Institutions or Contingencies? A Cross-Country Analysis of Management Tool Use by Public Sector Executives

: Management tools are often argued to ameliorate public service performance. Indeed, evidence has emerged to support positive outcomes related to the use of management tools in a variety of public sector settings. Despite these positive outcomes, there is wide variation in the extent to which public organizations use management tools. Drawing on normative isomorphism and contingency theory, this article investigates the determinants of both organization-oriented and client-oriented management tool use by top public sector executives. The hypotheses are tested using data from a large-N survey of 4,533 central government executives in 18 European countries. Country and sector fixed-effects ordinary least squares regression models indicate that contingency theory matters more than normative isomorphism. Public executives working in organizations that are bigger and have goal clarity and executive status are more likely to use management tools. The only normative pressure that has a positive impact on management tool use is whether public sector executives have a top hierarchical position.

T he New Public Management (NPM) movement of the 1980s generated an influx of private sector management tools into public organizations (Hood 1991;Osborne 2006). Instruments such as strategic planning, performance appraisal, and management by objectives became the core of the public manager's toolbox. Because the private sector was considered a "role model" in efficiency and effectiveness, it was argued that these tools could also generate a more efficient and effective government (Diefenbach 2009). In recent years, insights from service management have complemented these more organization-oriented management tools with client-oriented management tools such as client surveys and quality management systems. These tools, it has been argued, can help public organizations become more responsive to the needs of their clients-thus answering the call for a more service-dominant approach to public management (Osborne, Radnor, and Nasi 2013).
At the heart of management tools' popularity is the assumption that these tools contribute to public service performance-be it indicators of efficiency and effectiveness or indicators of responsiveness (Andrews and Van de Walle 2013;Walker and Andrews 2015). Indeed, empirical evidence has emerged to support positive outcomes resulting from the use of organization-oriented and client-oriented management tools by public organizations (e.g., Audenaert et al. 2016;Poister, Pasha, and Edwards 2013), and recent meta-analyses have confirmed the significant and positive association, on balance, between several management tools and public service performance (Gerrish 2016;Walker and Andrews 2015). At the same time, critics have argued that adopting management tools does not always make sense and does not contribute to productivity or efficiency. Andrews (2010), for instance, reviewed studies on the introduction of performance management in public organizations and found that this made little difference to organizational efficiency.
Despite the overall popularity of management tools in public organizations as well as the evidence supporting (mainly) positive outcomes, widespread heterogeneity of tool use has been observed throughout the public sector, and little evidence has been uncovered aimed at explaining that heterogeneity (George and Desmidt 2014;Poister, Pitts, and Edwards 2010). Several authors have looked at management tool use across public organizations (e.g., Berry 1994;Streib 1989, 2005) and found significant individual, organizational, and sectoral differences in the extent to which management tools are used. Nevertheless, few studies have delved into the determinants of these differences (George and Desmidt 2014). Empirical studies have typically looked at management tools as something public organizations "have," a macro process that helps explain performance, whereas little is known about tools as something that public sector practitioners "do" (Bryson, Crosby, and Bryson 2009;George, Desmidt et al. 2017). More insights are required into the people actually using management tools in their daily practice. Hence, this article investigates the determinants of management tool use in the public sector and asks, Why are some public sector executives more prone to use management tools than others?
Drawing on normative isomorphism (Powell and DiMaggio 1991), we hypothesize that public sector executives who have significant private sector experience, who have a management degree, who hold high hierarchical positions, and who work in organizations that have unclear goals are more likely to use management tools as a mechanism to enhance their legitimacy. We complement these hypotheses with insights from contingency theory (Donaldson 2001) and argue that public sector executives working in bigger organizations with clear goals and executive status are more prone to use management tools because of their organizational context. These hypotheses are tested using a cross-sectional, large-N survey of 4,533 public sector executives from 18 European countries. Two country and sector fixed-effects ordinary least squares (OLS) regression models are constructed: one focused on organization-oriented management tools as the dependent variable and one focused on client-oriented management tools as the dependent variable.
This article contributes to the public management literature in that it is one of the first large-N empirical studies to investigate the role of normative isomorphism and contingency theory in explaining management tool use in public organizations and to use a sample of central government executives from 18 European countries. Insights into the determinants of management tool use can help explain the current heterogeneous situation in the public sector and provide policy makers with evidence on where to prioritize efforts when devising and implementing public management reforms. We also identify the applicability of normative isomorphism and contingency theory as theoretical frameworks within public management and assess which of the two frameworks has the strongest explanatory value in the specific case of management tool use by public sector executives.
Moreover, by using data from 18 European countries, the predominant Anglophile focus of public management literature is complemented by a broader European perspective. This is no trivial matter, as recent insights have emphasized the importance of context and culture when investigating core questions within public management (Meier, Rutherford, and Avellaneda 2017;O'Toole and Meier 2015). We account for this contextual reality by using evidence from 18 European countries and by identifying-through a country and sector fixed-effects model-which findings on management tool use hold across these European countries and sectors. Indeed, there are several differences between the European Union (EU) and U.S. public sectors, where most research has been focused, including the more extensive regulatory environment within the EU as well as the stronger influence of labor unions (Löfstedt and Vogel 2001). Additionally, public organizations within the EU experience less autonomy, stronger political control, and more regulated labor markets than their U.S. counterparts (Meier, Rutherford, and Avellaneda 2017). These contextual differences thus make the EU a particularly interesting setting to complement current U.S.-based studies.
We first present our hypotheses based on normative isomorphism and contingency theory. Next, we elaborate on our methods and data. We present the results from two country and sector fixedeffects OLS regression models and discuss the implications of our findings for public management theory and practice.

Theory and Hypotheses
There is an established research tradition that describes the use and diffusion of management tools in the public sector. Studies have looked at management tools in general (e.g., Poister and Streib 1994;Rivenbark and Kelly 2003) as well as specific tools such as management accounting (e.g., Lapsley and Wright 2004), performance measurement (e.g., Poister and Streib 1999;Torres, Pina, and Yetano 2011), management by objectives (e.g., Poister and Streib 1995), and strategic planning (e.g., Berry and Wechsler 1995;Poister and Streib 2005). These studies have predominantly focused on U.S. and U.K. local government, with some notable exceptions. For instance, Botner (1985) investigated management tool use at the U.S. state level. Damonte, Dunlop, and Radaelli (2014) looked at the use of policy control tools in 17 European countries. Van Dooren (2005) centered on performance measurement at the Flemish regional government level, and Jeannot and Guillemot (2013) focused on management tool use in French central government departments.
Typically, these studies describe the presence of management tools and potential differences across groups, whereas explaining these differences has received limited attention. More recent work has attempted to explain variation in and effects of the use of management tools, generally couched under the conceptual umbrella of innovation diffusion (e.g., Walker, Damanpour, and Devece 2010;Hansen 2011) or normative and mimetic isomorphism (e.g., Pina, Torres, and Yetano 2009). Our article builds on this research tradition using two complementary theoretical approaches to explain variation in management tool use by public sector executives. The first is normative isomorphism, and the second is contingency theory. Similar studies on the use of management tools have employed exactly this theoretical juxtaposition as well, and findings either support their interconnectedness (e.g., Carvalho, Gomes, and Fernandes 2012) or mainly support contingency theory (e.g., Laegreid, Roness, and Rubecksen 2007). Figure 1 presents the conceptual model, which will be discussed in the following sections.

Normative Isomorphism and Management Tool Use
The first theoretical approach is normative isomorphism. The managerialization of public sector executives is a process of professionalization and standard setting. This means that members of the profession will use practices associated with the management profession such as organization-oriented and client-oriented management tools. This professionalization is "the collective struggle of members of an occupation to define the conditions and methods of their work" (Powell and DiMaggio 1991, 152).
The shift in public sector executives' role from being administrators to becoming public managers means that members of this managerial occupation come to identify themselves not just as members of the administrative elite but also as members of the managerial profession, adhering to commonly accepted standards within that group. To garner legitimacy, they want to present themselves as new public managers. This involves embracing organization-oriented and client-oriented management tools as the method to perform managerial work. This identification with the managerial profession has its source in a shared formal education and in the existence of professional networks for the formulation and diffusion of norms (Ashworth, Boyne, and Delbridge 2009;Powell and DiMaggio 1991). Increasingly, also in the public sector, such networks and standard setting become transnational and international (Djelic and Sahlin-Andersson 2006). Teodoro (2014) looked at whether belonging to a specific profession makes managers manage differently. He argued that normative isomorphism helps explain "how professions shape executive management" (2014,983). However, in a study on management tool use in Norwegian state-level public organizations, Laegreid, Roness, and Rubecksen (2007) found that normative isomorphism was not a major explanation for such use. This may be explained by the insights of Ashworth, Boyne, and Delbridge (2009), who, in a study among 101 English public sector organizations, found that normative isomorphism had a strong effect on organizational strategies and cultures but a weak effect on structures and processes. Management tools fit the second category.
There are two reasons why public organizations are a good area in which to study normative isomorphism's impact on managers. First, a study by Frumkin and Galaskiewicz (2004) found that government organizations are more susceptible than private organizations to normative isomorphic pressures, thereby confirming one of the hypotheses put forward by Powell and DiMaggio (1991). Second, we follow the recommendation of Teodoro (2014Teodoro ( , 1000 to search "for evidence of normative isomorphism," especially in types of organizations in which executives come from different kinds of professions. This is particularly the case for European central government administrations, in which public sector executives show a trend toward managerialism (Van Thiel, Steijn, and Allix 2007) yet still have not converged around a shared (public) managerial identity (Meyer et al. 2014).
Public sector executives in European countries have a wide variety of professional backgrounds. Unlike some other industries, central government organizations are not dominated by one particular professional group at the managerial level. Some central government administrations are largely populated by traditional career bureaucrats, who have had legal training and spent most of their careers in the public sector. Others are populated by a new brand of managers who sometimes have private sector experience and management education. There are major country differences, with German top executives having enjoyed predominantly legal training and French top executives coming from the "Grandes Ècoles," but beyond this, one finds executives coming from a multitude of backgrounds and having a diverse set of educational backgrounds, ranging from law, political science, and economics to natural science, engineering, and medicine (Hammerschmid et al. 2016;Thijs, Hammerschmid, and Palaric 2018).

