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Customer awareness and factors influencing Islamic banking adoption in Bintulu, Malaysia

The emergence of Islamic banking system in the contemporary banking industry has made a huge impact on the financial industry across the world. Despite the enthusiasm to promote Islamic banking systems internationally, Malaysia has yet to achieve satisfactory level of awareness and adoption of Islam...

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Main Author: Latip, Malisah
Format: Thesis
Language:English
Published: 2015
Online Access:http://psasir.upm.edu.my/id/eprint/66558/1/GSM%202015%2010%20IR.pdf
http://psasir.upm.edu.my/id/eprint/66558/
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spelling my.upm.eprints.665582019-01-24T07:35:05Z http://psasir.upm.edu.my/id/eprint/66558/ Customer awareness and factors influencing Islamic banking adoption in Bintulu, Malaysia Latip, Malisah The emergence of Islamic banking system in the contemporary banking industry has made a huge impact on the financial industry across the world. Despite the enthusiasm to promote Islamic banking systems internationally, Malaysia has yet to achieve satisfactory level of awareness and adoption of Islamic banking from its national perspective. This research attempts 1) to examine the awareness of Islamic banking and 2) to identify the influential factors that are associated with Islamic banking adoption among the Muslims and non-Muslims population in Sarawak, Malaysia by extending the renowned framework of Diffusion of Innovation (DOI) theory with the “adoption of Islamic banking” being the dependent variable, this study comprises of seven independent variables. There are four attributes of innovation, namely; 1) relative advantage, 2) compatibility, 3) observability and 4) complexity and three additional variables, namely 5) perceived risk, 6) perceived trust and 7) customer innovativeness. The simple random sampling method is used whereby a questionnaire is administered to 436 respondents from Bintulu, Sarawak. The findings of descriptive analysis show that, the awareness of Islamic banking products and services are relatively low among the respondents, regardless of their religious backgrounds. Initially, exploratory factor analysis has generated six factor solutions. By the filtration of the logistic regression equation, three factors, namely; 1) compatibility, 2) relative advantage and observability and 3) complexity are proven to have significant influence on customers’ adoption of Islamic banking products and services in Bintulu. Thus, the study recommends that the banking industry gives serious attention on these attributes of innovation to increase the adoption level among customers. Banks need to enhance accessibility, profitability and service quality factors which are critical success factors that affect an organization’s competitiveness. In addition, banks need to reduce the complexity of transactional procedure in order to raise the acceptance of Islamic products among the public and increase its usage. 2015-04 Thesis NonPeerReviewed text en http://psasir.upm.edu.my/id/eprint/66558/1/GSM%202015%2010%20IR.pdf Latip, Malisah (2015) Customer awareness and factors influencing Islamic banking adoption in Bintulu, Malaysia. Masters thesis, Universiti Putra Malaysia.
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description The emergence of Islamic banking system in the contemporary banking industry has made a huge impact on the financial industry across the world. Despite the enthusiasm to promote Islamic banking systems internationally, Malaysia has yet to achieve satisfactory level of awareness and adoption of Islamic banking from its national perspective. This research attempts 1) to examine the awareness of Islamic banking and 2) to identify the influential factors that are associated with Islamic banking adoption among the Muslims and non-Muslims population in Sarawak, Malaysia by extending the renowned framework of Diffusion of Innovation (DOI) theory with the “adoption of Islamic banking” being the dependent variable, this study comprises of seven independent variables. There are four attributes of innovation, namely; 1) relative advantage, 2) compatibility, 3) observability and 4) complexity and three additional variables, namely 5) perceived risk, 6) perceived trust and 7) customer innovativeness. The simple random sampling method is used whereby a questionnaire is administered to 436 respondents from Bintulu, Sarawak. The findings of descriptive analysis show that, the awareness of Islamic banking products and services are relatively low among the respondents, regardless of their religious backgrounds. Initially, exploratory factor analysis has generated six factor solutions. By the filtration of the logistic regression equation, three factors, namely; 1) compatibility, 2) relative advantage and observability and 3) complexity are proven to have significant influence on customers’ adoption of Islamic banking products and services in Bintulu. Thus, the study recommends that the banking industry gives serious attention on these attributes of innovation to increase the adoption level among customers. Banks need to enhance accessibility, profitability and service quality factors which are critical success factors that affect an organization’s competitiveness. In addition, banks need to reduce the complexity of transactional procedure in order to raise the acceptance of Islamic products among the public and increase its usage.
format Thesis
author Latip, Malisah
spellingShingle Latip, Malisah
Customer awareness and factors influencing Islamic banking adoption in Bintulu, Malaysia
author_facet Latip, Malisah
author_sort Latip, Malisah
title Customer awareness and factors influencing Islamic banking adoption in Bintulu, Malaysia
title_short Customer awareness and factors influencing Islamic banking adoption in Bintulu, Malaysia
title_full Customer awareness and factors influencing Islamic banking adoption in Bintulu, Malaysia
title_fullStr Customer awareness and factors influencing Islamic banking adoption in Bintulu, Malaysia
title_full_unstemmed Customer awareness and factors influencing Islamic banking adoption in Bintulu, Malaysia
title_sort customer awareness and factors influencing islamic banking adoption in bintulu, malaysia
publishDate 2015
url http://psasir.upm.edu.my/id/eprint/66558/1/GSM%202015%2010%20IR.pdf
http://psasir.upm.edu.my/id/eprint/66558/
_version_ 1643838642448236544
score 13.211869

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