Malaysian Development Financial Institutions
Malaysian financial landscape consists of several types of banking and financial institutions including Development Financial Institutions (DFIs). DFIs are specialized financial institution which been officially appointed by the Malaysian government in 2002 and has been entrusted for specific mandated role. As the trusted institution, generally DFIs role is to focus and contribute on the socio-economic development in Malaysia and specifically to the mandated sectors consist of infrastructure, maritime, import and export, small and medium enterprises, agriculture and savings and investment behavior among the citizens.
The mandated role carries by the DFIs make them unique as the main operation would not mainly focus on profit, but rather to perform the mandated role in developing the real sector in the economy and social welfare (Francisco et al., 2008). The carried function of DFIs is merely similar to fulfilling the Islamic economic objective since the business focus to the benefit of the society. Furthermore, the intent of all six DFIs whose prescribed under Development Financial Institutions Act (DFIA) 2002 are towards full-fledged Islamic have proven the direction of DFIs is consistent towards Islamic notion. Hence, the study been conducted to review the current direction setting of Malaysian DFIs as stated in the vision and mission statement of the bank.
Therefore, the research objectives of the study are: (1) to analyze on the coverage of the Maqasid Shari'ah concepts and dimensions on the DFIs' direction setting (2) to explore on the involvement of the Shari'ah committee member of DFIs in the direction setting of the institution. The expected outcome of the study is hoped to benefit the DFIs as a group and individually in assessing their direction setting towards the Islamic economic objective.
Strategic Direction Setting
The vision and mission of an organization is a stated statement been addressed to communicate on the function and operation of the business and it should be disclosed (Ibrahim et al., 2004). The vision and mission statement would lead the managers and employees to the direction that they should heading to (Sulaiman et al., 2014). Normally the vision and mission statement would be the main based for objectives setting, strategy of the organization and setting the key performance indicators for institutions. Nouri & Soltani (2017) found in their study that the first rank tool used in strategic management is vision and mission statement. Therefore, the DFIs as institution who carries the government mandate would need to have a fit vision and mission statement even though the focus and strategic role is determined by the government.
Direction Setting and Performance
In Goal-Setting Theory, there is significance between the performance and the goal setting of an organization (Locke & Latham, 2015). David (2003) has map in Comprehensive Strategic-Management Model that strategy evaluation (measures and performance assessment) set at the end process and been reviewed to compare with strategy formulation (developed vision and...