Vol 21 (S2), 2018

Regular Articles

Classification of Plant and Animal-Based Glycerin by Using ATR-FTIR: A Rapid Screening Tool Applicable for Halal Cosmetics
Kunthira Salae, Sukrit Sirikwanpong, Sathaporn Ngamukote, Kasinee Katelakha, Vanida Nopponpunth, Winai Dahlan, Chulalongkorn University
Page 1-7   |      Download PDF   |   ABSTRACT PREVIEW


The aim of this study was to develop the rapid method for classification of animal-based glycerin (AG) and plant-based glycerin (PG). Palm, soybean and coconut oil were used for PG production whereas the AG was prepared from lard and chicken fat. All glycerin types were produced according to the biodiesel production process using sodium hydroxide, ethanol and oil. After extraction, crude glycerin was analyzed by Attenuated Total Reflection Fourier Transform Infrared (ATR-FTIR) spectroscopic technique. Our results from cluster analysis revealed that two spectral bands of 864-895 cm-1 and 1,020-1,099 cm-1 were successfully to be used for classification among PG, AG, synthetic and commercial glycerin. Moreover, the ratios of band area of 864-895 cm-1 and 1,062-1,100 cm-1 normalized by that of 1,020-1,060 cm-1 in AG were significantly greater than those of PG. From the study, it can be concluded that plant- and animal-based glycerin can be well classified by using two IR spectral bands from ATR-FTIR analysis. The present technique could be a rapid screening tool for the Halal cosmetic laboratory to screen and monitor the Halalness of the glycerin. This finally increased the Muslim consumers’ spiritual confidence in Halal cosmetic products. 

Glycerin , ATR-FTIR, Halal cosmetics, Halalness

The Journey of Halal Tourism Marketing in Two Neighboring Destinations
Aam Bastaman, Trilogi University
Faridah Hj. Hassan,
Universiti Teknologi MARA
Page 8-24   |      Download PDF   |   ABSTRACT PREVIEW


Halal tourism marketing is growing rapidly in the world of Muslim tourism destinations in particular in Indonesia and Malaysia. Each neighboring country claim as the best halal destination and the most attractive and resourceful of halal tourism. In term of market characteristic both countries have similarity in nature despite there are some differentiated uniqueness and specialties. The challenge is that both countries are close neighbors offering similar competing value of service, so it is felt that the situation is in a very tight competition and rivalries. With the spirit of brotherhood, it should be explored the potential and the advantage of collaboration instead of focusing on rivalry and competition. This research aims firstly to analysis each market journey of halal tourism marketing: ideas, practices, challenges and opportunities, second, to compare and analysis marketing efforts and programs of halal tourism marketing in the two neighboring countries, and third, to analysis the potential of cooperation between the two neighboring countries to maximize its objective achievements and outputs. The method of research is qualitative research approach based on the use and analysis of literature review. Primary data obtained through in depth interview with selected informants. The use of huge secondary data through the previous research and relevant publications are made, collected and studied for deep analysis. Data analysis is made by interpreting interview result and deep analyzing of secondary data available from various resources for the paper discussion and making conclusion. Result of study indicates that halal tourism marketing in each market Indonesia and Malaysia has its own ideas, practices, challenges and opportunities. Even though in both countries Islamic religion is dominant however, there are some unique differences which reflect uniqueness of each market. Indeed, there are huge potentials of cooperation open to support halal tourism marketing in each country. Eventually, cooperation will widen the market and add to market attractiveness. With the spirit of ASEAN in ASEAN Economic Community (AEC) era cooperation effort is hoped to benefit both country rather than competition. Implication of the research is discussed and suggestion for future research is highly recommended. 

Halal tourism marketing, Indonesia-Malaysia, Rivalries, Collaboration, Muslim tourists

Communicating Shari’ah-Compliant Brands of Tourism in Malaysia
Faruk Ahmed, Ahasanul Haque, Kalthom Abdullah, Siti Salwani Razali, International Islamic University Malaysia
Page 25-43   |      Download PDF   |   ABSTRACT PREVIEW


