The ethical paradox in Islamic cooperatives: A lesson learned from scandalous fraud cases in Indonesia’s Baitul Maal Wat Tamwil

References

• Abu-Tapanjeh, A. M. Corporate governance from the islamic perspective: A comparative analysis with OECD principles. (2009). Critical Perspectives on Accounting, 20(5), 556–27. https://doi.org/10.1016/j.cpa.2007.12.004
   Google Scholar
• Aguilera, R. V., & Jackson, G. (2010). Comparative and international corporate governance. The Academy of Management Annals Taylor & Francis, 4(1), 485–556. https://doi.org/10.1080/19416520.2010.495525
   Web of Science ®Google Scholar
• Al-Ghazali, A. (1989). Al-Mizan. Dar Al Kotob Al Ilmiyah.
   Google Scholar
• Al-Muharrami, S., & Hardy, D. C . (2013). Cooperative and Islamic banks: What can they learn from each other? Monetary and Capital Markets Cooperative. International Monetary Fund. https://www.imf.org/external/pubs/ft/wp/2013/wp13184.pdf, .
   Google Scholar
• Allen, P. M. A complex systems approach to learning in adaptive networks. (2001). International Journal of Innovation Management, 05(2), 149–180. https://doi.org/10.1142/S136391960100035X
   Google Scholar
• Anderson, B. L., & Henehan, B. M. (2003). What gives cooperatives a bad name? International Journal of Co-operative Management, 2(2), 9–15 https://www.smu.ca/webfiles/ICJM-Vol-2-No-2-.pdf.
   Google Scholar
• Ashkenas, R. N. (1995). The boundaryless organization: Breaking the chains of organizational structure. Jossey-Bass Publishers.
   Google Scholar
• Azis, A. M. (2006). Tata cara pendirian BMT. PKES Publishing.
   Google Scholar
• Bappenas (2016) Masterplan Arsitektur Keuangan Syariah Indonesia. Available from: (Accessed 4 May 2019). https://www.bappenas.go.id/files/publikasi_utama/MasterplanArsitekturKeuanganSyariahIndonesia.pdf.
   Google Scholar
• Beekun, R. I. (1997). Islamic Business Ethics. International Institute of Islamic Thought (IIIT).
   Google Scholar
• Beekun, R. I., & Badawi, J. A. (2005). Balancing ethical responsibility among multiple organizational stakeholders: The Islamic perspective. Journal of Business Ethics, 60(2), 131–145. https://doi.org/10.1007/s10551-004-8204-5
   Web of Science ®Google Scholar
• Berita Satu. (2020). Poverty rate lower in Indonesia: Report. Accessed 1 June 2020. Available from: https://jakartaglobe.id/news/poverty-rate-lower-in-indonesia-report.
   Google Scholar
• Birchall, J. (2003). Rediscovering the cooperative advantage: Poverty reduction through self-help. International Labour Office.
   Google Scholar
• Birchall, J. (2012). A ‘member-owned business’ approach to the classification of co-operatives and mutuals. In McDonnell, D., Macknight, E. (Eds.), The Co-operative Model in Practice: International perspectives. Scotland: CETS. https://community-wealth.org/sites/clone.community-wealth.org/files/downloads/book-mcdonell-macknight.pdf
   Google Scholar
• Braithwaite, J. (1992). Poverty, power and white collar crime. Sutherland and the paradoxes of criminological theory. In K. Schlegel & D. Weisburd (Eds.), White collar crime reconsidered (pp. 78–108). North-Eastern University Press.
   Google Scholar
• Brennan, N. M., Solomon, J., & Brennan, N. M. Corporate governance, accountability and mechanisms of accountability: An overview. (2008). Accounting, Auditing & Accountability Journal, 21(7), 885–906. https://doi.org/10.1108/09513570810907401
   Google Scholar
• Campion, A. (1998). Current Governance Practices of Microfinance Institutions: A Survey Summary. Microfinance Network.
