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Measurement and structural modelling on factors of Islamic Fintech adoption among millennials in Malaysia

Norafni @ Farlina Rahim (Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka, Melaka, Malaysia)
Mohammed Hariri Bakri (Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka, Melaka, Malaysia and Oxford Centre for Islamic Studies, Oxford, UK)
Bayu Arie Fianto (Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia)
Nurazilah Zainal (Faculty of Business and Management, Universiti Teknologi MARA, Cawangan Negeri Sembilan, Malaysia)
Samer Ali Hussein Al Shami (Institute of Technology Management and Entrepreneurship, Universiti Teknikal Malaysia Melaka, Melaka, Malaysia)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 11 May 2022

Issue publication date: 11 May 2023

2688

Abstract

Purpose

This study aims to examine the results of structural equation modelling in applying unified theory of acceptance and use of technology in adopting Islamic Fintech among millennials in Malaysia via measurement and structural models.

Design/methodology/approach

A total of 418 valid responses have been obtained from Malaysians who are using Islamic Fintech. Before the data is analysed into measurement and structural modelling preliminary analysis such as common method bias has been conducted.

Findings

All the requirements for model fit in this study have been achieved. Four exogenous constructs are performance expectancy, effort expectancy, social influence and facilitating condition. The mediating construct is behavioural intention, whereas the endogenous variable is user adoption. All exogenous constructs show significant p-values except for effort expectancy.

Practical implications

This study offers important implications, specifically for the digital economy that is currently making its way throughout every aspect of human life, namely, social, religious, financial transaction, entertainment and others. The impact of the digital economy can be traced through the emergence of Fintech. The adoption of Islamic Fintech is one of the least discussed areas academically, therefore, this study is considered necessary to explore the prediction of consumer behaviour in Islamic Fintech adoption as a part of the digital economy in Malaysia.

Originality/value

This study fills the perceived gap in the existing financial technology literature by assessing Islamic financial technology adoption via measurement and structural modelling.

Keywords

Acknowledgements

To complete this paper, the authors would like to thank Oxford Centre for Islamic Studies, University of Oxford and Ministry of Higher Education Malaysia for their support providing necessary funding and placement as Visiting Research Fellow at Oxford. The authors also thank Ministry of Higher Education for providing FRGS grants (FRGS/1/2020/SS01/UTEM/02/1) and the Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka, Malaysia.

Citation

Rahim, N.@.F., Bakri, M.H., Fianto, B.A., Zainal, N. and Hussein Al Shami, S.A. (2023), "Measurement and structural modelling on factors of Islamic Fintech adoption among millennials in Malaysia", Journal of Islamic Marketing, Vol. 14 No. 6, pp. 1463-1487. https://doi.org/10.1108/JIMA-09-2020-0279

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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