Abstract
The marvelous development in the Islamic banking
necessitates sustainable practices in the emerging industry. This
study intends to ascertain the most followed or usual sustainability
key performance indicators (KPIs) in the Islamic banking industry
of Malaysia and Pakistan. For developing the sustainability KPIs
index, the study follows the systematic steps as highlighted by prior
such studies. The index composed of 109 items in 7 main sections
of sustainability reporting adapted to collect data through content
analysis for 21 Islamic banks from both the countries for the year
2016. Despite significant heterogeneity among the Islamic banks of
the two countries, it is found that they show good compliance with
the sustainability indicators. Though the Islamic banking industry
of Pakistan is small than that of Malaysia, but still it is good in
reporting sustainable practices except for environment and product
responsibility, where the latter has an edge over the former. The study
contributes a theoretical deliverable i.e. sustainability KPIs index for
the Islamic banking industry through testing it with data from 21
Islamic banks from Malaysia and Pakistan. The findings could be
significant for practitioners, regulators, policymakers, and especially
the Islamic banking industry of both countries.
Haseeb Ur Rahman , Muhammad Zahid , Zabeeh Ullah, Muhammad Asif . (2020) Sustainability Key Performance Indicators in Islamic Banking Sectors of Malaysia and Pakistan: A Scale Based Evidence, Journal of Islamic Business and Management, Volume 10, Issue 1.
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