Why non-Muslims choose Islamic banking. Extended theory of planned behavior: a moderating factor of Islamic bank knowledge
-
Author(s)Afief El AshfahanyLink to ORCID Index: https://orcid.org/0000-0002-3616-263X
,
Dinda Ayu Siti MutmainahLink to ORCID Index: https://orcid.org/0009-0005-4906-5619
,
IsmanLink to ORCID Index: https://orcid.org/0000-0002-0938-3533
-
DOIhttp://dx.doi.org/10.21511/bbs.18(3).2023.10
-
Article InfoVolume 18 2023, Issue #3, pp. 112-125
- Cited by
- 598 Views
-
330 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This study aims to explore the intention of non-Muslims to become Islamic bank customers using an extended theory of planned behavior with Islamic Bank knowledge as a moderating variable. The partial least square structural equation modelling technique was employed for data and hypothesis testing. Using a probability sampling method, this analysis involved 200 non-Muslim Christians as the majority of respondents, representing the majority of non-Muslims in Indonesia. The results of this study show that attitude (ß = 5.390, p = 0.000), subjective norm (ß = 5.488, p = 0.000), and perceived behavioral control (ß = 2.104, p = 0.036) have a positive relationship with intention. Surprisingly, the relationship between Islamic Bank knowledge and intention is indirect, which is mediated through attitude. In addition, the Islamic Bank knowledge amplifies the relation between perceived behavioral control and intention. This study confirmed that Islamic Bank knowledge plays an important role in increasing intention. Thus, Islamic banks should consider educating more non-Muslims about what an Islamic bank is.
view full abstract
- Keywords
-
JEL Classification (Paper profile tab)D14, G21, G51
-
References58
-
Tables7
-
Figures1
-
- Figure 1. Research model
-
- Table 1. Loading factor and average variance extracted
- Table 2. Discriminant validity with Fornell-Larcker criterion
- Table 3. Composite reliability and Cronbach’s alpha
- Table 4. R-square value
- Table 5. Path coefficients
- Table 6. Mediation analysis
- Table 7. Moderation analysis
-
- Abd Rahman, A., Asrarhaghighi, E., & Ab Rahman, S. (2015). Consumers and halal cosmetic products: Knowledge, religiosity, attitude and intention. Journal of Islamic Marketing, 6(1), 148-63.
- Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211.
- Ajzen, I. (2002). Perceived behavioral control, self-efficacy, locus of control, and the theory of planned behavior. Journal of Applied Social Psychology, 32(4), 665-683.
- Ajzen, I. (2011). The theory of planned behaviour: Reactions and reflections. Psychology and Health, 26(9), 1113-1127.
- Ajzen, I., Timko, C., & White, J. B. (1982). Self-monitoring and the attitude–behavior relation. Journal of Personality and Social Psychology, 42(3), 426-435.
- Alam, A., Hendratmi, A., Wati, M. S., & Hakim, L. (2022a). The impact of mobile banking use on the Islamic financial institutional interest: A study in Indonesia. Banks and Bank Systems, 17(3), 1-11.
- Alam, A., Ratnasari, R. T., Habibi, B., & Athief, F. H. N. (2022b). A sharia economic collaboration model and its positive impact on developing of poor villages: A study in Indonesia. Public and Municipal Finance, 11(1), 101-112.
- Alwi, Z., Parmitasari, R. D. A., & Syariati, A. (2021). An assessment on Islamic banking ethics through some salient points in the prophetic tradition. Heliyon, 7(5), e07103.
- Anindyastri, R., Lestari, W. D., & Sholahuddin, M. (2022). The Influence of Financial Technology (Fintech) on the Financial Performance of Islamic Banking (Study on Islamic Banking listed on the Indonesia Stock Exchange Period 2016–2020). Benefit: Jurnal Manajemen dan Bisnis, 7(1), 80-92.
- Anwar, S. M., Junaidi, J., Salju, S., Wicaksono, R., & Mispiyanti, M. (2020). Islamic bank contribution to Indonesian economic growth. International Journal of Islamic and Middle Eastern Finance and Management, 13(3), 519-532.
- Ashfahany, A. El, Azzahra, F., Yayuli, & Unal, I. M. (2023). Intention to use sharia e-commerce: Applying a combination of the technology acceptance model and theory of planned behavior. Innovative Marketing, 19(2), 184-197.
- Ayyub, S., Xuhui, W., Asif, M., & Ayyub, R. M. (2020). Determinants of intention to use Islamic banking: A comparative analysis of users and non-users of Islamic banking: evidence from Pakistan. International Journal of Islamic and Middle Eastern Finance and Management, 13(1), 147-163.
- Barnard, P., Napier, J., & Zipperer, L. (2016). What is knowledge? In Knowledge Management in Healthcare (pp. 3-14).
- Bitar, M., Madiès, P., & Taramasco, O. (2017). What makes Islamic banks different? A multivariate approach. Economic Systems, 41(2), 215-235.
- Cupian, C., & Abduh, M. (2017). Competitive condition and market power of Islamic banks in Indonesia. International Journal of Islamic and Middle Eastern Finance and Management, 10(1), 77-91.
