Islamic Principles of Justice in Cross-Cultural Business Transactions: A Phenomenological Study in Indonesian Multicultural Business Context

  • Sudana Sudana Institut Agama Islam Persis Bandung, Indonesia
  • Marpuah Marpuah Institut Agama Islam Persis Bandung, Indonesia
  • Muhammad Jagat Dermawan Univeristas Islam Negeri Sunan Gunung Djati Bandung, Indonesia
  • Muhammad Gilang Samudra Universita Pendidikan Indonesia, Indonesia
  • Mujahid 'Ayyasy Alfaqih University of Jordan, Jordan
Keywords: Justice, Islamic Economics, Cross-Cultural Transaction, Multicultural, NVivo

Abstract

The principle of justice is a fundamental value in Islamic economics that is relevant to be applied in cross-cultural transactions. However, differences in cultural values and social backgrounds can affect its implementation. This study aims to explore the application of the principle of Islamic justice in cross-cultural transactions in a multicultural society. The study used a qualitative method with a phenomenological approach, while data analysis was carried out using NVivo software. Data were obtained through interviews with cross-cultural business actors and analyzed through thematic coding. The findings show that the principle of justice includes honesty, transparency, and equality in the treatment of all parties, which contribute to the creation of more harmonious and mutually beneficial business relationships. However, its implementation faces challenges in the form of different perceptions of justice, imbalance of information, and the influence of local cultural norms. The flexible and inclusive principle of Islamic justice provides a strong foundation to overcome these challenges and create harmony in cross-cultural transactions.

References

Abuelhassan, A., Alharbi, S., & Khreis, S. (2020). Investigating the Relative Impacts of Distributive, Procedural and Interactional justice on Affective Organizational Commitment in the Egyptian Hotel Industry. International Journal of Heritage, Tourism and Hospitality, 14(1), 260–275. https://doi.org/10.21608/ijhth.2020.128073

Adama, H. E., & Okeke, C. D. (2024). Harnessing business analytics for gaining competitive advantage in emerging markets: A systematic review of approaches and outcomes. International Journal of Science and Research Archive, 11(2), 1848–1854. https://doi.org/10.30574/ijsra.2024.11.2.0683

Al Balushi, F. S. (2023). The Legitimate Alternative to Usurious Loans in Islamic Banks (Joint Speculation as a Model). International Journal of Academic Research in Business and Social Sciences, 13(9). https://doi.org/10.6007/IJARBSS/v13-i9/18322

ALADAĞ, Ö. F. (2023). International Strategies of Islamic Financial Institutions: Current Challenges and Future Trends. Kocatepe İslami İlimler Dergisi, 6(Özel Sayı), 202–216. https://doi.org/10.52637/kiid.1352334

Alghafes, R., Karim, S., Aliani, K., Qureishi, N., & Alkayed, L. (2024). Influence of key ESG factors on Islamic banks’ financial performance: Evidence from GCC countries. International Review of Economics & Finance, 96, 103629. https://doi.org/10.1016/j.iref.2024.103629

Alhazmi, A. A., & Kaufmann, A. (2022). Phenomenological Qualitative Methods Applied to the Analysis of Cross-Cultural Experience in Novel Educational Social Contexts. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.785134

Azmat, S., & Ghaffar, H. (2021). Ethical Commitments and Credit Market Regulations. Journal of Business Ethics, 171(3), 421–433. https://doi.org/10.1007/s10551-019-04391-6

Bakla, A. (2021). Literatür Taraması Odaklı Disiplinlerde NVivo Kullanımı. TSBS Bildiriler Dergisi, 1, 2–23. https://doi.org/10.55709/TSBSBildirilerDergisi.1.15

Balan, S., & Vreja, L. O. (2013). The Trompenaars’ seven-dimension cultural model and cultural orientations of Romanian students in management. Proceedings of the 7th International Management Conference" New Management for the New Economy", November 7th-8th, Bucharest, Romania.