Positive customer-based brand equity entices consumers to buy products or service and the vice versa. Integrated marketing communication can play broader roles in developing conventional and Islamic brand. Fundamentally, Islamic value-based brand image and equity development concept is different from the platform of building image and equity from the contemporary ethical marketing because it is not ethically value-free and free from contemporary ethical value. Islamic value has been added to the contemporary brand image and brand equity concepts and theories as Muslim respondents are questioned on factor statements mixed with conventional and shari’ah-compliant views. From the study, it is revealed that consumer-based brand equity for the shari’ah-compliant tourism of Malaysia was strongly influenced by modern channel based marketing communication through a sequence of two meditators: Islamic country image and shari’ah-compliant tourism brand image, and side by side through the single mediator, shari’ah-compliant tourism brand image; but conventional channel based marketing communication could not produce any significant effects on shari’ah-compliant tourism brand image, Islamic country image, and even on shari’ah-compliant tourism brand equity. Finally, a few effective implications have been identified for building strong customer-based brand equity in terms of advancing shari’ah-compliant tourism of Malaysia, and future research directions are also indicated for the shari’ah-compliant tourism in the Islamic countries according to the scopes of brand equity theory. 

Integrated marketing communication, Shari’ah-compliant tourism, Brand Image, Islamic country image, Brand equity, Malaysia

The Prospect of Outerwear as Modern Office Wear For Muslim Women
Pingki Indrianti, Politeknik Negeri Media Kreatif Jakarta
Oki Kurniawan, Universitas Trilogi
Page 44-55   |      Download PDF   |   ABSTRACT PREVIEW


Number of female workers in formal sector increasing all around Indonesia especially in Jakarta, that include Muslim women (Muslimah) workers wearing Hijab (veil) for daily work activities. Outerwear garment e.g. blazer, suite, and coat, is one of their choice for office wear which gives professional, practical, and stylish look; in additions the loose silhouette assumed to help covering the aurat. Base on that potential this paper aims to explore the prospect and criteria of Outerwear as office wear that made or designed specifically for Muslim workers. Research conducted by distributing questionnaires to 100 respondents to collect preliminary data about Muslim women preferences of wearing Outerwear for daily work activities; then followed by semi structural interview about Outerwear garments regarding to the appropriate Sharia and aesthetic aspect (Fashion Components). Result of this research indicates criteria of Outerwear as Muslim office wear. The criteria include, (1) Silhouette: Loose-fitting, not bulky and practical cuts. (2) Detail: Variant and unique details of sleeves or collar. (3) Texture: Variant ornaments (geometric and flora or Sulur), non-transparent, easy care and comfortable (breathable) fabrics. (4) Colour: Soft and dark colour to create formal image. (5) Market and Consumer: Early majority group. 

Fashion components, Hijab, Muslim fashion, Office wear, Outerwear

Islamic Leadership and Employee Engagement
Faten Nasrah Mohamad Naser, Universiti Teknologi MARA
Erne Suzila Kassim, Sharifah Fazirah Syed Ahmad
Page 56-64   |      Download PDF   |   ABSTRACT PREVIEW


Employee engagement is crucial to organizations as it affects the company reputation and employee’s motivation. Leadership is also being considered as a key factor for the success of any organization. In this study, we attempt examine the relationships between qualities of Islamic leadership and employee engagement. Using a correlational study design, 150 government officers took part in the survey. Data was analysed for factor analysis, reliability and validity. The results of the structural equation modelling suggest Islamic leadership style, measured as truthfulness (Siddiq), trustworthiness (Amanah), advocacy (Tabligh) and wisdom (Fathonah) are significance to employee engagement. The findings contribute to the understanding of emphasizing on the role of Islamic leadership approaches in organization. As leadership styles are important but vary, we suggest future research to evaluate the different leadership requirements for various management needs. 

Islamic leadership, Employee engagement, Leadership style, Human resource management

Determinants Of Demand For Islamic Banking Services: A Survey On Moslem Public Servants In Indonesia
Ni Nyoman Sawitri, Universitas Trilogi
Erie Febrian, Universitas Padjadjaran
Page 65-73 |      Download PDF   |   ABSTRACT PREVIEW


There have been many studies empirically investigating behavior of customers in using Islamic Bank services, particularly in Islamic economies. Nevertheless, there have been no studies conducted to explain behavior of Muslim customers in using the service as a response to Muslim religious leader’s Fatwa, and more conducive regulation. This study is aimed at revealing the determinants of demand for Islamic Banking services in a Muslim environment. This study empirically investigates the decision determinants among moslem public servants in Indonesia in using Islamic Bank services. We study some variables related to general and specific motivations of fulfilling banking needs through Islamic bank. We employ Partial Least Square to answer the research questions. We find that service accessibility, information technology-based product and product knowledge are main concerns of the customers. Religious factors are not significant driver. Government and private sector support are important determinants. 

