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Determinants of Islamic banking adoption in Ghana

Joseph Mbawuni (Department of Accounting Studies, University of Education, Winneba, Ghana)
Simon Gyasi Nimako (Department of Management Studies, University of Education, Winneba, Ghana)

International Journal of Islamic and Middle Eastern Finance and Management

ISSN: 1753-8394

Article publication date: 19 June 2017




This study aims to examine factors affecting the adoption of Islamic banking (IB), which is an innovative and emerging form of banking, in a non-Islamic Sub-Saharan African (SSA) country.


It used primary data collected from a cross-section of 975 respondents using self-administered structured questionnaire. Empirical data were analysed using SPSS version 16 and partial least squares structural equation modelling (PLS-SEM) for Muslim and non-Muslim groups.


Consumer attitude, readiness to comply with Sharia law, knowledge, perceived innovativeness and perceived benefits were critical determinants of bank customers’ intention to adopt IB in both Muslim and non-Muslim sub-groups. The least influential factors were perceived religion effect (PRE) and perceived threat of violence (PTV). PTV was not a significant factor to non-Muslims, but it was a significantly negative factor to Muslims’ intentions to adopt IB. PRE has a positive influence on Muslims’ intention to adopt IB, but it has a negative effective on non-Muslims’ adoption intentions.

Research limitations/implications

This study is limited to only bank customers in Ghana. Moreover, service quality factors were not included in the research model because IB is yet to be given full-fledged operational license in Ghana. Future research should extend the study to other emerging countries to improve the generalizability of the findings.

Practical implications

Policymakers are encouraged to develop stakeholder-oriented strategies to promote effective consumer education in IB. Also, IB institution should endeavour to develop innovative financial products that are Sharia-compliant and economically beneficial to individual and business needs of bank customers. Moreover, policymakers and management of IB institutions should ensure effect governance structures to guide IB operations.


This study provides initial structural equation modelling of determinants of IB adoption in emerging countries and provides empirical evidence on the spread of IB in non-Islamic SSA, which is an under-researched area. It is the first study to empirically report on the influence of PTV, readiness to compliance Sharia law and perceived innovativeness of IB on intentions to adopt IB in non-Islamic SSA context.



Mbawuni, J. and Nimako, S.G. (2017), "Determinants of Islamic banking adoption in Ghana", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 10 No. 2, pp. 264-288.



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Copyright © 2017, Emerald Publishing Limited

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