ENTREPRENEURSHIP AND LEADERSHIP: AN ISLAMIC PERSPECTIVE
DOI:
https://doi.org/10.31436/ijema.v24i1.392Abstract
Islam is a religion that provides not only guidelines for spiritual matters but also worldly matters, including the conduct of business. The main contribution of the study is in explaining the role of religion in managing enterprises vis-à -vis the characteristics of an entrepreneur and leader who practices Islam in conducting business. The principles are for leaders and entrepreneurs who are desirous of implementing leadership and entrepreneurship as guided by Islam. Two broad categories are discussed in this article: entrepreneurship and leadership in Islam. Seminal work in this area provides the understanding on the teachings of Islam and its principles for practicing entrepreneurship and leadership. The teachings of Islam have been elucidated from practicing perspectives. This article shows that Islam is a practical religion with entrepreneurship and leadership practice characterized by taqwā (faith), tawakkul (dependence on Allah), efficient and proper use of resources, the use of permissible sources of production and the production of permissible products, sincerity in efforts, trustworthiness in all dealings, concern for societal welfare and the environment, fairness and transparency in all activities, pursuance of knowledge, taking pride in work/ labor, and consultation with stakeholders before decision making. This article suggests that leaders and entrepreneurs who possess the qualities laid down in Islam are expected to combat any managerial challenge and complexity in administering their responsibilities. This article attempts to express the Islamic teachings in such a way that it is easier for entrepreneurs and leaders to practice Islam. Along with proposing the principles a good amount of rationalism is generated through citing Quranic verses and aḥādīth pertinent to each sub-topic.References
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______. “Management Model from Islamic Perspectives: Some Reflections.†Ulum Islamiyyah, no. 1 (2003): 43-60.
______. “Leadership and work motivation from Islamic perspective.†Paper presented at the International Conference on Management from Islamic Perspective, Hilton Kuala Lumpur, 15-16 May, 2007.
______, and R. Fontaine. “Islamic Leadership at the International Islamic University Malaysia.†International Journal of Economics, Management and Accounting 19, no.2 (2011): 121-35.
Albadawi, I. Ma‘ālim Al-Shūrā fī Al-Islām. Cairo: Dār Al-Nahḍah Al-‘Arabīyah, 1994.
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Ali, J.S. “Leadership: An Islamic Perspective.†Paper presented at the International Conference on Management from Islamic Perspective at Hilton Kuala Lumpur, Malaysia, 15-16 May, 2007.
Ali, A. “Islamic Perspectives on Leadership: A Model.†International Journal of Islamic and Middle Eastern Finance and Management 2, no. 2 (2009): 160–80.
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Bass, Barnard. Leadership and Performance Beyond Expectation. New York: The Free Press, 1985.
______. “Ethics, Character, and Authentic Transformational Leadership Behavior.†Leadership Quarterly 10, 2 (1999): 181-271.
Bateman, T.S., and M.J. Crant. “The Proactive Component of Organizational Behavior: A Measure and Correlates.†Journal of Organizational Behavior 14, no. 2 (1993): 103-18.
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Beekun, R.I. Strategic Planning and Implementation for Islamic Organizations. Virginia: The International Institute of Islamic Thought, 2006.
Beekun, R.I., and J. Badawi. Leadership: An Islamic Perspective. Beltsville: Amana Publications, 1999.
Beg, T. “Promotion of Muslim Entrepreneurship under State Support.†Journal of Objective Studies 2 (1979): 95-106.
Begley, Thomas M., and P. Boyd David. “Psychological Characteristics Associated with Performance in Entrepreneurial Firms and Smaller Businesses.†Journal of Business Venturing 2, no. 1 (1987): 79-93.
Battilana, J., B. Leca, and E. Boxenbaum. “How Actors Change Institutions: Towards a Theory of Institutional Entrepreneurship.†The Academy of Management Annals 3, no. 1 (2009): 65-107.
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Colquitt, J.A., D.E. Conlon, M.J. Wesson, C.O. Porter, and K.Y. Ng. “Justice at the Millennium: A Meta-Analytic Review of 25 Years of Organizational Justice Research.†Journal of Applied Psychology 86, (2001): 425–45.