Figure 1 Model Predicting Management Tool Use by Public Sector Executives
These new public managers distinguish themselves from traditional bureaucrats by having more private sector work experience and an educational background in management studies (Meyer and Hammerschmid 2006; Van Thiel, Steijn, and Allix 2007). Management education is expected to have a positive impact on management tool use (Jarzabkowski et al. 2013), and having a background in the private sector is also expected to contribute to the professionalization of the managerial role. Public sector executives with a managerial degree and private sector experience can be expected, based on normative isomorphism, to more strongly associate with the profession of a manager-thus indicating that they are particularly prone to the use of management tools (Fernández Gutiérrez and Van de Walle 2018). This leads to the following two hypotheses: Hypothesis 1: Public sector executives with extensive private sector experience are more likely to use management tools.
Hypothesis 2: Public sector executives with a management degree are more likely to use management tools.
In many studies on normative isomorphism, scholars have looked at professional association membership as a key channel for such pressures. Examples are studies looking at membership in professional associations, as in the case of accountants (Christensen and Parker 2010), or membership in some association that groups organizational peers (Frumkin and Galaskiewicz 2004). Top public sector management in Europe, however, is a diverse and fragmented group, making association membership less suitable for the operationalization of normative pressures. However, top public officials, especially those working within the same policy field, meet regularly at certain forums. An alternative operationalization is to consider membership in a select group of top public sector executives (i.e., those at the top hierarchical level of their organization) as a proxy for such associational membership. Top public sector executives belong to a small group of peers, and they may feel pressure to use modern management tools in order to demonstrate their position as a modern top executive within the peer group. In addition, they are a visible group, subject to scrutiny by the public and by politicians, especially when they sit at the top of the hierarchy, making it necessary for them to use management tools for legitimacy purposes. In addition, it can be assumed that top public sector executives are exposed to international peers through Organisation for Economic Co-operation and Development (OECD) and EU meetings, where they also pick up new practices (Pal 2012). We therefore hypothesize the following: Hypothesis 3: Public sector executives at the highest hierarchical level of their organization are more likely to use management tools. Powell and DiMaggio (1991) hypothesized that goal ambiguity is also a reason why managers might experience normative pressures because ambiguous goals imply a necessity to adjust to perceived norms as an indicator of legitimacy. The reason is that organizations whose goals are not very clear depend on factors other than output for their legitimacy, whereas for organizations with clear goals, it is easier to demonstrate their relevance and legitimacy. It is expected that public sector executives in organizations with high goal ambiguity will be subjected to a higher degree of normative isomorphism and will use all kinds of modern, almost normative, management tools to demonstrate their legitimacy. In relation to this, Teodoro (2014) argued that public organizations have particularly ambiguous and competing goals. Hence, the power of normative isomorphism will be especially strong because the managerial profession, and its use of management tools, provides norms on how to run a public organization (Teodoro 2014). To summarize, when an organization has unclear goals, it is hard to show that it is actually doing a good job. Hence, management tools can help demonstrate to the outside world that the organization is a real, legitimate organization that uses the same tools that other professional organizations use. For this reason, we hypothesize the following: Hypothesis 4a: Public sector executives who perceive their organization to have high goal ambiguity are more likely to use management tools.

Contingency Theory and Management Tool Use
In their study of management tool use in Norwegian state-level public organizations, Laegreid, Roness, and Rubecksen (2007) concluded that neo-institutionalist approaches are insufficient to explain tool use. Instead, they suggested that tool use is largely driven by the "functional applicability of the tool" (Laegreid, Roness, and Rubecksen 2007, 407), and therefore contingency-based explanations may be of more use. Contingency theory argues that organizational structure and management behavior are contingent on the technical task and environment of the organization (Donaldson 2001). For instance, early contingency scholars found differences in the organizational structure of local government authorities depending on contingencies such as size, environment, interdependence, and change (Hinings, Greenwood, and Ranson 1975).
Contingency studies have shown that organizations that are characterized by standardization and formalization can be expected to more easily use management tools (Pugh et al. 1968). Burns and Stalker (1961) drew attention to one important aspect of standardization and formalization within organizations: goal clarity. When goals are clear, this leads to measurable outputs related to those goals-which, in turn, makes it easier to use management tools geared toward goal formulation and implementation. For instance, Van Dooren (2005) found that having measurable outputs in the organization was related to a higher uptake of performance measurement tools. Contingency theory would thus predict a higher use of management tools in organizations with goal clarity. This implies that the theoretical predictions on goal ambiguity/clarity emanating from contingency theory are exactly the opposite of those emanating from normative isomorphism. To summarize, clear goals imply easier to measure and manage processes and outputs which, in turn, make it easier to use management tools because of the strong fit between how management tools work (i.e., based on goals, indicators, etc.) and what is happening in the organization. We hypothesize the following: Hypothesis 4b: Public sector executives who perceive their organization to have high goal clarity are more likely to use management tools.
A more prosaic contingency factor is organizational size. On the one hand, organizational size increases the need to use management tools to control the organization and to know what is happening within the organization and in its environment (Van Dooren 2005). On the other hand, organizational size is also indicative of the administrative and financial capacity to actually implement and use management tools. Earlier studies of the use of management tools have indeed demonstrated the importance of organizational size (e.g., Botner 1985;Laegreid, Roness, and Rubecksen 2007;Poister and McGowan 1984)-resulting in following hypothesis: Hypothesis 5: Public sector executives who work in bigger organizations are more likely to use management tools.
Third, task matters. For instance, in their study of Norwegian state-level public organizations, Laegreid, Roness, and Rubecksen (2007) found that service-providing organizations are more likely to use quality management tools. Public organizations with executive status, as delivery organizations, are typically involved in routine, standardized, repetitive tasks and work directly with clients. As a result, we can expect these organizations to be more likely to use management tools compared with ministries. Moreover, public organizations with executive status have been particularly influenced by NPM's emphasis on being more responsive to clients as well as efficient and effective-resulting in a natural need for organizationoriented and client-oriented management tools (Laegreid, Roness, and Rubecksen 2007). This results in our final hypothesis: Hypothesis 6: Public sector executives who work in public organizations with executive status are more likely to use management tools.

Data
This article relies on data from the COCOPS (Coordinating for Cohesion in the Public Service of the Future) Top Public Executive Survey, a population survey of top public sector executives in central government in European countries collected as part of a large collaborative European research project (http://www.cocops.eu) (see Hammerschmid et al. 2016). It is a population survey because it targeted the entire population of central government managersincluding the regional level in federal countries-at the highest hierarchical levels, following a detailed mapping of government structures, top positions, and their incumbents by national research teams in each of the 18 participating European countries (Germany, France, Spain, Italy, Estonia, Norway, the United Kingdom, The Netherlands, Hungary, Austria, Portugal, Lithuania, Ireland, Sweden, Denmark, Finland, Iceland, and Croatia).
The total N is 6,824, or an average response rate per country of 31.50 percent. Response rates vary per country, ranging from 51 percent in Iceland or just above 40 percent in Finland and Sweden to just under 18 percent in Spain and Italy. Data were collected using a standardized questionnaire in the local language based on an English-language master questionnaire, using a combination of online questionnaires and paper-based questionnaires where local practice dictated such an approach or where initial response rates were too low. The COCOPS survey included questions on the use of NPMdriven, organization-oriented management tools such as strategic planning as well as service-driven, client-oriented management tools such as client surveys. The survey, method, description and data set are available in open access through the Gesis Social Science Data (Archive: https://dbk.gesis.org/dbksearch/).
In our analyses, we decided to not include respondents who had missing values on any of our variables. This is particularly the case for respondents who indicated they were not able to assess the extent of management tool use for certain management instruments; for that reason, they were removed from the data set. This reduced our data set to a total N of 4,533 public sector executives for our model predicting organization-oriented management tool use and 4,489 public sector executives for our model predicting clientoriented management tool use. We tested for nonresponse bias by conducting a time-trend extrapolation test comparing early and late respondents in the different country samples. In this test, the replies of two groups of early and late respondents were compared to assess whether replies significantly differed over time; no significant differences emerged. Moreover, sampling issues were avoided by surveying our entire population as opposed to extracting a sample framework (Lee, Benoit-Bryan, and Johnson 2012).
Because we are dealing with administrative elites who can be easily identified, privacy considerations were important, and therefore no administrative data on the respondents' organization could be linked to the survey answers. All data about the respondents' organization were thus provided by the respondents themselves. The strict privacy considerations meant that only limited representativeness checks could be performed on the data, but a number of such checks at the country level and on respondents' gender showed no major biases (Hammerschmid, Van de Walle, and Stimac 2013).

