Norhazlina Ibrahim and Safeza Mohd Sapian
This study, using systematic literature review (SLR) aims to highlight and summarise current studies on the factors influencing customers’ Islamic home financing (IHF) selection…
Abstract
Purpose
This study, using systematic literature review (SLR) aims to highlight and summarise current studies on the factors influencing customers’ Islamic home financing (IHF) selection and Islamic banking product preference, which has gained popularity within the banking sector over the past three decades. The SLR could map evolution and research fields, recommend a particular categorisation and determine primary issues to demonstrate current trends, future research directions and theoretical development.
Design/methodology/approach
The SLR was performed with a four-step reporting standard for the systematic evidence syntheses review method (research question formulation, systematic searching, quality assessment and data extraction) using 33 screened articles between 2008 and 2020 from two primary databases (Scopus and Web of Science) and one supporting database (Google Scholar).
Findings
The resulting factors could be categorised into four primary themes: consumer behaviour, consumer attributes, bank attributes and bank attributes (Islamic). The themes were subsequently divided into 16 sub-themes. Notably, all the factors proved essential for consumers’ evolving preferences and product competitiveness in the market.
Research limitations/implications
This study encountered two limitations based on database selection and research period.
Practical implications
This SLR aimed to offer useful insights into the factors that should be prioritised by financial institutions for marketing approaches by investigating consumer behaviours.
Originality/value
This study pioneered an SLR on the study area for useful insights into the current research limitations and recommendations on future study directions. Specifically, the study method facilitated critical discussions and comparisons to past research outcomes and objectivity with triangulation from distinct perspectives.
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Hani Amirah Juisin, Muhammad Amir Syazwan Mohd Sayuthi, Hanudin Amin and Imran Mehboob Shaikh
Gold investment is one of the essential long-term investments for many to diversify their investment portfolios. Muslims are continuously looking for halal products and services…
Abstract
Purpose
Gold investment is one of the essential long-term investments for many to diversify their investment portfolios. Muslims are continuously looking for halal products and services in any aspect of life and one of them is Shari’ah gold investments (SGI). However, evidence pertinent to Muslims’ behaviour towards Shari’ah gold is somewhat inconclusive and for that, a new empirical investigation is needed to reduce the gap, at best. Hence, the purpose of this study is to study factors determining SGI behaviour in Penang, Malaysia.
Design/methodology/approach
By using the Islamic theory of consumer behaviour (ITCB), this study examines the determinants of the SGI behaviour. The questionnaire survey was distributed and the data gathered was analysed using partial least square structural equation modeling.
Findings
All hypothesised hypotheses were instrumental in explaining the factors determining SGI behaviour in the context of Penang, Malaysia.
Research limitations/implications
This study has at least two limitations, namely, confined generalisations of the variables used and the limited context of the research conducted.
Practical implications
This study sheds light on the determinants influencing SGI behaviour, at best.
Originality/value
This study is original in terms of its final output that enlightens the significant effects of iman, Islamic altruism, maqasid consumer index on the behaviour of investors on Shari’ah gold within the ITCB’s context along with integrated religious satisfaction.
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Imran Mehboob Shaikh, Hanudin Amin and Nurul Ashiqin
The purpose of this paper is to look into millennials’ acceptance of Qard al-hasan using the Islamic theory of consumer behaviour (iTCB) in Malaysia.
Abstract
Purpose
The purpose of this paper is to look into millennials’ acceptance of Qard al-hasan using the Islamic theory of consumer behaviour (iTCB) in Malaysia.
Design/methodology/approach
For this study, convenience sampling was used and 203 usable questionnaires were received from the respondents who are millennials and university students. The questionnaire link was distributed via social media platforms to the millennials.
Findings
The findings of this study reveal that there exists a strong and positive relationship between the role of iman and Maqasid consumer index in determining the millennial acceptance of Qard al-hasan. On the contrary, Islamic altruism does not turn out to be the factor of Qard al-hasan acceptance. Resultantly, these results suggest that millennials in Malaysia accept Qard al-hasan and based on those educational institutions may consider offering zero-interest benevolent loans to alleviate the financial burden of unprivileged students.
