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Investigation on the Effects of Customer Knowledge, Political Support, and Innovation on the Growth of Islamic Banking System: a Case Study of Pakistan

Author

Listed:
  • Maira Abrar

    (Konkuk University)

  • Sohail Abbas

    (Department of Geography, Konkuk University)

  • Shazia Kousar

    (Lahore College of Women University (LCWU))

  • Muhammad Mushtaq

    (Imperial College of Business Studies)

Abstract

This study aims to investigate the impact of customer knowledge, political support, and innovative advancement on the development of Islamic bank. There is a strong microeconomics ground of Islamic financing for the economy-wide conduct of good monetary issues, and issues including the procedure structure. Islamic bank clients limit the dangers related to premium-based obligation financing, and simple credit, which tormented regular banks amid the sub-prime home loan emergency. In short, when there will be sufficient knowledge and information about the Islamic banking services and products, then it will help to develop the Islamic banking system, and similar is the case for advanced innovations. Meanwhile, strong political support can also play an influential role in the development of the Islamic banking system. This study collects the data through self-administered survey from managers of Islamic banks located in the Lahore region. The results of regression analysis are obtained through SPSS. The findings revealed that customer knowledge, innovations, and political support positively and significantly influence the growth of Islamic banks in Pakistan. In other words, good knowledge, innovations, and political support can result in more Islamic banking system development. Conclusively, general monetary development of Islamic banking in Muslim nations will drive the development of Islamic money-related administrations, prompting further in Sharia-consistent system.

Suggested Citation

  • Maira Abrar & Sohail Abbas & Shazia Kousar & Muhammad Mushtaq, 2023. "Investigation on the Effects of Customer Knowledge, Political Support, and Innovation on the Growth of Islamic Banking System: a Case Study of Pakistan," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 946-965, June.
    • Handle: RePEc:spr:jknowl:v:14:y:2023:i:2:d:10.1007_s13132-022-00933-y
    DOI: 10.1007/s13132-022-00933-y
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    References listed on IDEAS

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