GLOBAL FINANCIAL CRISIS: AN ISLAMIC MANAGEMENT APPROACH
Keywords:
Global Financial Crisis, Islamic Management, Faith Values, Tauhid Values.
Abstract
The purpose of this study is to determine the solutions to financial crises based on the perspective of Islamic management. It also discusses the roles of faith and Islamic monotheism in managing the global financial crisis. The qualitative method was used to obtain data from books and articles related to Islamic management based on Qur’an and Hadith. These data were further analyzed and used as a solution to problems related to the global financial crisis by Islamic values. The result showed that the values of faith and monotheism following organizational policy and management tend to minimize financial speculative actions and greed. In addition, these values assist managers in planning, organizing, directing, and supervising their subordinates under Islamic rules and regulations. The application of this value is mainly reflected in the aspects of behavior, organizational aspects, and system aspects through the mechanism of placing the sharia supervisory board and profit-sharing in Islamic financial institutions, simplicity, and avoiding is in organizational management as well as the principle of prudence and avoiding speculative action. This research supports the role of the Islamic management system in winning finances and implementing organizational policies to overcome global financial problems.
JELClassification Codes: G01, H12, D46.
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Willett, T. D. (2012). The role of defective mental models in generating the global financial crisis. Journal of Financial Economic Policy, 4(1), 41–57. https://doi.org/10.1108/17576381211206479
World Bank Group. (2019). Global Economic Prospects, June 2019: Heightened Tensions, Subdued Investment. In The Financial Crisis and the Global South. https://doi.org/10.1596/978-1-4648-1398-6
Zhang, Y. (2018). The US–China Trade War. Indian Journal of Asian Affairs, 31(1/2), 53–74.
Achim, N., Maamor, H., & Rashid, N. (2015). Evaluating Employees’ Commitment in Islamic Work Ethics Perspective. Global Journal of Business and Social Science Review, 3, 247–254.
Agustin, H., & Abdul Rahman, F. (2014). The Cause and Solution of Global Financial Crisis: a Perspective of Islam. Oman Chapter of Arabian Journal of Business and Management Review, 34(2345), 1–7.
Ahmad, K. (2012). Management from Islamic Perspective-. Pearson Custom Publishing.
Ahmed, D. A. (2010). Global financial crisis: an Islamic finance perspective. International Journal of Islamic and Middle Eastern Finance and Management, 3(4), 306–320. https://doi.org/10.1108/17538391011093252
Aliber, R. Z., & Kindleberger, C. P. (2017). Manias, panics, and crashes: A history of financial crises, seventh edition. In Manias, Panics, and Crashes: A History of Financial Crises, Seventh Edition. https://doi.org/10.1007/978-1-137-52574-1
Ascarya. (2013). Solutions to Prevent Financial Crisis in Islamic Economic Perspective: ANP Approach. Proceedings of the International Symposium on the Analytic Hierarchy Process. https://doi.org/10.13033/isahp.y2013.078
Ascarya, A. (2015). Determining the Real Causes of Financial Crisis in Islamic Economic Perspective: ANP Approach. Tazkia Islamic Finance and Business Review, 9, 109.
Bidabad, B. (2019). Ethic Economics, Fair Economy, New Economy, Sustainability and other Related Disciplines. International Journal of Islamic Business & Management, 3(2), 24–29. https://doi.org/10.46281/ijibm.v3i2.278
Brunnermeier, M. (2008). bubbles. In B. Durlauf, Steven and Lawrence E (Ed.), The New Palgrave Dictionary of Economics (2nd ed., pp. 28–36). Palgrave Macmillan, London. https://doi.org/10.1057/9781137553799_5
Carruthers, B. G. (2001). Famous First Bubbles: The Fundamentals of Early Manias. By Peter M. Garber. Cambridge: MIT Press, 2000. 175 pp. Charts, bibliography, index. Cloth, $24.95. ISBN 0-262-07204-1. Business History Review. https://doi.org/10.2307/3116581
Celik, B. (2019). Economic Crisis: Precautionand Solution in Islamic Economics (Book of Proceedings of the International Conference on Islam and Crises Management from Prophetic Guidance jointly organized by Gombe State University).
Dienillah, A. A., Anggraeni, L., & Sahara, S. (2018). Impact of Financial Inclusion on Financial Stability based on Income Group Countries. Buletin Ekonomi Moneter Dan Perbankan, 20(4), 429–442.
