Determinants of Islamic banking adoption among non-Muslim customers in a Muslim zone
Journal of Islamic Accounting and Business Research
ISSN: 1759-0817
Article publication date: 2 March 2022
Issue publication date: 6 April 2022
Abstract
Purpose
The purpose of this study is to establish the relationship between relative advantage, social influence, trust, compatibility, knowledge and adoption of Islamic banking among non-Muslim bank customers in a Muslim zone of Nigeria.
Design/methodology/approach
Usable questionnaires were received from 350 participants. Structural equation modeling is used to assess the relationships between latent unobserved constructs. Composite reliability and average variance extracted were used to test the reliability and validity of the instrument. This study uses the correlational research design to test the hypotheses.
Findings
The findings indicate that relative advantage, social influence, trust and compatibility significantly influence adoption of Islamic banking among non-Muslim customers in a Muslim zone of Nigeria. However, knowledge of Islamic banking operations does not significantly influence adoption of Islamic banking.
Originality/value
The existing literature focuses on factors that influence the adoption of Islamic banking, without due emphasis on non-Muslims. The religious divides of Nigeria compel this research to determine the factors that influence the adoption of Islamic banking among non-Muslim customers. Hence, this research seeks to bridge the gap in the existing literature by embarking on an investigation using innovation diffusion theory to identify factors influencing the adoption of Islamic banking among non-Muslim customers in the Nigerian context.
Keywords
Acknowledgements
The authors acknowledge the efforts of the blind reviewers and the associate Editor, Prof. Juma Bananuka in making this paper a success. There is no external funding.
Citation
Ezeh, P.C. and Nkamnebe, A.D. (2022), "Determinants of Islamic banking adoption among non-Muslim customers in a Muslim zone", Journal of Islamic Accounting and Business Research, Vol. 13 No. 4, pp. 666-683. https://doi.org/10.1108/JIABR-10-2021-0280
Publisher
:Emerald Publishing Limited
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