The reasons behind the absence of a comprehensive Shariah Governance Framework of Islamic banks in Bangladesh

Purpose: The main objective of the study is to examine the reasons behind the absence of a comprehensive Shariah Governance Framework (SGF) of Islamic banks in Bangladesh. Design/Methodology/Approach: The study has covered 17 respondents through semistructured interviews from the Islamic banks and the Central Bank of Bangladesh with a combination of Shariah supervisory board members, Shariah department executives, Central Bank executives, and banking experts. Findings: Based on findings, this study outlines that the knowledge gap of management, unqualified Shariah supervisory boards members, executives in Central Bank and Islamic banks, and intention of the regulators, policymakers, Shariah experts, government executives, Islamic bankers, Board of directors, stakeholders and civil societies are responsible for the absence of a comprehensive SGF. Practical Implications: The study has significantly contributed to the national regulators, government, and the Central Bank of Bangladesh on the subject for developing a comprehensive Shariah Governance Framework. Originality/Value: The study highlights the reasons for the absence of a comprehensive Shariah Governance Framework which was unexplored for more than 30 years.peer-reviewe

Inventory management systems of small and medium enterprises in Bangladesh

Purpose – Inventory is a crucial part of a systematic supply chain of a business. Small firms mostly neglect inventory management (IM) by accumulating excessive inventory for a time. The study aims to examine the IM practices of small and medium enterprises (SMEs) in Bangladesh. Design/methodology/approach – The study applied a qualitative case study design. Data were collected from ten SME owners in Bangladesh. The study employed a purposive sampling technique to collect data. This study used semi-structured interviews to generate data. The NVivo software was used to analyze the data. Findings – The findings show that most SME business owners collect raw materials from the local market. Along with the local sources, they collect raw materials from international markets. Some SME entrepreneurs collect raw materials throughout the country as they dealt with recycled products. Frequently, they used digital technologies and online media to manage raw materials. SME owners could not buy many raw materials due to financial crisis, wastage, and damage, leading to a ratio of 10–15% losses. Research limitations/implications – This research contributes greatly to the government, SME Foundation, and trade associations concerning the SME IM system. The study recommends the government should reduce the tax rate on importing SME raw materials and inventories and exporting SME products. Originality/value – This is the first study that focuses on the IM systems of SMEs in Bangladesh

THE IMPACT OF EXTRINSIC MOTIVATION AND WORK-LIFE BALANCE ON GENERATION Y’S CONTENTMENT OF PRIVATE SECTORS IN BANGLADESH

Background and Purpose: Generation Y employees often have frequent job dissatisfaction with the private sector, causing job-hopping. The dissatisfaction has been identified as related to the problems in the workplace and family. Due to the fact that the problems have not been much highlighted; hence, this paper aims to investigate the impact of Work-Life Balance (WLB) on Generation Y's job satisfaction in Bangladesh's private sectors.    Methodology: This descriptive case study adopted a quantitative method to reach the research objectives. In this quantitative study, Smart Partial Least Square (PLS) was used to empirically test the model and mediating effects of the extrinsic motivational factors between work-life balance and job satisfaction. Data was collected through survey questionnaires with 24 items adopted from the previous studies; six from work-life balance, six from job satisfaction, and twelve from extrinsic motivation. A total of 500 usable samples were collected randomly from small private entrepreneur industries in Bangladesh. Findings: The results showed a significant positive relationship between work-life balance, job satisfaction, and extrinsic motivation of Generation Y. In the case of ascertaining the mediating effect, the extrinsic factors are substantial. However, the proposed strategies on Gen Y’s job satisfaction and the mediating effects of extrinsic motivational factors have not been investigated either in the Bangladeshi context or any other context.   Contributions: The findings and recommendations of this manuscript are valuable to the relevant parties, especially the stakeholders in the private sectors. The government, leadership, and management are more likely to understand employees' job satisfaction among Generation Y in this study. The outcomes of the research help to formulate and redesign job satisfaction strategies for organizational productivity and overall success. The study contributes to the body of knowledge by identifying the causal relationships of WLB, extrinsic motivational factors, and employees' job satisfaction among Generation Y.    Keywords: Extrinsic motivation, generation Y, job satisfaction, work-life balance.   Cite as: Kabir Bhuiyan, M. M., Hassan, M. M., Alam, M. K., Thakur, O. A., & Nasrin, H. (2023). The impact of extrinsic motivation and work-life balance on generation Y’s contentment of private sectors in Bangladesh.  Journal of Nusantara Studies, 8(1), 1-25. http://dx.doi.org/10.24200/jonus.vol8iss1pp1-2

