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has been cited by the following article:

• TITLE: Somali Remittance Companies’ Transformation into Islamic Banks

  AUTHORS: Ali Abdi Farah, Robert E. Levasseur

  KEYWORDS: Somali Remittance, Islamic Banks in Somalia, Transformational Leadership, Organizational Change, Phenomenology

  JOURNAL NAME: Open Journal of Business and Management, Vol.10 No.6, November 24, 2022

  ABSTRACT: Somalia’s financial industry is transforming. Some remittance companies have transformed into Islamic banks, which was not easy because the remittance companies lacked the technology, finance, and human capital necessary to make the banks sustainable. Money transfer operators that transformed into Islamic banks also risk failure due to limited knowledge of the transformation’s effects. The purpose of this descriptive phenomenological study was to explore the lived experiences of a sample of leaders of the Somali remittance companies that transformed into Islamic banks. A three-step conceptual framework consisting of goal, process, and outcome guided the inquiry. The research question concerned the lived experiences of bank leaders who participated in a transformation from a remittance company to an Islamic bank. In-depth interviews of a purposeful sample of 10 participants yielded the study data. The results showed that existing demand was the most significant driver of organizational change. Apart from the scarce Islamic banking expertise in Somalia, one of the significant challenges the new banks faced was resistance to organizational change. Further research on the effectiveness of the new banks and their effect on Somali society is necessary. This study could contribute to positive social change if other bank leaders who face the need to change from a remittance company to an Islamic bank use the study findings to ensure a successful, sustainable transformation, thus providing Somalians with greater access to Shariah-compliant products and services.