Dependent Variables
The dependent variables in this study are the use of management tools as reported by public sector executives. For a series of management tools, respondents were asked, "To what extent are the following instruments used in your organization?" This was measured on a seven-point scale, ranging from "not at all" to "to a large extent." Respondents were also explicitly offered a "cannot access" option, because not all public sector executives may be fully aware of the type of managements tools used throughout their organization. This resulted in missing data for specific financial management tools.
Because management tools typically have different outcomes (i.e., efficiency and effectiveness focus of organization-oriented, NPMdriven tools versus responsiveness focus of client-oriented, servicedriven tools), we performed an exploratory factor analysis (EFA) on the list of eight management tools using principal component analysis (PCA) with an oblique rotation (see table 1). We use PCA because we aim to make statements based on our data and thus do not seek to extrapolate beyond our data, and we use oblique rotation because we expect our management tool factors to be correlated (Field 2013). The EFA resulted in two factors, which we have labeled "organization-oriented tools" and "client-oriented tools." Both factors had acceptable Cronbach's alphas (> .70).
Before proceeding with the analysis, we first present a number of descriptive findings at the country level to provide context to our two dependent variables. Figure 2 and Figure 3 provide histograms containing the country averages across our sample for both organization-oriented management tool use and client-oriented management tool use. As these figures show, organization-oriented management tool use seems to be-on average-highest in the United Kingdom and Sweden and lowest in Spain and Hungary. Interestingly enough, these findings do not hold for client-oriented management tool use, with Lithuania and the Netherlands scoring highest and Croatia and Germany scoring lowest. While these findings give some general insights into the role of different administrative systems in explaining management tool use, it is important to note that these figures are based on broad averages across countries, and in-depth comparative case studies should be conducted to better contextualize these findings. Explaining between-country differences is not the focus of this study. Hence, as will be seen later on, we use country fixed effects to account for potential variation in management tool use attributable to countrylevel variables. 1

Independent Variables
The two theoretical processes at work and the resulting set of hypotheses are operationalized as follows. For normative pressure, we measured private sector working experience as follows: "How many years of work experience outside the public sector do you have? In the private sector?" The categories included none, less than 1 year, 1-5 years, 5-10 years, 10-20 years, and more than 20 years. Having a management education was measured by asking, "What was the subject of your highest educational qualification?," with management/business/economics being one of the categories. To establish the respondent's hierarchical position, we asked, "What kind of position do you currently hold?," with three answer categories: the top hierarchical level in the organization, the second hierarchical level in the organization, and the third hierarchical level in the organization. Goal ambiguity/clarity is a scale variable consisting of four items based on the work of Jung (2011) measured on a seven-point strongly disagree/strongly agree scale: (1) "Our goals are clearly stated," (2) "Our goals are communicated to all staff," (3) "It is easy to observe and measure our activities," and (4) "We mainly measure inputs and processes" (Cronbach's alpha .724). A high score on this variable implies goal clarity, whereas a low score implies goal ambiguity.
Contingency variables included in this study are organizational size, measured as the total number of employees in the organization (<50, 50-99, 100-499, 500-999, 1,000-5,000, >5000); executive status-whether or not the respondent works for an executive or subordinate government body rather than a ministry-type organization; and goal ambiguity/clarity (see earlier description).

Figure 2 Histogram of Country Averages of Organization-Oriented Management Tool Use
Finally, a number of sociodemographic control variables (gender, age, level of education) were added to control for differences in responses and related nonresponse patterns. Moreover, the policy sectors within which the respondent works were also added to control for management tool use variation related to policy-sectorspecific characteristics. Similarly, country dummies were included to control for country-specific characteristics.
To provide further insights into the types of organizations included in our sample, we added some descriptives concerning our organizational-level variables (namely goal clarity, organizational size, and executive status). First of all, the average score for goal clarity is 4.93 (min = 1, max = 7) with a standard deviation of 1.27. On average, the included organizations tend to have rather clear goals, but there is quite some variation around the mean. Second, most organizations constitute 100-499 employees (about 35 percent), whereas the other size categories are more evenly distributed (1,000-5,000 employees about 15 percent, 500-999 employees about 14 percent, above 5,000 employees about 13 percent, fewer than 50 employees about 13 percent, and 50-99 employees about 9 percent). Finally, most of the organizations are agencies (about 55 percent), although there are still a lot of ministries included in the sample (45 percent).

Common Source Bias
This study uses a single, self-reported survey to measure all variables. This implies that common source bias (CSB) could be an issue. We use the recent recommendations of George and Pandey (2017) to investigate and discuss CSB issues in our data. First, most of our independent variables are demographic characteristics or organizational characteristics that one can expect to be factual (i.e., private sector experience, management education, top hierarchical position, organizational size, executive status of organization). It is unlikely that these variables suffer from CSB. Second, one of our independent variables (i.e., goal clarity/ambiguity) is perceptual and might be influenced by CSB when correlated with perceptions of management tool use. However, the Harman's single factor test on the items underlying these variables does not support the assumption that the correlations are strongly inflated by CSB (i.e., 42 percent of variance explained by single factor). Third, the variables under investigation in our article are not part of the set of variables argued to suffer from CSB by previous public administration articles-we should not assume CSB to be a prima facie inflator of our correlations. Fourth, the survey used in our analysis is the first to measure our variables across European countries and with top public sector executives-there is simply no archival data available for us to use in substitute of the survey.

Statistical Analysis
We use OLS regression analysis to test the hypotheses. In what follows, we present some of the essential information underlying our choice for this technique as recommended by Lee, Benoit-Bryan, and Johnson (2012). Although the items of our dependent variables were initially measured on an ordinal scale, the commuted overall score looks at the average score across items and is no longer ordinal-a linear model is preferred. Before conducting the OLS regression analysis, we need to ensure that our model adheres to the assumptions underlying OLS regression analysis.

Figure 3 Histogram of Country Averages of Client-Oriented Management Tool Use
First, we assess potential issues of multicollinearity by investigating the variance inflation factors (VIFs) of the included predictors. None of the observed VIFs exceeds a value of 10, indicating that multicollinearity is not an issue. An explanation for this is related to the high variation in public organizations across the sample, with very large agencies but also very large ministries, and an allocation of certain delivery tasks (with high goal clarity) to agencies in some systems but to ministries in others. Second, we assess the normality assumption of the regression residuals by looking at the normal P-P plot of the residuals as well as the associated histogram. Both figures indicate normally distributed residuals. We also adhere to the normality assumption.
Third, we address the assumption of individual independence. Our sample of public sector executives are nested in countries, sectors, and organizations-they are not independent. We include dummies for country and sector to account for clustering at these levels (i.e., a country and sector fixed-effects model). Because we do not have data on the organization to which executives belong, we cannot account for clustering at the organizational level. Hence, our hypotheses based on contingency theory could suffer from type I error because these organizational level variables are "stretched" to the individual level. To provide credence to our findings, we included a robustness check: we ran the model again but only included data from the highest hierarchal level of public sector executives (i.e., 995 respondents). There should be very few of these respondents who share the same organization thus strongly minimizing type I error. If our robustness check does not differ from our original findings concerning contingency theory, we argue these findings to be robust.
Fourth, we test for the absence of heteroscedasticity-or "fanning out"-of our residuals by looking at the individual scatter plots and conducting the Breusch-Pagan test. No indication of heteroscedasticity is present. Finally, we test for influential observations by calculating the Cook's distance. No distance is above the cutoff point of 1. We can now move on to the actual results of our analyses.

