Success Factors of Collaboration in Islamic Banks

Abstract

This paper aims to explore how Islamic banks form collaborations with other organizations and the factors which affect the success of these collaborations. Literature suggests that communication process, leadership, identity loss, diversity, collaboration cost, and organizational capacity affect these collaborations. The phenomenon is further explored by three in-depth interviews from Islamic bankers in Peshawar, Pakistan. A revised and broader framework is developed which first explains how an Islamic bank comes in collaboration with other organizations. Second, theoretically and empirically found success factors are outlined. The contextually-identified new factors are the eight prohibitions in Islamic finance and regulations of State Bank of Pakistan and Securities and Exchange Commission of Pakistan which force Islamic banks to collaborate.