ISLAMIC PERSPECTIVES TO COMPETITION AND COMPETITIVENESS

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ISLAMIC PERSPECTIVES TO COMPETITION AND
COMPETITIVENESS

• Prof. Dr. Azhar Kazmi
• Department of Business Administration
• International Islamic University Malaysia

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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

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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?

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.. 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

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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)

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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?

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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.