

Suggested Citation

  • Danish Iqbal Godil, Muhammad Usman, Naveed Naseem Siddiqui, 2021. "Do Islamic Principles moderate the Interaction between Human Resource Practices and Islamic Banking Performance in Pakistan?," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 8(1), pages 22-35, March.
    • Handle: RePEc:gei:journl:v:8:y:2021:i:1:p:22-35
    as

    Download full text from publisher

    File URL: http://geistscience.com/JMS/Issue1-21/Article8/JMS-2108102.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Madison, Kristen & Daspit, Joshua J. & Turner, Kyle & Kellermanns, Franz W., 2018. "Family firm human resource practices: Investigating the effects of professionalization and bifurcation bias on performance," Journal of Business Research, Elsevier, vol. 84(C), pages 327-336.
    2. Ilhaamie Abdul Ghani Azmi, 2010. "Islamic Human Resource Practices And Organizational Performance: A Preliminary Finding Of Islamic Organizations In Malaysia," Journal of Global Business and Economics, Global Research Agency, vol. 1(1), pages 27-42, July.
    3. Sarstedt, Marko & Ringle, Christian M. & Smith, Donna & Reams, Russell & Hair, Joseph F., 2014. "Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 105-115.
    4. Mohammadnoor Khaled M. AL-Qudah & Abdullah Osman & Mohd Suberi Ab Halim & Hamza Ali Al-Shatanawi, 2014. "The Effect of Human Resources Planning and Training and Development on Organizational Performance in the Government Sector in Jordan," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(4), pages 79-85, April.
    5. Alvaro Cristiani & José M. Peiró, 2019. "Calculative and collaborative HRM practices, turnover and performance," International Journal of Manpower, Emerald Group Publishing Limited, vol. 40(4), pages 616-642, February.
    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. Fábio Frezatti & Diógenes Souza Bido & Daniel Magalhães Mucci & Franciele Beck & Ana Paula Capuano Cruz, 2023. "The Impact of the Management Control System on the Family Business’ Intention to Maintain the Organization for Future Generations," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1145-1176, June.
    2. Nour El Houda Ben Amor & Mohamed Nabil Mzoughi, 2023. "Do Millennials’ Motives for Using Snapchat Influence the Effectiveness of Snap Ads?," SAGE Open, , vol. 13(3), pages 21582440231, July.
    3. Ioana Gutu & Daniela Tatiana Agheorghiesei & Alexandru Tugui, 2023. "Assessment of a Workforce Sustainability Tool through Leadership and Digitalization," IJERPH, MDPI, vol. 20(2), pages 1-30, January.
    4. Al-Baraa Abdulrahman Al-Mekhlafi & Ahmad Shahrul Nizam Isha & Nicholas Chileshe & Mohammed Abdulrab & Anwar Ameen Hezam Saeed & Ahmed Farouk Kineber, 2021. "Modelling the Relationship between the Nature of Work Factors and Driving Performance Mediating by Role of Fatigue," IJERPH, MDPI, vol. 18(13), pages 1-17, June.
    5. Baier-Fuentes, Hugo & Andrade-Valbuena, Nelson A. & Huertas Gonzalez-Serrano, Maria & Gaviria-Marin, Magaly, 2023. "Bricolage as an effective tool for the survival of owner-managed SMEs during crises," Journal of Business Research, Elsevier, vol. 157(C).
    6. Asif Khan & Chih-Cheng Chen & Kwanrat Suanpong & Athapol Ruangkanjanases & Santhaya Kittikowit & Shih-Chih Chen, 2021. "The Impact of CSR on Sustainable Innovation Ambidexterity: The Mediating Role of Sustainable Supply Chain Management and Second-Order Social Capital," Sustainability, MDPI, vol. 13(21), pages 1-25, November.
    7. Diego Norena-Chavez, 2022. "Influence of SARS-CoV-2 on the Mediating Effect of Entrepreneurial Passion in the Relationship between Entrepreneurial Self-Efficacy and Innovative Behavior," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 125-139.