   Google Scholar
• Chaddad, F. R., & Cook, M. L. Understanding new cooperative models: An ownership-control rights typology. (2004). Review of Agricultural Economics, 26(3), 348–360. https://doi.org/10.1111/j.1467-9353.2004.00184.x
   Google Scholar
• Chaddad, F., & Iliopoulos, C. Control rights, governance, and the costs of ownership in agricultural cooperatives. (2013). Agribusiness, 29(1), 3–22. https://doi.org/10.1002/agr.21328
   Web of Science ®Google Scholar
• CNN Indonesia (2017) BI Dorong Pengembangan LKM Berbasis Syariah Available from: https://www.cnnindonesia.com/ekonomi/20171107181424-78-254140/bi-dorong-pengembangan-lkm-berbasis-syariah (Accessed 4 May 2019)
   Google Scholar
• Cornforth, C. (2001a) The governance of non-profit organizations: A paradox perspective. Open University Business School Paper.
   Google Scholar
• Cornforth, C. (2001b). Understanding the governance of non-profit organizations: Multiple perspectives and paradoxes.
   Google Scholar
• Coulson-Thomas, C., & Coe, T. (1991). The flat organisation: Philosophy and practice. British Institute of Management.
   Google Scholar
• Cressey, D. R. (1953). Other people’s money; A study of the social psychology of embezzlement.
   Google Scholar
• Davidovic, G. “Reformulated” Co‐Operative Principles. (1967). Annals of Public and Cooperative Economics, 38(3), 219–232. https://doi.org/10.1111/j.1467-8292.1967.tb00190.x
   Google Scholar
• Defourny, J., & Nyssens, M. Social enterprise in Europe: Recent Trends and Developments. (2008). Social Enterprise Journal, 4(3), 202–228. https://doi.org/10.1108/17508610810922703
   Google Scholar
• Desmet, K., Ortuño-Ortín, I., & Wacziarg, R. (2017). Culture, Ethnicity, and Diversity. American Economic Review, 107 (9), 2479–2513. Available from. https://pubs.aeaweb.org/doi/pdfplus/10 .1257/aer.20150243.
   Web of Science ®Google Scholar
• Doi, Yoko World Bank. (2010). Total Financial Inclusion: A Better Tomorrow for All Indonesians. https://www.worldbank.org/en/news/opinion/2010/12/31/total-financial-inclusion-better-tomorrow-all-indonesians.
   Google Scholar
• Donaldson, T., & Preston, L. E. The stakeholder theory of the corporation: Concepts, evidence, and implications. (1995). The Academy of Management Review, 20(1), 65–91. https://doi.org/10.2307/258887
   Web of Science ®Google Scholar
• Easterby-Smith, M., Thorpe, R., Jackson, P. R. (2008). Smy, K. 5. SAGE Publications. https://www.sagepub.com/sites/default/files/upm-binaries/68376_Easterby_Smith___Management_and_Business_Research.pdf
   Google Scholar
• Forte, A., Larco, V., Bruckman, A. (2009). Decentralization in Wikipedia governance. Journal of Management Information Systems, 26(1), 49–72. https://www.jstor.org/stable/40398966
   Web of Science ®Google Scholar
• Freeman, R. E. (1984). Strategic management: A stakeholder approach (Boston: Pitman).
   Google Scholar
• Freeman, R. E., Harrison, J. S., Wicks, A. C., Parmar, B. L., de Cole, S. et al. (2013). Stakeholder theory: The state of the art (3rd ed.). Cambridge University Press.
   Google Scholar
• Geertz, C. (1981). Priyayi dalam Masyarakat Jawa. Pustaka Jaya.
   Google Scholar
• Ghazanfar, S. M., & Islahi, A. A. Economic thought of an Arab scholastic: Abu Hamid Al-Ghazali (AH 450-505/A.D. 1058-1111). (1990). History of Political Economy, 22(2), 381–403. https://doi.org/10.1215/00182702-22-2-381
   Web of Science ®Google Scholar
• Glaser, B., & Strauss, A. (1967). The discovery of grounded theory: Strategies for qualitative research. Aldine Publishing Company.
   Google Scholar
• Goergen, M., & Tonks, I. (2019). Introduction to special issue on sustainable corporate governance. British Journal of Management, 30(1), 3–9. Available from https://onlinelibrary.wiley.com/doi/epdf/10 .1111/1467-8551.12325.