- Dawami, Q. (2020). Factors Influencing the Preference of Customers Towards Islamic Banking: Evidence from Malaysia. Journal of Islamic Economic Laws, 3(1), 48-67.
- Fajri, M. Z. N., Muhammad, A. A. B., Umam, K., Putri, L. P., & Ramadhan, M. A. (2022). The Effect Covid-19 and Sectoral Financing on Islamic Bank Profitability in Indonesia. Journal of Islamic Economic Laws, 5(1), 38-60.
- Fatriansyah, A. I. A. (2020). Kajian Penelitian Tentang Hukum Jual Beli Kredit [Research Study on the Law of Buying and Selling in Credit]. Suhuf, 32(1), 50-58.
- Febriandika, N. R., Wijaya, V., & Hakim, L. (2023). Gen-Z Muslims’ purchase intention of halal food: Evidence from Indonesia. Innovative Marketing, 19(1), 13-25.
- Francis, R. I., Jasin, D., & Mohan, A. A. P. (2019). A study on the relationship of attitude subjective norm and perceived behavioral control towards customer intention to use Islamic product in banking services. International Journal of Innovation, Creativity and Change, 6(4), 188-204.
- Ghozali, M., Azmi, M. U., & Nugroho, W. (2019). Perkembangan Bank Syariah Di Asia Tenggara: Sebuah Kajian Historis [The Development of Islamic Banks in Southeast Asia: A Historical Study]. Falah: Jurnal Ekonomi Syariah, 4(1), 44-55. (In Indonesian).
- Haddad, A., El Ammari, A., & Bouri, A. (2019). Are the islamic banks really more profitable than the conventional banks in a financial stable period? Asian Economic and Financial Review, 9(9), 994-1018.
- Hafaz, N. A., Jeevan, J., Salleh, N. H. M., Lee, T. T. H., & Ruslan, S. M. M. (2019). Willingness to pay for halal transportation cost: The moderating effect of knowledge on the theory of planned behavior. International Journal of Engineering and Advanced Technology, 8(6S3), 479-488.
- Hariyana, N. B., & Arsyianti, L. D. (2019). Non-Muslim Customer Preferences towards Islamic Banks in Semarang. Al-Muzara’ah, 7(1), 61-74.
- Haron, S., Ahmad, N., & Planisek, S. L. (1994). Bank Patronage Factors of Muslim and Non-Muslim Customers. International Journal of Bank Marketing, 12(1), 32-40.
- Hasan, Z. (2023). The Value and Performance of Islamic Banking in Indonesia. Iqtishadia, 15(2), 191.
- Hoque, M. E., Kabir Hassan, M., Hashim, N. M. H. N., & Zaher, T. (2019). Factors affecting Islamic banking behavioral intention: the moderating effects of customer marketing practices and financial considerations. Journal of Financial Services Marketing, 24, 44-58.
- Issa, S. (2022). Financial Crises and Business Cycle Implications for Islamic and Non-Islamic Bank Lending in Indonesia. Journal of Risk and Financial Management, 15(7), 292.
- Johan, Z. J., Hussain, M. Z., Mohd, R., & Kamaruddin, B. H. (2020). Muslims and non-Muslims intention to hold Shariah- compliant credit cards: a SmartPLS approach. Journal of Islamic Marketing, 12(9), 1751-1785.
- Kaakeh, A., Hassan, M. K., & Van Hemmen Almazor, S. F. (2019). Factors affecting customers’ attitude towards Islamic banking in UAE. International Journal of Emerging Markets, 14(4), 668-688.
- Kökalan, Ö., Yumuşak, I. G., & Bingöl, A. (2021). Service quality of conventional and islamic banks in Turkey. Market-Trziste, 33(1), 59-74.
- Komite Nasional Ekonomi dan Keuangan Syariah (KNEKS). (2021). The Profile of Commitee for KNEKS.
- Kusumastuti, W. I., & Alam, A. (2019). Analysis of Impact of CAR, BOPO, NPF on Profitability of Islamic Banks (Year 2015–2017). Journal of Islamic Economic Laws, 2(1), 30-59.
- Mansour, W., Ben Abdelhamid, M., Masood, O., & Niazi, G. S. K. (2010). Islamic banking and customers’ preferences: the case of the UK. Qualitative Research in Financial Markets, 2(3), 185-199.
- Mohamad, J., & Majid, C. H. E. (2016). A Study on the Customer’s Acceptance Towards Islamic Banking Products Among Non-Muslim in Dual Banking System. International Journal of Management Studies, 23(1), 1-11.
- Mohd Thas Thaker, H., Sakaran, K. C., Nanairan, N. M., Mohd Thas Thaker, M. A., & Iqbal Hussain, H. (2019). Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia Evidence from SmartPLS. International Journal of Islamic and Middle Eastern Finance and Management, 13(2), 281-302.
- Mukhibad, H., Kiswanto, & Jayanto, P. Y. (2017). An analysis on financial and social performance of Islamic banks in Indonesia. International Journal of Monetary Economics and Finance, 10(3-4), 295-308.
