Predictors of Islamic bank adoption: Nigerian perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Precious Chikezie Ezeh ◽  
Anayo Nkamnebe
Keyword(s):  
Social Influence ◽  
Emerging Market ◽  
Partial Least Square ◽  
Least Square ◽  
Government Support ◽  
Relative Advantage ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank

Purpose The 2008 financial crisis that hit conventional banks provides a market opportunity for special types of banks. Furthermore, given the current financial reform for financial inclusion and economic concern of the Nigerian Government, there is a need for research on the adoption of Islamic banks. Accordingly, the purpose of this study is to determine the predictors of Islamic bank adoption in Nigeria. Design/methodology/approach Data is collected from 385 Islamic bank customers in northern Nigeria and is analyzed using the partial least square structural equation modeling technique. Findings The result reveals that trust, social influence, knowledge and government support have a significant positive relationship with the adoption of Islamic banks, while relative advantage and compatibility do not. The model (trust, social influence, knowledge, government support, relative advantage and compatibility) explained 50% of the variance in the adoption of Islamic bank. Practical implications These findings are very important to scholars, the policymakers and Islamic bank operators in designing their marketing strategies. It shows that trust, social influence, government support and knowledge are predictors of Islamic bank adoption. Originality/value This study extended the diffusion of innovation (DOI) theory by combining relative advantage, compatibility with trust, social influence, knowledge and government support to the model. The developed model is validated for the study of Islamic bank adoption in an emerging market, Nigeria. Arguably, it is the only study that test effect sizes (f2) and predictive relevance (Q2) of extended DOI on Islamic banks.

Emanating the key factors of innovation performance: leveraging on the innovation culture among SMEs in Malaysia

2019 ◽  
Vol 13 (4) ◽  
pp. 559-587 ◽  
Author(s):  
Haniruzila Hanifah ◽  
Hasliza Abdul Halim ◽  
Noor Hazlina Ahmad ◽  
Ali Vafaei-Zadeh
Keyword(s):  
Partial Least Square ◽  
Innovation Performance ◽  
Least Square ◽  
Government Support ◽  
Innovation Strategy ◽  
Equation Modeling ◽  
Content Type ◽  
Innovation Culture ◽  
The Relationship

Purpose Innovation has become an approach to create value for the customer to remain competitive in the market. However, previous research on innovation performance particularly among Bumiputera small and medium-sized enterprises (SMEs) had received little intention. Hence, Bumiputera SMEs need to inculcate the innovation culture to generate innovation performance. As such, the purpose of this study is to examine the ambidextrous orientation and innovation strategy on innovation culture, and how innovation culture could mediate the relationship between ambidextrous orientation and innovation strategy and innovation performance. In addition, this study also examines the role of government support as the moderator between innovation culture and innovation performance. Design/methodology/approach Data were collected from 140 Bumiputera SMEs and analyzed using partial least square-structural equation modeling via Smart PLS. Findings Findings indicated that ambidextrous orientation (alignment and adaptability) and innovation strategy (proactive creativity strategy and growth risk orientation strategy) had a significant impact on innovation culture. Besides, innovation culture mediated the relationship between alignment, proactive creativity strategy, growth risk orientation strategy and innovation performance. Surprisingly, innovation culture does not significantly mediate the relationship between adaptability and innovation performance. However, government support plays an important role to support innovation culture and innovation performance in Bumiputera SMEs. Originality/value This study makes both theoretical and practical contributions, especially in identifying the significant role of Bumiputera SMEs in creating an innovation culture. Besides, it explained government support as an important role in strengthening the relationship between innovation culture and innovation performance. The findings of the study will provide great help to Bumiputera entrepreneurs in formulating innovation culture in Malaysian SMEs.

scholarly journals Millennial loyalty towards artificial intelligence-enabled mobile banking. Evidence from Indonesian Islamic banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dwi Suhartanto ◽  
Moch Edman Syarief ◽  
Ade Chandra Nugraha ◽  
Tintin Suhaeni ◽  
Ambia Masthura ◽  
...  
Keyword(s):  
Artificial Intelligence ◽  
Service Quality ◽  
Islamic Law ◽  
Partial Least Square ◽  
Least Square ◽  
Relative Advantage ◽  
Mobile Banking ◽  
Islamic Banks ◽  
Banking Services ◽  
Content Type

