GRM 2010 GRM 2011

Abstract Details

Family Name:
First Name:
Dr Murat
Title of Paper:
The Small World of Islamic Finance - Multiple ties and Social Capital`s Impact on Board Membership
Paper Proposal Text :
This paper addresses numerous calls by researchers to empirically test the effects of social capital on organizational outcomes, rather than just to provide a theoretical explanation or anecdotal evidence. Hereby it looks beyond established economies and focuses particularly on emerging ones such as the GCC which traditionally have not been the focus of social capital research.
Furthermore, while many strategy researchers devote attention to only on one aspect of the social network to conceptualize social capital, I empirically test the impact of multiple concepts of social capital on board membership to show that more significant results can be achieved in treating these concepts in a complementary rather than competitive manner, thus explaining more of the variance that exists. Hereby I also answer the most recent calls by academics to go beyond people`s single ties to corporations and consider multiple network ties, including e.g. their links to universities and other organizations.
Apart from its theoretical contributions to the literature, this research is also novel from a practical perspective, as it focuses on an emerging industry, the Islamic Finance sector and is based on a unique dataset of 367 individuals, so called Sharia Scholars, sitting on the respective Sharia boards of 400 commercial financial services institutions across 32 countries globally, covering 1407 Sharia board memberships. This data serves as the basis for the empirical research, providing transparency into a growing industry. This makes the study not only important from a theoretical perspective but also relevant for market participants and regulators alike in the financial services industry globally.