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Prof. Emeritus Dr. Mohamed Sulaiman Advisor

World Academy of Islamic Management Editor-in-Chief

Prof. Dr. Khaliq Ahmad

International Institute of Islamic Thought and Civilization International Islamic University Malaysia, Malaysia Assistant Editor

Dr. Mohamed Noordeen Mohamed Imtiyaz Graduate School of Management

International Islamic University Malaysia, Malaysia Editorial Executive Committee

Prof. Dr. Khaliq Ahmad (International Islamic University Malaysia, Malaysia)

Prof. Emeritus Dr. Mohamed Sulaiman (Advisor, World Academy of Islamic Management) Prof. Dr. Faridah Hj Hassan (Universiti Teknologi MARA, Malaysia)

Prof. Dr. Rafikul Islam (International Islamic University Malaysia, Malaysia) Dr. Ismael AbuJarad (Istanbul Aydin University, Turkiye)

Dr. Waqas Farooq (Lahore Muslim University, Pakistan)

Dr. Abdul Kadir Othman (Universiti Teknologi MARA, Malaysia)

International Advisory Board

Prof. Dr. Shamim Ahmad (Aligarh Muslim University, India) Prof. Abbas J. Ali (Indiana University, USA)

Prof. Dr. Zaid Ansari (Qassim University, Saudi Arabia) Prof. Dr. Rafik Beekun (University of Nevada, USA)

Prof. Dr. Arif Hassan (Formerly, International Islamic University Malaysia, Malaysia) Prof. Dr. Wilson Jonathan (Editor-in-Chief, Journal of Islamic Marketing, UK)

Prof. Dr. Azhar Kazmi (King Fahad University of Petroleum and Minerals, Saudi Arabia) Prof. Dr. Badia Perizade (Univasitas Srivijaya, Indonesia)


1 Editorial Board

Dr. Muhamad Abduh (Universiti Brunei Darussalam, Brunei) Dr. Afroza Bulbul Afrin (International Open University, Gambia) Dr. Forbis Ahmad (Management and Science University, Malaysia) Prof. Dr. Nawab Ahmad (Aligarh Muslim University, India)

Dr. Selim Ahmed (World University of Bangladesh, Bangladesh) Dr. Tariq Alharfi Albluwi (MMIS Management Consultants, Jordan)

Dr. Syed Ahmad Ali (University of Management and Technology, Pakistan) Dr. Azilah Anis (Universiti Teknologi MARA, Malaysia)

Dr. Aam Bastaman (Universitas Trilogi, Indonesia) Dr. Omar Bhatti (Istanbul Medipol University, Turkiye) Dr. Achmad Ferdaus (Tazkia University, Indonesia)

Dr. Ridhwan Fontaine (International Islamic University Malaysia, Malaysia) Dr. Norkhairiah Pengiran Hashim (Universiti Islam Sultan Sharif Ali, Brunei)

Prof. Dr. A.K.M. Ahasanul Haque (International Islamic University Malaysia, Malaysia) Dr. Isnurhadi (Univasitas Srivijaya, Indonesia)

Dr. Senny Luckyardi (Universitas Komputer, Indonesia) Dr. Jasman Makruf (Univasitas Aceh, Indonesia)

Dr. Adamu AbuBakar Muhammad (Federal University of Kashere Gombe State, Nigeria) Dr Nazlida Muhamad (Universiti Brunei Darussalam, Brunei)

Dr. Julie Mursida (Universitas Malikus Salih, Indonesia) Dr. Purwanto (President University, Indonesia)

Dr. Teuku Shaddiq Rosan (Universitas Syiah Kuala, Indonesia)

Dr. Marhanum Mohd. Salleh (International Islamic University Malaysia, Malaysia) Dr. Wahyu Eka Sari (Universitas Syiah Kuala, Indonesia)

Prof. Dr. Suhaimi Mhd Sarif (International Islamic University Malaysia, Malaysia) Dr. Tahir Sufi (Amity University, India)

Dr. Mohamad Talha (Prince Muhammad Bin Fahd University, Saudi Arabia) Dr. Muhammad Taufik (Universitas Internasional, Indonesia)

Dr. Salken Teurwahong (University of Pennsylvania, USA)


Table of Contents

Editorial Notes 1-2


Sustainable Development And The Shift From A Green To A Blue Economy: 3-16 An Islamic Discourse

Dr. Othman at Twijery

The State-Owned Islamic Banks Merger: Empirical Evidence from Indonesia 17-41 Hendri Hermawan Adinugraha & Abdurrahman Wahid

Implementation of Information Technology at Sharia Insurance

Institutions Bsi Pekalongan 42-54

Khairul Anwar, Lukman Hakim, Hendri Hermawan Adinugraha,

& AM Muh Hafidz Ma’shum

Systems Thinking, Archetypes, and Management: An Exploratory Study. 55-70 Rodrigue Fontaine