Purpose This study aims to examine factors driving millennial loyalty towards artificial intelligence (AI)-enabled mobile banking services in Islamic banks. Design/methodology/approach This research collected the data from 204 millennial customers of Islamic banks in Aceh, Indonesia. Partial least square (PLS) was used to evaluate the effect of service factors (the need for service and service quality), technology-based factors (attitudes towards AI, relative advantage, security and trust) and religiosity on millennial loyalty towards AI-enabled mobile banking. Findings This inquiry reveals that service quality, attitude towards AI and trust are determinants important for millennial loyalty towards AI-enabled mobile banking. Further, this research notes the significant role of religiosity on millennial loyalty towards mobile banking services. Practical implications This study suggests Islamic banks focus on developing millennial trust and attitude towards AI to increase their loyalty towards AI-enabled mobile banking services. Further, Islamic banks operation that complies with Islamic law is strongly suggested to develop millennial loyalty. Originality/value To the best of the authors’ knowledge, this is the first study that tries to scrutinize loyalty towards AI-enabled mobile banking.

Predicting behavioural intention toward Islamic bank: a multi-group analysis approach

2019 ◽  
Vol 10 (4) ◽  
pp. 1091-1103 ◽  
Author(s):  
Dwi Suhartanto
Keyword(s):  
Group Analysis ◽  
Partial Least Square ◽  
Least Square ◽  
Behavioural Intention ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Bank Managers ◽  
The Impact ◽  
Practical Implications

PurposeThis study aims to examine behavioural intention towards Islamic bank including three determinants: religiosity, trust and image across customers and non-customers.Design/methodology/approachThis study uses 400 samples, consisting of customers and non-customers of Islamic banks collected from Bandung, Indonesia. Partial least square was applied to evaluate the association between religiosity, trust, image and behavioural intention.FindingsThis study reveals a direct effect of religiosity on behavioural intention and indirect effect through trust and image for both customers and non-customers of Islamic banks. Although the impact of religiosity on trust, image and behavioural intention is significant in both the customer and non-customer sample, the effect of religiosity on the customer is higher compared to that of non-customer.Practical implicationsThis study provides an opportunity for Islamic bank managers to increase the behavioural intention among the customer, as well as non-customer. To increase behavioural intention amongst customers and non-customers, Islamic bank managers need to keep the bank operation compliant with theSharialaw, maintain a good image and gain trust from both customers and non-customers.Originality/valueThis study is the first attempt to evaluate the behavioural intention towards Islamic bank across customers and non-customers.

The effect of Muslims’ tendency to regret being customers of conventional banks on their intention to save money in Islamic banks

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Burhanudin Burhanudin
Keyword(s):  
Structural Equation ◽  
Islamic Law ◽  
Emotional Experience ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Banking Services ◽  
Content Type ◽  
Conventional Banks

Purpose There are some Muslims who only hold conventional bank accounts, regardless that some believe that such banks implement an interest charging system that contradicts Islamic law concerning the prohibition of charging interest. This study aims to investigate the consumers’ tendency to regret (CTR) related to purchasing conventional banking services (CTR-P) and the failure to purchase Islamic banking services (CTR-NP). Then, this study investigates whether CTR-P and CTR-NP translate into regret, which, in turn, leads to the intention to save money in Islamic banks. Design/methodology/approach A survey of Indonesian Muslims who only hold conventional banking accounts was conducted. There were 323 participants. This study then applied a partial least square structural equation modeling (PLS-SEM) to test the hypotheses. Findings This study found that a combination of CTR-P and CTR-NP translates into regret, which then drives the intention to save money in Islamic banks as a means of releasing such feelings of regret. The findings suggest that Muslims evaluate their banking decision on an Islamic basis and that making a decision that contradicts the prohibition of charging interest tends to cause regret. Islamic banks have opportunities to penetrate the market by focusing on Muslims who only hold accounts with conventional banks. Originality/value The findings of this study help advance understanding of Muslims’ negative emotional experience due to making a decision that they perceive contradicts Islamic law. Also, the findings help predict the strategy that Muslims use to neutralize such a negative emotional experience.

