Examining the Factors That Influence Customer's Intention to Use Ar-Rahnu at Post Office : A Case Study in Kedah

Baharum, Nadiah Nabilah Binti; Maamor, Selamah; Othman, Azizah

doi:10.12816/0024791

Cited by 6 publications

(7 citation statements)

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“…The findings concluded that the majority of Muslim small entrepreneurs in Kelantan understood that Ar-Rahnu is a Sharia-compliant Islamic financing scheme and does not practice riba in the provision of its services, as well as believed that it is important to stay away from practicing riba in life. The findings were consistent with previous studies from Tahar (2001), Salleh (2005) and Baharum (2014) who agreed that Ar-Rahnu which was implemented in several institutions in Malaysia has no conflict with Islamic Sharia. In addition, according to Yusof (2004), customers have high trust and confidence in Ar-Rahnu due to its compliance with the operation of Islamic law, for instance no usury, oppression and fraud in its affairs.…”

Section: The Influence Of Intrinsic Factors Towards Ar-rahnu Acceptance Of Muslim Small Entrepreneurs In Kelantansupporting

confidence: 92%

Intrinsic Factors Affecting the Acceptance of Muslim Small Entrepreneurs in Kelantan Towards Ar-Rahnu

Yahaya

2020

IJBS

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Small entrepreneurs are often associated with the issue of difficulty in obtaining capital due to lack of trust from financial institutions. This is due to no loan repayment guarantee by small entrepreneurs. Therefore, Ar-Rahnu is one of the alternatives to small entrepreneurs to get financing easily and quickly. However, response of Ar-Rahnu towards entrepreneurial goals is still low as a result of focusing more on personal use rather than for entrepreneurial purposes. Is this low response related to the low acceptance of Ar-Rahnu? Hence, this article intends to identify the intrinsic factors (internal stimuli) that affect the acceptance of Muslim small entrepreneurs in Kelantan towards Ar-Rahnu. A total of 350 respondents were selected by a purposeful sampling consisting of Muslim small entrepreneurs in Kelantan. The set of questionnaires consisted of 8 items relating to respondents' backgrounds, and 20 items on the intrinsic factors that affected the acceptance of small entrepreneurs towards Ar-Rahnu. The findings were analysed descriptively to analyse the percentage and mean values using Statistical Package for Social Sciences (SPSS) version 22.0. Overall, small entrepreneurs in Kelantan exhibited positive acceptance of Ar-Rahnu based on the intrinsic factors. This was indicated by the high mean value displayed by each item, particularly items for halal and haram considerations.

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Section: The Influence Of Intrinsic Factors Towards Ar-rahnu Acceptance Of Muslim Small Entrepreneurs In Kelantansupporting

confidence: 92%

Intrinsic Factors Affecting the Acceptance of Muslim Small Entrepreneurs in Kelantan Towards Ar-Rahnu

Yahaya

2020

IJBS

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“…Based on the review, most of the researchers focused on the acceptance of Ar-Rahnu among the consumers as their research theme. This studies were undertaken by Amin (2011);Koe, Zalindah, and Rahman (2012); Noor et al (2012); Mansor et al (2014); ; Abdul Hamid, Abdul Rahman, and Abdul Halim (2014); Abdi (2015); Baharum, Maamor, and Othman (2015) and Hamid et al (2016) respectively.…”

Section: Results By Themesmentioning

confidence: 99%

“…In the third period (2011 to 2016), studies that are more empirical have been performed with a concentration on the topic of AR related to the customers. The studies were mostly using quantitative method through questionnaires survey (Abd Razak et al, 2013;Abd Hamid et al, 2014;Baharum et al, 2015, andAbd Hamid et al, 2016).…”

Section: Results By Methodology and Contextmentioning

confidence: 99%

Ar-Rahnu: A Review of Literature and Future Research

2017

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Academicians, practitioners, and other faith-based stakeholders have recognised Ar-Rahnu or Islamic pawn broking as one of micro financing tool to the Muslims. The increasing need for ArRahnu services is influenced by the awareness of the Muslims on the availability of such service and the benefit of using it. In line with this development is academician is growing interest in Ar-Rahnu research, thus create opportunities for interested scholars to assess the development of research in this discipline. This paper purported to review published studies in this discipline since the inception of Ar-Rahnu concept to the current year to identify key trends or issues in ArRahnu research and propose future research agenda. This review, which is the first of its kind, is hoped to be valuable to the present and future Ar-Rahnu scholars interested in the evolution of literature and identifying opportunities for future research.

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“…However, different factors were incorporated to measure the acceptance elements, and the results depict that Shariah element is among the highest criteria to choose the Ar-Rahnu scheme compared to others. In addition, Baharum et al (2015) inspect the customer's intention to use Ar-Rahnu at Pos Malaysia Berhad in Kedah and results in customer service as the most influential factors. Moreover, Abu Bakar et al…”

Section: Facilitating Conditionmentioning

confidence: 99%

Drivers of Ar-Rahnu (pawn) acceptance: Malaysian evidence

Thaker

Khaliq

Thaker

et al. 2020

JIMA

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Purpose The purpose of this paper is to examine the factor persuading the acceptance of Islamic pawn broking (Ar-Rahnu) among Islamic bank customers. Design/methodology/approach The authors collected the data using a self-administered questionnaire design and analysed using SPSS Statistics and smart partial least square. The study is restricted to only respondents who are based in the area of Klang Valley (Selangor and Kuala Lumpur), as these two areas have a larger number of Islamic banks and a decent number of Islamic banks’ clients. A total of 381 respondents’ responses are used for this study, and the constructs involved for analysis purpose are affect, social factor, facilitating conditions, perceived financial benefits and perceived risk constructs. Findings The finding suggests a significant positive association for social factor and perceived risk, while negative association learnt for affect on acceptance of Ar-Rahnu financing. On the same note, the facilitating condition and perceived financial benefit are found insignificantly related. Practical implications The findings generated from this study are expected to enrich the literature on the body of knowledge, as it has served to broaden the understanding of the Ar-Rahnu acceptance level in Malaysia. As mentioned, there is limited literature available using this type of financing. Existing studies focus too much on conventional financing products such as personal financing, credit card, short-term loan and many others. Less attention is given to Ar-Rahnu financing. Thus, this study expected to add value to the literature available in the context of Islamic pawn broking business. Moreover, the findings of this study will be very helpful for the Islamic financial institutions to find the best way to retain Ar-Rahnu clients and encourage more client to choose Ar-Rahnu as a mode of financing. Originality/value This study owns greater potential to assist Islamic financial institutions to discover the best techniques to retain and encourage the grander number of clients for Ar-Rahnu as a mode of financing.

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Examining the Factors That Influence Customer's Intention to Use Ar-Rahnu at Post Office : A Case Study in Kedah

Cited by 6 publications

References 0 publications

Intrinsic Factors Affecting the Acceptance of Muslim Small Entrepreneurs in Kelantan Towards Ar-Rahnu

Intrinsic Factors Affecting the Acceptance of Muslim Small Entrepreneurs in Kelantan Towards Ar-Rahnu

Ar-Rahnu: A Review of Literature and Future Research

Drivers of Ar-Rahnu (pawn) acceptance: Malaysian evidence

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