IS THE THEORY OF REASONED ACTION VALID FOR AR-RAHNU? AN EMPIRICAL INVESTIGATION

Published by the
Australian Journal of Basic and Applied Sciences (AJBAS)
Volume - 5, Number - 10, October 2011
http://www.insipub.com/ajbas/2011/October-2011/716-726.pdf

The authors

Hanudin Amin and Rosita Chong

Labuan School of International Business and Finance

Universiti Malaysia Sabah

Abstract

This study examines the applicability of theory of reasoned action (TRA) in a context of Islamic pawnshop using structural equation modelling (SEM). The present study presents a simplified theory of TRA, hence it is intended to test whether the two constructs in the theory are acceptable or not in a newly context of Islamic pawnshop. The simplified theory is tested using survey data from 250 respondents. Out of these, only 221 questionnaires are found to be usable whilst the rest are omitted owing to the incomplete responses. The results reveal that attitude was significantly related to the intention to use Islamic pawnshop. Subjective norm was also significantly associated with the intention to use Islamic pawnshop. In sum, the present study provides us valuable insights for service providers to future planning of Islamic pawnshop businesses. 

MODELLING AR-RAHNU USE IN EASTERN MALAYSIA: PERSPECTIVES OF MUSLIMAH

Published by the
Journal of Islamic Economics, Banking and Finance (JIEBF)
Volume - 7, Number - 3, July - September 2011 (pp.63-76)
http://www.ibtra.com/pdf/journal/v7_n3_article4.pdf


The author

Hanudin Amin

Labuan School of International Business and Finance

Universiti Malaysia Sabah

Abstract

Islamic women or Muslimah play pivotal role in promoting the development of ar-Rahnu transactions in Malaysia. As such, this current study is aimed at explaining the factors affecting Muslimah decision to utilise Islamic-based pawnshop in Eastern Malaysia. Employing structural equation modelling, this research examines the interaction between the factors and the Muslimah usage intentions for ar-Rahnu in Eastern Malaysia. To achieve this goal, the study used primary data collected by a survey with the help of a questionnaire administered through personal interviews. The study found out that religious obligation, transaction cost and information on ar-Rahnu were instrumental in determining the use of Islamic-based pawnshop in Eastern Malaysia. This result is of utmost importance for calling a better planning for Islamic-based pawnshop in the future in terms of Shariah adherence, reasonable cost charged and the awareness program. Yet, it is an inventive attempt by the author to highlight the interaction between the three factors and the Muslimah usage intentions for ar-Rahnu.

DETERMINANTS OF CUSTOMERS' INTENTION TO USE ISLAMIC PERSONAL FINANCING: THE CASE OF MALAYSIAN ISLAMIC BANKS

Published by the Journal of Islamic Accounting and Business Research, Volume 2, No 1, pp. 22-42

The Authors

Hanudin Amin, Abdul Rahim Abdul Rahman, Stephen Laison Sondoh Jr, Ang Magdalene Chooi Hwa

Labuan School of International Business and Finance, Universiti Malaysia Sabah, Labuan, Malaysia and Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia

Abstract

Purpose – Islamic banking and finance is an emerging global industry founded on Islamic ethical precepts. Just as in the case of conventional banks, Islamic banks are expected to offer products that consider the needs of their customers. The present study investigates the effects of the following factors: attitude; social influence; religious obligation; government support; and pricing, on the intention to use Islamic personal financing.

Design/methodology/approach – The sample comprised of 150 customers of two fully fledged Islamic banks in Malaysia: Bank Islam Malaysia Berhad and Bank Muamalat Malaysia Berhad. Data were obtained through a face-to-face survey using semi-structured questionnaire. Out of a total of 150 responses, only 136 responses were usable for further analysis. The study used factor analysis, correlation and regression to analyse the data.

Findings – The study found three determinants to be significant in influencing the intention to use Islamic personal financing, namely, attitude, social influence and pricing of Islamic personal financing. Religious obligation and government support were found to be insignificant predictors.

Research limitations/implications – The first limitation of the study is the narrow focus of the survey on the customers of two fully fledged Islamic banks. The second limitation of this work concerns the measurement employed to gauge bank customers' acceptance of Islamic personal financing. Despite these limitations, the findings of this study provide invaluable insights into factors affecting the bank customers' intention to use Islamic personal financing, especially in the case of Malaysian Islamic banks.

Originality/value – This empirical study on the determinants of Islamic financing using the survey method contributes towards a better understanding of the customers' expectations for Islamic financial products. Managers of Islamic banks can now comprehend better the factors that influence bank customers' decision in patronizing Islamic personal financing. Hence, more effective strategies can be recommended to attract bank customers to use Islamic personal financing. Not to mention, the findings of this study should be of value to Islamic banks in terms of expanding their customer base.

Article Type:Research paper

Keyword(s):Islam; Personal finance; Banks; Consumer behaviour; Malaysia.