Loyalty formation and its impact on financial performance of Islamic banks – evidence from Indonesia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ayu Fusva ◽  
David Dean ◽  
Dwi Suhartanto ◽  
Moch. Edman Syarief ◽  
Agus Zainul Arifin ◽  
...  
Keyword(s):  
Service Quality ◽  
Financial Performance ◽  
Perceived Value ◽  
Partial Least Square ◽  
Least Square ◽  
Islamic Banks ◽  
Financial Reports ◽  
Content Type ◽  
Islamic Bank ◽  
Business Operations

Purpose This paper aims to examine loyalty formation, including service quality, perceived value, image and satisfaction as determinants, and their effect on the financial performance of Islamic banks. Design/methodology/approach Data were collected from 280 Islamic bank clients in Indonesia and bank financial performance data from bank financial reports. Variance-based partial least square modelling was used to assess the relationships between loyalty, its determinants and their influence on bank financial performance. Findings This study finds that client loyalty towards Islamic banks is most influenced by perceived service quality and perceived value. Further, this study documents the importance of client loyalty in influencing bank financial performance and indirect effect of clients’ satisfaction on financial performance through the strengthening of client loyalty. Practical implications This study offers a path for the managers of Islamic banks to enhance financial performance by enhancing client loyalty. To develop client loyalty, this study suggests that Islamic banks should offer economical and service-derived benefits that are superior to those other banks offer. Further, Islamic banks need to ensure that their business operations are compatible with Islamic values. Originality/value This is an early empirical study attempting to examine the link between customer loyalty and its impact on Islamic bank financial performance.

Effect of innovativeness on supply chain integration and performance

2019 ◽  
Vol 15 (2) ◽  
pp. 362-386 ◽  
Author(s):  
Masood Nawaz Kalyar ◽  
Imran Shafique ◽  
Bashir Ahmad
Keyword(s):  
Supply Chain ◽  
Potential Role ◽  
Emerging Market ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Efficiency And Effectiveness ◽  
And Performance

Purpose The purpose of this paper is to investigate the potential role of innovativeness in determining supply chain (SC) integration and to foster the SC performance of manufacturing small and medium enterprises (SMEs). The study also proposes that the SC integration–performance relationship is contingent to the degree of environmental uncertainty (EU). Design/methodology/approach The data were collected from 321 manufacturing SMEs working in Pakistan. Respondents were owners/CEOs/managers of the firms. Considering the formative nature of indicators of SC efficiency and effectiveness, partial least square-based structural equation modeling (SEM) was used to analyze the data. Findings The results indicate that innovativeness positively influences the dimensions of SC integration which in turn affects SC efficiency and effectiveness. The results support the presence of moderation for the relationship between the dimensions of both SC integration and performance. The findings suggest that firms should endeavor to accomplish innovativeness and SC integration, as they jointly promote SC performance. Practical implications SMEs can use innovativeness as an important tool to increase SC integration and SC performance. For SMEs with a highly volatile and dynamic environment, managers should achieve SC integration and include external integration orientation at the strategic level in order to reap the greatest advantages from SC integration. Originality/value This study contributes to the SC literature by exploring the effect of the nascent determinant (innovativeness) of SC practices and performance to expand and deepen current understanding of the potential role of innovativeness in the SC context. Furthermore, considering EU as a moderator opens up new avenues of research to elucidate the SC integration–performance nexus in the emerging market context.

Millennial behavioural intention in Islamic banks: the role of social media influencers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
David Dean ◽  
Dwi Suhartanto ◽  
Ferty Nadya Pujianti
Keyword(s):  
Social Media ◽  
Partial Least Square ◽  
Least Square ◽  
Behavioural Intention ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Behavioural Intentions ◽  
Islamic Bank

Purpose This study aims to examine the role of social media influencers (SMI) in millennial behavioural intentions towards Islamic banks, from the perspective of both bank clients and non-clients. Design/methodology/approach Of the 484 Indonesian millennials in the sample, 278 were clients and 206 non-clients of Islamic banks. Factor analysis was used to examine the SMI dimension in the Islamic banking context. This study then used the partial least square to evaluate the proposed model and test the relationships between SMI, bank image, trust and behavioural intention. Findings Three SMI dimensions were confirmed, i.e. expertise, celebrity and similarity. For bank clients, the findings show that SMI has a significant influence on behavioural intention and reinforces bank image and trust. For non-clients, SMI does not have a significant impact on behavioural intentions but significantly strengthens bank image and trust. Practical implications Islamic bank managers can take benefit of this study findings by learning to foster the behavioural intentions of their millennial clients and non-clients using SMIs. Further, choosing the right SMIs for their Islamic bank is an important activity, and if they want to make a positive impact on existing and potential millennial clients, they need to choose popular millennials who are knowledgeable about the Islamic value compliance of Islamic banking services. Originality/value This study is an early study to explore SMI’s role in influencing the behavioural intentions of millennials towards Islamic banks.

