We examined the current field identity of Islamic banks and its evolution. We conducted interviews with 44 Sharia (Islamic law) scholars and related professionals in the fields of Islamic and conventional banking, representing nine jurisdictions. We found that Islamic banks are still hybrid organizations belonging to two equally powerful fields of Islamic law (Sharia) and conventional banking. Consequently, Islamic banks abide by two completely different institutional logics. The hybrid identity of Islamic banks resultantly became static due to institutional pressures exerted by both root fields. We discuss how hybrid fields evolve focusing on the conditions that prevent hybrid field identities from becoming independent. We also contribute to the literature on elastic hybrid identity of organizations by theorizing an elastic fatigue model. Finally, we suggest some practical motions to boost the static hybrid identity of Islamic banks and transform it to an elastic one.
AggarwalR. K.YousefT. (2000). Islamic banks and investment financing. Journal of Money, Credit and Banking, 32(1), 93–120. https://doi.org/10.2307/2601094
2.
Al-Nasser MohammedS. A. S.MuhammedJ. (2017). The relationship between agency theory, stakeholder theory and Shariah supervisory board in Islamic banking: An attempt towards discussion. Humanomics, 33(1), 75–83. https://doi.org/10.1108/H-08-2016-0062
3.
BakarM. D. (2002). The Shari’a supervisory board and issues of Shari’a rulings and their harmonisation in Islamic banking and finance. In ArcherS.RifaatA. A. K. (Eds.), Islamic finance: Innovation and growth (pp. 74–89). Euromoney Books and AAOIFI.
4.
BakarM. D. (2016). Shariah minds in Islamic finance. Amanie Media Sdn bhd.
5.
BattilanaJ.DoradoS. (2010). Building sustainable hybrid organizations: The case of commercial microfinance organizations. Academy of Management Journal, 53(6), 1419–1440. https://doi.org/10.5465/amj.2010.57318391
6.
BenfordR. D.SnowD. A. (2000). Framing processes and social movements: An overview and assessment. Annual Review of Sociology, 26, 611–639. https://doi.org/10.1146/annurev.soc.26.1.611
7.
BergerP. L.LuckmannT. (1991). The social construction of reality: A treatise in the sociology of knowledge. Penguin Adult.
8.
BloomfieldR.NelsonM. W.SoltesE. (2016). Gathering data for archival, field, survey, and experimental accounting research. Journal of Accounting Research, 54(2), 341–395. https://doi.org/10.1111/1475-679X.12104
9.
BooneC.ÖzcanS.LiJ. (2021). How are competing logics combined in managerial teams? The impact of branch founding team hybridity on the growth of Islamic bank branches in Turkey, 2002-19. Journal of Management Studies, 59(6), 1460–1492. https://doi.org/10.1111/joms.12788
10.
BoxenbaumE. (2006). Lost in translation: The making of Danish diversity management. American Behavioral Scientist, 49(7), 939–948. https://doi.org/10.1177/0002764205285173
11.
CharmazK. C. (2006). Constructing grounded theory: A practical guide through qualitative analysis. Sage.
12.
CoganD. G. (2008). Corporate governance and climate change: The banking sector. ERA.
13.
CreedW. E. D.ScullyM. A.AustinJ. R. (2002). Clothes make the person? The tailoring of legitimating accounts and the social construction of identity. Organization Science, 13(5), 475–496. https://doi.org/10.1287/orsc.13.5.475.7814
14.
CreswellJ. W. (2013). Research design: Qualitative, quantitative, and mixed methods approaches. Sage.
15.
DalyP.WalshJ. S. (2010). Drucker’s theory of the business and organisations: Challenging business assumptions. Management Decision, 48(4), 500–511. https://doi.org/10.1108/00251741011041319
16.
DavisG. F.ThompsonT. A. (1994). A social movement perspective on corporate control. Administrative Science Quarterly, 39(1), 141–173. https://doi.org/10.2307/2393497
17.
DiMaggioP. J.PowellW. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160. https://doi.org/10.2307/2095101
18.
