Impact of Corporate Social Responsibility on Islamic Banking Customers of Pakistan

Abstract

This study aims to analyze the impact of corporate social responsibility on trust level of customers in the Islamic banking industry of Pakistan. The impact of trust is further studied on customers’ repurchase intentions and their word of mouth intentions. A self-administered questionnaire was used to collect data from the customers of five different banks offering Islamic banking services in Pakistan. In order to explain the relationship between variables the model was tested using Structural Equation Modeling (SEM) using AMOS. Empirical results from this study show that CSR is positively related to customer trust, repurchase intentions and word of mouth intentions in the Islamic banking industry. The findings prove that hypothesized model fit reasonably well based on comparison fit indices. The study adds valuable insights to CSR related research in South Asia and particularly focuses on the factors that influence perceptions and behaviors of Islamic banking customers.