Book Review

Strategic Management from an Islamic Perspective 71-72

Amjath Jamal bin Saikh Abdul Kader


1 Editorial Notes

This is another achievement of JIMS to be published on time. There are five contributions, four articles and one book review, to this first issue of Volume 6 of the year 2023 of Islamic Management Studies. This issue of JIMS has special focus on Islamic banking and finance including risk management. All the four papers expand the frontier of intellectual insights by offering advancements and solutions to the contemporary challenges faced by either in financing, risk sharing or technological aspects in handling from the Islamic perspectives of financial management. The book review contributes to the existing literature on the subject matter which are of high significance as well as practical relevance in the field of strategic management and theories as one of the important functional areas of any organizational top management.

The first article discusses issue of today’s relevance of green economy which must be free from contamination for the sake of sustainability. Accordingly, the green economy focuses on reducing the environmental risk in a given consumption–production link to achieve sustainable development that improves and maintains the environment. The emergence of an ecological scarcity of land resources is forcing the world’s economies to explore and exploit maritime resources without destroying their environmental sustainability and demonstrates the shift from a green economy to a blue economy. The blue economy’s prime objective is also to increase economic growth, the standard of living and social inclusion without disturbing the environmental balance. The World Bank Group and the United Nations (UN) (2017) describe the blue economy as a concept that seeks to promote economic growth, social inclusion and the preservation or improvement of livelihoods while ensuring environmental sustainability of the oceans and coastal areas. This has direct relevance to the issue of business financing and solution from Islamic perspective.

The second articles covers issues of productivity and efficient management of Islamic financial services. In authors’ opinion, Islamic banks in Indonesia has an important role to strengthen and improve the efficiency of the existing state-owned Islamic banks. However, the success of any merger plans of existing banks must be supported by many factors which include analysis of readiness, strategy, and policies. Presently there are several main problems faced by the behavior of state-owned Islamic banks in Indonesia. These problems include limited capital, high cost of funds, and the condition of Islamic banking which generally experiences excess liquidity. In authors’ opinion over the past two years, the Islamic finance industry has faced quite complex challenges especially in Indonesia. This study concludes that the merger of state-owned Islamic banks in Indonesia is carried out to increase effectiveness and efficiency in encouraging the development of banking in Indonesia which is larger and has good competitiveness. This merger has proven to be the right step towards creating a bigger Islamic bank in Indonesia and internationally. The real impact of the merger model in Indonesia has been proven to be able to grow the MSME segment in an integrated ecosystem and value chain. The joining of three state- owned Islamic banks which turned into Bank Syariah Indonesia also had a positive impact on customers, employees, and the people of Indonesia. The impact of mergers on the development of the sharia economy has also proven positive because new entities born from the action of this merger model have resulted in the addition of asset values, resources, and capital as drivers of economic growth both nationally and internationally.


The third article deals with the application of ICT in modern risk management and insurance (Takaful) business. The authors are of the view that technology is currently running very fast and Sharia’ compliant insurance institution is no exception to this that has also implemented information technology in its management system. The purpose of this study was to determine the utilization and analysis of information technology at the Islamic insurance institution BSI Pekalongan. The results of the resaerch show that BNI Life Syariah Insurance uses a web-based information system and BNI Life mobile application as the main information system for customer service which is customary in nature.

The fourth article discusses the systems thinking belonging to a school of management that emerged in the 1950s. The premise underpinning this school is that modern organizations are complex and that conventional approaches to management ignore that complexity. Complexity refers to interdependencies between components of a system. In this light, this study explores how a group of MBA students responded to positive and negative systems archetypes. The study concludes that such knowledge will help Muslim managers in the future.

The book reviewd is a unique in the sense to offer an alternative approach to startegic management from the Islamic perspective. This book is based on a simple premise. This world would be a better place if business strategists applied Islamic principles when developing their strategic plans. With this book, authors would like to propose a methodology for strategic management from an Islamic perspective. According to the reviewer this publication by Jhon Wiley has taken the best ideas of Western strategic management, the best ideas of Japanese strategic management and tried to integrate that with Islamic principles which fits to the bill of the need of Ummah in the East as well West.

This issue Vol. 6 (1) of JIMS will be providing a good reading material. One is welcome to visit website of the World Academy of Islamic Management to post comments and feedback to the editors, for a genuine contribution to the knowledge of management from Islamic or an alternative perspective suitable to the socio-cultural needs of the Ummah by sending articles and paper by authors from all over the world, are welcome.

Professor Dr. Khaliq Ahmad Editor-in-Chief




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