DjelicM. L. (1998). Exporting the American model: The post-war transformation of European business. Oxford University Press.
19.
DruckerP. F. (1984). Our entrepreneurial economy. Harvard Business Publishing.
20.
DruckerP. F. (2014). Innovation and entrepreneurship. Routledge.
21.
ElamerA. A.NtimC. G.AbdouH. A. (2020). Islamic governance, national governance, and bank risk management and disclosure in MENA countries. Business & Society, 59(5), 914–955. https://doi.org/10.1177/0007650317746108
22.
El-GamalM. A. (2008). Islamic finance: Law, economics, and practice. Cambridge University Press.
23.
ElghuweelM. I.NtimC. G.OpongK. K.AvisonL. (2017). Corporate governance, Islamic governance and earnings management in Oman. Journal of Accounting in Emerging Economies, 7(2), 190–224. https://doi.org/10.1108/JAEE-09-2015-0064
24.
FernsG.AmaeshiK. (2019). Struggles at the summits: Discourse coalitions, field boundaries, and the shifting role of business in sustainable development. Business & Society, 58(8), 1533–1571. https://doi.org/10.1177/0007650317701884
25.
FissP. C.ZajacE. J. (2004). The diffusion of ideas over contested terrain: The (non)adoption of a shareholder value orientation among German firms. Administrative Science Quarterly, 49(4), 501–534. https://doi.org/10.2307/4131489
FriedlandR.AlfordR. R. (1991). Bringing society back In: Symbols, practices, and institutional contradictions. In PowellW. W.DiMaggioP. J. (Eds.), The new institutionalism in organizational analysis (pp. 232–267). University of Chicago Press.
GivenL. (2008). The SAGE encyclopedia of qualitative research methods. Sage.
30.
GlaserB.StraussA. (2000). The discovery of grounded theory: Strategies for qualitative research. Routledge.
31.
GreeneJ. C.CaracelliV. J.GrahamW. F. (1989). Toward a conceptual framework for mixed-method evaluation designs. Educational Evaluation and Policy Analysis, 11(3), 255–274. https://doi.org/10.3102/01623737011003255
32.
GreenwoodR.SuddabyR. (2006). Institutional entrepreneurship in mature fields: The big five accounting firms. Academy of Management Journal, 49(1), 27–48. https://doi.org/10.5465/amj.2006.20785498
33.
GreenwoodR.SuddabyR.HiningsC. R. (2002). Theorizing change: The role of professional associations in the transformation of institutionalized fields. Academy of Management Journal, 45(1), 58–80. https://doi.org/10.5465/3069285
34.
GumportP. J. (2000). Academic restructuring: Organizational change and institutional imperatives. Higher Education, 39(1), 67–91. https://doi.org/10.1023/A:1003859026301
35.
GümüsayA. A. (2020). The potential for plurality and prevalence of the religious institutional logic. Business & Society, 59(5), 855–880. https://doi.org/10.1177/0007650317745634
36.
GümüsayA. A.SmetsM.MorrisT. (2020). “God at work”: Engaging central and incompatible institutional logics through elastic hybridity. Academy of Management Journal, 63(1), 124–154. https://doi.org/10.5465/amj.2016.0481
37.
HarrellM. C.BradleyM. (2009). Data collection methods: Semi-structured interviews and focus groups. RAND Corporation.
38.
HavemanH. A.RaoH. (1997). Structuring a theory of moral sentiments: Institutional and organizational coevolution in the early thrift industry. American Journal of Sociology, 102(6), 1606–1651. https://doi.org/10.1086/231128
39.
HeckathornD. D. (1997). Respondent-driven sampling: A new approach to the study of hidden populations. Social Problems, 44(2), 174–199. https://doi.org/10.2307/3096941
40.
IqbalZ.MirakhorA. (2011). An introduction to Islamic finance: Theory and practice. John Wiley.
41.
