Journal of Finance, Accounting and Management5.1 (Jan 2014)   88-108

EFFECTS OF SPIRITUALITY ON BOARD SERVICE PERFORMANCE IN MALAYSIAN MICROFINANCE FIRMS


Bashir Mande Tsafe and Rashidah Abd Rahman

Abstract  

Management science research suggests a paradigm shift in the direction that embraces not only the drive for profit but also for social and religious responsibilities. Hence, there is call for problem solving approaches to be broadened to incorporate spiritual dimensions. The broad objective of this paper is to explore and analyse the extent Shariah spirituality dimensions explain board service performance in Malaysian microfinance institutions. Data have been obtained from 63 responses of the questionnaire in 4 microfinance organizations. The research findings of determining the extent Shariah spiritual values explain board service performance show the significance of governance mechanism in firms’ development process, the board in Malaysian Islamic microfinance institutions (IMFIs) can play an important role, which is best captured in the assessment of their Shariah spirituality impacts on the service role performance measure that could win the dual objectives of the micro-credit firms. In addition, despite this limitation, being one of the pioneering works in the field, this study contributes to our understanding of the much under-research subject of Shariah spirituality from the Islamic perspective in terms of its application to board performance and its possible impact on poverty alleviation and perhaps IMFIs sustainability in future studies.