Conceptualizing and examining the critical success factors for implementing Islamic banking system towards banking sector of Iran: A mixed method approach

Islamic banking, as a major center for financial transactions in Islamic societies,plays a key role in the development of Islamic economics. The fundamental essenceof Islamic banking system is based on the fact that although, Islam has forbidden theinterest in transactions, but trade and profit is encouraged and supported. The actualimplementation of the Islamic banking system due to its unique features can be thesource of many benefits and advantages for Islamic countries; and it is moresignificant when we recognize that the banking sector is the largest body of Iranianservice sector of economy. However, a significant proportion of the banking systemhas been Islamized in Iran. Therefore, this study seeks to use empirical evidence toconceptualize and examine the critical success factors for the implementation ofIslamic banking system in the banking sector of Iran. To achieve this purpose usingmixed method approach, the research framework has been designed and examined.The required data in the qualitative part of the study were collected after detailedliterature review and research background- through in-depth interviews withbanking executives and academic experts; then the quantitative part of the study forframework examination was conducted using survey. Based on this study's findings,the fitted model of critical success factors (CSFs) for successful implementation ofIslamic banking in the banking sector of Iran is proposed. Finally, both applied andtheoretical recommendations and directions are shown in this study.

Keywords:

Critical Success Factor (CSF) , Iran , Islamic banking , mixed approach , Policy making