Dobre Claudia, I., & Răsăuţeanu Costin, I. (2017). Greed and Global Financial Crisis: Reflections on the Repeal of Glass-Steagall Act. Ovidius University Annals, Series Economic Sciences, 17(1).
Duffie, D. (2019). Prone to fail: The pre-crisis financial system. Journal of Economic Perspectives, 33(1), 81–106.
Jabnoun, N. (1994). Islam and Management. Institut Kajian Dasar (IKD). Retrieved from https://books.google.co.id/books?id=N2I7AAAACAAJ
Kanten, P., Kanten, S., & Gurlek, M. (2015). The Effects of Organizational Structures and Learning Organization on Job Embeddedness and Individual Adaptive Performance. Procedia Economics and Finance. https://doi.org/10.1016/s2212-5671(15)00523-7
Luik, M. T. R., & Fatoni, A. (2018). Revisiting Analysis Of The Root Causes On Financial Crisis In Islamic Perspective. Journal of Islamic Monetary Economics and Finance, 4(1), 39–60.
MALIK, M. S., Ali, H., & Hassan, N. (2017). Issues in Management and Their Remedies in Islamic Perspective. Journal of Philosophy, Culture and Religion, Vol.26, 23–26. Retrieved from https://www.iiste.org
Moghimi, S. M. (2018). Principles and Fundamentals of Islamic Management. Emerald Publishing Limited.
Moghimi, S. M., & Moghimi, S. M. (2018). Organizational Conflict Management in Islamic Management’, Organizational Behavior Management. Emerald Publishing Limited.
Mushtaq, M., Saghir, A. R., Kayani, M., & Bukhari, T. (2014). Islamic Management System and its Application in the 21st Century World. International Journal of Academic Research in Economics and Management Sciences, 3(3), 92–99. https://doi.org/10.6007/IJAREMS/v3-i3/906
Ogunbado, A., & Ahmed, U. (2019). Islamic Ethics of Management: Principles, Standards and Practices. 1, 43–76.
Othman Alhabshi, S., & Minda, I. P. (Eds.). (1998). Islamic management for excellence : revitalizing people for the future / by Syed Othman Alhabshi ... [et al.]. Institut Perkembangan Minda.
Ozsoy, I. (2016). An Islamic Suggestion of Solution to the Financial Crises. Procedia Economics and Finance, 38, 174–184. https://doi.org/10.1016/s2212-5671(16)30188-5
Paré, G., & Kitsiou, S. (2017). Methods for Literature Reviews. In Handbook of eHealth Evaluation: An Evidence-based Approach [Internet]. University of Victoria.
Ramdhani, A., Ramdhani, M., & Amin, A. (2014). Writing a Literature Review Research Paper: A step-by-step approach. International Journal of Basic and Applied Science, 3(1), 47–56.
Rewilak, J. (2018). The impact of financial crises on the poor. Journal of International Development, 30(1), 3–19.
Sanchez Bajo, C., & Roelants, B. (2011). Capital and the debt trap: Learning from cooperatives in the global crisis. Palgrave Macmillan. https://doi.org/10.1057/9780230308527
Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, 104, 333–339. https://doi.org/10.1016/j.jbusres.2019.07.039
Solt, E. (2018). Managing International Financial Crises: Responses, Lessons and Prevention. Crisis Management: Theory and Practice, 135. https://doi.org/10.5772/intechopen.74983
Willett, T. D. (2012). The role of defective mental models in generating the global financial crisis. Journal of Financial Economic Policy, 4(1), 41–57. https://doi.org/10.1108/17576381211206479
World Bank Group. (2019). Global Economic Prospects, June 2019: Heightened Tensions, Subdued Investment. In The Financial Crisis and the Global South. https://doi.org/10.1596/978-1-4648-1398-6
Zhang, Y. (2018). The US–China Trade War. Indian Journal of Asian Affairs, 31(1/2), 53–74.
Published
2021-04-30
How to Cite
Santoso, I. R., & Olilingo, F. Z. (2021). GLOBAL FINANCIAL CRISIS: AN ISLAMIC MANAGEMENT APPROACH. International Journal of Islamic Business & Management, 5(1), 1-11. https://doi.org/10.46281/ijibm.v5i1.1100
Section
Original Articles/Review Articles/Case Reports/Short Communications
Copyright (c) 2021 Ivan Rahmat Santoso, Fahruddin Zain Olilingo
This work is licensed under a Creative Commons Attribution 4.0 International License.