Conger, Jay A., and Rabindra N. Kanungo. 1987. “Toward a Behavioral Theory of Charismatic Leadership in Organizational Settings.†The Academy of Management Review 12, no. 4 (1987): 637–47.
______. “Behavioral Dimensions of Charismatic Leadership.†In Charismatic Leadership: The Elusive Factor in Organizational Effectiveness, edited by J.A. Conger and R.N. Kanungo, 78–97. San Francisco: Jossey-Bass, 1988.
______. Charismatic Leadership in Organizations. Thousand Oaks, California: Sage, 1998.
Crant, J.M. “Proactive Behavior in Organizations.†Journal of Management 26, no. 3 (2000): 435-62.
Dana, L.P. Entrepreneurship and Religion. Cheltenham, UK: Edward Elgar, 2010.
Deluga, R.J. “American Presidential Proactivity, Charismatic Leadership, and Rated Performance.†Leadership Quarterly 9, no. 3 (1998): 265-91.
Eyal, O., and R. Kark. “How Do Transformational Leaders Transform Organisations? A Study of the Relationship between Leadership and Entrepreneurship.†Leadership and Policy in Schools 3, no. 3 (2004): 211-35.
Fiedler, Fred Edward. A Theory of Leadership Effectiveness. New York: McGraw-Hill, 1967.
Farouk, Mustafa M. “Advances in the Industrial Production of Halal and Kosher Red Meat.†Meat Science 95, no. 4 (2013): 805-20.
Gümüsay, Ali Aslan. “Entrepreneurship from an Islamic Perspective.†Journal of Business Ethics 130, no. 1 (2014): 199-208.
Salarzehi, H., H. Armesh, and N. Davoud. “Waqf as a Social Entrepreneurship Model in Islam.†International Journal of Business Management 5, no. 7 (2010): 179-86.
HeÌbert, Robert F., and Albert N. Link. The Entrepreneur: Mainstream Views and Radical Critiques. New York: Praeger, 1982.
Howell, J.M., and B.J. Avolio. “Transformational Leadership, Transactional Leadership, Locus of Control, and Support for Innovation: Key Predictors of Consolidated-Business-Unit Performance.†Journal of Applied Psychology 78, no. 6 (1993): 891-902.
______, and C.A. Higgins. “Champions of Technological Innovation.†Administrative Science Quarterly 35, no. 2 (1990): 317.
House, Robert J. “A 1976 Theory of Charismatic Leadership.†In Leadership: The Cutting Edge, edited by James G. Hunt and Lars L. Larson, 189-207. Carbondale, IL: Southern Illinois University Press, 1977.
Ismail, Y. “A Proposed Approach to the Development of Islamic Management as a Discipline.†Paper presented at the International Conference on Management from Islamic Perspective, Hilton Kuala Lumpur, Malaysia, 15-16 May, 2007.
James, C.S., and C.S. Joseph. “The Transformational-Transactional Leadership Model in Practice.†Leadership & Organization Development Journal 22, no. 8 (2001): 383-93.
Kazmi, A. “A Preliminary Enquiry into the Paradigmatic Differences between the Conventional and Islamic Approaches to Management Studies.†Unpublished paper, International Islamic University Malaysia, 2004.
Kirzner, Israel M. Competition and Entrepreneurship. Chicago: University of Chicago Press, 1973.
______. Perception, Opportunity, and Profit: Studies in the Theory of Entrepreneurship. Chicago: University of Chicago Press, 1979.
Khan, Bilal, Ayesha Farooq, and Zareen Hussain. “Human Resource Management: An Islamic Perspective.†Asia-Pacific Journal of Business Administration 2, no. 1 (2010): 17-34.
Knight, Frank H. Risk, Uncertainty and Profit. Boston: Houghton Mifflin Co, 1921.
Weihrich, Heinz, and Harold Koontz. Management: A Global Perspective. Singapore: McGraw-Hill, 2005.
Lazear, Edward P. “Leaders and Entrepreneurs: Where They Produce the Most Value.†Paper presented at the Allied Social Science Associations Annual General Meeting, Philadelphia, 2005.
Loi, Raymond, Ngo Hang-Yue, and Sharon Foley. “Linking Employees’ Justice Perceptions to Organizational Commitment and Intention to Leave: The Mediating Role of Perceived Organizational Support.†Journal of Occupational and Organizational Psychology 79, no. 1 (2006): 101-20.