JarzabkowskiP.MatthiesenJ.Van de VenA. H. (2009). Doing which work?A practice approach to institutional pluralism. In LecaB.SuddabyR.LawrenceT. B. (Eds.), Institutional work: Actors and agency in institutional studies of organizations (pp. 284–316). Cambridge University Press.
42.
KamlaR.G. RammalH. (2013). Social reporting by Islamic banks: Does social justice matter?Accounting, Auditing & Accountability Journal, 26(6), 911–945. https://doi.org/10.1108/AAAJ-03-2013-1268
43.
KarbhariY.AlamM. K.RahmanM. M. (2020). Relevance of the application of institutional theory in Shariah governance of Islamic banks. PSU Research Review, 5(1), 1–15. https://doi.org/10.1108/PRR-05-2020-0015
44.
KhanM. F. (2007). Setting standards for Shariah application in the Islamic financial industry. Thunderbird International Business Review, 49(3), 285–307. https://doi.org/10.1002/tie.20145
45.
KokA. M.De BakkerF. G. A.GroenewegenP. (2019). Sustainability struggles: Conflicting cultures and incompatible logics. Business & Society, 58(8), 1496–1532. https://doi.org/10.1177/0007650317703644
46.
KraatzM. S.BlockE. S. (2008). Organizational implications of institutional pluralism. In GreenwoodR.OliverC.SuddabyR.SahlinK. (Eds.), The SAGE handbook of organizational institutionalism (pp. 243–275). Sage.
47.
LoewensteinJ.OcasioW. C. (2005). Vocabularies of organizing: How language links culture, cognition, and action in organizations (McCombs Working Paper No. OSSM-03-05). Social Science Research Network.
MalikM. S.MalikA.MustafaW. (2011). Controversies that make Islamic banking controversial: An analysis of issues and challenges. American Journal of Social and Management Sciences, 2(1), 41–46. https://doi.org/10.5251/ajsms.2011.2.1.41.46
50.
MeyerR. D.DalalR. S.HermidaR. (2010). A review and synthesis of situational strength in the organizational sciences. Journal of Management, 36(1), 121–140. https://doi.org/10.1177/0149206309349309
51.
MeyerR. E.HöllererM. A. (2010). Meaning structures in a contested issue field: A topographic map of shareholder value in Austria. Academy of Management Journal, 53(6), 1241–1262. https://doi.org/10.5465/amj.2010.57317829
52.
MillsC. W. (1939). Language, logic, and culture. American Sociological Review, 4(5), 670–680. https://doi.org/10.2307/2083575
53.
MirR.KhanM. (2015). Islamic finance and social justice: A reappraisal. In AliA. J. (Ed.), Handbook of research on Islamic business ethics (pp. 231–245). Edward Elgar Publishing.
MorganD. L. (1998). Practical strategies for combining qualitative and quantitative methods: Applications to health research. Qualitative Health Research, 8(3), 362–376. https://doi.org/10.1177/104973239800800307
57.
MurphyM. J.SmolarskiJ. M. (2020). Religion and CSR: An Islamic “political” model of corporate governance. Business & Society, 59(5), 823–854. https://doi.org/10.1177/0007650317749222
58.
NakpodiaF.ShrivesP. J.SorourM. K. (2020). Examining the link between religion and corporate governance: Insights from Nigeria. Business & Society, 59(5), 956–994. https://doi.org/10.1177/0007650317745852
59.
NigamA.OcasioW. (2010). Event attention, environmental sensemaking, and change in institutional logics: An inductive analysis of the effects of public attention to Clinton’s health care reform initiative. Organization Science, 21(4), 823–841. https://doi.org/10.1287/orsc.1090.0490
60.
OcasioW.JosephJ. (2005). Cultural adaptation and institutional change: The evolution of vocabularies of corporate governance, 1972-2003. Poetics, 33(3), 163–178. https://doi.org/10.1016/j.poetic.2005.10.001
61.
OcasioW.LoewensteinJ.NigamA. (2015). How streams of communication reproduce and change institutional logics: The role of categories. Academy of Management Review, 40(1), 28–48. https://doi.org/10.5465/amr.2013.0274
62.