Baloch, B. A., & Chimenya, A. (2023). Ethical Dimensions of Islamic Finance and Their Relevance in Contemporary Business Practices. International Journal of Islamic Banking and Finance Research, 11(2), 32–39. https://doi.org/10.46281/ijibfr.v11i2.2125

Bojadjiev, M., Mileva, I., Tomovska, M., & Vaneva, M. (2023). Entrepreneurship addendums on Hofstede’s dimensions of national culture. The European Journal of Applied Economics, 20(1), 122–134. https://doi.org/10.5937/EJAE20-39932

Carrim, N. M. H. (2019). Minority Employees’ Ethnic Identity in the Workplace. In Oxford Research Encyclopedia of Business and Management. Oxford University Press. https://doi.org/10.1093/acrefore/9780190224851.013.196

Chapra, M. U. (1992). Islam and the economic challenge. International Institute of Islamic Thought (IIIT).

Chapra, M. U. (2008). The Islamic vision of development in the light of Maqāsid al-sharī ‘ah. Islamic Research and Training Institute Islamic Development Bank Jeddah, DOI, 10.

Cohen, A. (2015). Culture, Values, and Organizational Fairness. In Fairness in the Workplace (pp. 191–215). Palgrave Macmillan UK. https://doi.org/10.1057/9781137524317_10

D’Amodio, A. (2020). Toward a Human-Centered Economy and Politics: The Theory of Justice as Fairness from Rawls to Sen. Philosophies, 5(4), 44. https://doi.org/10.3390/philosophies5040044

de Vries, B. (2020). Is Multiculturalism Discriminatory? Res Publica, 26(2), 201–214. https://doi.org/10.1007/s11158-019-09433-4

Elliott-Mainwaring, H. (2021). Exploring using NVivo software to facilitate inductive coding for thematic narrative synthesis. British Journal of Midwifery, 29(11), 628–632. https://doi.org/10.12968/bjom.2021.29.11.628

Emamzadeh, M. R. A. (2020). Analysis of economic convergence of Islamic justice in selected Islamic countries. Journal of Economic Structures, 9(1). https://doi.org/10.1186/s40008-020-00191-8

Erasmo, V. (2024). ‘Who are the capability theorists?’: a tale of the origins and development of the capability approach. Cambridge Journal of Economics, 48(3), 425–450. https://doi.org/10.1093/cje/beae004

Farikhin, A., & Mulyasari, H. (2022). Gharar, Fraud and Dispute in Islamic Business Transaction an Islamic Law Perspectives. International Economic and Finance Review, 1(2), 40–53. https://doi.org/10.56897/iefr.v1i2.18

Feng, X., & Behar-Horenstein, L. (2019). Maximizing NVivo Utilities to Analyze Open-Ended Responses. The Qualitative Report, 24(3), 563–571. https://doi.org/10.46743/2160-3715/2019.3692

Ford, M., & Honan, V. (2019). The limits of mutual aid: Emerging forms of collectivity among app-based transport workers in Indonesia. Journal of Industrial Relations, 61(4), 528–548. https://doi.org/10.1177/0022185619839428

Gale, J., Staerklé, C., Green, E. G. T., & Visintin, E. P. (2021). Multicultural attitudes in Europe: A multilevel analysis of perceived compatibility between individual and collective justice. Journal of Social and Political Psychology, 9(2), 419–437. https://doi.org/10.5964/jspp.7081

Gallego-Álvarez, I., & Pucheta-Martínez, M. C. (2021). Hofstede’s cultural dimensions and R&D intensity as an innovation strategy: a view from different institutional contexts. Eurasian Business Review, 11(2), 191–220. https://doi.org/10.1007/s40821-020-00168-4

Ghaemi Asl, M., Ben Jabeur, S., Hosseini, S. S., & Tajmir Riahi, H. (2024). Fintech’s impact on conventional and Islamic sustainable equities: Short- and long-term contributions of the digital financial ecosystem. Global Finance Journal, 62, 101022. https://doi.org/10.1016/j.gfj.2024.101022

Hamayotsu, K. (2002). Islam and Nation Building in Southeast Asia: Malaysia and Indonesia in Comparative Perspective. Pacific Affairs, 75(3), 353. https://doi.org/10.2307/4127290

Haq, M., Johanson, M., Davies, J., Ng, W., & Dana, L.-P. (2024). Bourdieusian and resource-based perspectives on ethnic minority microbusinesses: The construction of a culture-induced entrepreneurship model. Journal of Small Business Management, 62(4), 1982–2015. https://doi.org/10.1080/00472778.2023.2192760

Hassan, M. K., & Kayed, R. N. (2009). The global financial crisis, risk management and social justice in Islamic finance. Risk Management and Social Justice in Islamic Finance.

