Mapping an Islamic venture capital setup using foresight-based social construction approach

Khurram Sharif and Mohd. Nishat Faisal

International Journal of Islamic and Middle Eastern Finance and Management, 2025, vol. 18, issue 4, 787-812

Abstract: Purpose - This study is a pioneering attempt to use the theory of social construction and foresight development to map out an Islamic venture capital (IVC) setup from the key stakeholders’ perspective. Using Prabhat Ranjan Sparker’s theory of social construction, 20 participants (including policymakers, investors, intellectuals and entrepreneurs) were involved in a foresight building workshop related to designing an IVC setup that adhered to Islamic principles and values. Design/methodology/approach - Through the utilization of “future consciousness” tools (including the Polak game, futures triangle and scenario building), key components of an IVC setup were identified. This foresight building methodology not only enhanced the diversity of opinions and wide participation but also helped to examine various discourses and different stakeholder voices. Hence, a multi-stakeholder research approach, based on team presentations, group activities, collective reflections and paper-based simulations, was used. Participants were chosen using purposive sampling, where knowledge and experience about Islamic finance and entrepreneurship were the key selection criteria. A thematic approach was used for data analysis. This enabled summarization of data into organized information structures, which uncovered different perspectives and similar views related to a future IVC setup. Findings - The main study findings revealed an outline of an IVC setup, which was based on seven main stages (i.e. submission of a business proposal for venture capital consideration, review of the proposal by experts, multi-stakeholder decision-making, agreement phase, resource allocation stage, value-sharing equation and impact realization). Another key outcome suggested that low IVC awareness needed addressing through online and offline communication with Muslim and non-Muslim communities. Practical implications - The creation of an effective IVC setup, based on collective feedback from key stakeholders, should play a significant role in the socio-economic development of Islamic economies by providing financial, skills-based and emotional support to Muslim venture capital seekers. Originality/value - In terms of study originality, this is an underdeveloped area limited to theories and propositions. To the best of the authors’ knowledge, there is no study that has provided a blueprint for a future IVC setup in a fast-developing Islamic economy that is based on key stakeholders’ perspective.

Keywords: Islamic venture capital; Foresight development; Key stakeholders; Social construction approach (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

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:imefmp:imefm-03-2024-0141

DOI: 10.1108/IMEFM-03-2024-0141

Access Statistics for this article

International Journal of Islamic and Middle Eastern Finance and Management is currently edited by Dr Syed Aun Raza Rizvi

More articles in International Journal of Islamic and Middle Eastern Finance and Management from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().