IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2018-03-13.html
   My bibliography  Save this article

The Acceptance of Islamic Banking Products in Libya: A Theory of Planned Behavior Approach

Author

Listed:
  • Walid Ali Albashir

    (Faculty of Industrial Management, University Malaysia Pahang, Gambang, Kuantan, Malaysia)

  • Yuserrie Zainuddin

    (Faculty of Industrial Management, University Malaysia Pahang, Gambang, Kuantan, Malaysia,)

  • Shrikant Krupasindhu Panigrahi

    (Faculty of Industrial Management, University Malaysia Pahang, Gambang, Kuantan, Malaysia)

Abstract

The purpose of this paper is to identify key factors affecting acceptance level of Islamic banking customers in Libya. Despite of growth of Islamic banking all over the world, it is still underdeveloped financial sector in Libya. Libyan customers are unaware of Islamic banking and are unable to make decision on the acceptance of Islamic banking. We suggest a modified theory of planned behaviour model including perceived risk as an important ingredient to customer decision making process. The model is tested against a sample of 293 banking customers using self-administered survey questionnaire. The quantitative results revealed that subjective norm and perceived behavioural control are more significant to increase intention to use Islamic banking. Customer attitude and perceived risk was found to have no significant influence on intention to accept Islamic banking at 0.05 level. This research suggests that Islamic banks need to develop effective marketing strategy emphasizing on sharia instrument like Islamic assurance and beliefs along with perceived risk to satisfy the value of potential customers. As an implication, focusing on risk management while providing quality information to the customers towards Islamic banking products will lead to increase customer's intention.