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Naqvi, S.N.H. Islam, Economics and Society. London: Kegan Paul International, 1994.
Parolini, J., K. Patterson, and B. Winston. “Distinguishing between Transformational and Servant Leadership.†Leadership & Organization Development Journal 30, no. 3 (2009): 274-91.
Patwary, Enayet Ullah. “Leadership in Islamic Perspective.†Executive Views 2, (2003): 58.
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Ramadan, Tariq. Radical Reform: Islamic Ethics and Liberation. Oxford: Oxford University Press, 2009.
Rameli, Mohd. Faizal P., Muhammad Ridhwan Ab. Aziz, Kalsom Ab. Wahab, and Suhaida Mohd Amin. “The Characteristics of Muslimpreneurs from the View of Muslim Scholars and Academician.†International Journal of Teaching and Education 2, no. 2 (2014): 47-59.
Rawls, J. A Theory of Justice. Cambridge, Massachusetts: Belknap Press of Harvard University Press, 1971.
Rice, R. “Islamic Ethics and the Implications for Business.†Journal of Business Ethics 18, no. 4 (1999): 345-58.
Richard Cantillon. Essai sur la Nature du Commerce en Général, translated by H. Higgs. London: MacMillan, 1931.
Sallam, H., and A.A. Hanafy. “Employee and Employer: Islamic Perception.†Proceedings of the Seminar on Islamic Principles of Organizational Behavior. Herndon, Virginia: International Institute of Islamic Thought (1988).
Schneider, Mark, and Paul Teske. “Toward A Theory of the Political Entrepreneur: Evidence from Local Government.†The American Political Science Review 86, no. 3 (1992): 737-47.
Schumpeter, Joseph A. The Theory of Economic Development; An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle. Cambridge, Mass: Harvard University Press, 1934.
Shapero, A., and L. Sokol. “The Social Dimensions of Entrepreneurship.†In The Encyclopedia of Entrepreneurship, edited by C. Kent, D. Sexton, and K.H. Vesper, 72-90. Englewood Cliffs, NJ: Prentice-Hall, 1982.
Stogdill, R.M. Handbook of Leadership: A Survey of Theory and Research. New York: Free Press, 1974.
Sullivan, P. “Islam, Economic Development in the Arab World.†Paper presented at the Centre for the Study of Islam and Democracy, National Defence University, Washington DC, 17 November 2004.
Terry, R.W. Authentic Leadership: Courage in Action. San Francisco: Jossey-Bass, 1993.
Toor, S. “An Islamic Leadership Theory: Exploring the Extra Dimensions.†Paper presented at the International Conference on Management from Islamic Perspective, Hilton Kuala Lumpur, Malaysia, 15-16 May 2007.
van der Spiegel, M., H.J. van der Fels-Klerx, P. Sterrenburg, S.M. van Ruth, I.M.J. Scholtens-Toma, and E.J. Kok. “Halal Assurance in Food Supply Chains: Verification of Halal Certificates Using Audits and Laboratory Analysis.†Trends in Food Science & Technology 27 (2012): 109-19.
Wilson, R. “Islam and Business.†Thunderbird International Business Review 48, no. 1 (2006): 109-23.
Yukl, G.A. Leadership in Organizations. Englewood Cliffs, NJ: Prentice-Hall, 1981.
Zaccaro, S.J., C. Kemp, and P. Bader. “Leader Traits and Attributes.†In The Nature of Leadership, edited by J. Antonakis, A.T. Cianciolo, and R. J. Sternberg, 101–24. Thousand Oaks, CA: Sage, 2004.
Abdul-Hadi, H.A. Al-Fikr Al-Idārī Al-Islāmī wa Al-Muqāran, Comparative and Islamic Administrative Thought. Cairo: Dār Al-Ḥamāmī li Al-Ṭibā‘ah, 1970.
Abū Dāwud Sulaimān ibn Al-Ash‘ath Al-Sijistānī. Sunan Abū Dāwud. Karachi: International Islamic Publisher, 1983.
Ahmad, Khaliq. “Leadership and Work Motivation from the Cross Cultural Perspective.†International Journal of Commerce and Management 19, no. 1 (2009): 72-84.
