Determinants of the intention to adopt Islamic banking in a non-Islamic developing country

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Year: 2019


This publication is part of the journal (2019-2)

Purpose – This paper aims to investigate the contribution of attitude, subjective norm and religiosity on the

intention to adopt Islamic banking in an emerging economy like Uganda, which is a secular state that is in the

early stages of adopting Islamic banking.

Design/methodology/approach – This study uses a cross-sectional and correlational research design.

Usable questionnaires were received from 258 managers of their own micro businesses. A hierarchical

regression analysis was used to test the hypotheses.

Findings – Results indicate that attitude and religiosity are significant determinants of the intention to

adopt Islamic banking, unlike subjective norm whose predictive power is subsumed in attitude. In the absence

of attitude, subjective norm is a significant determinant of intention to adopt Islamic banking. Overall,

attitude, subjective norm and religiosity explain 44 per cent of the variance in the intention to adopt Islamic

banking in Uganda.

Research limitations/implications – This study is cross-sectional, excluding the monitoring of

changes in behavior over time. Further, the study used evidence from owner-managed micro

businesses in Uganda. It is possible that these results are only applicable to Uganda’s micro

businesses.

Originality/value – Islamic banking is an emerging phenomenon on the African continent, especially

in Sub-Saharan Africa, where most countries are secular states. As such, there are largely no empirical

studies exploring the combined contributions of attitude, subjective norm and religiosity on the

intention to adopt Islamic banking in an emerging economy after the national adoption of an enabling

legal framework. To the best of the researchers’ knowledge, this is the first study that carries out this

task.

 

Keywords Subjective norm, Attitude, Islamic banking, Religiosity, Uganda


 

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