Muslims and non-Muslims intention to hold Shariah-compliant credit cards: a SmartPLS approach

Abstract

Purpose The purpose of this paper is to examine the relationship between attitude, subjective norm, perceived behavioural control, religiosity, knowledge and Shariah-compliance with intention to hold Shariah-compliant credit card (SCCC) amongst Muslims and non-Muslims. Design/methodology/approach Researchers used survey questionnaire to collect data and applied a purposive sampling method, then analyzing the data using descriptive statistics and also multi-group analysis of SmartPLS. Findings For Muslims, attitude, subjective norm, Shariah-compliance, knowledge and religiosity are positively significant. While for non-Muslims, only attitude and subjective norm are positively significant to intention to hold SCCCs. Research limitations/implications The behavioural study only focusses on intention to hold Islamic credit cards, which is constraining the extended model of the theory of planned behaviour (TPB) without the actual performance of the behaviour, which is holding SCCCs. Secondly, the research caters for a single method, namely, quantitative without including the qualitative method to better understand and explore other factors affecting consumers’ behavioural intention. The qualitative part can be carried out by conducting interviews with practitioners, regulators and customers. Thirdly, the cultural dimensions are not combined as parts of TPBs’ antecedents for extended model that could be affecting intention, as Malaysia has diverse ethnic groups with different religious background. Practical implications In terms of managerial implications, the findings will further assist financial service providers to develop more effective marketing strategies for Islamic financial products not just to cater for the Muslims but also the non-Muslims, who are increasingly attracted to Islamic banking. As many Muslims are still holding conventional credit cards, it is timely for the Islamic financial institutions to attract them with the SCCCs. Social implications Financial marketers are expected to be qualified and well-versed on the different Islamic product structures and also the conventional products. By having such enables them to enlighten and create awareness amongst the targeted consumers in seeking Shariah-compliant financial-related products. Originality/value The research will contribute to new theoretical knowledge of an extended behavioural model in relation to customers’ perception towards SCCCs’ acceptance.

Religiosity and Muslims’ intention to visit homestays: the mediating role of attitude

“…Firstly, the results of the study indicate that attitude has the strongest influence on Muslims' intention to visit homestays in Sabah. This finding supported earlier studies by Johan et al (2020), Farhat et al (2019), Bashir (2019), Memon et al (2019), Ng et al (2019), Patwary et al (2018), Suki & Salleh (2018), Elseidi (2017), Khan & Azam (2016), Amin et al (2011), Lada et al (2009), Lee & Moscardo (2005), Lam & Hsu (2004) and Chen (1998). In short, Muslims' attitude plays an important role in predicting their intention to visit homestays in Sabah.…”

“…Therefore, a distinction between the Muslims' beliefs and practices are imperative. In the Islamic marketing literature, religiosity has been posited as an essential determiner of Muslims' decision to purchase a particular product or service (Mukhtar & Butt, 2012).Thus, it is right to say that Islam religion is one of the most important determinants of Muslims' intention and attitude (Johan et al, 2020). In a more recent study, Haque et al (2019) have found that religiosity was positively affecting Muslims' purchase intention toward Shari'ah-compliant hotel in Malaysia.…”

The Role of Religiosity in Explaining the Intention to use Islamic FinTech Among MSME Actors

“…Almost all respondents believe that using Islamic FinTech will bring more blessings in running their business. This is because for them by using Islamic FinTech products and services, it means that they have tried to follow Islamic rules in gathering and trying to avoid prohibited transactions such as riba, gharar, and maysir, especially in terms of the need for venture capital, investment, and other financing schemes.These results indicate that religiosity is a shield for an individual to commit to what he believes in an act whether it is permissible or not based on what has been outlined by religion (Johan et al, 2020). In addition, religiosity is the main drivers to attract intention in case of using new or novel products (Ateeq-ur-Rehman & Shabbir, 2010;Mansori, Sambasivan, & Md-Sidin, 2015).…”

“…Religiosity is the individual's ability to commit to religious beliefs by obeying what can and should not be done including values and practices in everyday life (Johan, Hussain, Mohd, & Kamaruddin, 2020). In contemporary life, religion basically plays a significant ethical role in which the entire life it lives is shaped by divine law in religion.…”

Why do Muslims engage in adaptive worship behavior during the pandemic? The role of protection motives and religiosity

“…We used partial least squares (PLS)-structual equation modeling (SEM) to test our measurements and structural model, because of its superiority in a complex structural model with relatively numerous constructs for theory development and prediction purposes (Hair et al , 2014; Johan et al , 2020; Rigdon et al , 2017). To test the internal consistency, we used composite reliability and Cronbach’s alpha, whereas to test the construct’s validity (convergent and discriminant) we used average variance extracted (AVE) score, the Fornell–Larcker criterion and cross-loadings (Hair et al , 2014).…”