Islamic Bank service, Public servants

The Influence of Risk Management and Firm Size Towards Profitability of Islamic Banks in Indonesia
Shafira Yustianita, President University
Purwanto, Padjajaran University

Page 74-89   |      Download PDF   |   ABSTRACT PREVIEW


This research aims to identify the influence of risk management and firm size towards profitability. The determinant variables are capital adequacy ratio, non-performing financing, operational efficiency ratio, financing to deposit ratio, reserve requirement, and firm size. This study adopted quantitative research and data from Financial Report of Bank Indonesia in its official website. This study is fixed model effect which is using panel regression technique where those data has tested by normality, autocorrelation, multicollinearity, and heteroscedasticity test. An empirical evidence of this research indicates that CAR, OER, and firm size have partially significant influence towards ROA. FDR and RR have a positive insignificant effect to ROA, while NPF has a negative insignificant impact to ROA. Simultaneously, CAR, NPF, OER, FDR, RR, and firm size have the significant effect to ROA which the value of 91.7% and the remain 8.3% are explained by another factor excluded in this research. 

ROA, CAR, NPF, OER, FDR, RR, Size, Performance, Risk

Inheritance Management : Challenges and Opportunities of Shariah Financial Institutions
Slamet Riyadi Bisri, Batik Islamic University
Page 90- 101   |      Download PDF   |   ABSTRACT PREVIEW


According to a hadiths , inheritance science and knowledge (faraid) is a master of all mu’amalah science in which is usually easy to be forgotten although it is very important. The reality In the society especially in Moslem’s community as in Indonesia in which Moslem community is the majority, the waris (inheritance) management usually is postponed and also to be conducted according to the demand of the inheritors (ahli waris) in which sometimes do not agree or conform with shariah, in general this practice in an aggregate point of view and according to economics principles put a disadvantage on the inheritors due to the decreasing value of the assets which are being distributed. The objectives of the research are : 1). Investigates how the communities distributes property of the deceased in the form of assets . 2). Evaluates how far Islamic Shariah is implemented in the communities and become research objects. 3). Analyze the impacts of inheritance (ditribution) toward capital formations of the inheritors , individuals as well as in the family and its relation to shariah financial institution development. The research design is combination of exploratory, descriptive and causal. Methods to be applied includes : literature study, institutional communications and interviews to dig information. The sampling methods is “convenience purposive sampling”. The qualitative methods is multivariate statistics. Result findings of the research : 1). Inheritance/mawarist management is a very important problem after fulfilling the duty toward a deceases Moslem (bathing, clothing, praying, and burrying), on the otherhand waris management most of the time are posponed for some reasons. 2) Waris problem solving management guides to be reffered is a part of Islamic Legal Compilation (in Indonesia is assigned to a committee by the Government). 3). The research shows that only less than 50 percent Moslems apply the shariah methods due to the lack of understanding among the people. 4). The general conclusion of the empirical findings of this research is that in general assets gained from inheritance are used to elevate the welfare in the form of : housing improvements, buying land, buying business equipments as well as a capital for business or new ventures. Further research and development is recommended in regards to inheritance (waris) management in shariah, in which it should be integrated in Islamic Financial System in the form of wealth management, takaful, shariah financial planning as well as models such as IREIT (Islamic Real Estate Investment Trust). 

Inheritance/waris, Shariah, Faroid, assets, Financial institution, Economic development

Determinants of Intellectual Capital Disclosure : Evidence from Shari’ah Listed Companies
Masturah Ma’in, Wani Najibah Ibrahim, ‘Ismah Osman, Balkis Harris, Universiti Teknologi MARA
Page 102-113   |      Download PDF   |   ABSTRACT PREVIEW


This paper aims to investigate the determinants of intellectual capital disclosure (ICD) in the annual reports of the Malaysian listed Shari’ah approved companies. Using a content analysis, a disclosure index was developed which consists of 31 modified disclosure items to measure the ICD in the 2013 annual reports. The obtained data were analyzed using correlation and regression analysis. This paper also utilizes the ordinary least squares regression analysis to test the relationship between intellectual capital disclosure and company characteristics. The findings show that there is a significant relationship between profitability and intellectual capital disclosure. Although the scope of this study is only limited to one year annual reports for the year 2013, it able to provide a starting point for future research on the issue of transparency and disclosure in Shari’ah approved companies. In addition, the result of this study is expected to give several benefits to the investors and shareholders of listed Shari’ah approved companies, academicians as well as to researchers. 

