Mapping an Islamic venture capital setup using foresight-based social construction approach

Purpose This study is a pioneering attempt to use the theory of social construction and foresight development to map out an Islamic venture capital (IVC) setup from the key stakeholders’ perspective. Using Prabhat Ranjan Sparker’s theory of social construction, 20 participants (including policymakers, investors, intellectuals and entrepreneurs) were involved in a foresight building workshop related to designing an IVC setup that adhered to Islamic principles and values. Design/methodology/approach Through the utilization of “future consciousness” tools (including the Polak game, futures triangle and scenario building), key components of an IVC setup were identified. This foresight building methodology not only enhanced the diversity of opinions and wide participation but also helped to examine various discourses and different stakeholder voices. Hence, a multi-stakeholder research approach, based on team presentations, group activities, collective reflections and paper-based simulations, was used. Participants were chosen using purposive sampling, where knowledge and experience about Islamic finance and entrepreneurship were the key selection criteria. A thematic approach was used for data analysis. This enabled summarization of data into organized information structures, which uncovered different perspectives and similar views related to a future IVC setup. Findings The main study findings revealed an outline of an IVC setup, which was based on seven main stages (i.e. submission of a business proposal for venture capital consideration, review of the proposal by experts, multi-stakeholder decision-making, agreement phase, resource allocation stage, value-sharing equation and impact realization). Another key outcome suggested that low IVC awareness needed addressing through online and offline communication with Muslim and non-Muslim communities. Practical implications The creation of an effective IVC setup, based on collective feedback from key stakeholders, should play a significant role in the socio-economic development of Islamic economies by providing financial, skills-based and emotional support to Muslim venture capital seekers. Originality/value In terms of study originality, this is an underdeveloped area limited to theories and propositions. To the best of the authors’ knowledge, there is no study that has provided a blueprint for a future IVC setup in a fast-developing Islamic economy that is based on key stakeholders’ perspective.