ParasharS. P.VenkateshJ. (2010). How did Islamic banks do during global financial crisis?Banks and Bank Systems, 5(4), 54–62.
63.
PattonM. Q. (2002). Two decades of developments in qualitative inquiry: A personal, experiential perspective. Qualitative Social Work, 1(3), 261–283. https://doi.org/10.1177/1473325002001003636
64.
PolkinghorneD. E. (1988). Narrative knowing and the human sciences. State University of New York Press.
65.
PowellW. W.DiMaggioP. J. (1991). The new institutionalism in organizational analysis. University of Chicago Press.
66.
PurtikH.ArenasD. (2019). Embedding social innovation: Shaping societal norms and behaviors throughout the innovation process. Business & Society, 58(5), 963–1002. https://doi.org/10.1177/0007650317726523
67.
RammalH. G. (2003). Mudaraba in Islamic finance: Principles and application. Business Journal for Entrepreneurs, 16(4), 105–112.
68.
RammalH. G. (2004). Bending the rules: Guaranteeing profits in the Islamic financial system. Ethics and Critical Thinking Journal, 18(1), 36–42.
69.
RammalH. G. (2006). The importance of Shari’ah supervision in Islamic financial institutions. Corporate Ownership and Control, 3(3), 204–208. https://doi.org/10.22495/cocv3i3c1p5
70.
RammalH. G. (2008). Political motivations: The nationalization of the Pakistani banking sector. Corporate Ownership & Control, 6(2), 342–346. https://doi.org/10.22495/cocv6i2c3p1
71.
RammalH. G. (2010). Islamic finance: Challenges and opportunities. Journal of Financial Services Marketing, 15(3), 189–190. https://doi.org/10.1057/fsm.2010.15
72.
RammalH. G.ParkerL. D. (2013). Islamic banking in Pakistan: A history of emergent accountability and regulation. Accounting History, 18(1), 5–29. https://doi.org/10.1177/1032373212463269
73.
RammalH. G.ZurbrueggR. (2007). Awareness of Islamic banking products among Muslims: The case of Australia. Journal of Financial Services Marketing, 12(1), 65–74. https://doi.org/10.1057/palgrave.fsm.4760060
74.
RaoH.GiorgiS. (2006). Code breaking: How entrepreneurs exploit cultural logics to generate institutional change. Research in Organizational Behavior, 27, 269–304. https://doi.org/10.1016/S0191-3085(06)27007-2
75.
ReayT.HiningsC. R. (2009). Managing the rivalry of competing institutional logics. Organization Studies, 30(6), 629–652. https://doi.org/10.1177/0170840609104803
SafieddineA. (2009). Islamic financial institutions and corporate governance: New insights for agency theory. Corporate Governance: An International Review, 17(2), 142–158. https://doi.org/10.1111/j.1467-8683.2009.00729.x
78.
SalahO. (2010). Dubai debt crisis: A legal analysis of the Nakheel Sukuk. Berkeley Journal of International Law, 4, 19–32.
79.
SamuelsonP. A. (1983). Foundations of economic analysis. Harvard University Press.
80.
SeoM. G.CreedW. E. D. (2002). Institutional contradictions, praxis, and institutional change: A dialectical perspective. Academy of Management Review, 27(2), 222–247. https://doi.org/10.5465/amr.2002.6588004
81.
SikavicaK.PerraultE.RehbeinK. (2020). Who do they think they are? Identity as an antecedent of social activism by institutional shareholders. Business & Society, 59(6), 1228–1268. https://doi.org/10.1177/0007650318762752
82.
SineW. D.DavidR. J. (2003). Environmental jolts, institutional change, and the creation of entrepreneurial opportunity in the US electric power industry. Research Policy, 32(2), 185–207. https://doi.org/10.1016/S0048-7333(02)00096-3
83.
