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Islamic Development Management Noor Zahirah Mohd Sidek • Roshima Said • Wan Norhaniza Wan Hasan Editors Islamic Development Management Recent Advancements and Issues 123 Editors Noor Zahirah Mohd Sidek Roshima Said Department of Economics Research and Industrial Linkages Division Universiti Teknologi MARA Universiti Teknologi MARA Bedong, Kedah, Malaysia Bedong, Kedah, Malaysia Wan Norhaniza Wan Hasan ISDEV Universiti Sains Malaysia George Town, Penang, Malaysia ISBN 978-981-13-7583-5 ISBN 978-981-13-7584-2 (eBook) https://doi.org/10.1007/978-981-13-7584-2 © Springer Nature Singapore Pte Ltd. 2019 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore Foreword In the name of Allah, the Most Gracious, the Most Merciful I feel honoured to be invited to jot down a few words in this Foreword. I am so grateful to witness the Islamic development management field that we pioneered since 1991 at our Centre for Islamic Development Management Studies (ISDEV), Universiti Sains Malaysia, is now taking another step to capture a wider scope, outside ISDEV. In this present book, the scope is widened into the dimensions of good governance, sustainable development, development of waqf and takaful, development of value-based activities, development in fiqh and legal framework, and the development of Islamic principles in other issues. These scopes go beyond our initial scopes at ISDEV, which only focus on just six disciplines, viz. Islamic-based Development, Management of Islamic Assets Development, Management of Islamic Development Institutions, Islamic Service Management, Islamic Political Economy and Islamic Research Methodology. To some, the scopes covered in this present book may be seen as a little bit ‘loose’ as compared to those at ISDEV, but this is understandable. The scopes in this book are meant for an edited book, while those scopes at ISDEV are meant for a set of serious academic disciplines involving postgraduate teaching and learning, and research and consultancies. In other words, the scopes in this book are just the dimensions within the Islamic development management, while the scopes at ISDEV are the disciplines within the Islamic development management. That is the main difference. Nevertheless, the effort of the editors of this book is truly in line with our definition of Islamic development and management. In our endeavour to develop the field of Islamic development management, we redefine development by stretching it beyond the normal socio-economic and politic development per se,to include all aspects of human existence, in as ‘low’ as the development of inner human self, to a higher development of individuals, family, community, states and the universe. At all levels, these are managed by the actors of development—the human beings—in a way that fulfils their principle vertical function as the servants of Allah (hablum-minallah), and their horizontal function as vicegerent of Allah (hablum-minannas). In other words, management is indeed the very function of human creation as the vicegerent of Allah, guided closely by their vertical function v vi Foreword as the servants of Allah. As vicegerent of Allah, human beings are embedded with the very obligations to manage the development of all aspects of human existence, at all levels. In simpler words, Islamic development management can be seen as managing development—in all aspects of human existence and at all levels—in an Islamic way. Indeed, it is a holistic development management. Lastly, I am aware that it is not easy to build a book in a form of an edited one. The challenge may be lesser in building up an edited book that has been designed with solicited articles. However, to choose exactly related articles from conference papers such as in the case of this present book may be more challenging. The editors of this present book, however, seem to some extent have tried to overcome this challenge with an admirable success, especially when the effort is considered as the first of its kind, outside ISDEV. We thank Alah SWT for providing opportunities, assistance and strength in the realisation of the publication of this book. Alhamdulillah. Huge congratulations, editors. George Town, Penang, Malaysia Muhammad Syukri Salleh Former Founding-Director, Centre for Islamic Development Management Studies (ISDEV) Universiti Sains Malaysia Introduction Whilst Islamic economics and finance is a familiar and highly researched topic, Islamic development management has yet emerged from its sheath. Islamic development management arises from the need that not only the development has to be Islamic, but the management of the Islamic development must also follow the fundamental guidelines purported by Islam. To achieve this, both development and its management shall be rooted from Islamic epistemological and ontological underpinnings. As management and development continue to revolutionise, this web of intricate interconnectedness must be well understood to ensure sustainability, growth and equity. Islamic development management is a game-changer for a neoteric development management which transcends political, ethnicity, racial or religious differences. Islamic development management involves rethinking of existing management and development models in the light of Industrial Revolution 4.0, the Internet of Things, cryptocurrency; all of which requires remodelling of existing practices. Nevertheless, digital disruptions may change the way of doing things but the basic principles taught in Islam remain the same which ensures fairness, justice and equity. A future in which ethics and values become a vital part to ensure efficiency in development management would be a welcome development indeed, upending decades of focusing merely on wealth generation and accumulation. As it comprises interconnected disciplines, Islamic development management covers bigger a scope of discourse related to managing the Islamic development. This nature can be seen from the discussions covered in this book. The book is divided into six (6) distinct parts. Part I is the compilation of work to accentuate good governance from the Islamic perspective. Hamdan et al. chapter looks into the management of endowment funds from the perspective of governance structure. Muhamad and Sulong review the pattern of shari’ah governance and its components and highlight how shari’ah governance promotes disclosure of high-quality financial information especially the shari’ah compliant companies. Arshad et al. introduce a new measure of i-CSR. This genuine model is built upon the principles of the maqasid of shari’ah and maslahah. The authors highlighted three important points. First, disclosure was at best, in terms of environment, health vii viii Introduction and market place. Second, protection of wealth is one of the most important dimensions of disclosure and finally, the urgent need to find communication channels to gain more disclosure information. Ahmad and Aziz probes into a new quality management system and hospitality industry, respectively. Ahmad proposed a halal-green concept for building a high-quality management system to ensure sustainability of the system. The author has meticulously outlined the halal and green elements into the quality management system. Aziz studied the issue of Muslim friendly hospitality and concludes that Malaysia is on the right tract but should focus more on the structure of the concept to maximise economic benefits and ensure sustainability. In the same vein, Ibrahim et al. examine the corporate governance–financial performance nexus of local and conventional banks in Malaysia. Interestingly, unlike previous studies, their studies found no relationship between financial performance and corporate governance. Part II of the book delves into the issue of sustainability in Islamic development management. Wan Hasan delves into development of an Islamic sustainability index which utilises the concept of ‘returning to the original fiqh’ approach which constitute the novelty and originality of this chapter. Based on the value-based intermediation (VBI) framework, Ibrahim et al. propose waqf (endowment) as a mediator, linking sustainability and strategic performance

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