Investigating the effects of using the balanced scorecard on Islamic banks' performance
type: CreativeWork
description: Background: Islamic Banking follows the principles and rules of Islamic dealings; it is also governed by Sharia Law and thus adheres to stringent Sharia rules and principles. The operations of such banks are in conjunction with Islamic teachings and therefore it is compulsory that they be in harmony with the Sharia agreements. Over the last three decades, Islamic Banking has experienced global growth and now covers almost all business areas in the banking industry. On the other hand, conventional banking relies on the principle of the debtor-creditor relationship. The first relationship is between the depositors and the bank, while the second relationship exists between the borrowers and the bank. Interest is the price of credit, which reflects the opportunity cost of money. Unlike Islamic banking, conventional banks have been intensively researched by scholars from different fields, including planning, performance, modelling and economic conditions. Aims and Objectives: The aim of the present study was to establish the impact of strategic planning on the performance of Islamic Banking. More specficically, the main purpose of this study was to examine the effect of implementing the Balanced Scorecard model on the performance of Islamic banks in Bahrain. The research covered the impact of articulating the vision and the mission of Islamic banks on their performance, and also looked at the effect of communicating the vision and mission to all stakeholders on the banks' performance. Finally, the research also assessed the impact of setting strategic goals and objectives and developing strategic implementation and feedback mechanisms on the performance of Islamic banks. Methodology: With a view to achieving the above-mentioned objectives, the study involved a detailed review of available literature on strategic management performance tools. This review considered the pros and cons of available models, and concluded that the Balanced Scorecard is the most suitable model …
abstract: Background: Islamic Banking follows the principles and rules of Islamic dealings; it is also governed by Sharia Law and thus adheres to stringent Sharia rules and principles. The operations of such banks are in conjunction with Islamic teachings and therefore it is compulsory that they be in harmony with the Sharia agreements. Over the last three decades, Islamic Banking has experienced global growth and now covers almost all business areas in the banking industry. On the other hand, conventional banking relies on the principle of the debtor-creditor relationship. The first relationship is between the depositors and the bank, while the second relationship exists between the borrowers and the bank. Interest is the price of credit, which reflects the opportunity cost of money. Unlike Islamic banking, conventional banks have been intensively researched by scholars from different fields, including planning, performance, modelling and economic conditions. Aims and Objectives: The aim of the present study was to establish the impact of strategic planning on the performance of Islamic Banking. More specficically, the main purpose of this study was to examine the effect of implementing the Balanced Scorecard model on the performance of Islamic banks in Bahrain. The research covered the impact of articulating the vision and the mission of Islamic banks on their performance, and also looked at the effect of communicating the vision and mission to all stakeholders on the banks' performance. Finally, the research also assessed the impact of setting strategic goals and objectives and developing strategic implementation and feedback mechanisms on the performance of Islamic banks. Methodology: With a view to achieving the above-mentioned objectives, the study involved a detailed review of available literature on strategic management performance tools. This review considered the pros and cons of available models, and concluded that the Balanced Scorecard is the most suitable model …
author: AlSatrawi, AH
language: en
date published: 2017
date modified: 2026-07-24T06:30:54Z
provider: Nottingham Trent University
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Nottingham Trent University