Intellectual capital disclosure, Shari’ah companies, Malaysia

Exploring the Contemporary Design Concept of Emerging Muslim Designers of Sarawak: Tapping into the Non-Muslims Market
Sharifah Suzanna Wan Shukran , Aiza Johari, Azlina Bujang, Universiti Teknologi MARA
Page 114-1
23   |      Download PDF   |   ABSTRACT PREVIEW


In the past, only one world fashion system was known by fashion enthusiasts and it was normally dominated by the westerners. Today, due to wider Islamic revival movement which involves more fashionable styles, more and more Muslim fashion designers have emerged and their products are often favored by many from around the globe, both Muslim and non-Muslims consumers. This recent interest in Muslim fashion also signals the changing dynamics of the ever-increasing interaction among Eastern and Western cultures (Hanzaee and Chitzas, 2011). As suggested by Easy (2009), fashion goes through a period of great change; hence proper marketing for managing its growth and change is necessary. Moreover, Miremadi et al. (2010) mentioned that fashion marketing is a profitable field to work on, especially when most Muslims demand for Islamic goods and services. Therefore, this paper will explore the concepts of contemporary Muslim fashion designers in Sarawak and to identify their methods in their attempts to tap into non-Muslim markets. The research method involves open-ended interviews with few budding contemporary Muslim fashion designers in Sarawak whom are identified to be able to penetrate the international market (headgear, clothing and accessories). Their views are transcribed and presented in tabulation forms. The significant findings show that Muslim fashion designers need to constantly study the market and upgrade their products so that they will be able to penetrate into international market successfully. 

Contemporary, Design concept, Muslim designers, Non-Muslims market

Optimization of Lard Compound Analysis using Portable Electronic Nose Based upon Response Surface Methodology
Nurul Asyikeen Ab. Mutalib, Irwandi Jaswir, Rini Akmeliawati, Marsad Latief, International Islamic University Malaysia
Fitri Octavianti, Universiti Sains Islam Malaysia
Hassan Alkahthani, King Saud University

Page 124- 131
  |      Download PDF   |   ABSTRACT PREVIEW


Portable Electronic Nose (E-Nose) is a device that mimics human olfactory system and can be carried around for an “on-line” detection of lard in food. The objectives of this study wass to optimize process parameters for the determination of lard detection quantitatively. This study was important to increase the performance of the device in an efficient manner. The optimum conditions for the detection of lard were determined using Historical Data Design in Response Surface Methodology (RSM). This design was used to investigate the effects of the analytical conditions, namely weight (g), temperature (°C) and time (min). These parameters were found to give a positive effect on the sensor response, which plays an important role in the increment of the sensor response. While Analysis of Variance (ANOVA) shows that the selected quadratic model was significant with Fisher value of 40.77, as it adequately represented the data obtained. Moreover, regression analysis showed that 96% of the total variation was successfully explained by the models. Optimum process parameters generated by Design Expert 7.1.5 shown that 0.2g of lard is the minimum weight can be detected at 50°C for 3 minutes. Hence, this study had successfully optimized the process parameters using RSM for the presence of lard adulteration in food. 

Lard, Optimization process, Portable E-Nose, Response surface methodology

The Risks of Consuming Haram Food From Medical Perspectives
Muhammad Yanis Musdja, Islamic State University
Page 132-143   |      Download PDF   |   ABSTRACT PREVIEW