Shariah supervisory boards of Islamic banks in Bangladesh: expected duties and performed roles and functions

Purpose The main aim of this research is to ascertain the expected duties and performed roles and functions of the Shariah supervisory boards (SSBs) of Islamic banks in Bangladesh. Design/methodology/approach A semi structured face-to-face interview was applied to accomplish the research objectives. In total, data was collected from 17 respondents with a combination of regulators, SSBs, Shariah department executives and experts from the central bank and Islamic banks in Bangladesh. Findings This study finds that the expectations of Islamic banks toward SSB members are to provide opinions on Shariah issues, guidelines and decisions regarding the modern banking, practices and delivering of fatwas on the contemporary issues offered by the management to fulfil the demand of the numerous stakeholders. In addition, they can develop Shariah governance (SG) policies and implement those guidelines, approve and develop new products, observe and monitor banking functions, identify problems and outline solutions as well as they should ensure Shariah principles and compliance. The SSBs members perform roles and functions in monitoring and reviewing overall banking activities and functions; reviewing products, services and contracts; preparing SG guidelines; ensuring Shariah principles and compliance; providing opinions on existing SG practices and finally, delivering Shariah resolutions on the overall functions. Research limitations/implications This study significantly contributed to the national regulatory bodies by providing suggestions that the existing SG system should be improved to enhance the overall monitoring of SSB and ensure more Shariah compliance in the overall operations of the Islamic banks in Bangladesh. Originality/value This is the first research to the best of authors’ knowledge that explores the expected duties and performed roles and functions of the Islamic banks concerning Bangladesh. This study also contributes to the agency, legitimacy and stakeholder theories by outlining the expected and performed roles of SSBs to the Islamic banks and stakeholders

Impact of goodwill on firms’ capital structure in developing countries

Goodwill assets are considered to be a building block to reduce some concerns surrounding the capital structure puzzle. This article investigates goodwill assets as a determinant of firms' capital structure using 4912 listed firms from 23 developing countries. This article applies the two-step system GMM as the main estimation technique because it mitigates the endogeneity problem. Moreover, it applies the Fixed Effect and Random Effect models as robust checks. The results show that goodwill assets are significantly and positively related to firms' capital structure in the two-step system GMM model as well as in the Fixed Effect and Random Effect models. Based on these results, goodwill assets emerge as a potential determinant of capital structure, which implies that goodwill assets could serve as collateral to obtain debt capital

WHY DOES BANGLADESH REQUIRE A CENTRALIZED SHARIAH GOVERNANCE FRAMEWORK FOR ISLAMIC BANKS?

The main objective of this article is to describe the logical reasons why a Centralized Shariah Governance Framework (CSGF) provided by the Central Bank of Bangladesh (Bangladesh Bank) is essential for the country’s Islamic banks. In doing so, it identifies the major regulatory challenges (self-developed and disparate use of Shariah Governance (SG) practices) faced by Islamic banks in Bangladesh. It considers an analytical approach to explore the significance of a CSGF for Islamic banks in Bangladesh and examines the current diversified procedures of SG practices. This article reveals that the self-developed SG practices of Islamic banks in Bangladesh have created confusion and pessimism among the practitioners, bankers and even to the general people and regulators which is negatively affecting the overall image of Islamic banks. Such incongruent governance practices have led to inconsistencies in SG structures, implementation procedures, monitoring activities. In addition, this article reveals that these deficiencies usually exist due to weak monitoring systems of the Central Bank, ineffective functioning of individual Shariah Supervisory Boards (SSB) and the absence of comprehensive SGF. The article argues that the Central Bank of Bangladesh should initiate to reform its Islamic banking industry by introducing a CSGF aimed to identify the roles, responsibilities, powers, and functions of SSB; thereby improving governance, accountability, and overall Shariah compliance quality. This article is hoped to be beneficial for the regulators and practitioners to consider revising current practices.   Keywords: Centralization, Bangladesh Bank, Islamic banks, Shariah governance framework.   Cite as: Alam, M. K., & Thakur, O. A. (2022). Why does Bangladesh require a centralized Shariah governance framework for Islamic banks?  Journal of Nusantara Studies, 7(1), 24-42. http://dx.doi.org/10.24200/jonus.vol7iss1pp24-4