Islamic organizational leadership within a Western society: the problematic role of external context

This research tests qualitatively the relationship between leadership, organizational culture and organizational effectiveness in Islamic organizations in Australia in the early years of the 21st century. We also researched the contextual challenges faced by Islamic organizations in Western societies during the early years of the 21st century. Qualitative and quantitative data were analyzed qualitatively. Theoretical sampling and theoretical coding generated a positive and negative story-line. A grand narrative of Muslim disenfranchisement and several micro-stories of organizational complexity brought to life the story-lines. One conclusion is that context invariably is problematic for leadership. Another conclusion is that leadership cannot be studied fruitfully out of context. A third conclusion from this substantive setting is that a challenge for Islamic leadership is to reconstitute the context of the organization. An underlying parallel with structure-agency theory is noted. The leadership of Islamic organizations is faced with the traditional leadership challenges found in the extant literature. In addition it must accommodate a problematic external context, a heterogeneous followership, the important role of religion, the influence of Imams, and increasing roles for women and young Muslims. © 2010.

Customer-owned banking in Australia: from credit union to mutual bank

Since the 1990s financial sector regulation in Australia has treated credit unions and building societies the same as banks under the designated title of authorized depository institutions. This allows credit unions to choose between different organizational structures: cooperative; convert to customer-owned banks or to demutualize. This article utilizes semi-structured interviews to analyse the key motivations for organizational change. It examines a number of credit unions and their conversion experience to customer-owned banks. It finds that adaptation of the credit union model was necessary to change customer perceptions, ensure future growth in the customer base and assets, and facilitate access to capital raisings with the credit rating of a bank. Despite this change customer-owned banks retain the core principals of mutuality.

Is the efficient market hypothesis day-of-the-week dependent? Evidence from the banking sector

In this article, we propose a new hypothesis: that the efficient market hypothesis is day-of-the-week-dependent. We apply the test to firms belonging to the banking sector and listed on the NYSE. We find significant evidence that the efficient market hypothesis is day-of-the-week-dependent. Overall, for only 62% of firms, the unit root null hypothesis is rejected on all the five trading days. We also discover that when investors do not account for unit root properties in devising trading strategies, they obtain spurious profits.

Hungry for change: the food banking industry in Australia

Purpose – Over the last 20 years, food banks in Australia have expanded nationwide and are a well-organised “industry” operating as a third tier of the emergency food relief system. The purpose of this paper is to overview the expansion and operation of food banks as an additional self-perpetuating “tier” in the response to hunger.

Design/methodology/approach – This paper draws on secondary data sourced from the internet; as well as information provided by Foodbank Australia and Food Bank South Australia (known as Food Bank SA) to outline the history, development and operation of food banks. Food banking is then critically analysed by examining the nature and framing of the social problems and policies that food banking seeks to address. This critique challenges the dominant intellectual paradigm that focuses on
solving problems; rather it questions how problem representation may imply certain understandings.

Findings – The issue of food banks is framed as one of food re-distribution and feeding hungry people; however, the paper argue that “the problem” underpinning the food bank industry is one of maintaining food system efficiency. Food banks continue as a neo-liberal mechanism to deflect query, debate and structural action on food poverty and hunger. Consequently their existence does little to ameliorate the problem of food poverty.

Practical implications – New approaches and partnerships with stakeholders remain key challenges for food banks to work more effectively to address food poverty.

Social implications – While the food bank industry remains the dominant solution to food poverty in Australia, debate will be deflected from the underlying structural causes of hunger.

Originality/value – This paper contributes to the limited academic literature and minimal critique of the food bank industry in Australia. It proposes that the rapid expansion of food banks is a salient marker of government and policy failure to address food poverty.

