Sharia boards, managerial strategies and governance practices in Islamic banks: a Goffmanesque discourse
Purpose: The study applies Erving Goffman's (1974) “frame analysis” principles to examine how Sharia governance is practiced in Islamic banks and explores the interaction and strategies adopted by bank managers to influence the decisions of Sharia scholars. The study also aims to identify inher...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Emerald Publishing
2023
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| Online Access: | http://psasir.upm.edu.my/id/eprint/115393/ http://psasir.upm.edu.my/id/eprint/115393/1/115393.pdf |
| _version_ | 1848866764896600064 |
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| author | Karbhari, Yusuf Benamraoui, Abdelhafid Sheikh Hassan, Ahmad Fahmi |
| author_facet | Karbhari, Yusuf Benamraoui, Abdelhafid Sheikh Hassan, Ahmad Fahmi |
| author_sort | Karbhari, Yusuf |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Purpose: The study applies Erving Goffman's (1974) “frame analysis” principles to examine how Sharia governance is practiced in Islamic banks and explores the interaction and strategies adopted by bank managers to influence the decisions of Sharia scholars. The study also aims to identify inherent flaws in the Sharia compliance review system. Design/methodology/approach: The study employs the principles of Goffman as a lens to critically analyse a rich dataset obtained through interviews undertaken with 46 key players operating in the governance framework of the Malaysian Islamic banking industry due to its progressive Islamic governance framework. Findings: The study demonstrates that managers of Islamic banks may engage in “passing” and “covering” strategies while interacting within the governance structure. Concurrently, Sharia boards (SBs) implement “protective practices” during their interactions, adding complexity to their responsibilities within the banks. Consequently, SBs cannot merely be viewed as instruments for legitimising banking operations. This raises questions about the “impression management,” “concealment” and “competence” strategies employed by managers and SB members, as suggested by Goffman's framework. These findings indicate that there is room for further enhancement in the governance practices of Islamic banks. Research limitations/implications: Future research could explore aspects related to the governance of Islamic banks, such as investigating the independence and effectiveness of internal Sharia officers. Examining the strategies employed during their interactions with external Sharia boards and other stakeholders could provide further valuable insights. Practical implications: By highlighting shortcomings in the governance and compliance review process, the findings could serve as a valuable resource for policymakers. The insights derived could inform the development of regulations aimed at reducing opportunistic behaviour and promoting accountability in the Islamic banking sector. Originality/value: This study uniquely employs Goffman's concepts of “frontstage” and “backstage” strategies to offer insights into the interactions between Islamic bank managers and SBs and the impact of these interactions on Sharia compliance. The study contributes to the understanding of the dynamics between key players in the governance of Islamic banks and the factors influencing their adherence to Sharia principles. |
| first_indexed | 2025-11-15T14:25:48Z |
| format | Article |
| id | upm-115393 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T14:25:48Z |
| publishDate | 2023 |
| publisher | Emerald Publishing |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1153932025-03-04T02:22:05Z http://psasir.upm.edu.my/id/eprint/115393/ Sharia boards, managerial strategies and governance practices in Islamic banks: a Goffmanesque discourse Karbhari, Yusuf Benamraoui, Abdelhafid Sheikh Hassan, Ahmad Fahmi Purpose: The study applies Erving Goffman's (1974) “frame analysis” principles to examine how Sharia governance is practiced in Islamic banks and explores the interaction and strategies adopted by bank managers to influence the decisions of Sharia scholars. The study also aims to identify inherent flaws in the Sharia compliance review system. Design/methodology/approach: The study employs the principles of Goffman as a lens to critically analyse a rich dataset obtained through interviews undertaken with 46 key players operating in the governance framework of the Malaysian Islamic banking industry due to its progressive Islamic governance framework. Findings: The study demonstrates that managers of Islamic banks may engage in “passing” and “covering” strategies while interacting within the governance structure. Concurrently, Sharia boards (SBs) implement “protective practices” during their interactions, adding complexity to their responsibilities within the banks. Consequently, SBs cannot merely be viewed as instruments for legitimising banking operations. This raises questions about the “impression management,” “concealment” and “competence” strategies employed by managers and SB members, as suggested by Goffman's framework. These findings indicate that there is room for further enhancement in the governance practices of Islamic banks. Research limitations/implications: Future research could explore aspects related to the governance of Islamic banks, such as investigating the independence and effectiveness of internal Sharia officers. Examining the strategies employed during their interactions with external Sharia boards and other stakeholders could provide further valuable insights. Practical implications: By highlighting shortcomings in the governance and compliance review process, the findings could serve as a valuable resource for policymakers. The insights derived could inform the development of regulations aimed at reducing opportunistic behaviour and promoting accountability in the Islamic banking sector. Originality/value: This study uniquely employs Goffman's concepts of “frontstage” and “backstage” strategies to offer insights into the interactions between Islamic bank managers and SBs and the impact of these interactions on Sharia compliance. The study contributes to the understanding of the dynamics between key players in the governance of Islamic banks and the factors influencing their adherence to Sharia principles. Emerald Publishing 2023 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/115393/1/115393.pdf Karbhari, Yusuf and Benamraoui, Abdelhafid and Sheikh Hassan, Ahmad Fahmi (2023) Sharia boards, managerial strategies and governance practices in Islamic banks: a Goffmanesque discourse. Accounting, Auditing and Accountability Journal, 37 (4). pp. 1069-1095. ISSN 0951-3574; eISSN: 0951-3574 https://www.emerald.com/insight/content/doi/10.1108/aaaj-07-2017-3037/full/html 10.1108/aaaj-07-2017-3037 |
| spellingShingle | Karbhari, Yusuf Benamraoui, Abdelhafid Sheikh Hassan, Ahmad Fahmi Sharia boards, managerial strategies and governance practices in Islamic banks: a Goffmanesque discourse |
| title | Sharia boards, managerial strategies and governance practices in Islamic banks: a Goffmanesque discourse |
| title_full | Sharia boards, managerial strategies and governance practices in Islamic banks: a Goffmanesque discourse |
| title_fullStr | Sharia boards, managerial strategies and governance practices in Islamic banks: a Goffmanesque discourse |
| title_full_unstemmed | Sharia boards, managerial strategies and governance practices in Islamic banks: a Goffmanesque discourse |
| title_short | Sharia boards, managerial strategies and governance practices in Islamic banks: a Goffmanesque discourse |
| title_sort | sharia boards, managerial strategies and governance practices in islamic banks: a goffmanesque discourse |
| url | http://psasir.upm.edu.my/id/eprint/115393/ http://psasir.upm.edu.my/id/eprint/115393/ http://psasir.upm.edu.my/id/eprint/115393/ http://psasir.upm.edu.my/id/eprint/115393/1/115393.pdf |