Hussein, M. E., Kraten, M., Seow, G. S., & Tam, K. (2017). Influences of Culture on Transfer Price Negotiation. The International Journal of Accounting, 52(3), 227–237. https://doi.org/10.1016/j.intacc.2017.07.001

Ibrahim, F., Muhammad, Ong, E., Akinsomi, S., & Kola. (2012). Shariah compliant real estate development financing and investment in the Gulf Cooperation Council. Journal of Property Investment & Finance, 30(2), 175–197. https://doi.org/10.1108/14635781211206913

Jackson, T. (2021). A theory of everything and everywhere: Broadening the horizons of cross-cultural management studies. International Journal of Cross Cultural Management, 21(1), 3–7. https://doi.org/10.1177/14705958211006559

Jiang, Z., Gollan, P. J., & Brooks, G. (2017). Relationships between organizational justice, organizational trust and organizational commitment: a cross-cultural study of China, South Korea and Australia. The International Journal of Human Resource Management, 28(7), 973–1004. https://doi.org/10.1080/09585192.2015.1128457

Karimullah, S. S. (2023). For True Humanity: Harmonization of Islamic Law and Human Rights Towards Universal Justice. Matan : Journal of Islam and Muslim Society, 5(2), 132–148. https://doi.org/10.20884/1.matan.2023.5.2.9125

Kazak, H., Uluyol, B., Akcan, A. T., & İyibildiren, M. (2023). The impacts of conventional and Islamic banking sectors on real sector growth: Evidence from time-varying causality analysis for Turkiye. Borsa Istanbul Review, 23, S15–S29. https://doi.org/10.1016/j.bir.2023.09.004

Ledhem, M. A. (2022). The financial stability of Islamic banks and sukuk market development: Is the effect complementary or competitive? Borsa Istanbul Review, 22, S79–S91. https://doi.org/10.1016/j.bir.2022.09.009

Lee, C.-W., & Ande, T. (2023). Organizational Behavior Implication: HOFSTEDE’S Perspectives in Comparison Indonesia, Vietnam, China, Taiwan, and France. Advances in Management and Applied Economics, 13(4), 91–110. https://doi.org/10.47260/amae/1346

Leung, K., Bhagat, R. S., Buchan, N. R., Erez, M., & Gibson, C. B. (2005). Culture and international business: recent advances and their implications for future research. Journal of International Business Studies, 36(4), 357–378. https://doi.org/10.1057/palgrave.jibs.8400150

Liu, F., Liao, X., & Ming, C. (2020). Prejudice, Does It Exist or Not? Consumer Price Discrimination in Minority Entrepreneurship. Frontiers in Psychology, 11. https://doi.org/10.3389/fpsyg.2020.02180

Maulina, R., Dhewanto, W., & Faturohman, T. (2023). The integration of Islamic social and commercial finance (IISCF): Systematic literature review, bibliometric analysis, conceptual framework, and future research opportunities. Heliyon, 9(11), e21612. https://doi.org/10.1016/j.heliyon.2023.e21612

McCary, M. (2000). Bridging Ethical Borders: International Legal Ethics with an Islamic Perspective. Tex. Int’l LJ, 35, 289.

Mortelmans, D. (2019). Analyzing Qualitative Data Using NVivo. In The Palgrave Handbook of Methods for Media Policy Research (pp. 435–450). Springer International Publishing. https://doi.org/10.1007/978-3-030-16065-4_25

Mukhlisin, M., & Fadzly, M. (2020). Multiple logics within the international Islamic financial architecture: implications for Islamic financial reporting standards. Accounting Research Journal, 33(6), 709–727. https://doi.org/10.1108/ARJ-03-2020-0059

Nazarian, A., Velayati, R., Foroudi, P., Edirisinghe, D., & Atkinson, P. (2021). Organizational justice in the hotel industry: revisiting GLOBE from a national culture perspective. International Journal of Contemporary Hospitality Management, 33(12), 4418–4438. https://doi.org/10.1108/IJCHM-04-2021-0449

Nesadurai, H. E. S. (2012). The post-authoritarian politics of agrarian and forest reform in Indonesia. In Routledge Handbook of Southeast Asian Politics (pp. 247–264). Routledge. https://doi.org/10.4324/9780203155011-27

