Accounting, religion and organisational culture: the creation of Jordan Islamic Bank

Bassam Maali and Christopher Napier

Journal of Islamic Accounting and Business Research, 2010, vol. 1, issue 2, 92-113

Abstract: Purpose - The paper seeks to examine the cultural factors that shaped the creation of one of the earliest Islamic banks, discussing the tensions that arise between religious and economic aims. Design/methodology/approach - The paper is a case study of a historically significant institution. The information on which the paper is based was obtained through interviews with participants in the process being analysed, review of archived documents, and observation. Edgar Schein's theory of organisational culture and leadership is employed to provide theoretical structure for the analysis. Findings - The paper shows that creating a new type of organisation – an Islamic bank – in Jordan required special legislation. A study of the development of this legislation reveals that the bank's founder needed to convince both the religious and political authorities and potential investors that the bank would comply withShari'aprinciples while at the same time generating profitable business. The outcome was to validate transactions that wereShari'a‐compliant in form but similar in substance to those of conventional banks. Research limitations/implications - The paper examined one bank, and the findings are not necessarily representative of the experience of other Islamic financial institutions. Social implications - The research highlights the problems faced in establishing businesses that seek to follow the moral and economic teachings of Islam. The paper contributes to the ongoing debate about whether it is possible to establish genuinely Islamic businesses within a conventional economy. Originality/value - This is the first detailed academic study of the creation of an Islamic financial institution to make use of a wide range of documentary and oral evidence, including interviews with insiders.

Keywords: Islam; Banking; Jordan; Financial reporting (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jiabrp:17590811011086705

DOI: 10.1108/17590811011086705

Access Statistics for this article

Journal of Islamic Accounting and Business Research is currently edited by Dr Mohammad Hudaib and Prof Roszaini Haniffa

More articles in Journal of Islamic Accounting and Business Research from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().