Islamic Banking Implementation: Supportive Role of Business Service

Dileep Kumar, Normala S Govindarajo

Abstract


ABSTRACT

Islamic banking has advanced in the past four decades. It has become a worldwide brand, cultured and structured industry. Nevertheless, Malaysia has witnessed low penetration of Islamic banking. Researchers documented several reasons allied with low market penetration of Islamic banking. Although Malaysian industrial sector is dominated by Small and Medium Enterprises, there is less information about small business owner’s intention to adopt Islamic banking. Following the Theory of Reasoned Action, this research includes attitude, social influence and business service factors effect on intention to adopt Islamic banking. The research followed positivist research philosophy and quantitative descriptive cross-sectional study design to explicate the relationship between small business owner’s attitude, social influence and business service on intention to adopt Islamic banking. 390 sample from Klang Valley region of Selangor state of Malaysia was considered for the study. Data was collected using survey method through the distribution of structured questionnaires. PLS-SEM was used to test the predictive relevance. The results indicate a strong positive relationship between attitude, social influence and business service on intention to adopt Islamic banking.

Keywords: Islamic banking; Islamic finance adoption; SMEs; business service; theory of reasoned action.

ABSTRAK

Perbankan Islam telah maju dalam empat dekad yang lalu. Ia telah menjadi jenama di seluruh dunia, sebagai industri yang dikenali dengan budaya dan struktur. Walau bagaimanapun, penggunaan perbankan Islam di Malaysia masih di paras yang rendah. Penyelidik mendokumentasikan beberapa sebab yang berkaitan dengan penetrasi pasaran yang rendah bagi perbankan Islam. Meskipun, sektor perindustrian Malaysia didominasi oleh Perusahaan Kecil dan Sederhana (PKS), terdapat sedikit maklumat mengenai niat pemilik usaha kecil untuk menggunakan perkhidmatan perbankan Islam. Berdasarkan Teori Tindakan Munasabah, penyelidikan ini mengkaji sikap, pengaruh sosial, dan faktor perkhidmatan perniagaan yang mempengaruhi niat untuk menggunakan perkhidmatan perbankan Islam. Kajian ini mengikuti falsafah positivis dengan reka bentuk kajian kuantitatif dari pelbagai firma untuk mengkaji hubungan antara sikap pemilik perniagaan kecil, pengaruh sosial, dan perkhidmatan perniagaan mengenai niat untuk menggunakan perkhidmatan perbankan Islam. 390 responden dari Lembah Klang Selangor, Malaysia dianalisis untuk kajian ini. Data dikumpul melalui pengagihan soal selidik berstruktur. Kaedah PLS-SEM digunakan untuk menguji hubungan. Hasil kajian menunjukkan wujud hubungan positif yang kuat di antara sikap, pengaruh sosial, perkhidmatan perniagaan dan niat untuk menggunakan perkhidmatan perbankan Islam.

Kata kunci: Perbankan Islam; kewangan Islam; perkhidmatan perniagaan; teori tindakan beralasan


Keywords


Islamic banking, Islamic finance, Business Support, Theory of Reasoned Action

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