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

Abstract

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.

Intention to Purchase Halal Cosmetics on Indonesian Women

“…In this study, religiosity has a positive and significant effect on halal cosmetics purchase intentions. The results of this study are in line with previous studies that high and low religiosity will affect individual intentions [13].…”

“…In this study, the attitude has a positive and significant effect on halal cosmetics purchase intention. The results of this study are in line with previous studies that the attitude of an individual on a product will affect the purchase intention of the product [13], [27], [28]. The results of this study explained that the more positive the consumer's attitude towards halalcertified products, the greater the intention to purchase the product.…”

“…Subjective norm is defined as a self-concept to the pressure of social norms so that it can influence or not influence behavior [12]. In TRA and TPB theory, the subjective norm is a variable that influences behavioral intention [11], [13], [14]. This is because subjective norms are stimuli received by individuals from the surrounding environment, such as neighbors, peers, and friends [15].…”

The Effect of Knowledge, Promotion, and Religiosity on Intention to Use Islamic Banking Services

“…Many researchers have found a positive and significant effect of religiosity on saving interest in Islamic banks (Afiah, 2016;Andriani, 2015;Rahmanto, 2016;Shofwa, 2017). The results of the research by Bananuka, Kaawaase, Kasera, & Nalukenge (2019) also show that religiosity is a significant determinant for the adoption of Islamic banking in non-Islamic developing countries (Uganda). Suhartanto (2019) found a significant effect of religiosity on intention toward Islamic banks.…”

“…Andriani 2015, Rahmanto (2016), and Afiah (2016) succeeded in proving the significant influence of religiosity on saving interest in Islamic banks. Shofwa (2017) and (Bananuka, Kaawaase, et al, 2019) also found the effect of religiosity on the decision of customers of savings products at Bank Syariah Mandiri. The results of the factor analysis show the significant influence of religiosity on the main preference for saving on Islamic banking (Lestari, 2016).…”