Research limitations/implications
Although this study provides positive results, a minimum of two research constraints may direct future efforts in this area. This study initially focuses on a specific ecosystem of Islamic financial products in Malaysia, with a particular emphasis on Qard al-hasan. As a result, subsequent research ought to strive to encompass a larger perspective on Qard al-hasan. Secondly, this research uses a theory that is still in the applicability phase, which has led to some productive discussions for further improvements.
Originality/value
To the best of the authors’ knowledge, this work is one of the few studies conducted on an empirical basis using the iTCB in the milieu of Qard al-hasan in Malaysia.
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Permata Wulandari and Muhammad Nadhif Ubaidillah
Islamic home financing products with Murabaha contracts are widely favored among the Muslim community in Indonesia, given that the country has a population of over 230 million…
Abstract
Purpose
Islamic home financing products with Murabaha contracts are widely favored among the Muslim community in Indonesia, given that the country has a population of over 230 million Muslims. To facilitate the development of products and enhance public interest, it is important for Islamic banking institutions to comprehend the elements that may impact the intents of Muslim communities in Indonesia when selecting Islamic home financing products with Murabaha contracts. The purpose of this study is to ascertain the many aspects that may have an impact on the decision-making process of Muslim communities in Indonesia when selecting Islamic home financing product that use Murabaha contracts.
Design/methodology/approach
The partial least square-structural equation modeling data processing techniques will be used to process and evaluate these components. The data used in this study was acquired by administering questionnaires to a sample of 298 Muslim communities, which were randomly selected from a pool of 301 possible customers of Islamic house finance in Indonesia.
Findings
The results of this research show that attitude, subjective norms and perceived behavioral control have positive influence on intention to choose an Islamic home financing scheme with Murabaha agreement, while price fairness of Islamic home financing and Islamic altruism have direct and indirect influence on intention to choose Islamic home financing.
Research limitations/implications
Analyzing factors that affect intention to choose Islamic home financing product under Murabaha contract is essential. Future study is required to analyze other Islamic home financing products, such as istisna, ijarah muntahia bi tamlik and diminishing musharakah. This study only serves as a foundation for further investigations into conventional approaches to home financing in emerging nations. The areas can be expanded to be implemented in other countries.
Practical implications
It is anticipated that Islamic banks have the capacity to cultivate a favorable and constructive perception, hence fostering a positive disposition among the Muslim populace in Indonesia. Furthermore, it is essential for Islamic banks to guarantee that all stakeholders within the sharia-compliant institution, particularly the frontline staff, have enough expertise and understanding of the intricacies of Islamic home financing products including Murabaha contracts, which are intended for prospective customers. In the foreseeable future, it is anticipated that the Muslim population in Indonesia would exhibit a greater intention toward the use of Islamic home financing solutions that use Murabaha contracts, facilitated by the establishment of a conducive environment.
Originality/value
This research integrates the impacts of pricing fairness and Islamic charity as a modified model, alongside the theory of planned behavior model, to examine the influence of these factors on individuals’ intentions to use Islamic home financing in Indonesia.
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This study aims to examine the factors that determine consumer behaviour of ijarah home financing using the Islamic theory of consumer behaviour (ITCB). In particular, the…
Abstract
Purpose
This study aims to examine the factors that determine consumer behaviour of ijarah home financing using the Islamic theory of consumer behaviour (ITCB). In particular, the specific contract used is al-ijarah muntahia biltamleek. Subsequently, the term al-ijarah muntahia biltamleek home financing is used throughout the paper.
Design/methodology/approach
Drawing upon the ITCB, the present study examines patronage factors for al-ijarah muntahia biltamleek home financing. This study’s data were drawn from valid 409 usable questionnaires.
Findings
Partial least square results suggest that the role of iman, Islamic mortgage support and maqasid consumer index are significantly related to consumer behaviour. In turn, consumer behaviour is instrumental in determining religious satisfaction.
