Conceptualizing and examining the critical success factors for implementing Islamic banking system towards banking sector of Iran: A mixed method approach

Document Type : Research Paper

Authors

1 Faculty of Management, University of Tehran, Tehran, Iran

2 Professor of Finance, Faculty of Management, University of Tehran, Iran

3 Assistant Professor of Management, EDC member and Visiting Professor at University of Tehran, Iran

Abstract

Islamic banking, as a major center for financial transactions in Islamic societies,
plays a key role in the development of Islamic economics. The fundamental essence
of Islamic banking system is based on the fact that although, Islam has forbidden the
interest in transactions, but trade and profit is encouraged and supported. The actual
implementation of the Islamic banking system due to its unique features can be the
source of many benefits and advantages for Islamic countries; and it is more
significant when we recognize that the banking sector is the largest body of Iranian
service sector of economy. However, a significant proportion of the banking system
has been Islamized in Iran. Therefore, this study seeks to use empirical evidence to
conceptualize and examine the critical success factors for the implementation of
Islamic banking system in the banking sector of Iran. To achieve this purpose using
mixed method approach, the research framework has been designed and examined.
The required data in the qualitative part of the study were collected after detailed
literature review and research background- through in-depth interviews with
banking executives and academic experts; then the quantitative part of the study for
framework examination was conducted using survey. Based on this study's findings,
the fitted model of critical success factors (CSFs) for successful implementation of
Islamic banking in the banking sector of Iran is proposed. Finally, both applied and
theoretical recommendations and directions are shown in this study.

Keywords

Main Subjects

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Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies)
Volume 8, Issue 3 - Serial Number 3
July
July 2015
Pages 421-452

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