As it is said in the Al-Qur’an, surah Al-Baqarah, verse 168, that consuming food and drink halalanthayyiban is very good for all mankind. The truth of this verse has been proven by scientific research, namely: when a person consumes food that is forbidden in Islam, such as consuming; alcohol, pork, blood, beasts, animals not slaughtered in the name of God and others, causing the person will be susceptible to certain diseases, disorders of character, etc. This should be communicated to all mankind. Therefore, the teachings of Islam is a mercy to all mankind. The objective of this paper is to enhance confidence for the Muslims as well as provide information for non-Muslims about the truth of Islam and the Al-Quran miracle, so people will be more interested for convert to Islam. The observation is based on analysis of SWOT (Strengths, Weaknesses Opportunities, Threats) “Strengths”: Islam is a religion that comes from God, the truth of Islamic teachings is the absolute and there is no iota of doubt to him and Allah has promised to reveal the truth of the verses in every field of science, as it is said in the Al-Qur’an in Surah Fushilat, Verse 53. “Weaknesses”: At this time, The countries that have Muslim majority population is lagging in science and technology. Some people who do not understand the teachings of Islam have prejudice, the cause is Islam. In fact in this case, the cause of Muslims are lagging due to less active and less serious in mastering science and technology. “Opportunities”: As it is said in the Al-Qur’an, Surah Ali Imran, verse 110. Muslims are the best people are born for the humans, ordered to the goodness, and prevent it from evil, and believe in Allah. Therefore, Muslim intellectuals who already know about the scientific truth of the teachings of Islam about the dangers of consuming haram foods. The truth of the teachings of Islam must be disclosed by scientific knowledge. This is a mission that shows the truth of Islam. So it will be more and more people are interested to Islam. “Threats”: People who do not like Islam and the people who do not understand Islam is often said that food and beverages are prohibited in Islam does not have a foundation of scientific knowledge. They said it will only hurt the followers of islam. Whereas in fact, scientific knowledge has proved the truth of the teachings of Islam. That food and beverages are prohibited by God will cause great harm to those who violate it. In conclusion, as promise of Allah in the Al-Qur’an, in Surah Fushsilat, verse 53: That God will reveal the truth the verses in the whole field of science has been increasingly evident. This is most evident with the scientific evidence about the dangers of consuming forbidden foods. This should be communicated to all mankind, because in the Al-Qur’an at Surat Al-Baqorah verse 168: That consuming foods that halalanthayyiban not only for the Muslims, but for the all mankind. This proves that Islam is a mercy for the all mankind. 

The risks of consuming, Haram foods, Fobidden food, Based on medical aspects

Halal Lifestyle Industry, High Growth and Attractive Investment in Indonesia
Sapta Nirwandar, Padjajaran University
Page 144-152   |      Download PDF   |   ABSTRACT PREVIEW


Indonesia is a nation with religious majority of Islamic population. According to Statistics Indonesia (2017), 87.2% from the total of resident of religious Indonesia are Islam or 12.9% from the total of Muslim in World, it means the number of Muslim in Indonesia is the highest of nations in World with number reaching 202.9 million people. The data open the opportunity for tourism. Present condition is now indicating that Indonesia is a nation with number of populations of world largest Muslim. The problem finds to Indonesian Muslim’s that halal is unconsciously required as it is globally required. That’s way many of Indonesian people considered that’s halal is already usual in their daily life. This condition under positive perception all products is already halal. in other way many products of circulating foods and beverages in Indonesia not with halal label. The three mentioned facts are one of its slow cause awareness of public the legitimacy of halal products in Indonesia. Whereas, this is the obligation of producer or company to register its product to protect the consumer of non-halal product. While foreign tourist of Muslim over the world had formed segment of potential market, because of their special pattern in consuming the lawful product. Research used the approach of mixed of method because combination between quantitative and qualitative approach will produce the better understanding. Approach mixed of methods of researches aim to overcome the weaknesses of the quantitative approach and the qualitative approaches. Specifically, reason of researcher uses the approach of mixed of methods in this research, because it produces a number of recommendations as an effort of improvement of planning for development of behavior of Muslim of urban in consuming the halal product. Besides plan of act that is suggested as result of research in the form of responsibility to protect and guarantee of lawful food for Muslim community. However, nowadays these conditions begin to change Indonesian Muslim start to bring halal even in their daily lifestyle. 

Halal lifestyle, Indonesian muslim, Halal products

Incorporating Institutional Theory of Corporate Image Towards Customer Loyalty of Islamic banks
Ismah Osman, Universiti Teknologi MARA
Kalthom Abdullah, Nurdianawati Irwani Abdullah, Ahasanul Haque,
International Islamic University Malaysia
Mohsin Abder Rahman, Al Futtaim Motors
Page 153-173   |      Download PDF   |   ABSTRACT PREVIEW


The importance of corporate image in any organization is undisputable including those of Islamic banks. Many studies on corporate image have been using metaphorical expression in various contexts. The objective of this paper, apparently, is to examine corporate image in Islamic banks based on the institutional theory which incorporates performative image, institutional image, organizational legitimacy and support. Corporate Character Scale was utilized to determine performative image of Islamic banks, while interviews were conducted to identify institutional image. A survey was then employed to study the relationships of corporate image (performative and institutional) on customer loyalty. Findings indicate that institutional image has an impact on performative image, and both of these images influence organizational legitimacy. Surprisingly, attitudinal loyalty does not have an impact on behavioural loyalty. The implication of the study in relation to corporate image is further discussed.