Determinants of Islamic banking adoption in Tunisia: empirical analysis

Abstract

Purpose The purpose of this paper is to identify the main factors influencing the adoption of Islamic banking services in Tunisia. Design/methodology/approach The paper presents primary data collected by self-administered questionnaires involving a sample of 239 respondents located in Tunis city. Respondents were conventional banks’ customers who were actually non-users of Islamic banking. A descriptive statistical analysis was conducted to determine consumers’ awareness of Islamic banking. Findings The results revealed that Islamic bank reputation, relative advantage of Islamic banking and its compatibility with consumer religious beliefs, values, lifestyle and banking habits influence positively the intention to use it. However, it seems that perceived complexity and risk impact negatively the consumer intention to adopt this new financing system. The major finding of this study is that there is a general lack of consumer awareness about Islamic banking in Tunisia. Practical implications By identifying the drivers and inhibitors of Islamic banking acceptance among potential adopters, this research aim to help banks’ managers to target their actions and strategies more effectively. Originality/value This study is one of the earliest to be conducted on customers’ perception and willingness to adopt Islamic banking services in Tunisia. It makes a contribution to the Islamic banking adoption literature by extending and testing the diffusion innovation theory (Rogers, 2003) in the context of Tunisia.

Marketing Islamic Financial Services: A Review, Critique, and Agenda for Future Research

“…The findings from our present review also support these conclusions. For example, most studies in the Muslim majority countries have focused only on the issue of efficiency of the Islamic finance system and customer satisfaction (e.g., Moktar et al 2006;Sufian 2010;Kaabachi and Obeid 2016;Ltifi et al 2016;Chazi et al 2018;Hussein 2010;Butt et al 2018;Estiri et al 2011). We have identified numerous critically important yet unexplored opportunities to integrate insights from the global Islamic finance literature with a focus on Muslim majority countries.…”

The Influence Of Religiosity, Profit Loss And Sharing And Corporate Image Toward Consumer Intentions Of Muamalat Bank Financing

“…This is following the research of Wahab (2013) declared religion is the dominant factor that affects the intention to become the Bank's customers. Research (Newaz et al 2016;Kaabachi, et al 2016) states that Religiosity affects consumer intention. From the study of the theory above is made hypothesis:…”

“…In the banks created a positive brand, attitude can increase the consumer's intention to use banking services. Some research(Kaabachi et al 2016;Molinillo et al 2018; and Lee and Lee, 2018) stated that the company's image affects consumer intention . From the study of the theory above is made hypothesis:…”

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“…Indeed, it was found that a consumer who was better knowledgeable about Islamic banking products has had greater intention to use them. Kaabachi and Obaid (2016) inspected the influence of customers' perception and willingness to adopt Islamic banking in Tunisia by testing the diffusion innovation theory of Rogers (2003). The study surveyed the customers of conventional banks located in Tunis City and found that bank reputation, the relative advantage of Islamic banks and compatibility with religious beliefs influence positively the intention to use it.…”