Acceptance of mobile banking in Islamic banks: evidence from modified UTAUT model

2019 ◽  
Vol 10 (1) ◽  
pp. 357-376 ◽  
Author(s):  
Syed Ali Raza ◽  
Nida Shah ◽  
Muhammad Ali
Keyword(s):  
Social Influence ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Survey Method ◽  
Unique Contribution ◽  
Mobile Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Utaut Model ◽  
Actual Usage

PurposeThe purpose of this study is to examine the factors which affect mobile banking (M-banking) acceptance in Islamic banks of Pakistan by using the modified unified theory of acceptance and use of technology (UTAUT) model. The performance expectancy, facilitating conditions, social influence, effort expectancy, perceived value, habit and hedonic motivation are taken as independent variables. Similarly, the intention to adopt M-banking is taken as the mediator, and actual usage is used as the dependent variable.Design/methodology/approachThe data are collected by using the survey method, and the five-point Likert scale is used for this purpose. The statistical techniques applied to the dataset were confirmatory factor analysis and partial least square structure equation modeling.FindingsThe empirical evidence shows that all the variables except for social influence have a significant positive effect on the intention which results in actual usage.Practical implicationsThis study will help the Islamic banks in boosting the M-banking growth and decision-makers in crafting those strategies that increase the M-banking acceptance.Originality/valueThis paper makes a unique contribution to the literature with reference to Pakistan, being a pioneering attempt to investigate the factors which affect M-banking acceptance in Islamic banks of Pakistan by using the modified UTAUT model.

Revisiting the impact of VR applications on hotel bookings

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sungsik Yoon ◽  
Mehmet Erdem ◽  
Markus Schuckert ◽  
Patrick C. Lee
Keyword(s):  
Willingness To Pay ◽  
Social Influence ◽  
Perceived Value ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Intention To Use ◽  
Content Type ◽  
Performance Expectancy ◽  
The Impact

Purpose The current study aims to investigate hotel guests’ intention to use virtual reality (VR) and willingness to pay more for hotels that have VR applications (e.g. virtual room tour) when booking a hotel. Design/methodology/approach Through a theoretical lens of stimuli–organism–response (S-O-R), relationships among an individual’s performance expectancy, effort expectancy, social influence, utilitarian motivation, hedonic motivation, perceived value, intention to use VR and willingness to pay more for VR were tested using partial least square-structural equation modeling. Findings Performance expectancy, social influence, utilitarian motivation and hedonic motivation affect the perceived value of VR. An individual’s perceived value of VR affects his/her intention to use VR and willingness to pay more for a hotel that has VR contents (e.g. virtual room tour) available during the hotel booking process. Originality/value Through the S-O-R framework, this study provided insights into hotel guests’ intention to use VR and explored how their intentions lead to their willingness to pay more for a hotel if VR is available during the reservation or hotel selection process.

scholarly journals The antecedents of Muslim customers’ intention to invest in an Islamic bank’s term deposits: evidence from a Muslim majority country

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sri Rahayu Hijrah Hati ◽  
Sigit Sulistiyo Wibowo ◽  
Anya Safira
Keyword(s):  
Perceived Risk ◽  
Online Survey ◽  
Perceived Value ◽  
Perceived Quality ◽  
Equation Modeling ◽  
Product Knowledge ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank

Purpose The purpose of this study is to examine the impacts of product knowledge, perceived quality, perceived risk and perceived value on customers’ intention to invest in Islamic Banks. This study specifically examines an Islamic bank’s term deposits. Design/methodology/approach Structural equation modeling was used to analyze the data collected from 217 customers of an Islamic bank in Indonesia using an online survey. Findings This study highlights the central and dual roles of perceived risk as both the independent and the intervening variable that mediates the relationship between product knowledge and Muslim customer intention to invest in an Islamic bank’s term deposits. Research limitations/implications This study only investigates term deposits as one type of investment in Islamic banks. This study contributes to the literature by examining the role of product knowledge, perceived quality, perceived risk and perceived value on Muslim customer intention to invest in Islamic term deposits. Practical implications The results of this study highlight the requirement for Islamic banks to educate customers to improve the depositors’ product knowledge because Muslim customers’ risk and value perception and intention are strongly influenced by product knowledge. Originality/value The investigation of perceived risk is particularly relevant for Islamic financial products because of the inherent nature of risk sharing in Islamic finance. This study investigates the role of product knowledge in influencing the Muslim customers’ perception of risk, quality, value and their intention to invest in Islamic bank term deposits. Ideally, the profit loss sharing concept (PLS) should be applied; however, in this context, revenue sharing is applied because of Indonesia’s central bank regulation.

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