StecklerA.McLeroyK. R.GoodmanR. M.BirdS. T.McCormickL. (1992). Toward integrating qualitative and quantitative methods: An introduction. Health Education Quarterly, 19(1), 1–8. https://doi.org/10.1177/109019819201900101
84.
StraussA.CorbinJ. (1998). Basics of qualitative research: Techniques and procedures for developing grounded theory. Sage.
85.
ThorntonP. H.OcasioW. (2008). Institutional logics. In GreenwoodR.OliverC.SuddabyR.SahlinK. (Eds.), The Sage handbook of organizational institutionalism (pp. 99–128). Sage.
86.
ThorntonP. H.OcasioW.LounsburyM. (2012). The institutional logics perspective: A new approach to culture, structure, and process. Oxford University Press.
87.
UllahM. H.KhanamR.TasnimT. (2018). Comparative compliance status of AAOIFI and IFSB standards. Journal of Islamic Accounting and Business Research, 9(4), 607–628. https://doi.org/10.1108/JIABR-11-2014-0040
88.
ÜnalM. (2009, October26). The small world of Islamic finance Shariah scholars and governance—A network analytic perspective. https://www.iefpedia.com/english/?p=5549
89.
ÜnalM. (2015). The small world of Islamic finance: How good governance can assist in taking the Islamic finance industry to the next level. In HassanM. K.MahlknechtM. (Eds.), Islamic capital markets: Products and strategies (pp. 115–124). John Wiley.
90.
Van BurenH. J.SyedJ.MirR. (2020). Religion as a macro social force affecting business: Concepts, questions, and future research. Business & Society, 59(5), 799–822. https://doi.org/10.1177/0007650319845097
91.
Van WijkJ.ZietsmaC.DoradoS.De BakkerF. G. A.MartíI. (2019). Social innovation: Integrating micro, meso, and macro level insights from institutional theory. Business & Society, 58(5), 887–918. https://doi.org/10.1177/0007650318789104
92.
WasserJ. D.BreslerL. (1996). Working in the interpretive zone: Conceptualizing collaboration in qualitative research teams. Educational Researcher, 25(5), 5–15. https://doi.org/10.3102/0013189X025005005
93.
WeickK. E. (1995). What theory is not, theorizing is. Administrative Science Quarterly, 40(3), 385–390. https://doi.org/10.2307/2393789
94.
WestermannK. D.BedardJ. C.EarleyC. E. (2014). Learning the “craft” of auditing: A dynamic view of auditors’ on-the-job learning. Contemporary Accounting Research, 32(3), 864–896. https://doi.org/10.1111/1911-3846.12107
YitshakiR.KroppF.HonigB. (2021). The role of compassion in shaping social entrepreneurs’ prosocial opportunity recognition. Journal of Business Ethics, 179(2), 617–647. https://doi.org/10.1007/s10551-021-04860-x
98.
YuliansyahY.RammalH. G.MaryaniM.JaisI. R. M.Mohd-SanusiZ. (2021). Organizational learning, innovativeness and performance of financial service firms in an emerging market: Examining the mediation effects of customer-focused strategy. Business Process Management Journal, 27(4), 1126–1141. https://doi.org/10.1108/BPMJ-10-2020-0454
99.
ZajacE. J.WestphalJ. D. (2004). The social construction of market value: Institutionalization and learning perspectives on stock market reactions. American Sociological Review, 69(3), 433–457. https://doi.org/10.1177/000312240406900306
100.
ZilberT. B. (2002). Institutionalization as an interplay between actions, meanings, and actors: The case of a rape crisis center in Israel. Academy of Management Journal, 45(1), 234–254. https://doi.org/10.5465/3069294
101.
ZilberT. B. (2006). The work of the symbolic in institutional processes: Translations of rational myths in Israeli high tech. Academy of Management Journal, 49(2), 281–303. https://doi.org/10.5465/amj.2006.20786073
102.
ZilberT. B. (2011). Institutional multiplicity in practice: A tale of two high-tech conferences in Israel. Organization Science, 22(6), 1539–1559. https://doi.org/10.1287/orsc.1100.0611
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