Suggested Citation

  • Walid Ali Albashir & Yuserrie Zainuddin & Shrikant Krupasindhu Panigrahi, 2018. "The Acceptance of Islamic Banking Products in Libya: A Theory of Planned Behavior Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 105-111.
    • Handle: RePEc:eco:journ1:2018-03-13
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/6193/pdf
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/6193/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    2. Lewis K S Lim & Frank Acito & Alexander Rusetski, 2006. "Development of archetypes of international marketing strategy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(4), pages 499-524, July.
    3. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    4. Talal Al-maghrabi & Charles Dennis, 2012. "The driving factors of continuance online shopping: gender differences in behaviour among students - the case of Saudi Arabia," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 9(4), pages 360-384.
    5. Yi Yi Thaw & P.D.D. Dominic & Ahmad Kamil Mahmood, 2012. "A structural equation modelling approach for Malaysian consumers' perspectives on e-commerce B2C transactions," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 10(2), pages 178-196.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mei-Fang Chen & Ching-Ti Pan & Ming-Chuan Pan, 2009. "The Joint Moderating Impact of Moral Intensity and Moral Judgment on Consumer’s Use Intention of Pirated Software," Journal of Business Ethics, Springer, vol. 90(3), pages 361-373, December.
    2. Kim, Seheon & Rasouli, Soora, 2022. "The influence of latent lifestyle on acceptance of Mobility-as-a-Service (MaaS): A hierarchical latent variable and latent class approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 159(C), pages 304-319.
    3. Joanie Roussel-Ouellet & Dominique Beaulieu & Lydi-Anne Vézina-Im & Stéphane Turcotte & Valérie Labbé & Danielle Bouchard, 2022. "Psychosocial Correlates of Recreational Screen Time among Adolescents," IJERPH, MDPI, vol. 19(24), pages 1-15, December.
    4. Farzana Sharmin & Mohammad Tipu Sultan & Alina Badulescu & Dorin Paul Bac & Benqian Li, 2020. "Millennial Tourists’ Environmentally Sustainable Behavior Towards a Natural Protected Area: An Integrative Framework," Sustainability, MDPI, vol. 12(20), pages 1-24, October.
    5. Ya-Hui Want, 2014. "Does Online Trading Affect Investors' Trading Intention?," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 8(5), pages 71-79.
    6. Jun Hwan Kim & Hyun Cheol Lee, 2019. "Understanding the Repurchase Intention of Premium Economy Passengers Using an Extended Theory of Planned Behavior," Sustainability, MDPI, vol. 11(11), pages 1-19, June.
    7. Chen Wei, 2021. "The influence of Consumers’ Purchase intention on Smart Wearable Device: A study of Consumers in East China," International Journal of Science and Business, IJSAB International, vol. 5(8), pages 46-72.
    8. Mohammad Tipu Sultan & Farzana Sharmin & Alina Badulescu & Darie Gavrilut & Ke Xue, 2021. "Social Media-Based Content towards Image Formation: A New Approach to the Selection of Sustainable Destinations," Sustainability, MDPI, vol. 13(8), pages 1-22, April.
    9. Jordi Martínez-Ventura & Eduardo de-Miguel-Arbonés & Carla Sentieri-Omarrementería & Juanjo Galan & María Calero-Llinares, 2021. "A Tool to Assess Architectural Education from the Sustainable Development Perspective and the Students’ Viewpoint," Sustainability, MDPI, vol. 13(17), pages 1-40, August.
    10. Luo, Zongwei & Dubey, Rameshwar & Gunasekaran, Angappa & Childe, Stephen J. & Papadopoulos, Thanos & Hazen, Benjamin & Roubaud, David, 2017. "Sustainable production framework for cement manufacturing firms: A behavioural perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 495-502.
    11. Licheng Sun & Qunwei Wang & Shilong Ge, 2018. "Urban resident energy-saving behavior: a case study under the A2SC framework," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 91(2), pages 515-536, March.
    12. Wen-Jye Shyr & Wei-Sho Ho & Jie-Ru Chen & Li-Ya Chang & I-Min Chen, 2022. "Effectiveness of Social Participation Courses Applied in the Disaster Prevention for Taiwanese K-12 Education," Sustainability, MDPI, vol. 14(13), pages 1-19, July.
    13. Yoon-Young Chun & Mitsutaka Matsumoto & Kiyotaka Tahara & Kenichiro Chinen & Hideki Endo, 2019. "Exploring Factors Affecting Car Sharing Use Intention in the Southeast-Asia Region: A Case Study in Java, Indonesia," Sustainability, MDPI, vol. 11(18), pages 1-26, September.
    14. Garcia Martinez, Marian, 2017. "Inspiring crowdsourcing communities to create novel solutions: Competition design and the mediating role of trust," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 296-304.
    15. Frommeyer, Britta & Wagner, Elisa & Hossiep, C. Richard & Schewe, Gerhard, 2022. "The utility of intention as a proxy for sustainable buying behavior – A necessary condition analysis," Journal of Business Research, Elsevier, vol. 143(C), pages 201-213.
    16. Sebastian Kurten & David Winant & Kathleen Beullens, 2021. "Mothers Matter: Using Regression Tree Algorithms to Predict Adolescents’ Sharing of Drunk References on Social Media," IJERPH, MDPI, vol. 18(21), pages 1-16, October.
    17. Mishra, Bijesh, 2022. "Economics and human dimension of active management of forest-grassland ecotone in South-central USA under changing climate," MPRA Paper 116200, University Library of Munich, Germany, revised 30 Jul 2022.
    18. Fatemeh Mohammad Ebrahimzadeh Sepasgozar & Usef Ramzani & Sabbar Ebrahimzadeh & Sharifeh Sargolzae & Samad Sepasgozar, 2020. "Technology Acceptance in e-Governance: A Case of a Finance Organization," JRFM, MDPI, vol. 13(7), pages 1-17, June.
    19. Peng Gu & Hao Zhang & Zeheng Liang & Dazhi Zhang, 2022. "Impact of Public Risk Perception in China on the Intention to Use Sports APPs during COVID-19 Pandemic," IJERPH, MDPI, vol. 19(19), pages 1-12, September.
    20. Francisco Liébana-Cabanillas & Francisco Muñoz-Leiva & Sebastián Molinillo & Elena Higueras-Castillo, 2022. "Do biometric payment systems work during the COVID-19 pandemic? Insights from the Spanish users' viewpoint," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-25, December.

    More about this item

    Keywords

    Islamic Banking; Theory of Planned Behavior; Behavioral Intention; Perceived Risk; Customer Involvement;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2018-03-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.