- Mustaqim, A. A., Fitriyanti, F., & Andre, N. P. (2022). The Urgency of Using Syariah Method Facing Economic Crisis : to Compare with Conventional Method. Law and Justice, 6(2), 129-147.
- Ngah, A. H., Gabarre, S., Eneizan, B., & Asri, N. (2021). Mediated and moderated model of the willingness to pay for halal transportation. Journal of Islamic Marketing, 12(8), 1425-1445.
- Nugroho, A.P., Hidayat, A., & Kusuma, H. (2017). The influence of religiosity and self-efficacy on the saving behavior of the Islamic banks. Banks and Bank Systems, 12(3), 35-47.
- Nurwati, E., Achsani, N. A., Hafidhuddin, D., & Nuryartono, N. (2014). Market structure and bank performance: Empirical evidence of Islamic Banking in Indonesia. Asian Social Science, 10(10), 105-117.
- Otoritas Jasa Keuangan (OJK). (2021). Laporan Perkembangan Keuangan Syariah Indonesia. Menjaga Ketahanan Keuangan Syariah dalam Momentum Pemulihan Ekonomi [Report on the Development of Indonesian Sharia Finance. Maintaining Islamic Financial Resilience in the Momentum of Economic Recovery] (pp. 14-16).
- Pitchay, A. B. A., Thaker, M. A. B. M. T., Azhar, Z., Mydin, A. A., & Thaker, M. T. H. B. (2020). Factors persuade individuals’ behavioral intention to opt for Islamic bank services: Malaysian depositors’ perspective. Journal of Islamic Marketing, 11(1), 234-250.
- Pratiwi, E. K., Medias, F., & Janah, N. (2020). Perception of Non-Muslim Religious Leaders to Islamic Financial Institutions. Advances in Social Science, Education and Humanities Research, 436, 893-896.
- Purwanto, P., Abdullah, I., Ghofur, A., Abdullah, S., & Misbah, Z. E. (2022). Adoption of Islamic microfinance in Indonesia an empirical investigation: an extension of the theory of planned behaviour. Cogent Business and Management, 9(1), 1-18.
- Rahadi, D. R., & Farid, M. (2021). Analisis Variabel Moderating [Moderating Variable Analysis]. CV. Lentera Ilmu Mandiri.
- Safi, L., Abbey, B., Goucha, N. B. S., Al Serhan, O., & Gleasonand, K. (2020). Knowledge of Islamic banking and bank customer satisfaction in Afghanistan: an exploratory analysis Nadia Ben Sedrine Goucha Kimberley Gleason. International Journal of Business Performance Management, 21(1-2), 21-38.
- Saiti, B., Ardo, A. A., & Yumusak, I. G. (2022). Why non-Muslims subscribe to Islamic banking? Qualitative Research in Financial Markets, 14(2), 247-269.
- Saptasari, K., & Aji, H. M. (2020). Factors affecting Muslim non-customers to use Islamic bank: Religiosity, knowledge, and perceived quality. Jurnal Ekononomi & Keuangan Islam, 6(2), 165-180.
- Sayuti, K. M., & Amin, H. (2020). Integrating the effects of price fairness and Islamic altruism with the TPB model: The case of Islamic mortgage adoption. International Journal of Housing Markets and Analysis, 13(5), 791-807.
- Sayuti, K. M., & Amin, H. (2022). Islamic mortgage adoption: examining the moderating effects of Islamic altruism. Journal of Islamic Marketing, 13(8), 1728-1750.
- Setyawati, I., Widyastuti, T., Suryati, A., & Hartani, N. H. (2019). Intellectual capital performance of Islamic banks in Indonesia: Towards competitive advantages. Management Science Letters, 9(12), 1999-2008.
- Shidiqi, K. A., & Rachmawati, A. (2018). Determinants of Sharia Banks’ Efficiency In Indonesia: Panel Data Analysis. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan, 19(2), 186-195.
- Siddiqui, T. A., Naushad, M., & Farooque, M. K. U. (2021). A study on Islamic finance as an approach for financial inclusion in India. Accounting, 7, 487-496.
- Trinugroho, I., Risfandy, T., Ariefianto, M. D., Prabowo, M. A., Purnomo, H., & Purwaningsih, Y. (2017). Does religiosity matter for Islamic banks’ performance? Evidence from Indonesia. International Journal of Economics and Management, 11(2), 419-435.
- Tucker, M., Jubb, C., & Yap, C. J. (2020). The theory of planned behaviour and student banking in Australia. International Journal of Bank Marketing, 38(1), 113-137.
- Utamy, O. D. B., & Widhiastuti, R. (2019). The effect of Sharia bank knowledge, promotion, and facilities on savings decisions at Sharia banks with savings interest as mediation variables. Journal of Islamic Economics Management and Business (JIEMB), 1(1), 1-28.
- Zarrouk, H., Ben Jedidia, K., & Moualhi, M. (2016). Is Islamic bank profitability driven by same forces as conventional banks? International Journal of Islamic and Middle Eastern Finance and Management, 9(1), 46-66.