Results
Two country and sector fixed-effects OLS regression models are presented in table 2. The first model includes the use of organization-oriented management tools as the dependent variable, and the second model includes the use of client-oriented management tools as dependent variable. Both models are statistically significant. Model 1 explains almost half of the variation in the use of organization-oriented management tools, and model 2 explains about one-third of the variation in the use of clientoriented management tools.
Looking at the normative pressures, our analyses indicate that only one of our four hypotheses can be accepted. Private sector experience has little impact on management tool use. 2 Only when public sector executives have more than 20 years of private sector experience are they more likely to use client-oriented management tools. In all other cases, private sector experience has a limited part to play, resulting in the rejection of hypothesis 1. The impact of having a management degree is also not significant. 3 Public sector executives who studied business, management, or economics are not more likely to use management tools (i.e., rejection of hypothesis 2). However, as expected based on normative isomorphism, public sector executives at the highest hierarchical level of their organization are more likely to use both organization-oriented and client-oriented management tools compared with those at lower levels (i.e., acceptance of hypothesis 3).
Finally, goal ambiguity is not a significant positive predictor of management tool use-rather, the exact opposite is the case. When assessing the role of goal clarity/ambiguity in management tool use, the arguments of contingency theory are more applicable than those of normative isomorphism: goal clarity positively relates to management tool use as opposed to negatively (i.e., acceptance of hypothesis 4b and rejection of hypothesis 4a). Importantly, when looking at the standardized regression coefficients of all predictors, we find that goal clarity is by far the strongest predictor of both organization-oriented and client-oriented management tool use.
Apart from the role of goal clarity, the other two hypotheses based on contingency theory are also accepted. Public sector executives working in bigger organizations are more likely to use management tools (i.e., acceptance of hypothesis 5), and the same holds for those working in public organizations with executive status (i.e., acceptance of hypothesis 6). Looking at our controls, gender and education level have limited impact, but age does have a significant impact-with public sector executives aged 56-65 being most likely to use organization-oriented and client-oriented management tools.
To check for potential type I errors in our analyses of the contingency-theory-based variables (see "Statistical analysis"), we reran the foregoing models but this time only used data from the executives at the highest hierarchical level of their organization (i.e., 995 respondents). In both models, the exact same results were uncovered (i.e., goal clarity significant positive and strongest predictor, organizational size significant positive predictor, and executive status significant positive predictor). This robustness check confirms the validity of our initial findings and the limited impact of type I error.

Discussion
This article used a cross-country, large-N survey of European public sector executives to answer following question: which public sector executives are particularly prone to the use of management tools? Hypotheses were defined based on normative isomorphism and contingency theory, and two country and sector fixed-effects OLS regression models were used to test these hypotheses. The models indicate that public sector executives who have the highest hierarchical positions in their organization and work in bigger organizations with perceived goal clarity and executive status are more prone to using management tools. This finding implies that, in the particular case of management tool use by public sector executives, contingency theory outperforms normative isomorphism. There are several implications of these findings for public management theory and practice.
Although normative isomorphism is argued to be a potent framework to predict management tool use in organizational theory (Powell and DiMaggio 1991), our findings do not support its importance. Management education and private sector experience did not seem to spark a need for more management tool use by the surveyed public sector executives-despite our argument that these normative pressures would generate a sense of belonging to the management profession and thus a norm to use management tools. Nevertheless, one normative pressure did have an important part to play: hierarchical level. In line with our argument, public sector executives at the highest hierarchical level of their organization can be argued to belong to a professional group of top-level public managers who are strongly scrutinized by the public and by politicians and thus more likely to use management tools in their search for legitimacy. This finding gives some credence to the applicability of normative isomorphism in explaining the use of public management practices (complementing the findings of, e.g., Decramer et al. 2012).
We would like to emphasize that although our findings on normative isomorphism are not particularly potent, there are other isomorphic pressures that we did not investigate. Specifically, Notes: Dummies for country and sector were included to control for the variation attributable to country-or sector-level variables. These are not presented in the table. + p < .10; * p < .05; ** p < .01; *** p < .001.
we encourage future research to include the role of coercive isomorphism (i.e., formal rules and regulations) and mimetic isomorphism (i.e., copying successful organizations) in explaining management tool use within the public sector (Powell and DiMaggio 1991). Previous studies have indicated the importance of these pressures for public management practices (e.g., Ashworth, Boyne, and Delbridge 2009;George, Baekgaard et al. 2018).
We join the findings of Laegreid, Roness, and Rubecksen (2007) by uncovering the importance of contingency theory over normative isomorphism. Indeed, all three hypotheses based on contingency theory were accepted (Donaldson 2001). Public sector executives working in bigger organizations are more likely to use management tools because of the capacity underlying such organizations. Size has been argued to be a proxy for professionalization-that is, bigger public organizations are more professionalized-and our findings give further credence to this assumption (e.g., Andrews and Boyne 2010;Jung 2013). Moreover, because of the standardization of practices and direct contact with clients, public sector executives working in public organizations with executive status are more likely to indicate management tool use. Future research could assess why. In particular, it would be interesting to uncover the conditions under which public sector executives working in ministries are still likely to use management tools, as well as those working in smaller public organizations.
Throughout our models, one contingency variable emerged as the strongest predictor of management tool use: perceived goal clarity. Those public sector executives who perceived their organization to have clear goals were also more likely to use management tools. The impact of this finding cannot be underestimated. Goal clarity is not always a typical characteristic of public organizations-quite the opposite has been argued (e.g., Chun and Rainey 2005;Jung 2011). Nonetheless, evidence has emerged arguing that goal clarity is an antecedent of public service performance and clearly matters (e.g., Jung 2014). Our study indicates that goal clarity also has beneficial impact on management tool use, and this finding could indicate that management tool use is a mediating variable in the goal clarity/ public service performance relation. Indeed, it could be that goal clarity, in part, contributes to public service performance because it enhances management tools use in public organizations. This observation is, at the moment, speculative, and we encourage future research to look into management tool use as a potential mediator in the goal clarity/public service performance relation.
An alternative view on the relation between goal clarity and management tool use, but one that cannot be tested in the framework of the current article, theory, and data, is that using management tools reduces ambiguity in the organization by forcing its operations within a common mold. In other words, there could be some reversed causality such that using management tools might help create goal clarity-thus allowing managers to be more reflexive and able to manage ambiguity. At the moment, however, this is speculative, and we encourage future work to explore this theoretical assumption.
Our findings have clear implications for policy makers and public managers. In the past couple of decades, public management reforms have become widespread in public organizations at all levels of government (Diefenbach 2009). Our results suggest that one standardized approach to implementing and assessing the progress of these reforms is unrealistic. Different organizations require different support and guidelines. It might be easier for bigger organizations with clear goals, standardized activities, and contact with clients to use management tools, whereas other organizations might struggle to meet the requirements and require more training as well as resources. Similarly, public managers should take into account the context in which they work and understand that this context will influence their intent to implement new managerial practices. We encourage a contingency approach to management tools in public organizations, in which policy makers and public managers investigate the context in which they work and adapt their reform initiatives and practices accordingly (see, e.g., Bryson, Berry, and Yang 2010;Poister, Pitts, andEdwards 2010 Woods 2009).

Limitations
Although our article is one of the first to investigate the determinants of management tool use by public sector executives across 18 European countries, some limitations need to be acknowledged. First, although we argued that CSB is not much of an issue in our analyses, using a cross-sectional survey does imply issues of endogeneity. Our findings are limited to associations, and we cannot make statements on causality (George and Pandey 2017). We suggest that future research address this issue by using, for instance, research designs based on difference-in-differences or longitudinal analyses.
Second, we chose to use cross-country data as a means to generalize our findings beyond specific countries. We did not aim to explain between-country variance, and we encourage other authors to investigate that variance by looking at country-level variables. The external contingencies of public organizations are different depending on the country. Such contingencies include the political environment (e.g., more conservative versus more liberal political leadership), administrative system and culture (e.g., western versus southern European traditions), or external pressures to implement savings (e.g., austerity regimes). Also, the ways in which managers are recruited may differ substantially (e.g., having a central independent body responsible for recruitment versus political appointments), which means that the group of top public managers in one country may display more of the characteristics of being a profession than that in other countries. It is therefore important for future studies to look in more detail at country-level determinants (see also Jeannot, Van de Walle, and Hammerschmid 2018).
Third, because of anonymity issues, we cannot assign respondents to specific organizations. This implies that the organizational-level variables in our model (i.e., organizational size and organizational type) might suffer from type I error (false positives) because these data are "stretched" to the individual level (Hox 2010)-although our robustness check did not identify substantial type I error.
In addition, such anonymity made it difficult to collect data on professional associations and networks to allow for a more finegrained operationalization of normative isomorphic pressures and also inhibited further analysis of the exact tasks of the organization as well as the type of agency involved. We encourage future research to offer a more detailed operationalization of normative isomorphism and contingency theory-including, for instance, the profession the manager comes from and their exposure to OECD or other European networks as well as different agency types (e.g., delivery versus advisory function).
Finally, we focused on formal education as a measurement of normative pressures. However, many training initiatives concerning management tools exist in government-although not necessarily resulting in formal degrees. This might imply that while an executive does not have a formal education in management, business, or economics he or she is still very knowledgeable about management tools because of a series of trainings and seminars. Future research can address this limitation by not only focusing on formal degrees but also assessing the impact of trainings, seminars, and other lifelong learning initiatives.