   Web of Science ®Google Scholar
• Government of Indonesia .(2008). Act of The Republic of Indonesia No. 20 of 2008 on Small Medium Enterprise. https://peraturan.bpk.go.id/Home/Details/39653/uu-no-20-tahun-2008
   Google Scholar
• Government of Indonesia. (2008). Act of The Republic of Indonesia No. 21 of 2008 on Islamic banking. https://www.ojk.go.id/id/kanal/perbankan/regulasi/undang-undang/pages/undang-undang-nomor-21-tahun-2008-tentang-perbankan-syariah.aspx
   Google Scholar
• Greenwood, M., & van Buren, H. J Greenwood, M., Islam, G. Trust and stakeholder theory: Trustworthiness in the organisation-stakeholder relationship. (2010). Journal of Business Ethics, 95(3), 425–438. https://doi.org/10.1007/s10551-010-0414-4
   Web of Science ®Google Scholar
• Hadad, M. D. (2015). Financial inclusion, financial regulation, and financial education in Asia Symposium on Financial Education 23-25 January 2015 https://www.slideshare.net/OECD-DAF/oecd-tokyo-fehadadmuliaman Tokyo. .
   Google Scholar
• Handy, F. Reputation as collateral: An economic analysis of the role of trustees of nonprofits. (1995). Nonprofit and Voluntary Sector Quarterly, 24(4), 293–305. https://doi.org/10.1177/089976409502400403
   Web of Science ®Google Scholar
• Haniffa, R., & Hudaib, M. A. (2002). A theoretical framework for the development of the Islamic perspective of accounting. Accounting, Commerce and Finance: The Islamic Perspective Journal, 6(1/2), 1–71 https://www.researchgate.net/profile/Roszaini-Haniffa/publication/259678965_Haniffa_R_Hudaib_M_2011_A_Conceptual_Framework_for_Islamic_Accounting_in_Napier_C_Haniffa_R_eds_Islamic_Accounting_Edward_Elgar/links/5603da6508ae596d25920a91/Haniffa-R-Hudaib-M-2011-A-Conceptual-Framework-for-Islamic-Accounting-in-Napier-C-Haniffa-R-eds-Islamic-Accounting-Edward-Elgar.pdf.
   Google Scholar
• Hartarska, V. Governance and performance of microfinance institutions in central and Eastern Europe and the newly independent states. (2005). World Development, 33(10), 1627–1643. https://doi.org/10.1016/j.worlddev.2005.06.001
   Web of Science ®Google Scholar
• Harter, L., & Krone, K. The boundary-spanning role of a cooperative support organization: Managing the paradox of stability and change in non-traditional organizations. (2001). Journal of Applied Communication Research, 29(3), 248–277. https://doi.org/10.1080/00909880128111
   Web of Science ®Google Scholar
• Hermawan, A. (2019). Despite Rise in Conservatism, Islamists Will Be Losers In 2019 Poll. Available from: https://www.thejakartapost.com/academia/2019/04/11/despite-rise-in-conservatism-islamists-will-be-losers-in-2019-poll.html (Accessed 28 April 2019)
   Google Scholar
• Jegers, M. (2009). ‘Corporate’ governance in nonprofit organizations. Nonprofit Management & Leadership 20 (2), 143–164. Available from:
   Web of Science ®Google Scholar
• Jussila, I., Tuominen, P., Saksa, J. et al. (2008). Following a different mission : Where and how do consumer co-operatives compete ? Journal of Co-operative Studies, 41(December), 28–39 https://www.ukscs.coop/resources/journal-of-co-operative-studies-vol-41-no-3-.
   Google Scholar
• Kirkpatrick, C., & Maimbo, S. M. 2002. The implications of the evolving microfinance agenda for regulatory and supervisory policy. Development Policy Review, 20 (3), 293–304. Available from:
   Google Scholar
• Laplume, A. O., Sonpar, K., Litz, R. A. et al. (2008). Stakeholder theory: Reviewing a theory that moves us. Journal of Management, 34(6), 1152–1189 doi:10.1177/01492/06308/324322.
   Web of Science ®Google Scholar
• Lewis, M. K. (2005). Islamic Corporate Governance. Review of Islamic Economics, 9(1), 5–29.
   Google Scholar
• Liew, P. K. (2008). ‘The (Perceived) roles of corporate governance reforms in Malaysia: The views of corporate practitioners’, in corporate governance in less developed and emerging economies Uddin, S. In Research in Accounting in Emerging Economies (pp. 455–482 978-1-84855-252-4 doi:10.1016/S1479-3563(2008)8). Emerald Group Publishing Limited.
