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Does Blending Islamic Finance and Impact Investing Need a Specially Tailored Management Framework? A Literature Study
(1) Muhamad Rizky Rizaldy, (2) Vita Arumsari, (3) Putri Syifa Amalia

(1) Universitas Gunadarma, (2) Politeknik Negeri Semarang, (3) STEI Tazkia


Abstract

The discourse in integrating social and financial functions of Islamic financial institution has emerged as an intellectual critique since it has arguably deviated from the Islamic moral economic expectation. This argument is further supported by the advent of the urgency of combining Islamic finance with impact investing, which should have been in its endogenous facet. We found a number of research papers with well-established theories that Islamic financial and economic institutions, as distinct organizations, require a distinct management framework to be able to achieve their multidimensional purposes. This paper argues that a hybrid organizational management framework could be the most appropriate existing framework to be utilized regarding mission drift and dysfunctional effect that might happen within the hybrid organizations. Hence, this paper provides notion for leaders to develop hybrid organizations in terms of time needed for leaders to develop, selective criterion in hiring, different types of organizational structures, and the need of new parameter.

Keywords: Islamic management; Islamic leadership; Islamic financial institution; Social impact; Hybrid organization; Impact investing

Topic: Islamic Management and Leadership

Link: https://ifory.id/abstract/mbU6NM842xZV

Conference: THE 4th ANNUAL ISLAMIC FINANCE CONFERENCE (AIFC 2019)

Plain Format | Corresponding Author (Muhamad Rizky Rizaldy)

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