ISLAMIC PERSPECTIVES TO COMPETITION AND COMPETITIVENESS

1. ISLAMIC PERSPECTIVES TO COMPETITION AND COMPETITIVENESS Prof. Dr. Azhar Kazmi Department of Business Administration International Islamic University Malaysia

2. Competition and competitiveness • Competition and competitiveness are recurring themes in strategic management • The purpose of strategic management is to learn how organizations can gain competitive advantage • Business strategies are based on the paradigm of industry competitiveness • There are alternative views on competition. Cooperation is emerging as a viable option and there are also cooperative strategies Lectures in strategic mgmt / Islamic perspectives to competition/ Azhar Kazmi / 2004-5

3. Some disturbing questions…… • Does competition have to be ‘cut-throat’ as described in many Western texts on conventional strategic management? • Is it really essential to describe competitive strategies (or tactics) in abominable terms such as “frontal assault’, ‘flanking maneuver’, ‘bypass attack’, ‘encirclement’ or ‘guerrilla warfare’? • Is it right to erect entry barriers as a defensive tactics to prevent other companies entering an industry? Lectures in strategic mgmt / Islamic perspectives to competition/ Azhar Kazmi / 2004-5

4. ….. And the probable answer • There are alternatives to the paradigm of competition and competitiveness as perceived in conventional strategic management for the purpose of strategy formulation. • Islamic revealed knowledge sources offer a solution out of this dilemma Lectures in strategic mgmt / Islamic perspectives to competition/ Azhar Kazmi / 2004-5

5. Please read this Hadith Narrated by Sahl bin Sa'd, on the carnal nature of human beings: . Heard Ibn Az-Zubair who was on the pulpit at Mecca, delivering a sermon, saying, "O men! The Prophet used to say, "If the son of Adam were given a valley full of gold, he would love to have a second one; and if he were given the second one, he would love to have a third, for nothing fills the belly of Adam's son except dust. And Allah forgives he who repents to Him." Ubai said, "We considered this as a saying from the Qur'an till the Sura (beginning with) 'The mutual rivalry for piling up of worldly things diverts you..' (102.1) was revealed." (Sahih Bukhari Volume 8, Book 76, Number 446) Lectures in strategic mgmt / Islamic perspectives to competition/ Azhar Kazmi / 2004-5

6. Two Quranic verses on rivalry [102.1]The mutual rivalry for piling up (the good things of this world) diverts you (from the more serious things). [57.20]Know ye (all), that the life of this world is but play and pastime, adornment and mutual boasting and multiplying, (in rivalry) among yourselves, riches and children. Here is a similitude: how rain and the growth that it brings forth, delight (the hearts of) the tillers; soon it withers; thou wilt see it grow yellow; then it becomes dry and crumbles away. But in the Hereafter is a Chastisement severe (for the devotees of wrong). And Forgiveness from Allah and (His) Good Pleasure (for the devotees of Allah). And what is the life of this world, but goods and chattels of deception? Lectures in strategic mgmt / Islamic perspectives to competition/ Azhar Kazmi / 2004-5

7. The right way in Islam • The Islamic perspective to competition and competitiveness is that they are acceptable and desirable if the intention is to strive and achieve in the cause of Allah. But if the intention is dishonorable such as envy, jealousy, mutual rivalry, boasting, reveling in vanquishing opponents, and hoarding worldly assets for the sake of hoarding them and not letting others benefit from them then competition and competitiveness become evil. Lectures in strategic mgmt / Islamic perspectives to competition/ Azhar Kazmi / 2004-5