The Legacy of Iraq: from the 2003 War to the ‘Islamic State’

In March 2003, a US-led ‘Coalition of the Willing’ launched a pre-emptive intervention against Iraq. The nine long years of military occupation that followed saw an ambitious project to turn Iraq into a liberal democracy, underpinned by free-market capitalism and constituted by a citizen body free to live in peace and prosperity. However, the Iraq war did not go to plan and the coalition were forced to withdraw all combat troops at the end of 2011, having failed to deliver on their promise of a democratic, peaceful and prosperous Iraq. The Legacy of Iraq: From the 2003 War to the ‘Islamic State’ seeks to not only reflect on this abject failure but to put forth the argument that key decisions and errors of judgment on the part of the coalition and the Iraqi political elite set in train a sequence of events that have had devastating consequences for Iraq, for the region and for the world. Today, as the nation faces perhaps its greatest challenge in the wake of the devastating advance of the Islamic State of Iraq and Syria (ISIS) and another US-led coalition undertakes renewed military action in Iraq, understanding the complex and difficult legacies of the 2003 war could not be more urgent. To ignore the legacies of the Iraq war and to deny their connection to contemporary events means that vital lessons will be ignored and the same mistakes will be made.

Conclusion : The Iraq legacies and the roots of the ‘Islamic State’

With the deadly ISIS advance, the sudden rousing of Shia militias and the threat of Kurdish secession, Iraq faces a host of deep-seated and intractable problems. Together, these events raise a number of serious questions, not just for Iraq and its future but also for the broader Middle East, the United States and its Coalition partners and the international community. While these challenges and questions will drive much academic debate, political analysis and media discussion in the months and years ahead, they are not the central purpose of this chapter. While there is always a risk in commenting on unfolding events, including the potential to overstate their significance and likely long-term impact, it is difficult to ignore the significance of the deadly ISIS advance and all that has happened since. This chapter argues that key to understanding these events is coming to terms with the three varied and complex legacies of the 2003 Iraq War. The first central legacy of the Iraq War is the ongoing consequences of several critical mistakes made by the US-led Coalition before, during and immediately after the 2003 intervention. The second legacy addressed here is the fact that the 2003 war shattered – perhaps irreversibly - Iraqis fragile cultural mosaic and its rich and complex history of overlapping and intersecting communities, ideologies and narratives. The third and final legacy of the 2003 Iraq War detailed in this chapter is its significant regional and global consequences – from spiralling sectarianism across the Middle East to a profound challenge to America’s status as the last remaining superpower and its use of military power for ‘humanitarian’ ends. The argument here is that these three important legacies set in train a sequence of events that have served as the collective catalyst for the expansion of the ‘Islamic State’ from mid-2014.

Response to Islamophobia in the Arabic Islamic discourse: a critical discourse analysis

In the aftermath of September 11, Muslim scholars made numerous attempts to explain Islamophobia from the Islamic perspective; they presented arguments that are not addressed in the Western narrative. Two texts in Arabic by the prominent Muslim preacher, Mohammad Hassan and by the Muslim orator Fadhel Sliman are analysed from a Critical Discourse Analysis (CDA) viewpoint. This analysis aims to demonstrate how language is inextricably linked with ideology. This paper demonstrates that textual strategies in the Arabic Islamic discourse and their ideological implications show distinct characteristics some of which add to the present literature on discourse. The aim of the chosen texts is to educate and create solidarity between the speakers and the audience in fighting Islamophobia. The reliance of the speakers on tactics such as quoting from the Holy Qur’ān and ḥadīth to defend Islam, and choice of words and sentence structures may instigate discussions about the persuasive power of the Arabic Islamic narrative.

Islamic or conventional mutual funds: who has the upper hand? Evidence from Malaysia

Contradictory results are documented in the literature regarding which type of mutual fund has superior performance; an Islamic or conventional mutual fund. Due to the relative short history of the Islamic mutual funds' industry, prior literature has inevitably relied on a small sample size with a short sample period. With the longest applicable sample period, this study represents one of the most recent attempts to address this conflicting evidence. We find there is no clear cut over performance by Islamic mutual funds against their conventional peers across the three financial crises in our sample period, with the exception of the most recent global financial crisis, where Islamic mutual funds generally outperformed their conventional counterparts. We further find that Islamic funds significantly outperformed conventional funds in the riskiest asset class, equity, one year before and during the global financial crisis. We further reveal that the modified value at risk for Islamic mutual funds was significantly lower than their conventional peers during the global financial crisis. This seems to indicate that Islamic mutual funds have better risk management compared to conventional peers.

