Purpose The purpose of this paper is to empirically examine the factors that affect Muslim customers’ participation in using Baitul Maal wat Tamwil (BMT). The decomposed theory of planned behaviour (DTPB) was used as the research framework. Design/methodology/approach The paper uses primary data collected by self-administered questionnaires involving a sample of 405 respondents from selected BMTs in five different regencies in East Java. Structural equation modelling was used in the analysis. Findings This study revealed that among the three main beliefs, only perceived behavioural control towards BMT was found to have positive and significant impact on clients’ participation towards BMT. With regards to antecedents’ influence on their main beliefs, only perceived compatibility, perceived complexity and uncertainty and facilitating condition were not significant. Research limitations/implications As the data collected are existing clients of BMT, behavioural intention is excluded from the study, and as a result, the study may lack comprehensive results. Therefore, future study will be very useful if it includes behavioural intention as the variables. Practical implications The finding of the present study could help BMT to better manage by focussing on relative advantage and behavioural control to build client relationships. Originality/value The paper may be first study to apply DTPB to client behaviours in the area of Islamic microfinance in Indonesia.

Purpose The purpose of this paper is to develop a model for studying the propensity towards indebtedness in Malaysia using behavioural factors. Design/methodology/approach A self-administered questionnaire was distributed among Malaysians who work in Klang Valley, Kuala Lumpur. The questionnaire contained several demographic variables and four behavioural factors: financial literacy, risk perception, materialism and emotions. A total of 201 completed questionnaires were received and the data were tested using structural equation modelling with partial least squares. Findings This study found that emotion and materialism are statistically significant for a propensity towards indebtedness, while financial literacy and risk perceptions are insignificant for a propensity towards indebtedness. Originality/value The results of this study would be useful in helping design better models for credit offerings and addressing credit problems in the long run.

Abstract-This study examines a measurement invariance of a second-order factor models of financial exclusion among micro-entrepreneurs in Ilorin, Kwara State, Nigeria. Data elicited via a survey questionnaire was analysed using both the Statistical Package for Social Sciences (SPSS) 20.0 and Amos 20.0 software. The study revealed that financial exclusion as a second order factor is indicated by debt phobia, religion, financial complacency, and affordability and eligibility first order factors. Measurement invariance was tested based on gender via a set of hierarchically structured levels: a) configural invariance, b) metric invariance of both the firstorder and second-order models, c) intercepts of both the firstorder and second-order models, and d) residuals of both the first-order and second-order models. The groups were found to be invariant across the models. Moreover, based on t-test at alpha of 0.001, the latent mean difference tests of the second order model indicates no statistically significant difference on a path by path basis along gender divides. This provides a further questioning on the focus on women of financial inclusion programmes.Index Terms-Financial exclusion, measurement invariance, micro-entrepreneurs, second-order factor.

This paper aims to fill an apparent dearth of empirical studies that compare the efficiency of Islamic banks in Malaysia during their operation as Islamic windows and later transformation to full-fledged Islamic banks. Data obtained from the annual financial reports of the sampled banks is analyzed using the Data Envelopment Analysis (DEA) via DEAP 2.1 software to assess both the technical and scale efficiency of the banks under sample. Results obtained indicate that the banks have improved over the years in terms of both scale and technical efficiency although the former takes prominence. In general, the banks were found to be more efficient as Islamic windows compared to being full-fledged subsidiaries. This augurs well for the current disposition where, as per the Islamic Financial Service Act 2013, Islamic banks in Malaysia may now operate as full-fledged banks from their hitherto Islamic banking window status.Keywords: Scale Efficiency; Technical Efficiency; Islamic Window; Full-Fledged Banks.

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