Palinkas, L. A., Horwitz, S. M., Green, C. A., Wisdom, J. P., Duan, N., & Hoagwood, K. (2015). Purposeful Sampling for Qualitative Data Collection and Analysis in Mixed Method Implementation Research. Administration and Policy in Mental Health and Mental Health Services Research, 42(5), 533–544. https://doi.org/10.1007/s10488-013-0528-y

Phillips, M., & Lu, J. (2018). A quick look at NVivo. Journal of Electronic Resources Librarianship, 30(2), 104–106. https://doi.org/10.1080/1941126X.2018.1465535

Powell, E. J. (2013). Islamic law states and the International Court of Justice. Journal of Peace Research, 50(2), 203–217. https://doi.org/10.1177/0022343312470275

Saavedra-Garcia, L., Taboada-Ramirez, X., Hernández-Vásquez, A., & Diez-Canseco, F. (2022). Marketing techniques, health, and nutritional claims on processed foods and beverages before and after the implementation of mandatory front-of-package warning labels in Peru. Frontiers in Nutrition, 9, 1004106. https://doi.org/10.3389/fnut.2022.1004106

Saeed, M., Ahmed, Z. U., & Mukhtar, S.-M. (2001). International marketing ethics from an Islamic perspective: a value-maximization approach. Journal of Business Ethics, 32, 127–142. https://doi.org/10.1023/A:1010718817155

Sahadevan, P., & Sumangala, M. (2021). Effective Cross-Cultural Communication for International Business. Shanlax International Journal of Management, 8(4), 24–33. https://doi.org/10.34293/management.v8i4.3813

Sahroni, O., & Karim, A. A. (2015). Maqashid bisnis dan keuangan Islam: Sintesis fikih dan ekonomi. Rajawali Pers.

Sen, A. (2014). Development as freedom (1999). In The globalization and development reader: Perspectives on development and global change. Wiley Blackwell.

Shakhatreh, H. (2024). Peculiarities of Commercial Law in Islamic Countries. Modern Scientific Journal, 4(2), 57–61. https://doi.org/10.36994/2786-9008-2024-4-8

Solinas-Saunders, M., Lambert, E. G., Haynes, S. H., Haynes, L. D., Leone, M. C., & May, D. C. (2024). The Association Between Organizational Justice and Organizational Trust Among Correctional Staff. Criminal Justice and Behavior, 51(5), 707–723. https://doi.org/10.1177/00938548241232227

Sudana, Marlina, L., & Athoillah, M. A. (2023). Tauhid Bisnis. Alfabeta.

Suslov, A. V. (2021). Evolution and crisis of multiculturalism in light of the ideas of polyethnic (cross-cultural) justice. Философия и Культура, 9, 20–31. https://doi.org/10.7256/2454-0757.2021.9.36625

Taher, F. B. (2000). Population Growth and Economic Development: An Islamic Perspective. Journal of Economics and Development Studies, 11(11), 123–162.

Tawfik, O. I., Elmaasrawy, H. E., & Hussainey, K. (2024). The impact of Sharia compliance on attracting investments: empirical evidence from GCC. International Journal of Islamic and Middle Eastern Finance and Management. https://doi.org/10.1108/IMEFM-02-2024-0060

Temporal, P. (2011). Islamic branding and marketing: Creating a global Islamic business. John Wiley & Sons.

Turner, J. K., & Lopez, A. (2024). Sizeism Among Fat and Big Men: A Phenomenological Study. The Counseling Psychologist, 52(8), 1342–1371. https://doi.org/10.1177/00110000241293482

Umam, F. C., Tamrin, A. M. H., Yusup, A., Fahreza, M. R., & Sofiyanti, S. (2024). Application of The Principle of Justice in Islamic Civil Dispute Resolution in Indonesia. Global International Journal of Innovative Research, 2(8), 1882–1889. https://doi.org/10.59613/global.v2i8.282

Ward, C., Gale, J., Staerklé, C., & Stuart, J. (2018). Immigration and Multiculturalism in Context: A Framework for Psychological Research. Journal of Social Issues, 74(4), 833–855. https://doi.org/10.1111/josi.12301

Zin, M. . M., Amin, A. A., Ishak, A. H., Ahmad, N. A., & Sulaiman, R. (2024). Integrity Of Professional Muslim Workforces: Relationship Between Integrity and Religiosity Based on Islamic Teachings. International Journal of Religion, 5(12), 661–670. https://doi.org/10.61707/341gbe94

Published
2024-12-28
Section
Articles