Examining Islamic religiosity and civic engagement in Melbourne

With geopolitical concerns surrounding the rise of militant, transnational groups who draw on Islamic texts for legitimacy, the place of Islam in western societies has become a source of anxiety, fear and suspicion. The central concern is whether Muslims living in the West have the capacity to become fully active citizens. This article uses quantitative and qualitative methods to examine whether Islamic religiosity is a predictor for civic engagement and active citizenship among Muslims living in Melbourne, Australia. The findings show that organized religiosity can be a strong predictor of civic engagement, countering the discourses that demonize Islam as a source of radicalization and social disengagement. While the findings show that suspicion of divisive forces and lack of trust in public institutions might prevent some young Muslims from engaging in formal political participation, grassroots civic engagement enables Muslims to demonstrate care and feel like active citizens of the Australian community without compromising core religious values.

Sectarianism and the prevalence of ‘othering’ in Islamic thought

The current sectarian conflicts in the Middle East did not arise solely from renewed geopolitical rivalries between regional powers. They are also rooted in a solid, theological articulation proposed by classic Islamic political theology. The exclusivist approach, which is a decisive part of the political, social and religious reality of today’s Middle East, benefits from a formidable theological legacy. Coining the notion of ‘othering theology’, this paper not only explores the ideas of leading classical theologians who have articulated a puritanical understanding of faith, but also explicates the politico-historical context in which these theologians rationalised their quarrels. Given the pervasive presence of these theologies in the contemporary sectarian polemics, the study of classical othering theology is highly relevant and, indeed, crucial to any attempt to overcome sectarianism in the region.

When Catholics turn right: the effects of the Islamic terrorism threat on the fragmented Catholic Italian voters

Italy, as well as most European countries, has been hit by a wave of anxiety arising from groups such as ISIS and Al Qaeda, whose effects on political attitudes are still under-examined. This article investigates the effect of the perceived threat of Islamic terrorism as a potential driver for a ‘right turn’ in the Catholic Italian electorate with open-ended interviews and an Internet-based experiment in which voters were randomly assigned to a terrorism threat manipulation and to a control condition (N = 138). The results show that the Islamic terroristic threat significantly increased the support for centre-right leaders who promoted in-group identity and out-group hostility towards Muslims. Implications for the debate about the effects of perceived threat on political opinions and the relevance of the findings beyond the Italian case are discussed at the end of the article.

'This is not our country': Declining diversity in the Islamic Republic of Iran

The expulsion of Christians from Mosul by the Islamic State (IS) in the summer of 2014 marked the first time in nearly 2000 years that the Iraqi city lacked a Christian population.1 Along with the conflict in Syria and the other upheavals that have accompanied the phenomenon variously known as the Arab Spring, al-thawra or the Islamic Awakening, the emigration of Christians from their homes has accelerated in recent years. The Roman Catholic Pope Francis mentioned this during his visit to the region in May 2014, noting that these historic communities, among the oldest in the world, are decreasing to the point where their long-term existence is uncertain. This is because Christians in more stable parts of the Middle East are also leaving. This paper discusses one such example: the continuing emigration of Armenian Christians from Iran. For Iranian Armenians, the main incentive for emigration is the feeling of exclusion and alienation from the wider society. This has largely come about by the Islamic Republic’s promotion of a Shi’a-based Iranian identity which does not count minorities as full citizens. This in turn has led to the development of a sense of foreignness in Iranian society among Armenian youth. The lack of belonging makes their ties to Iran much less solid, and therefore makes migration a much less painful process. Furthermore, their parents, who were raised in the more pluralistic Iran of the last Shah, find it easier to identify as Iranians than their children.

Does financial news predict stock returns? New evidence from Islamic and Non-Islamic stocks

The paper extends the time-series financial news data set constructed by Garcia (2013) and uses it to examine whether financial news predicts returns of Islamic stocks differently compared to non-Islamic (conventional) stocks. We find that they do. First, while both positive and negative worded news predict most Islamic and conventional stock returns, positive words have a larger impact on both types of stock returns. Second, shock to returns from financial news reverses only in part for some stocks. Third, for a mean-variance investor, investing in Islamic stocks is relatively more profitable than investing in the corresponding conventional stocks. Fourth, we show that profits are robust to a range of time-series risk factors, namely, market risk, size-based risk, and momentum-induced risk.