Research limitations/implications
Two limitations were observed that provide direction for future studies. Firstly, the current study is only tested in one particular Islamic home financing product that may explain why the generalisation is an issue. Secondly, the theory is still in its infancy stage, which, of course leads to some criticisms pertinent to its parsimony and applicability to other settings. Despite these limitations, however, this study aims to suggest a so-called Islamic model of factors that can explain consumer behaviour of a particular Islamic home financing product. In particular, scrutinising the product acceptance from the context of the ITCB can open a new debate in this area.
Practical implications
This study indeed reduces the theory–practice gap by suggesting new indicators that are workable to improve consumers’ positive perception of Islamic home financing. Given the results obtained, the ITCB provides a better prediction for consumer behaviour of al-ijarah muntahia biltamleek home financing.
Originality/value
This study expands the applicability of the ITCB to include al-ijarah muntahia biltamleek home financing.
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The purpose of this study is to examine the critical success factors (CSFs) for the receptiveness of Islamic home financing in Malaysia.
Abstract
Purpose
The purpose of this study is to examine the critical success factors (CSFs) for the receptiveness of Islamic home financing in Malaysia.
Design/methodology/approach
A framework of the CSFs for the receptiveness of Islamic home financing is developed. The framework evaluates the effects of product type, competitive value proposition, Islamic debt collection policy, Islamic bankers' knowledge and maqasid al-Shariah compliance on the receptiveness. Data from 744 usable questionnaires are analysed to confirm the applicability of the framework in Islamic home financing context.
Findings
The results suggest that product type, competitive value proposition, Islamic debt collection policy, Islamic bankers' knowledge and maqasid al-Shariah compliance are significantly related to the receptiveness of Islamic home financing.
Research limitations/implications
Two limitations are available for future studies. Firstly, the respondents of this study are limited to Malaysians, signifying further testing of the proposed model across different geographies is required to determine the generalisability of the model. Secondly, the contributions of the proposed framework are confined to a specific area of Islamic banking products. Thus, extending the framework to other banking products or conducting a comparative study between Islamic home financing and its conventional peer can improve its generalisability.
Practical implications
The results obtained offer a fresh direction on how to market Islamic home financing products successfully, where the new CSFs are brought into play.
Originality/value
This study examines the new proposed CSFs for the receptiveness of Islamic home financing in Malaysia.
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Dzuljastri Abdul Razak, Muhammad Bilal and Hanudin Amin
The purpose of this study is to examine the determinants influencing low- and middle-income households in accepting the Islamic public-private housing co-operative model (IPHCM…
Abstract
Purpose
The purpose of this study is to examine the determinants influencing low- and middle-income households in accepting the Islamic public-private housing co-operative model (IPHCM) as an alternative to contemporary affordable public housing models in Malaysia.
Design/methodology/approach
Using self-administrated questionnaires, data are collected from low- and middle-income households dwelling in Programme Perumahan Rakyat projects in Kuala Lumpur and the state of Selangor. The study used the theory of planned behaviour (TPB) and used the partial least squares technique to examine the proposed hypothesised relationships.
Findings
The findings of this study suggest that subjective norm and perceived consumer religiosity is the most influential determinants affecting the behavioural intention of low- and middle-income households in accepting the IPHCM model. Attitude had a significantly positive relationship with households’ behavioural intentions towards accepting the IPHCM model.
Practical implications
The findings of this study can serve as a guideline for policymakers to understand the behavioural intention of low- and middle-income households in accepting newly developed models in affordable public housing space.
Originality/value
Behavioural aspects regarding the acceptance of affordable public housing models in Malaysia have yet to be profoundly explored in the literature. This study has extended the TPB by incorporating perceived consumer religiosity, in the affordable public housing domain, to analyse its effects on households’ acceptance of the IPHCM model.
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This research investigates how religiosity (e.g. extrinsic and intrinsic) influences consumers’ awareness and attitudes, which subsequently influences consumers’ preferences for…
Abstract
Purpose
This research investigates how religiosity (e.g. extrinsic and intrinsic) influences consumers’ awareness and attitudes, which subsequently influences consumers’ preferences for Muslims in the context of Islamic bank.