______. “Management Model from Islamic Perspectives: Some Reflections.†Ulum Islamiyyah, no. 1 (2003): 43-60.
______. “Leadership and work motivation from Islamic perspective.†Paper presented at the International Conference on Management from Islamic Perspective, Hilton Kuala Lumpur, 15-16 May, 2007.
______, and R. Fontaine. “Islamic Leadership at the International Islamic University Malaysia.†International Journal of Economics, Management and Accounting 19, no.2 (2011): 121-35.
Albadawi, I. Ma‘ālim Al-Shūrā fī Al-Islām. Cairo: Dār Al-Nahḍah Al-‘Arabīyah, 1994.
Alhabshi, S.O., and A.H. Ghazali. Islamic Values and Management. Kuala Lumpur: Institute of Islamic Understanding Malaysia (IKIM), 1994.
Ali, J.S. “Leadership: An Islamic Perspective.†Paper presented at the International Conference on Management from Islamic Perspective at Hilton Kuala Lumpur, Malaysia, 15-16 May, 2007.
Ali, A. “Islamic Perspectives on Leadership: A Model.†International Journal of Islamic and Middle Eastern Finance and Management 2, no. 2 (2009): 160–80.
Al-Bukhārī, Muḥammad ibn Ismā‘īl. Ṣaḥīḥ Al-Bukhārī. Beirut: Dar Al-Arabia, 1980.
Al-Ghazālī, Abū Ḥāmid Muḥammad. Revival of Religion Sciences. Translated by Fazlul Karim. Karachi: Darul-Ishaat, 1993.
Al-Nawawī, Muḥy Al-Dīn Yaḥyā ibn Sharaf. “Chapter 12 Book of Knowledge Book of Knowledge, hadith no. 1383.†Www.IslamicLine.Com, 2013. http://www.islamicline.com/.
Al-Talib, H. Training Guide for Islamic Workers. Virginia: International Institute of Islamic Thought, 1991.
Al-Tirmidhī, Abū ‘Īsā Muḥammad ibn ‘Īsā. Sunan Al-Tirmidhī. Karachi: International Islamic Publisher, 1983.
Bass, Barnard. Leadership and Performance Beyond Expectation. New York: The Free Press, 1985.
______. “Ethics, Character, and Authentic Transformational Leadership Behavior.†Leadership Quarterly 10, 2 (1999): 181-271.
Bateman, T.S., and M.J. Crant. “The Proactive Component of Organizational Behavior: A Measure and Correlates.†Journal of Organizational Behavior 14, no. 2 (1993): 103-18.
Baumol, William J. Entrepreneurship, Management, and the Structure of Payoffs. Cambridge, Mass: MIT Press, 1993.
Beekun, R.I. Strategic Planning and Implementation for Islamic Organizations. Virginia: The International Institute of Islamic Thought, 2006.
Beekun, R.I., and J. Badawi. Leadership: An Islamic Perspective. Beltsville: Amana Publications, 1999.
Beg, T. “Promotion of Muslim Entrepreneurship under State Support.†Journal of Objective Studies 2 (1979): 95-106.
Begley, Thomas M., and P. Boyd David. “Psychological Characteristics Associated with Performance in Entrepreneurial Firms and Smaller Businesses.†Journal of Business Venturing 2, no. 1 (1987): 79-93.
Battilana, J., B. Leca, and E. Boxenbaum. “How Actors Change Institutions: Towards a Theory of Institutional Entrepreneurship.†The Academy of Management Annals 3, no. 1 (2009): 65-107.
Casson, Mark. The Entrepreneur: An Economic Theory. Cheltenham, U.K.: Edward Elgar, 2003.
Colquitt, J.A., D.E. Conlon, M.J. Wesson, C.O. Porter, and K.Y. Ng. “Justice at the Millennium: A Meta-Analytic Review of 25 Years of Organizational Justice Research.†Journal of Applied Psychology 86, (2001): 425–45.
Conger, Jay A., and Rabindra N. Kanungo. 1987. “Toward a Behavioral Theory of Charismatic Leadership in Organizational Settings.†The Academy of Management Review 12, no. 4 (1987): 637–47.
