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Intention to Use Islamic Banking Products and Its Determinants

Author

Listed:
  • Nelson Lajuni

    (Faculty of Business, Economics and Accountancy, University of Malaysia Sabah, Kota Kinabalu, Malaysia)

  • Winnie Wong Poh Ming

    (School of Business and Management, University College of Technology Sarawak, Sibu, Malaysia)

  • Yusman Yacob

    (Faculty of Business Management, University of Technology MARA, Kota Samarahan, Malaysia,)

  • Hiram Ting

    (Institute of Borneo Studies, University of Malaysia Sarawak, Kota Samarahan, Malaysia)

  • Alfera Jausin

    (Faculty of Business, Economics and Accountancy, University of Malaysia Sabah, Kota Kinabalu, Malaysia.)

Abstract

As there is an increasing trend of Muslims and non-Muslims accepting Islamic banking, it is crucial to reconnoiter customers' intention to use Islamic banking products. Such rationale is based on theoretical foundation and empirical evidence that customers' perception towards a particular product would lead to their intention to choose that product. The purpose of this study is to examine the determinants of intention to use Islamic banking products in an emerging and vibrant market. 200 copies of questionnaires were distributed, 131 usable copies were subsequently collected. The data were then analyzed using partial least squares-structural equation modeling. The findings show that attitude, government support, and social influence possess explanatory and predictive capacity to envisage customers' intention to use Islamic banking products. As banking service is localized to better serve the customers, this study extends the literature by providing insights into the subject matter in emerging markets.

Suggested Citation

  • Nelson Lajuni & Winnie Wong Poh Ming & Yusman Yacob & Hiram Ting & Alfera Jausin, 2017. "Intention to Use Islamic Banking Products and Its Determinants," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 329-333.
    • Handle: RePEc:eco:journ1:2017-01-43
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    Citations

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    Cited by:

    1. Tanin, Tauhidul Islam & Hasanov, Akram Shavkatovich & Shaiban, Mohammed Sharaf Mohsen & Brooks, Robert, 2022. "Risk transmission from the oil market to Islamic and conventional banks in oil-exporting and oil-importing countries," Energy Economics, Elsevier, vol. 115(C).
    2. Insaf Jouiet & Ahlam Maaraf, 2023. "An exploration of the factors influencing the intention to adopt participatory banking products in the Moroccan context [Exploration des facteurs influençant l'intention d'adoption des produits ban," Post-Print hal-04427772, HAL.
    3. Bartkevičiūtė Gintarė & Gaigalienė Asta & Legenzova Renata, 2018. "The Assessment of Determinants of Credit Services’ Choices among Students," Management of Organizations: Systematic Research, Sciendo, vol. 79(1), pages 7-23, June.
    4. Hasnan Baber, 2019. "Subjective Norms and Intention- A Study of Crowdfunding in India," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 136-146, December.
    5. Muhammad Nazmul Hoque & Muhammad Khalilur Rahman & Jamaliah Said & Farhana Begum & Mohammad Mainul Hossain, 2022. "What Factors Influence Customer Attitudes and Mindsets towards the Use of Services and Products of Islamic Banks in Bangladesh?," Sustainability, MDPI, vol. 14(8), pages 1-19, April.
    6. Mohammad Enamul Hoque & M. Kabir Hassan & Nik Mohd Hazrul Nik Hashim & Tarek Zaher, 2019. "Factors affecting Islamic banking behavioral intention: the moderating effects of customer marketing practices and financial considerations," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 24(1), pages 44-58, June.

    More about this item

    Keywords

    Islamic Bank; Intention; Attitude; Social Influence; Government Support; Product Pricing; Religious Obligation; Partial Least SquaresStructural Equation Modeling;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • Z1 - Other Special Topics - - Cultural Economics

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