The practices of islamic work ethics and its impact towards the business performance and organizational commitment in Small Medium Enterprises (SME) in Selangor
The study proposed to explore the principles of Islamic Work Ethics (IWE) that had been implemented by Small Medium Enterprises in Selangor. It is important for SME industry to have positive management style and business ethics that can link to the religion. Islam stresses the link between business...
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| Format: | Thesis |
| Language: | en_US |
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| Summary: | The study proposed to explore the principles of Islamic Work Ethics (IWE) that had been implemented by Small Medium Enterprises in Selangor. It is important for SME industry to have positive management style and business ethics that can link to the religion. Islam stresses the link between business and religion. It projects a perfect way of life and consider as Ibadah. IWE meet this purpose . Therefore, this study analyse the impact of Islamic Work Ethics towards the business performance and organizational commitment . It will also evaluate how IWE contribute to the development of dawah in SME . In Malaysia , IWE are greatly valued and underlie practised in many organisations . The Malaysia government initiated the implementation of Islamic selected work ethics in public organisation in the early 1980s which were later adapted by the many private sectors. In spirit of their growing importance in the management of current Malaysia organisations, there has been bring little extensive study being conducted among SME’s generally on IWE’s impact particularly in Selangor. SME’s generally are not aware about the important of IWE, and also not recognize the advantages of implementing IWE in their organizations. It is because the influence of IWE in driving SME has been overshadowed by other near trends for managing employees and SMEs business performance. The study approach is focusing on IWEs by using three pillars which are Piety (Taqwa), Moral (Akhlak) and Quality (Itqan) as a foundation of IWE. Also emphasized IWEs as a perspective of dawah in creating SMEs entrepreneur perform the duty as vicegerent of Allah and carry positive impacts to their business growth. In fact, lacking of good practices in SME’s business activities will do harm to the consumers, employees and SMEs organisation itself as many cases occurred itself like cheating or scam , contract dispute , bankruptcy, bad debts, fraud of documents, bribery and others. These happened due to separation between IWE and business which has a negative impact on not only to SMEs industry but also on human lives. A mixed method design was chosen consisting on a qualitative, followed by quantitative. The qualitative research included interpretative content analysis and interview of informant from SMEs management levels and academicians. Quantitative research included correlation analysis from SPSS version 20 from 386 respondents of SME’s in Selangor. In general, the finding of this thesis indicates the significant positive impact on SMEs business performance and job organisational when IWEs being implemented in their organisation. Piety (Taqwa), Moral (Akhlak), and Quality (Itqan) is the high fundamentals in developing IWE criteria. The fearing Allah’s factor in daily SMEs activities and in the process of setting up SMEs business goal, are able to elevate SMEs towards a better performance. Religion , spirituality journey are a mission of why dawah is needed. They are closely related to business performance and cannot be isolated in oder to gear SME businesses to be more pertinent and drive for success. |
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