______. “Behavioral Dimensions of Charismatic Leadership.†In Charismatic Leadership: The Elusive Factor in Organizational Effectiveness, edited by J.A. Conger and R.N. Kanungo, 78–97. San Francisco: Jossey-Bass, 1988.
______. Charismatic Leadership in Organizations. Thousand Oaks, California: Sage, 1998.
Crant, J.M. “Proactive Behavior in Organizations.†Journal of Management 26, no. 3 (2000): 435-62.
Dana, L.P. Entrepreneurship and Religion. Cheltenham, UK: Edward Elgar, 2010.
Deluga, R.J. “American Presidential Proactivity, Charismatic Leadership, and Rated Performance.†Leadership Quarterly 9, no. 3 (1998): 265-91.
Eyal, O., and R. Kark. “How Do Transformational Leaders Transform Organisations? A Study of the Relationship between Leadership and Entrepreneurship.†Leadership and Policy in Schools 3, no. 3 (2004): 211-35.
Fiedler, Fred Edward. A Theory of Leadership Effectiveness. New York: McGraw-Hill, 1967.
Farouk, Mustafa M. “Advances in the Industrial Production of Halal and Kosher Red Meat.†Meat Science 95, no. 4 (2013): 805-20.
Gümüsay, Ali Aslan. “Entrepreneurship from an Islamic Perspective.†Journal of Business Ethics 130, no. 1 (2014): 199-208.
Salarzehi, H., H. Armesh, and N. Davoud. “Waqf as a Social Entrepreneurship Model in Islam.†International Journal of Business Management 5, no. 7 (2010): 179-86.
HeÌbert, Robert F., and Albert N. Link. The Entrepreneur: Mainstream Views and Radical Critiques. New York: Praeger, 1982.
Howell, J.M., and B.J. Avolio. “Transformational Leadership, Transactional Leadership, Locus of Control, and Support for Innovation: Key Predictors of Consolidated-Business-Unit Performance.†Journal of Applied Psychology 78, no. 6 (1993): 891-902.
______, and C.A. Higgins. “Champions of Technological Innovation.†Administrative Science Quarterly 35, no. 2 (1990): 317.
House, Robert J. “A 1976 Theory of Charismatic Leadership.†In Leadership: The Cutting Edge, edited by James G. Hunt and Lars L. Larson, 189-207. Carbondale, IL: Southern Illinois University Press, 1977.
Ismail, Y. “A Proposed Approach to the Development of Islamic Management as a Discipline.†Paper presented at the International Conference on Management from Islamic Perspective, Hilton Kuala Lumpur, Malaysia, 15-16 May, 2007.
James, C.S., and C.S. Joseph. “The Transformational-Transactional Leadership Model in Practice.†Leadership & Organization Development Journal 22, no. 8 (2001): 383-93.
Kazmi, A. “A Preliminary Enquiry into the Paradigmatic Differences between the Conventional and Islamic Approaches to Management Studies.†Unpublished paper, International Islamic University Malaysia, 2004.
Kirzner, Israel M. Competition and Entrepreneurship. Chicago: University of Chicago Press, 1973.
______. Perception, Opportunity, and Profit: Studies in the Theory of Entrepreneurship. Chicago: University of Chicago Press, 1979.
Khan, Bilal, Ayesha Farooq, and Zareen Hussain. “Human Resource Management: An Islamic Perspective.†Asia-Pacific Journal of Business Administration 2, no. 1 (2010): 17-34.
Knight, Frank H. Risk, Uncertainty and Profit. Boston: Houghton Mifflin Co, 1921.
Weihrich, Heinz, and Harold Koontz. Management: A Global Perspective. Singapore: McGraw-Hill, 2005.
Lazear, Edward P. “Leaders and Entrepreneurs: Where They Produce the Most Value.†Paper presented at the Allied Social Science Associations Annual General Meeting, Philadelphia, 2005.
Loi, Raymond, Ngo Hang-Yue, and Sharon Foley. “Linking Employees’ Justice Perceptions to Organizational Commitment and Intention to Leave: The Mediating Role of Perceived Organizational Support.†Journal of Occupational and Organizational Psychology 79, no. 1 (2006): 101-20.
Merriam-Webster. “Merriam-Webster Dictionary and Thesaurus.†http://www.merriam-webster.com/dictionary/entrepreneur.
