Strategic Management from an Islamic Perspective: Text and Cases

Chapter 1

Introduction

For more than 20 years now, experts in management at the International Islamic University Malaysia (IIUM) have been working on management from an Islamic perspective (MIP). Recent books in the area of MIP include Ahmad, Islam, and Ismail (2011), Ahmad and Fontaine (2011), and Osman-Gani and Sarif (2011). Over the years, some researchers have specialized in some of the subbranches of Islamic management. Some have developed an interest in organizational behavior, others in business ethics, and yet others in strategic management. The focus of this textbook1 is on strategic management from an Islamic perspective. The mention of “strategic management from an Islamic perspective” raises three questions:

1. What is the Islamic perspective on strategic management?

2. Does strategic management from an Islamic perspective add anything new to strategic management?

3. Do organizations today apply strategic management from an Islamic perspective?

Part I will deal with the first two questions. Part II will address the last question by providing examples of organizations applying the principles of strategic management from an Islamic perspective.

Leading an Organization Is Like Driving a Car

In different parts of this text, we will use the analogy that leading an organization is like driving a car. The driver (leader of the organization) needs to decide where to go (vision), how to get there (strategy), and at what speed to drive (risk and profitability). To achieve his ...