Design/methodology/approach
A total of 480 Islamic bank consumers were recruited for online survey study. Structural equation modeling was used to test the research hypotheses.
Findings
Extrinsic religiosity has crucial role on consumers’ awareness and consumer attitudes. However, intrinsic religiosity has less effect on consumer attitudes, whereas consumer awareness plays an important role on consumer attitudes. Furthermore, mediator variables, such as consumers’ awareness and attitudes, have partial role to mediate religiosity and consumers’ preference.
Research limitations/implications
The recent study was limited to core of one region, therefore, future studies are needed to analyze consumers’ attitude and engagement in religious products and services such as Islamic brands image.
Practical implications
The stakeholders need to collaborate action to promote Islamic banks and the varying standard between their counterparts from the perspective of business and marketing.
Originality/value
The result of this study contributes to literature which has correlation with testing religion role toward Islamic bank. It also develops a new views into the determinants factor to influence consumers’ preferences.
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Khadijah M. Sayuti and Hanudin Amin
Using the theory of planned behaviour (TPB) as an analytical framework, this paper aims to investigate the direct effects of attitude, subjective norm, perceived behavioural…
Abstract
Purpose
Using the theory of planned behaviour (TPB) as an analytical framework, this paper aims to investigate the direct effects of attitude, subjective norm, perceived behavioural control, price fairness and Islamic altruism. It also explores how these path linkages can be moderated by Islamic altruism.
Design/methodology/approach
Data are gathered via survey questionnaires on 287 Muslim bank customers in major cities of East Malaysia. The data are then tested using partial least squares.
Findings
The results show that attitude, subjective norm, perceived behavioural control, price fairness and Islamic altruism are significantly influenced by Muslim bank customers’ intention to choose Islamic home financing products. Islamic altruism is also found to significantly moderate the relationship between price fairness and behavioural intention.
Research limitations/implications
Three limitations are available for future research that include the geographical restriction, respondents’ selection and a limited number of battery items used.
Practical implications
Essentially, the results of this study serve as a guide for Islamic bank managers or mortgage providers to improve their pertinent marketing strategies, which are vital to enhancing the acceptance rate of Islamic mortgage.
Originality/value
This study extends the TPB model by incorporating price fairness and Islamic altruism into the Islamic home financing context.
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Using the consumption values theory (CVT) as a baseline model, this study aims to evaluate the factors that influence farmers' decision-making behavior regarding interest-free…
Abstract
Purpose
Using the consumption values theory (CVT) as a baseline model, this study aims to evaluate the factors that influence farmers' decision-making behavior regarding interest-free agricultural financing products.
Design/methodology/approach
Data were gathered from 321 banking customers using questionnaires who are engaged with the agriculture sector and wish to obtain finance related to Islamic agriculture products.
Findings
The findings demonstrate that the decision behavior for Islamic agriculture financing products is highly influenced by epistemic, emotional and functional values. On the contrary, conditional and social values do not influence farmers’ choice behavior for Islamic agriculture financing products.
Research limitations/implications
There are a few limitations in this study. Initially, the study's geographic scope is limited to bank customers within the agriculture sector who live, in particular, in Southern Sindh province, Pakistan. Next, researchers extended the CVT to a specific focus on agricultural financing products by Islamic banks. Future researchers should take these concerns into consideration for better applicability, and it is anticipated that the research approach will be refined to best expand the results. Lastly, future researchers are expected to broaden the theory's relevance by considering the socio-cultural environmental conditions (culture, religious values and approaches) and social conditions in a wider range of Islamic agricultural financial instruments.
Practical implications
The findings are beneficial for practitioners intending to advance innovative Islamic agriculture financing products to cater to Pakistani farmers’ needs.
Originality/value
This research extends the CVT that offers valuable information for the development of consumers’ behavior in the setting of interest-free agricultural financing.