Global Financial Capital vs. Islamic Concept of Wealth : The Question of Idelogical Dominance

Shamsi

Hyder

2020

JEC

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Purpose There are many entrepreneurial communities in the Asian subcontinent, which are known for their economic resilience and religious orientation but have received limited attention in extant literature. These communities include Memon, Delhiwala, Chinioti, Ismaili and Bohri, which have been persistent in keeping their members economically stable, as many centuries, while also retaining their religio-sociocultural identity. This paper aims to add to the body of literature by documenting the possible factors, which contribute toward advancing socio-economic justice for the members of respective communities. Design/methodology/approach This study uses Eisenhardth research strategy within a social constructivist paradigm to process data from in-depth interviews, memos and documentary sources to explore the internal dynamics of three most prominent of these communities (Memon, Delhiwala and Chinioti) in Pakistan. Findings The findings reveal that the secret to their resilience is, perhaps, rooted in their religio-sociocultural communal norms, which may not just ensure effective wealth redistribution among the deserving segments of the society but may also enable its deserving members to achieve self-reliance through community-supported–entrepreneurial–activity. This study proposes that a culture of community-based–family–entrepreneurship coupled with the spirit of cooperation, sacrifice and reciprocity may eliminate the possibility of socioeconomic injustice. Social implications The religious entrepreneurial communities may be seen as an alternate to free-market or state-driven methods to impart socioeconomic justice where needed. The voluntary inclination of entrepreneurs in such communities to facilitate those in need may, perhaps, reduce or even eliminate the need to involve state intervention to redistribute wealth through taxation, which may also eliminate the cost of the state bureaucracy, which is used for the collection and redistribution of taxes. Originality/value The findings add to the body of literature which could help similar communities to improve their socioeconomic stability in a just manner for all its members. Policymakers can also take notice of the religio-sociocultural norms at the source of socioeconomic justice within the respective communities to formulate policies conducive to sustaining such norms where necessary.

Section: Discussionmentioning

confidence: 99%

Religious entrepreneurial communities as a solution for socioeconomic injustice

Shamsi

Hyder

2020

JEC

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“…The capital which also exists in digital form has, perhaps, found it naturalontologically similaran alley in digital data, both of which act as a catalyst for each other's growth as per their mutually compatible growth capacity. The growth of capital, which exists only as an idea represented by numbers in bank ledgers which are now digital, was otherwise constrained by the laws of physics restricting the growth of physical assets, like conventional brick and mortar firms (Javaid and Suri, 2015). Financial valuation of physical assets removed some of the limitations imposed by the laws of physics as valuation in stock or commodity markets is based on the future demand expectations, not on the basis of quantity or volume of physical assets.…”

Section: The Startup Economymentioning

confidence: 99%

“…There is also epistemological compatibility between digital capital and digital data. Both are pure mathematical quantities, can be processed using mathematical or statistical equations (for example actuarial sciences), therefore, both are purely rational (Javaid and Suri, 2015). Stock markets even use siren servers to determine the value of future stock prices using all kinds of data from around the world (Lanier, 2014).…”

Section: The Startup Economymentioning

confidence: 99%

An Islamic vision and approach for entrepreneurship: developing through a multi-stage comparative analysis of systems, ideologies and code of ethics

2021

IJOES

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Purpose The purpose of this paper is to highlight the Islamic character of entrepreneurial activity along with its systemic, ideological and ethical particularities in contrast to the tech-based entrepreneurial model of Silicon Valley. Design/methodology/approach Hollingsworth’s framework of institutional analysis is used to analyze and compare the institutional design of tech-based entrepreneurship originated in Silicon Valley with the Islamic alternative. Findings An ideal Muslim entrepreneur will have a service-oriented-collectivist mindset, as opposed to an individualistic-self-centric mindset, where solving problems for all stakeholders is a priority instead of profit maximization at the expense of other stakeholders. A Muslim entrepreneur while ensuring the financial sustainability of the firm would avoid complexity on a systemic level, thus would adopt a personalized-family-like atmosphere. A Muslim entrepreneur will also constructively engage local stakeholders and will not possess a disintegrating tendency toward the local social structures. Practical implications The paper can help Muslim entrepreneurs to critically evaluate their entrepreneurial activities and firm design in contrast to the contemporary tech-based model. Originality/value A number of papers already have discussed the features of an Islamic model of entrepreneurship, however, none has done so while sequentially comparing the Islamic alternative with the contemporary model using Hollingsworth’s framework of institutional analysis. In this paper, the resulting model of Islamic entrepreneurship can be clearly evaluated and contrasted, feature by feature, with its tech-based counterpart.

“…Every domain of knowledge is incomplete at any state, therefore, should accept to perpetually evolve; no body of knowledge can claim to be absolute and free from error; c. The most adaptable and fittest (commercializable) domain is expected to survive and excel in a free market; d. Scientific knowledge, therefore, is better than every other forms of knowledge as it never claims to be absolute and continues to evolve while correcting its past mistakes; 2. The modern free market system is the best place for unprecedented growth of knowledge, human potential and economy (Javaid & Suri, 2015); 3. No political authority should direct or contain the growth of knowledge in any direction; 4.…”

Section: Possibility or Impossibility Of Reconciliation Of Islamic Anmentioning

confidence: 99%

“…Like every other domain of knowledge, modern economics is also imperfect; therefore, require perpetual advancement-evolution-to perpetually facilitate evolving requirements of a modern man. Due to dominant capitalist discourse, modern economics is also considered relatively more important than other domains of knowledge (Javaid & Suri, 2015).…”

Section: Sovereignty Of Capital Sovereignty Of Almighty Allahmentioning

confidence: 99%

The Possibility or Impossibility of Islamization of Knowledge in a Neoliberal Market Order

Suri

2020

J. Islam. bus. manag.

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This paper argues that the project of the Islamization of Knowledge (IoK) has overlooked the role of a neoliberal politicoeconomic order in the knowledge production along with the relation between knowledge and the market established by economic liberalization. So the resulting discourse perhaps inadequately explains the incapacity of contemporary application of Islamic economics and finance to provide a viable alternative to western economic systems, let alone solve socioeconomic problems in Muslim countries. This paper will attempt to cover this inadequacy by explaining the relation between mind, knowledge and market as theorized by Hayek, along with Foucault's perspective power-knowledge nexus. The Hayek's and Foucault's perspective on the relation between state, market, mind and knowledge creates an interesting challenge for IoK because it is not only the issue of reconciliation of the spheres of knowledge, rather free unhampered flow of market is also presumably necessary for the growth of human mind and consequently human knowledge as argued by Hayek and Foucault. The neoliberal-state allows free unhampered flow of the market, subsequently creating knowledge in pursuit of continuous capital accumulation. Production of knowledge, therefore, becomes a mechanism to maintain the hegemony of the neoliberal-state and market, while establishing authority of capital on ontological position of man and society. In this context any intervention in the process of IoK under religious obligation is not just an epistemological, rather a moral impossibility within capitalist discourse. The relationship between the neoliberal-state, market and production of knowledge will enable the scholars of Islamic economics and finance to reassess their strategies pertaining to IoK.