Conclusion
Management tool use is often argued to be the result of normative pressures experienced by managers as well as the contingencies of the organizations in which they work. In our study on public sector executives from 18 European countries, we find that organizational contingencies matter more than normative pressures in explaining management tool use. This suggests a better applicability of contingency theory over neo-institutional theories when predicting management tool use in a public sector setting. Future research can build on this finding and juxtapose other institutional pressures and contingencies than those included in our survey-including coercive and mimetic pressures or contingencies related to the environment of the organization. For practice, these findings suggest that public management reforms cannot neglect contextsmaller public organizations with goal ambiguity and nonexecutive status are less inclined to adopt these tools and might require more training and support.

Funding
The research leading to these results received funding from the European Union's Seventh Framework Program under grant agreement No. 266887 (Project COCOPS), Socio-economic Sciences and Humanities.


REFORMULATION OF MEDIATION IN DISPUTE SETTLEMENT ON ISLAMIC BANKING

Purpose of the study: The general objective of this study was to explore the potential of the mediation process as a reformulation of Islamic banking dispute settlement after the Supreme Court Regulation (SCR) on mediation procedure in the court. On the one hand, this study tries to find a repositioning of mediation procedures in resolving disputes over Islamic Banking in religious courts. Methodology: This research was normative and empirical. The data collection techniques of this literature would be done utilizing literature study and field research. Primary data was obtained through field research with interviews. The participants from Judges of Religious Court, Abdul Manan as a Judge of in the Supreme Court Institution, Islamic banking legal unit. Data were processed by a qualitative descriptive analysis technique. Secondary data used consisted of primary legal material sourced from SCR No. 1 of 2016 and the contract. Principal Findings: The mediation process as a reformulation of Islamic banking dispute settlement especially in the Religious Court is according to Article 2 Paragraph (1) SCR No. 1 of 2016. The repositioning of mediation procedures in resolving Islamic banking disputes in the Religious Courts applied by making changes as part of the case registration process implemented through honesty, fidelity, and justice. Applications of this study: This paper is essential for the parties to get the legal certainty in maintaining the continuing development of Islamic banking business, product development, risk management and efficiency of the bank. The study may be instrumental in helping to improve the development of the legal studies programs, notably the Islamic Economic Law. The results of this study will provide benefits for the religious court to improve its performance effectively and efficiently in dispute settlement through mediation. Novelty/Originality of this study: Determination of the mediation as reformulation of dispute settlement on Islamic banking post-enactment or issuance of the SCR No. 1 of 2016 and to find out about repositioning of the mediation procedure and proposing changes in the position (repositioning) of the mediation process and reaffirming the roles, duties and accountability of professional mediators or non-judge mediators so that it is expected that the role of non-judge mediators can active in resolving Islamic banking disputes both in procedures in the court or outside the courts applied at the Indonesian Religious Court. The contribution of this paper will be the revision of the curriculum of legal studies and Islamic Economic Law. The importance for researchers of the study is to develop and improve the capability of researchers for developing the law study program called Islamic Economic Law.

INTRODUCTION
Islamic Banking dispute settlement through alternative dispute settlement is interesting to study because of it as one of the recent breakthroughs in a financial institution which strongly supports the fulfillment of every Moslem need in the economic field with adhering to the Islam. That statement relevant with the opinion from Beck et al. He argues: "Islamic banking is evolving its concept among Muslims as well as in non-Muslim countries" (Beck et al, 2013) In fulfilling basic human needs, Islamic banking practices are initiated by Islamic financing contracts that have been implemented worldwide, in Muslim countries as well as non-Muslim countries such as, but not limited to Australia, Canada, England and the United State (Babar Khan et al., 2015).
In the financial agreement between Islamic bank and customer on the economic field as described above, arise a need for a fair and legal certainty to create effectiveness and efficiency in doing economic activities. Therefore, as every financial transaction will lead to a legal contract of parties, and from such contracts would arise the need for legal certainty, it is certainly proper to say that there is a tightly knit relationship between law and economy. Based on these relations, Satjipto Rahardjo noted that "the legal system as the embodiment of the economic system, and vice versa, and it is safe to assume that the economic system of a nation will be reflected in the legal system" (Rahardjo, 1993).
The Islamic banking industry in Indonesia has been growing since the enactment of Law No. 3  This CCD has a legal effect on the existence of legal certainty, but on the other side of the decision, there are still injustices and uselessness. As a result of the existence of the CCD effect on the decline in the performance of Islamic banking in Indonesia, namely a slowdown in the economic aspects of growth. These events can be seen in the following data. According to these data, specifically related to asset growth, there is a decline. Based on the data above, there appears to be a decrease in the total aspects of financing. Therefore, to improve the growth of Islamic banking performance to become stronger, the existing problems must be addressed. When viewed internationally the position of Indonesia is seen to have great strength and potential in the development of sharia banking in particular and Islamic financial institutions globally. Tampubolon said: "Indonesia ranks on 9th out of 10 countries that have developed Islamic finance" (Tampubolon, 2015). Nationally, Idhat said: "the development of the Islamic banking industry is still growing, but the growth is slowing down" (Idhat, 2015).
The management of Islamic banking is an urgent issue which currently requires concentration and constructive thinking. "There is an urgency this issue which requires attention, especially after the CCD No. 93/PUU-X/2012, on August 29th, 2013, related to the judicial review of Article 55 Paragraph (2) and (3) (Setyowati, 2013). This becomes very important for the parties, especially for Islamic banks and customers to obtain legal certainty in maintaining the continuity of business fund business growth in Islamic banking practices. Another consideration is to obtain legal certainty in the development of their businesses in the future. Legal certainty is also needed to provide certainty in terms of products, the development of Aqad, minimizing risks, preventing greater losses. In other words, guaranteeing legal certainty is sought in the context of efficiency and effectiveness of services from Islamic banks to customers or the public.
Another impact with the presence of the CCD is that there needs to be a revision of Law No. 21 of 2008 (hereinafter referred to as Sharia Banking Law), especially concerning respect to Article 55 of the Sharia Banking Law. Amendments to Article 55 of the Sharia Banking Law also gives consequences to several implementing regulations of the Sharia Banking Law. This is related to the implementation and technical guidelines especially relating to the mediation of dispute resolution. During its development SCR No. 1 of 2016. Other consequences are related to the institutional readiness that will play a role in the settlement of Islamic banking disputes. This is also related to the availability of human resources and readiness and ability in terms of proceedings and other related documents. Especially for judges, clerks, advocates, the legal section of Islamic banks, the Sharia Supervisory Board as well as for managers and directors. As a consequence during the transition period, the role of alternative dispute resolution and encouraging the operation of Islamic arbitration institutions as an option to resolve Islamic banking disputes.
The technique of Arbitrase and ADR is an alternative model among others: arbitration, mediation, conciliation, mini-trials, private adjudication, final offer arbitration, court-annexed ADR, and summary jury trials. Krishna Agrawal said: "There is the no better option to strive to develop an alternative model of disputes settlement (ADR). With the advent of ADR, their new avenue for people to settle their dispute" (Agrawal, 2014). Among the options stated in Law No. 30 of 1999 on Arbitrase and Alternative Dispute Settlement (Law of Arbitrase and ADR), the research mainly focusses on Mediation.
In the practice of justice in Indonesia, in particular, the resolution of disputes through mediation included in the process of settlement in court is intended so that the resolution of disputes through mediation can be one of the most effective instruments to prevent the accumulation of dispute resolution. Problems that have occurred since the issuance of SCR No. 2 of 2003 to SCR No. 1 of 2016 concerning procedures for institutionalizing mediation into the justice system. Until this research was carried out the achievement of dispute resolution through mediation was not optimal. This is related to the roles, duties, and responsibilities of judges not yet optimal in resolving disputes. Besides that, the cause of the dispute resolution process which is not yet optimal through mediation in the court because the judicial institution has not yet given the role of the non-judge mediator who should have been given the opportunity by SCR No The reason for the issuance of the SCL (SEMA) is to overcome the lack of ness in the judiciary in Indonesia. The existence of SCL is seen as a concrete step to optimize efforts to resolve peacefully through justice. If an amicable dispute resolution is not found through the SCL, the SCR can be used. In its history, the SCR on mediation began with SCR No. This paper is expected to contribute to the understanding of the mediation as a reformulation of dispute settlement on Islamic banking and understanding the repositioning of the judicial procedure for dispute settlement through the mediation of Islamic banking in the Religious Courts. The Urgency of the study is to determine the mediation as a reformulation of dispute settlement on Islamic banking post-enactment or issuance of SCR No. 1 of 2016. The study also to know of the repositioning of the juridical process of mediation in Islamic banking dispute settlement in the religious courts. The importance for researchers of the study is to develop and improve the capability of researchers for developing the legal studies programs that sound of Islamic Economic Law.

