Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)


The mediating effects of procedural rationality in strategic decision-making between adherence to Islamic financial values and strategic decision-making effectiveness

Author(s): Anas Osama Hakeem

Purpose â???? This research examines the link between adherence to Islamic financial values and strategic decision-making effectiveness. This takes into account the mediating effect of procedural rationality on strategic decision-making. Design/methodology/approach â???? The research model was tested using a structural equation modelling design based on survey data from 162 Saudi companies that pertain to the financial sector, by used by software (SPSS and SmartPLS). Findings â???? The results showed that these companiesâ???? adherence to Islamic financial values positively impacted the effectiveness of decision-making strategies. However, the findings did not demonstrate any significant effect of adherence to Islamic financial values on procedural rationality. But the results revealed the positive impact of highly adopting procedural rationality on strategic decision-making effectiveness. Originality/value â???? The findings have revealed that adherence to Islamic financial values will help decision-makers in organisations make strategic decisions distinctively and effectively. This could be achieved by following the criteria of Shariah. In this way, organisations will ensure that their activities will be fair and ethical via real and clear economic activities that are not based on ignorance or a lack of knowledge that will yield economic benefits to their organisations and society in general. For readers, these findings enrich knowledge about strategic decision-making and adherence to Islamic financial values. These two areas of research have not been relatively tackled when this study investigated such relationships. For business and management practice, the procedural rationality based on Islamic financial values as a practice supports the strategic decision makers to improve the firmâ????s performance and to applied a best practices (employee involvement, process approach, leadership) that ensure continuous improvement and organisational stability.

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