   Google Scholar
• Mabey, C., Salaman, G., Storey, J. et al. (2001). ‘Organisation structuring and restructuring’, in understanding business: Organisations. Routledge.
   Google Scholar
• Marshall, C., Rossman, G. B. 1989 Vicki, K. Designing Qualitative Research (Newbury Park, California: SAGE Publishing) 192 0803931581
   Google Scholar
• Matutes, C., & Vives, X. (2000) Imperfect competition, risk taking, and regulation in banking. European Economic Review Available from: http://siteresources.worldbank.org/DEC/Resources/84797-1251813753820/6415739-1251814020192/matutes.pdf (Accessed 16 April 2019). 44.
   Google Scholar
• McMillan, E. (2002). Considering organisation structure and design from a complexity paradigm perspective.
   Google Scholar
• Mees, B., & Smith, S. A. (2019). Corporate governance reform in Australia: A new institutional approach. British Journal of Management, 30(1), 75–89. Available from https://onlinelibrary.wiley.com/doi/epdf/10 .1111/1467-8551.12298.
   Web of Science ®Google Scholar
• Mullins, L. J. (1993). Management and organisational behaviour (3rd (Boston: Pitman) ed.).
   Google Scholar
• Mumford, K., & Hendricks, R. (1996). Business process Re-Engineering RIP. People Management, 2(May), 22–27.
   Google Scholar
• Novkovic, S. (2006). Cooperative business: The role of co-operative principles and values. Journal of Co-operative Studies, 39(1), 5–15 https://www.ukscs.coop/pages/journal-of-co-operative-studies.
   Google Scholar
• Okike, E. N. M. Corporate Governance in Nigeria: The Status Quo. (2007). Corporate Governance: An International Review, 15(2), 173–193. https://doi.org/10.1111/j.1467-8683.2007.00553.x
   Web of Science ®Google Scholar
• Opwis, F. (2019). Syllogistic Logic in Islamic Legal Theory: Al-Ghazālī’s Arguments for the Certainty of Legal Analogy (Qiyās), In P. Adamson (Ed.), Philosophy and Jurisprudence in the Islamic World. Berlin: De Gruyter.
   Google Scholar
• Otoritas Jasa Keuangan (2019) Laporan Profil Industri Perbankan Triwulan IV-2019. Available from: https://www.ojk.go.id/id/kanal/perbankan/data-dan-statistik/laporan-profil-industri-perbankan/Documents/LPIPTriwulanIV2019.pdf.
   Google Scholar
• Pascale, R. T. (1999). Surfing the edge of Chaos. Sloan Management Review, 40(3), 83 https://sloanreview.mit.edu/article/surfing-the-edge-of-chaos/.
   Google Scholar
• Pepinsky, T. B., Liddle, R. W., Mujani, S. et al. (2018). Piety and Public Opinion Vol. 1 Oxford University Press
   Google Scholar
• Prakash, D. Padma-Network International. (2003). The Principles of Cooperation: A look at ICA Cooperative Identity Statement. New Delhi, India: Padma-Network International.
   Google Scholar
• Rahajeng, D. K. (2011). Sharīah Governance in Indonesia. University of Durham.
   Google Scholar
• Rahajeng, D. K. (2018) Stakeholders’ Perceptions Of Fraud In Indonesian BMT Islamic Cooperatives. University of Essex. [Unpublished Dissertation]
   Google Scholar
• Riaz, U., Burton, B., Monk, L. et al. (2017). Perceptions on Islamic banking in the UK—potentialities for empowerment, challenges and the role of scholars. Critical Perspectives on Accounting 47 39–60 https://doi.org/10.1016/j.cpa.2016.11.002 .