Muamalah as the legal relationship
The legal basis of the legal cooperation between Islamic banking and customers is categories in muamalah. Hendi Suhendi said, "Muamalah in Islamic law in the broadest sense are the rules (laws) of Allah to organize man concerning worldly affairs in social intercourse" (Suhendi, 2002). Hendi Suhendi has an opinion that "Muamalah activities concerning economic aspects include activities to improve the welfare and quality of life, such as purchase, savings, and loans, debts, joint ventures as well as others" (Suhendi, 2002: 8). The Aqad is the legal sources of the parties relating in the Islamic banking practices. "Aqad is part of tasharruf. Tasharruf is every decisions and consent given by a man within his consent and personality, and Islamic Law establishes some rights arising from such" (Suhendi, 2002: 44). The implementation of muamalah in the practice of Islamic banking is implemented in the finance agreement between customers and sharia banks, as stated in the agreement (Aqad). The terminology of the contract is "a promise or set of promises to which the law attaches a legal duty and also provides a remedy for breach of that duty. One of the elements that the law requires in establishing a contract is the intention of the parties to create legal relations" (Ibrahim, 2015).

The Principles of Contract (Akad)
In the implementation of providing financing to customers, banks maintain liquidity by trying to resolve the problems they face. The transactions between Islamic banks and customers begin with a contract. For the implementation of the contract carried out using the principle of legal certainty. The principle of legal certainty in the implementation of a contract means that the agreement made by the parties applies as a law for the parties that made it. This means that the agreement made applies and binds the parties as law. In the contract dispute settlement clauses in Islamic banking, there are stages of settlement including settlement by deliberation and consensus, settlement through ADR, among others: Mediation, Arbitration, Conciliation and dispute settlement through the Religious Courts.

The Definition and Regulation of Mediation
Understanding mediation is a process that is approved through negotiation or a consensus of the parties, agreed by the mediator who does not have the authority to decide or force approval. The mediation process is ultimately the same process as negotiation or consultation. The existence of respect between mediation, negotiation, and consultation then in the mediation process there is no compulsion for the parties to accept or reject ideas or complete during the mediation process in the mediation process, the agreement of the parties. This is based on the consensus principle. Islamic banking in Indonesia is part of Islamic financial institutions which are currently increasingly in demand by the public and show increasing performance development. But on the other hand, the practice of Islamic banking has the potential for conflicts to arise among the parties that are conducting transactions increasingly high. Andri Soemitro said that "Financial Institutions are all entities whose activities in the fields of finance include the conduction and the collection and distribution of funds to the public, especially to finance preferred financial institutions, which support finance investment companies, but by no means limiting the financing activities of financial institutions" (Soemitro, 2010). The transaction in Islamic banking arises from aqad (contract). Aqad (contract) in the Islamic private law is a category of the muamalah. Hendi Suhendi said: "Muamalah in Islamic law in the broadest sense are the rules (laws) of Allah to organize man concerning worldly affairs in social intercourse" (Suhendi, 2002: 2).
The operationalization of Islamic banking as an Islamic institution is based on Islamic principles based on the Qur'an and Hadith. Therefore, in Islamic banking practices, some financing transactions are carried out based on profit sharing and avoid usury. This is a consideration so that in practice it does not deviate from Shariah compliance. To realize sharia compliance in Islamic banking operations, in every Islamic banking there are only bank managers and leaders who understand the principles of Islamic muamalah, besides that there must also be a Sharia Supervisory Board (DPS) whose job is to oversee the operations of sharia banks following with sharia principles.
Islamic banking activities as described above in their application, especially in financing transactions, have shown very positive prospects and are increasingly developing. The global position, Indonesia is seen as reliable and has great potential in the application of global Islamic finance. As explained above, Indonesia's position is ranked 9th out of 10   Achievement of 18% dispute settlement through mediation that has been carried out by the religious court has not been encouraging for academics, researchers, observers and users, and practitioners of Islamic banking. Therefore, one of the objectives of this research is to find obstacles to the achievement of the dispute settlement process of Islamic banking through the mediation of up to 50%. Furthermore, on the findings of existing constraints the researcher proposes a change in dispute settlement procedures through arbitration in the religious court which will be discussed in the results of the study to answer the second problem of this study.
Hendi Suhendi has an opinion that "Muamalah activities concerning economic aspects include activities to improve the welfare and quality of life, such as purchase, savings, and loans, debts, joint ventures as well as others" (Suhendi, 2002: 8).
The activities of the parties in Islamic banking are categories of Aqad. Suhendi said that: "Aqad is part of tasharruf. Tasharruf is every decisions and consent given by a man within his consent and personality, and Islamic Law establishes some rights arising from such" (Suhendi, 2002: 44).
In implementing muamalah, there are uses legal principles. It should be noted that legal principles are not concrete, but only as a means of consideration in settling disputes that is or may happen. The legal principles are the basis of thinking in Humanities & Social Sciences Reviews eISSN: 2395-6518, Vol 7, No 4, 2019, pp 184-194 https://doi.org/10.18510/hssr.2019.7424 the formation of positive regulation, and such beliefs are not eternal/fixed in its nature. Based on Sudikno Mertokusumo opinion, "the legal principle is fundamentals or directions in the formation of positive law" (Mertokusumo, 2007: 32). Such principles could be used in the creation of an agreement (in this case Islamic contract), the principles are like a deal among others: "consensual, the principle of freedom of contract and the principle of good faith in the subjective sense". And otherwise, the implementation of the contract use legal certainty and the good faith principle in the objective sense or contractual step.
In Islamic banking transactions apply the principles in making contracts that can affect the status of contracts made by the parties. Failure to fulfill any of these principles will result in the cancellation or invalidation of the agreement. Therefore at the time of making the contract, there must be carefulness and accuracy in applying each of these principles. Some legal principles that are appropriate in the contract are as follows: "Al-Hurriyah (Freedom), Al-Musawah (Equality or Equality), Al-'Is (Justice), Al-Ridha (Rahmat), Ash-Shidq (Honesty and Truth ), Al-Kitabah (Written) ".
Implementation of muamalah in Islamic banking practices uses finance contract. The terminology of the contract is "a promise or set of promises to which the law attaches a legal duty and also provides a remedy for breach of that duty. One of the elements that the law requires in establishing a contract is the intention of the parties to create legal relations" (Ibrahim, 2015). Several types of contracts that become one of the sources of law and are of concern in this study are Islamic banking contracts, especially on financing products. Contracts in Islamic law must meet the terms and conditions of the contract. This is different from contracts on conventional banking practices which only rely on conditions and do not recognize the terms of the agreement. Pillars are something that must exist before a contract on Islamic banking products is made. While the conditions are something that complements harmony. If the terms of the agreement are not fulfilled, the contract/contract cannot be made or carried out. While if the conditions do not yet exist or are incomplete, the contract/contract can be carried out based on the consent of the parties.
In carrying out their Ijtihad, the ulama had different opinions in formulating the terms of the Aqad. Differences arise in terms of the essence of the contract itself. The Reasoning of Jumhur by Wahbah Zuhaili, it states that "harmony is one important element in the agreement with the addition of other elements. The elements are as follows: sighat al-aqad (statement of binding), Al-ma'qud alaih/considering al-'aqd (contracted object), Al-muta'aqidain/al-'aqidain (contracted party (aqad)), Maudhu'al-aqd (the purpose of the contract) ".
According to (Hendi Suhendi (2002: 44), "The requirements of Aqad consist of general and special conditions". The implementation of financing contract in of Islamic banking requires legal certainty for the parties to have justice and reap the benefit. According to Sudikno Mertokusumo, "legal certainty is a guarantee that the law is enforced, that the rightful party according to the law would obtain its rights and that the rightful decision could be implemented. Although legal certainty is closely related to justice, the law is not synonymous with justice. The law is general, binding to everyone, is generalized, while justice is subjective, individualistic, and not generalized" (Mertokusumo, 2007).
E. Fernando M. Manullang argues that "legal certainty is the implementation of the law as provisioned so that the public could ensure that the law is implemented properly". Definition of legal certainty that something that has to be considered if the value has a close relationship with a favorable legal instrument and the decisive role of the state in the implementation of positive law. In Fernando's opinion (Manullang, 2007), "the legal certainty is a question that could only be answered normatively, not sociologically. Normative legal certainty is when a rule is created and enacted as it is clearly defined and logical. Clearly, in the sense that there is no doubt (multi-interpretation) and logical in the sense that it becomes a system of norms with other norms so as not to clash or cause a conflict of norms. The norm conflicts arising from the uncertainty of the rules may be normative contestation, norm reduction or norm distortion".
According to the description above, what is meant by legal certainty is guaranteed about the rule of law. Legal certainty in the dispute settlement of Islamic banking is not certainty related to the actions or actions of the parties following the rule of law. Because in its application law enforcers or actors in Islamic banking transactions have difficulty in understanding the legal certainty that will be applied to the behavior of the parties in dispute.
Legal certainty in the transactions between Islamic banks and customers is also based on the certainty of the existence of aqad/contract made by the parties that are not in conflict with applicable laws and regulations in Indonesia. The contract between the Islamic bank and the customer begins with the making until an agreement is reached between the two parties. Contracting by the parties is intended so that the objectives of the parties can be carried out following with the plans and objectives in obtaining financing. If the contract made by the parties does not run as originally intended, one of the reasons is the error of one of the parties. In civil law is called default. Other causes are due to overmacht/force majeur or illegal acts.
Based on the description in the above discussion, it can be seen that mediation of one way of resolving Islamic banking disputes also applies in religious courts. This is based on Article 2 (1) SCR No. 1 of 2016 states that "the provisions of the mediation procedure in the Supreme Court Regulations apply to litigation in courts, both in general courts and religious courts".
However, the problem is the limitations and skills of judges who understand Islamic banking disputes. Existing obstacles should be overcome by providing opportunities for independent mediators or non-judge mediators. This is in accordance with Article 1 paragraph (2) SCR No. 1 of 2016 stated "the mediator is a judge or other party who has a Mediator certificate as a neutral third party that helps the parties in the negotiation process for various possibilities for dispute resolution without using a way to decide or force a dispute resolution".
According to Article 1 SCR No. 1 of 2016, the presence of mediation through a religious court is intended to increase public confidence in conducting Sharia Banking dispute resolution. The results achieved through mediation in the religious court will also provide a peaceful settlement process between the parties to the dispute, in this case, Islamic banks and customers. The process of resolving Islamic banking disputes through mediation puts forward similarities and avoids differences. If a peace process is established, legal certainty will be realized and the dispute resolution process will provide justice and benefits.

