Knowledge Diffusion Process & Common Islamic Banking Governance Principles: Integrative Perspective (s) of Managers and Shariah Scholars
Islamic banks being commercial entities strive to earn profit within shariah ambit. Therefore, they seem to be basing themselves upon two knowledge streams namely i) Islamic jurisprudence principles, and ii) banking principles. Islamic jurisprudence principles primarily aim at bringing shariah compliance while banking principles focus profitability. These principles, making two schools of thought in the discipline, however, have their unique philosophies, principles, and practices, which are now gradually diffusing into an emergent set of governance principles basing the contemporary Islamic banking theory and practice. Governance systems of Islamic banks have elements of both conventional as well as Shariah, and need to have principles having components of banking and shariah sufficiently diffused for their successful operations in a longer term. Aim of this research is to review the literature about the knowledge diffusion process of islamic banking principles which guides the governance of Islamic banks. This study review the literature using a method in which focus remain on bridging different areas which in this case are knowledge diffusion and islamic banking governance principles.
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