Factors influencing customers’ selection of Islamic home financing: a systematic review

Abstract

Purpose

This study, using systematic literature review (SLR) aims to highlight and summarise current studies on the factors influencing customers’ Islamic home financing (IHF) selection and Islamic banking product preference, which has gained popularity within the banking sector over the past three decades. The SLR could map evolution and research fields, recommend a particular categorisation and determine primary issues to demonstrate current trends, future research directions and theoretical development.

Design/methodology/approach

The SLR was performed with a four-step reporting standard for the systematic evidence syntheses review method (research question formulation, systematic searching, quality assessment and data extraction) using 33 screened articles between 2008 and 2020 from two primary databases (Scopus and Web of Science) and one supporting database (Google Scholar).

Findings

The resulting factors could be categorised into four primary themes: consumer behaviour, consumer attributes, bank attributes and bank attributes (Islamic). The themes were subsequently divided into 16 sub-themes. Notably, all the factors proved essential for consumers’ evolving preferences and product competitiveness in the market.

Research limitations/implications

This study encountered two limitations based on database selection and research period.

Practical implications

This SLR aimed to offer useful insights into the factors that should be prioritised by financial institutions for marketing approaches by investigating consumer behaviours.

Originality/value

This study pioneered an SLR on the study area for useful insights into the current research limitations and recommendations on future study directions. Specifically, the study method facilitated critical discussions and comparisons to past research outcomes and objectivity with triangulation from distinct perspectives.

Citation

Ibrahim, N. and Mohd Sapian, S. (2023), "Factors influencing customers’ selection of Islamic home financing: a systematic review", International Journal of Housing Markets and Analysis, Vol. 16 No. 1, pp. 59-84. https://doi.org/10.1108/IJHMA-10-2021-0110