The Repositioning of the Mediation Dispute Settlement in Islamic Banking Through the Religious Courts.
To find answers to the second problem must consider the contents of Based on the report from the Mediator as referred to in Paragraph (3), the Case Inspector Judge will issue a decision which is the final decision stating that the lawsuit cannot be accepted accompanied by a penalty for payment of the Mediation Fee and the case fee. Furthermore, the mediation fee as a punishment to the plaintiff can be taken from the advance of the court fee or a separate payment by the plaintiff and submitted to the defendant through the court clerk. To make the peace decision legally binding, this can be corrected by applying to the judge who checks to issue a decision on the case.calculation of the amount of money as a result of the failure of the mediation process.
Based on the description in the discussion that the mediation dispute resolution in the religious court is based on Articles 7, 22 and 23 SCR No. 1 of 2016. By applying the principle of good faith the mediation process will be carried out effectively and efficiently. If examined further based on the contents of Article SCR No. 1 of 2016 reaffirms the existence of independent mediators or non-judge mediators to be active in resolving disputes in court or outside the court. To increase the power of execution of the object of the dispute, the application of the agreed mediation can be submitted to the Court. This is intended so that there is coordination between the community and the judge as well as the mutual coordinator between the mediator and the judge.
The results of the study indicate that the success of mediation through the religious court as above data reached 26.7 percent. The success of the mediation process based on these achievements still requires a concerted effort so that in the future the success of mediation in religious affairs primarily related to Islamic Banking dispute settlement can continue to be improved.
lawsuit feels right and wants to always win. This condition is a consideration that the repositioning of the mediation process is very important for changes.

(Reported to the Panel Judges)
The

Repositioning of the Mediation Dispute Settlement Process in Islamic Banking Through the Religious Courts.
This research contributes to the development of Islamic Economic Law, especially in the subjects of religious justice and education programs and dispute resolution exercises, especially in the mediation process in resolving Islamic banking disputes through religious courts. For Judges in religious courts, the results of this study can consider Judges and the Supreme Court in evaluating and changing the procedure for making mediation processes more efficient and effective. The final result is expected, for the future, the success rate of solving Islamic banking disputes through mediation in the religious court will increase by 50%.

LIMITATION AND STUDY FORWARD
The limitations and gaps that exist in this study are based on the results of research in several religious courts, which are the target of the investigation. There is no available list of mediators other than judges and professions mediators other than judges. It also causes that the success rate of sharia banking dispute settlement cannot reach up to fifty percent. Future research will focus on mediator professional opportunities and opportunities in Islamic banking dispute settlement through various dispute settlement institutions in Indonesia. Humanities & Social Sciences Reviews eISSN: 2395-6518, Vol 7, No 4, 2019, pp 184-194 https://doi.org/10.18510/hssr.2019.7424


Determining the Impact of Aircraft Noise towards Residential Property Price

The objective of this paper is to examine the effect of aircraft noise on residential property price within the case study area, and the main focus of this research was the distance of selected residential housed from Kuching International Airport (KIA). Aircraft noise is a source of noise pollution and act as environment factor that affect the house prices. Environmental disamenities from water and noise pollution will caused the houses to sell at lower price, accounted 20.8% less than houses located in area without noise interference. Apparently, the noise produced by the aircraft has even larger negative impact on house prices as compared to road traffic noise and railway noise. This study adopted quantitative approach in answering the objective of the paper. The findings were based on the secondary data which including 210 property transaction data within year 2015. The range of areas for this study was limited to selected residential terrace houses that located within 10.0 km from Kuching International Airport (KIA). The findings from Multiple Regression Analysis (MRA) shows that the property prices located nearer to the airport (<2.5 km from KIA) in selected case study areas have been sold with lower price. Moreover, the prices of the properties located distance from KIA were not negatively impacted by the aircraft noise due to the other pulling factor that has larger impact to the property. Indeed, the location of the property, public amenities, transportation system, neighborhood factor and facilities also has close relationship to the property price.

Introduction
Property sector is one of the most important sectors in Malaysia and has significant contribution to the country's economy. Increasing number of lands have been regulated for the use of property development in order to met the market demand. Property prices especially residential property can be vary due to various factors which will also affect the buyer's purchase decision. Environmental factor is one of the important factors to consider when purchase a residential property [1]. Moreover, environment condition such as environemt pollution will cause a negative impact to the property [2]. Noise pollution was an example of negative environment condition, and generally caused from the aircraft noise, railway station, industrial sector and construction.
Moreover, environment condition such as environemt pollution will cause a negative impact to the property [2]. Noise pollution was an example of negative environment condition, and generally caused from the aircraft noise, railway station, industrial sector and construction.
However, there are arguements stated that property prices also affected by some pulling factor such as facilities, public amenities and transportation system nearby [3]. The benefits from those facilities such as airport and railway station do provide better accessibility for residents which enable them to reach the destination will lesser time and cost. At the same time the aircraft noise from the airport do also generate sound pollution to the residents nearby. Therefore, this paper aims to examine whether the residential properties price will be impacted by aircraft noise or affected by other pulling factors.
1 Literature Review

Environment Pollution
Surrounding environment quality is greatly responsible for the price and value of a property. Human looking toward for better quality of life and good environment around their property they purchase. According to [4], the values of land and property are greatly impacted by the environment quality. For home buyers, environment quality is included in their consideration factor when making decision to buy a house as it will affect the health and lifestyle of themselves and also their families. Water pollution, air pollution and noise pollution are three major environment pollutions that affect the buyer's decision when purchasing property.

Source of Sound
Noise is a sound disturbance that unwanted by people. Noise pollution causes a big interruption into our daily activities and turn people into discomfort mode. Sound cannot be seen using visual eye but can be heard by our ears through the compression, collision or friction of waves in the air around us. Human create sound in their daily activities such as talking, singing, cooking, gardening, and so on. In this technology advance era, noise from industries, electronic gadget, machinery and engines, miscellaneous sources and transport vehicle are also the contribution to the sound and may cause sound pollution to the society. Road noise are noise pollution that contribute a consistent state of noise which does not impact much, but the road noise resulted from rail and aircraft noise are categorized into high noise levels [5]. Noise produced when aircraft takes off or landing is one of the highest sources of noise and cause many negative health effects to human [6].

Impact of Noise Pollution
Noise is pervasive in our daily life and is one of the main environment pollution causing various threats and effects to human. Noise disturbance will damage sensibility to auditory stimuli of human and also causing many other consequences to human health. Some of the effect resulted from noise pollution are presented in Table 1 below.

