The Adoption of Ar-Rahnu and Financial Wellbeing of Microentrepreneurs in Malaysia
There is an urgent call for a potential justification on how and to what extent customers (microentrepreneurs) of Ar-Rahnu institutions in Malaysia are successfully driven their living standards from B10 (hardcore poverty) to B40 (low income). This study classified Ar-Rahnu’s adoption factors into...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Human Resource Management Academic Research Society
2020
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| Subjects: | |
| Online Access: | http://eprints.usm.my/47020/1/The_Adoption_of_Ar-Rahnu_and_Financial_Wellbeing_of_Micro-entrepreneurs_in_Malaysia.pdf http://eprints.usm.my/47020/ https://hrmars.com/papers/detail/IJARBSS/7277 |
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| Summary: | There is an urgent call for a potential justification on how and to what extent customers (microentrepreneurs)
of Ar-Rahnu institutions in Malaysia are successfully driven their living standards from
B10 (hardcore poverty) to B40 (low income). This study classified Ar-Rahnu’s adoption factors into
three categories, namely, Shari’ah governance, uniqueness of Ar-Rahnu, and efficiency. 150
questionnaires were distributed to micro-entrepreneurs that used Ar-Rahnu and analysed using
SmartPLS 3.0. Based on the results, it shows that Shari’ah governance has a low correlation and
insignificant relationship towards Ar-Rahnu adoption. Stated differently, it means that customers find
Shari’ah-compliance requirements not as important and it does not get in their way of getting instant
cash from Ar-Rahnu. The other two constructs, namely as uniqueness and efficiency, have positive
relationships with Ar-Rahnu adoption. It shows a significant and positive relationship with the Ar-
Rahnu financing output. Unlike previous studies within the body of knowledge that mainly focuses
on the adoption factors of Ar-Rahnu, this study went a step further by addressing the after-effect or
impact of Ar-Rahnu adoption towards customers’ wellbeing, especially in terms of financial wellbeing
and have found positive results. |
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