   Web of Science ®Google Scholar
• Riwajanti, N. I. (2013) Islamic Microfinance in Indonesia: A Comparative Analysis between Islamic Financial Cooperative (BMT) and Shari’ah Rural Bank (BPRS) on Experiences, Challenges, Prospect and Role in Developing Microenterprises. Durham University. Available from: http://etheses.dur.ac.uk/9386/
   Google Scholar
• Safieddine, A. Islamic financial institutions and corporate governance: New insights for agency theory. (2009). Corporate Governance: An International Review, 17(2), 142–158. https://doi.org/10.1111/j.1467-8683.2009.00729.x
   Web of Science ®Google Scholar
• Sahbani, A. (2014). UU Perkoperasian Dibatalkan Karena Berjiwa Korporasi. Hukum Online. https://www.hukumonline.com/berita/a/uu-perkoperasian-dibatalkan-karena-berjiwa-korporasi-lt5385bfa83b01f
   Google Scholar
• Sandelowski, M. (1995). Sample Size in Qualitative Research. Research in Nursing & Health 18 2 , 179–183 doi:10.1002/nur.4770180211.
   PubMed Web of Science ®Google Scholar
• Seale, C. 2003 Quality in Qualitative Research Given, L. M. Qualitative Inquiry 5 4 (California: SAGE Publishing)
   Google Scholar
• Sidani, Y., & Al Ariss, A. New conceptual foundations for Islamic business ethics: The contributions of Abu-Hamid Al-Ghazali. (2015). Journal of Business Ethics, 129(4), 847–857. https://doi.org/10.1007/s10551-014-2136-5
   Web of Science ®Google Scholar
• Simmons, R., & Birchall, J. (2008). The Role of cooperatives in poverty reduction: Network perspectives. Journal of Socio-Economics, 37(6), 2131–2140. Available from http://www.scopus.com/inward/record.url?eid=2-s2.0-53449089420&partnerID=40&md5=4ee0de7fda768d1dddd6752a5695486f.
   Google Scholar
• Sleman District Court 2011 District Court Ruling (Indonesia: Mahkamah Agung Republik Indonesia)https://putusan3.mahkamahagung.go.id/direktori/periode/tahunjenis/putus/pengadilan/pn-sleman
   Google Scholar
• Strand, R., & Freeman, R. E. (2015). Scandinavian cooperative advantage: The theory and practice of stakeholder engagement in Scandinavia. Journal of Business Ethics, 127(1), 65–85. https://doi.org/10.1007/s10551-013-1792-1
   Web of Science ®Google Scholar
• Strauss, A., & Corbin, J. (1990). Basics of qualitative research: Grounded theory procedures and techniques. SAGE.
   Google Scholar
• Tsamenyi, M., Enninful‐Adu, E., & Onumah, J. Disclosure and corporate governance in developing countries: Evidence from Ghana. (2007). Managerial Auditing Journal, 22(3), 319–334. https://doi.org/10.1108/02686900710733170
   Google Scholar
• Tsamenyi, M., & Uddin, S. (2008). Introduction to corporate governance in less developed and emerging economies, in corporate governance in less developed and emerging economies Tsamenyi, M., Uddin, S. In Research in accounting in emerging economies (pp. 1–11 978-1-84855-252-4 https://www.emerald.com/insight/content/doi/10 .1016/S1479-3563(08)08018-3/full/html). Emerald Group Publishing Limited.
   Google Scholar
• Uddin, S., Choudhury, J., & Brennan, N. M. 2008. Rationality, traditionalism and the State of corporate governance mechanisms Niamh M. Brennan (ed.). Accounting, Auditing & Accountability Journal, 21 (7), 1026–1051. Available from: https://www.emeraldinsight.com/doi/10 .1108/09513570810907465
   Google Scholar
• Vaughn, M., & Ryan, L. V. (2006). Corporate Governance in South Africa: A Bellwether for the Continent? Corporate Governance: An International Review . 14(5), 504–512 https://doi.org/10.1111/j.1467-8683.2006.00533.x.
   Web of Science ®Google Scholar
• Wardiwiyono, S. Internal control system for islamic micro financing: An exploratory study of Baitul Maal Wat Tamwil in the City Of Yogyakarta Indonesia. (2012). International Journal of Islamic and Middle Eastern Finance and Management, 5(4), 340–352. https://doi.org/10.1108/17538391211282836
   Google Scholar
• Woodward, M. R. (1988). The” Slametan”: Textual knowledge and ritual performance in central Javanese Islam. History of Religions, 28(1), 54–89. https://doi.org/10.1086/463136
   Web of Science ®Google Scholar
• World Bank (2020) GDP Indonesia. https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=ID (Accessed 1 August 2020)
   Google Scholar