Impact
Details Hearing impairment  Hearing impairment is the inability of human to hear either partially or totally at all.  Noise pollution can cause damage to hearing when a human is expose to noise levels of 80dB or greater for a long period of time [6]. Sleep disturbance  The major cause of sleep disturbance is from the noise pollution from the environment [6].  The traffic noise from road vehicles, railway and aircraft is the main source of noise pollution that mainly contributed to the sleep disturbance [7].  Sleep disturbance will causes an increased in blood pressure, increased heart rate, rising of pulse amplitude, vasoconstriction, cardiac arrhythmias and increasing body movement [6]. Annoyance  Annoyance is one of the side effect resulted from noise pollution.  Noise annoyance is an unpleasant feeling associated with any condition from external sound sources that will affect adversely to an individual or a group of people.  Noise annoyance might cause anger, depressed, displeasure, tired and stress-related symptoms. Physiological effects  Health risk has been proven related with excessive and continuous exposure of noise [8].  Noise act as a biological stressor and long term exposure will cause coronary heart disease, ulcer, high blood pressure, migraine headache and stress. Impaired task performance  Unwanted or unpleased noise from outsource will affect the worker's performance in the working place [9].  Noise exposure may impact performance by disturbing and damaging information procession.

Factors Affecting House Price in Malaysia
Properties in Malaysia are affected by many factors. Some factors will positively impact to the property price while some factors will cause property price to drop. Factors that will affect house price in Malaysia are include location, cost of construction, government policies, Gross Domestic Product, inflation rate and environment factor.
(i) Location Location is an important factor that will affect the property price. Different in location factor will be resulted in difference in the property value and price [10]. For example, property located nearer to the Central Business District (CBD) will be more expensive compare to property further to CBD. Clearly, factors like distance to the employment place, amenities and neighborhood factor in that particular location will also affect the property price.
(ii) Cost of Construction Cost of construction is the total cost that used to build commercial and residential properties such as material cost, labor force, transportation cost, machinery cost, overhead cost, taxes, general expenses and the land price [11]. There is a strong correlation between the cost of construction and the selling price. For example, when a big amount of labor force are used in constructing properties, especially involved plenty of professional workers such as engineers, architects and quantity surveyors, the developer will charge the cost to the buyers which increase the selling price of the property [12]. Another research done by [13] also shows that construction cost is one of the main elements that cause the rise of property price.
(iii) Government Policy Government policy is another factor that will cause fluctuation the house price in Malaysia. Government policy such as loans requirement for first time house buyer, reduction in tax and stamp duty, lending ability from financial institutional, fluctuation of interest rate and transaction fee will cause an impact to the property market. Hence, government policy on property market will cause the property price to rise up and goes down.
(iv) Gross Domestic Product (GDP) Gross Domestic Product (GDP) is the total market value of all kind of goods and services produced in a country for a particular year. GDP is considered as an indicator for property sector because of the relationship between macroeconomic activity and the price of property [14]. Research conducted by [15] indicates that there is significant and positive correlation between GDP and the house price in Malaysia. Indeed, rising up in property purchasing and investment will bring along the increasing house price and also the growth of GDP.
(v) Inflation Rate When the supply of money in the market expands, interest rates will drop and higher and easier creditability will be able to obtain. This situation will triggers spending and increases the demand for goods and service. However, at a point when additional increase in the money supply will stimulate demand overtake the ability of the current economy to increase supply. This will cause the result in inflation. Inflation is the rising in the price of goods and services in a economy country. When everything in the economy tend to increase in price, which include the construction cost such as labor force and raw materials cost, the cost for a building will also increase and resulted in rising of selling price of the property [15]. In that case, all type of properties such as commercial, residential and industrial properties will be affected by the inflation rate of the country.
(vi) Environmental Factor The condition of environment will capitalized in the property value and price [2]. The surrounding development will have either positive or negative impact towards the property value and price nearby. Until today there are still arguments on the environment factor that will positively or negatively affect the property price. Individual that lives in house located near public facilities or amenities may enjoy the benefits and convenience for the facilities, but at the same time they may also suffer from the impact produced by those facilities such as pollution. When the environment disamenities has larger negative impact to the property, the demand for the housing in that particular area will be decrease, and cause an reduce in property selling price or increase of the discount rate.
However, there are arguments on the effects of environment condition on different property sub-sectors. Research done by [16] indicate that railway station has positive effect to the nearby residential property. The research also proved that railway station function as transport network has larger positive effect to commercial property that located nearby compare to residential property. Hence, the environment factor can either positively or negatively effects on different property sub-sectors.

Research Methodology
In this study, a quantitative research strategy was adopted as a strategy for the data collection. The data for this research was the sales transaction data of property from Valuation and Property Services Department (JPPH) in Kuching, Sarawak. Finally, 210 sales transaction data were gathered as an evidence to support in answering research objective which aimed to examine the effect of aircraft noise on residential property price within study area. The research area compromise some selected residential areas in Kuching with distance 2.5 kilometers, 5.0 kilometers, 7.5 kilometers and 10 kilometers from the airport and the airport act as the central point.

Sales Transaction Data
Sales transaction data have been collected from Valuation and Property Services Department, Kuching. A total of 210 transaction data were collected and all the transactions were happened in year 2015. The transaction data only included one type of housing only which was terrace house in order to make comparison of house price with different distance from the Kuching International Airport (KIA). The range of study areas for this research was limited to selected residential terrace houses that located within 10.0km from Kuching International Airport (KIA).
Furthermore, all 210 transaction data were categorized into different areas according to the distance from Kuching International Airport (KIA). There were total four groups of distance has been divided, which were less than 2.5 km (Distance A), 2.5-5.0 km (Distance B), 5.1-7.5 km (Distance C) and 7.6-10.0 km (Distance D).

The Impact of Aircraft Noise on Residential Property Price
In the Multiple Regression Analysis, there were five predictor variables which include tenure, type of building, size of building, number of room and distance of living area from Kuching International Airport (KIA). All the VIF values in range between 1 to 10 and the highest value shown were 6.036. In this case, there is no significant evidence of multicollinearity and thus multicollinearity between predictor variables did not exist.
In term of the effect of distance of selected residential houses from Kuching International Airport (KIA) towards residential house price, the result shows that the significant level of leasehold tenure was 0.072 and the beta coefficient was negative 23090.883. The pvalue of leasehold tenure proved that the selected house price with leasehold tenure was not significant compare to selected house price with freehold tenure.
The type of building also categorized into three types, intermediate terrace house, side terrace house and corner lot terrace house. From the analysis, the significant levels for both side and corner lot terrace houses were 0.530 and 0.000. Meanwhile, the beta coefficients for both side and corner lot terrace house were 20265.337 and 57050.209. The result indicates that side terrace houses have similar price compare to intermediate terrace house. Corner lot terrace house have significant p-value which shows higher price compare to intermediate terrace house. The results were reliable with the theory of housing as houses located at corner have more privacy space and building size. The extra benefits of corner lot terrace house resulted in higher price.
Significant level for building size was 0.000 and beta coefficient was 2527.607 whereas for number of rooms was 0.201 with beta coefficient of 18455.571. As the size of the building increase, the house price also increase as compare with similar properties. Majority of the selected terrace houses have 3 rooms and only few of the selected property have 2 and 4 rooms. The result shows that the number of rooms has no major effect to the price of selected residential properties.
The main focus of this research was the distance of selected residential houses from Kuching International Airport (KIA). From the findings, significant level of Distance B, Distance C and Distance D were significant. The significant levels for three group distances were 0.016, 0.016 and 0.009. The beta coefficients for three group distance B,C and D were 73302.200, 76123.699 and 83992.167. If the p-value was less than the significant value or p<0.05, then the null hypothesis must be rejected. However, if the p-value is larger than significant value or p>0.05, then the null hypothesis will be accepted. Hence, the null hypothesis for three group distances must to rejected and the alternative hypothesis will be accepted. Both group Distance B, Distance C and Distance D have significant price difference compare to group Distance A. The B-coefficient value for group Distance B, Distance C and Distance D were positive compare to Distance and the values were increasing with the increasing of distance from Kuching International Airport (KIA). Hence, there was obvious evidence

Conclusion
The objective of this paper is to examine the effect of aircraft noise from Kuching International Airport (KIA) on selected residential property price. The findings from the analysis showed that the distance of residential property from Kuching International Airport have insignificant relationship with their property price. Although the house price of selected residential properties were lower in distance less than 2.5km compared to other distance, but the inconsistency increasing of beta coefficient value of other group distances shows that distance of selected residential house price was not the main factor that affects the house price.
Moreover, the results found out there was other factors that affected the residential property price. Factor like type of the building such as intermediate lot or corner lot and building size has an effect to the residential property price. It was a fact that the price of the property was evaluated with the price for a square meter. Besides that, even though some of the properties were located at the same area, the location of the properties such as corner lot or intermediate lot also affected the property price.
This applied with the theory of housing as houses located at corner have more privacy space and building size. The extra benefits on space and privacy of corner lot terrace house resulted in higher price. The prices of the properties located in group Distance B, C and D were not negatively impacted by the aircraft noise due to the other pulling factor that has larger impact to the property. There were other unobserved variables that mainly affect the house price, namely the location of the property, public amenities, transportation system, neighbourhood factor and facilities also has close relationship to the property price.
Thus, the noise pollution from aircraft noise was not the main factor that affects the selected residential property price.