Moorman, R.H. “Relationship between Organizational Justice and Organizational Citizenship Behaviors: Do Fairness Perceptions Influence Employee Citizenship?†Journal of Applied Psychology 76, (1991): 845-55.
Naqvi, S.N.H. Islam, Economics and Society. London: Kegan Paul International, 1994.
Parolini, J., K. Patterson, and B. Winston. “Distinguishing between Transformational and Servant Leadership.†Leadership & Organization Development Journal 30, no. 3 (2009): 274-91.
Patwary, Enayet Ullah. “Leadership in Islamic Perspective.†Executive Views 2, (2003): 58.
Pew Forum on Religion & Public Life. The Future of the Global Muslim Population: Projections for 2010-2030. Washington, DC: Pew Research Center Forum on Religion & Public Life, 2011.
Ramadan, Tariq. Radical Reform: Islamic Ethics and Liberation. Oxford: Oxford University Press, 2009.
Rameli, Mohd. Faizal P., Muhammad Ridhwan Ab. Aziz, Kalsom Ab. Wahab, and Suhaida Mohd Amin. “The Characteristics of Muslimpreneurs from the View of Muslim Scholars and Academician.†International Journal of Teaching and Education 2, no. 2 (2014): 47-59.
Rawls, J. A Theory of Justice. Cambridge, Massachusetts: Belknap Press of Harvard University Press, 1971.
Rice, R. “Islamic Ethics and the Implications for Business.†Journal of Business Ethics 18, no. 4 (1999): 345-58.
Richard Cantillon. Essai sur la Nature du Commerce en Général, translated by H. Higgs. London: MacMillan, 1931.
Sallam, H., and A.A. Hanafy. “Employee and Employer: Islamic Perception.†Proceedings of the Seminar on Islamic Principles of Organizational Behavior. Herndon, Virginia: International Institute of Islamic Thought (1988).
Schneider, Mark, and Paul Teske. “Toward A Theory of the Political Entrepreneur: Evidence from Local Government.†The American Political Science Review 86, no. 3 (1992): 737-47.
Schumpeter, Joseph A. The Theory of Economic Development; An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle. Cambridge, Mass: Harvard University Press, 1934.
Shapero, A., and L. Sokol. “The Social Dimensions of Entrepreneurship.†In The Encyclopedia of Entrepreneurship, edited by C. Kent, D. Sexton, and K.H. Vesper, 72-90. Englewood Cliffs, NJ: Prentice-Hall, 1982.
Stogdill, R.M. Handbook of Leadership: A Survey of Theory and Research. New York: Free Press, 1974.
Sullivan, P. “Islam, Economic Development in the Arab World.†Paper presented at the Centre for the Study of Islam and Democracy, National Defence University, Washington DC, 17 November 2004.
Terry, R.W. Authentic Leadership: Courage in Action. San Francisco: Jossey-Bass, 1993.
Toor, S. “An Islamic Leadership Theory: Exploring the Extra Dimensions.†Paper presented at the International Conference on Management from Islamic Perspective, Hilton Kuala Lumpur, Malaysia, 15-16 May 2007.
van der Spiegel, M., H.J. van der Fels-Klerx, P. Sterrenburg, S.M. van Ruth, I.M.J. Scholtens-Toma, and E.J. Kok. “Halal Assurance in Food Supply Chains: Verification of Halal Certificates Using Audits and Laboratory Analysis.†Trends in Food Science & Technology 27 (2012): 109-19.
Wilson, R. “Islam and Business.†Thunderbird International Business Review 48, no. 1 (2006): 109-23.
Yukl, G.A. Leadership in Organizations. Englewood Cliffs, NJ: Prentice-Hall, 1981.
Zaccaro, S.J., C. Kemp, and P. Bader. “Leader Traits and Attributes.†In The Nature of Leadership, edited by J. Antonakis, A.T. Cianciolo, and R. J. Sternberg, 101–24. Thousand Oaks, CA: Sage, 2004.
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2016-06-30
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Fozia, M., Rehman, A., & Farooq, A. (2016). ENTREPRENEURSHIP AND LEADERSHIP: AN ISLAMIC PERSPECTIVE. International Journal of Economics, Management and Accounting, 24(1), 15–47. https://doi.org/10.31436/ijema.v24i1.392
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