    8. Chen, Shih-Chih & Hung, Chung-Wen, 2016. "Elucidating the factors influencing the acceptance of green products: An extension of theory of planned behavior," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 155-163.
    9. Mahadzirah Mohamad & Asyraf Afthanorhan* & Zainudin Awang & Morliyati Mohammad, 2019. "Comparison Between CB-SEM and PLS-SEM: Testing and Confirming the Maqasid Syariah Quality of Life Measurement Model," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(3), pages 608-614, 03-2019.
    10. Hsien-Tsung Chang & Nilamadhab Mishra & Chung-Chih Lin, 2015. "IoT Big-Data Centred Knowledge Granule Analytic and Cluster Framework for BI Applications: A Case Base Analysis," PLOS ONE, Public Library of Science, vol. 10(11), pages 1-23, November.
    11. Hock-Doepgen, Marianne & Clauss, Thomas & Kraus, Sascha & Cheng, Cheng-Feng, 2021. "Knowledge management capabilities and organizational risk-taking for business model innovation in SMEs," Journal of Business Research, Elsevier, vol. 130(C), pages 683-697.
    12. Cliff R. Kikawa & Charity Kiconco & Moses Agaba & Dimas Ntirampeba & Amos Ssematimba & Billy M. Kalema, 2022. "Social Media Marketing for Small and Medium Enterprise Performance in Uganda: A Structural Equation Model," Sustainability, MDPI, vol. 14(21), pages 1-20, November.
    13. José Roberto Frega & Alex Antonio Ferraresi & Carlos Olavo Quandt & Claudimar Pereira da Veiga, 2018. "Relationships Among Knowledge Management, Organisational Innovativeness and Performance: Covariance-Based Versus Partial Least-Squares Structural Equation Modelling," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-19, March.
    14. Arnd Kölling & Claus Schnabel, 2022. "Owners, external managers and industrial relations in German establishments," British Journal of Industrial Relations, London School of Economics, vol. 60(2), pages 424-443, June.
    15. Debicki, Bart J. & Kellermanns, Franz W. & Chrisman, James J. & Pearson, Allison W. & Spencer, Barbara A., 2016. "Development of a socioemotional wealth importance (SEWi) scale for family firm research," Journal of Family Business Strategy, Elsevier, vol. 7(1), pages 47-57.
    16. R.M. Thirupathi & S. Vinodh, 2016. "Application of interpretive structural modelling and structural equation modelling for analysis of sustainable manufacturing factors in Indian automotive component sector," International Journal of Production Research, Taylor & Francis Journals, vol. 54(22), pages 6661-6682, November.
    17. Seif Obeid Al-Shbiel, 2016. "An Examination the Factors Influence on Unethical Behaviour among Jordanian external auditors: Job Satisfaction as a mediator," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(3), pages 285-296, July.
    18. Ana León-Gómez & José Manuel Santos-Jaén & Daniel Ruiz-Palomo & Mercedes Palacios-Manzano, 2022. "Disentangling the impact of ICT adoption on SMEs performance: the mediating roles of corporate social responsibility and innovation," Oeconomia Copernicana, Institute of Economic Research, vol. 13(3), pages 831-866, September.
    19. Maria Abdul Rahman* & Yusniza Kamarulzaman, 2018. "The Mediating Effect of Satisfaction on Customer Loyalty in Oursourcing Relationships and its Determinants," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 1062-1074:6.
    20. Kaur, Puneet & Dhir, Amandeep & Bodhi, Rahul & Singh, Tripti & Almotairi, Mohammad, 2020. "Why do people use and recommend m-wallets?," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).

    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:gei:journl:v:8:y:2021:i:1:p:22-35. 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: Imtiaz ARIF (email available below). General contact details of provider: https://geistscience.com/JMS/index.php .

    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.