Doing business in an Islamic context: six schools of thought

Abstract

Purpose With close to two billion people occupying some 50 countries and spending in excess of US$2tn on food and recreational services alone, Muslim societies represent a significant segment of the world’s population, which warrants greater research attention and better understanding. While Islamic scholarship dates back over 1,400 years, few scholars have studied the impact of Islamic teachings and their effect on surrounding business and policy. The purpose of this paper is to better connect business strategy with Islamic philosophy. Design/methodology/approach This research is a theoretical paper based on literature review of existing works in academia and from the Koran. The researchers consulted academics and religious leader to better understand the written word and its implications on the various philosophies. This paper offers a sound foundation for further research on Islamic business philosophy. Findings This research is the base for further exploration into Islamic business philosophy and their underpinnings. To better understand Islamic business models, this study introduces three main and three minor schools of thought to provide a foundation for further research. The schools differ in their theological assumptions and worldviews. Some of them place emphases on traditional approaches, i.e. Jabria (like contemporary Salafies) and some underscore the virtue of reasons and enlightenment (e.g. Mu’tazila or the rationalists). Originality/value In brief, the study posits six different perspectives and interpretations relevant to Islamic policy that will be useful for both managerial practitioners and scholars to consider when undertaking business in a Muslim context.