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Article
Publication date: 25 October 2018

Rakesh Belwal and Ahmed Al Maqbali

The concept of Islamic banking (IB) as a discipline and the introduction of the full-fledged Islamic banks and Islamic windows are relatively newer developments in the banking…

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Abstract

Purpose

The concept of Islamic banking (IB) as a discipline and the introduction of the full-fledged Islamic banks and Islamic windows are relatively newer developments in the banking sector in Oman. This paper aims to assess customers’ perceptions of the Islamic banks and IB windows in Oman.

Design/methodology/approach

Following the interpretive paradigm and an exploratory research design, data collected through personal interviews with a group of 60 respondents in two of the prominent cities in Oman were analysed qualitatively.

Findings

The study found that customers in Oman had mixed feelings about the Islamic Banks. While some of them were not sure if the banks follow the Islamic principles, a majority of them had not opened an account with the Islamic banks or Islamic windows. The study revealed some vulnerabilities in the areas of their operations, marketing practices, staff knowledge of products and customer-dealings, as well as customers’ understanding of Islamic banks, their principles and practices.

Practical implications

As the advent of IB is relatively new to Oman, the insights gained by this study will have wider implications for the growth of IB locally. The outcomes of this study would appraise the officials and regulators of Islamic banks and Islamic windows with customers’ perception of IB. The elimination of the identified weaknesses would help them to improve the knowledge, quality and the marketing and promotion of products and services while competing with the conventional banks.

Originality/value

This study is a pioneering effort to know the status of IB and customers’ motivations in Oman towards IB.

Details

Journal of Islamic Marketing, vol. 10 no. 1
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 24 November 2023

Husam-Aldin Nizar Al-Malkawi, Shahid Rizwan and Adel Sarea

The purpose of this study is to examine the impact of the marketing mix, customer perceptions, and religion on the buying decision of Islamic banking products in an emerging…

Abstract

Purpose

The purpose of this study is to examine the impact of the marketing mix, customer perceptions, and religion on the buying decision of Islamic banking products in an emerging market namely the United Arab Emirates (UAE).

Design/methodology/approach

This study adopts a quantitative approach to analyze the data of 435 respondents collected through an online survey during January–February 2022. Data analysis of direct and moderating relationships are done through Smart PLS (partial least squares) using structural equation modelling (SEM) technique.

Findings

The results indicate that marketing mix (product, price, place and promotion) and customer perceptions have a positive direct relation with the buying decision of Islamic banking products in the UAE. However, moderation analysis shows that religion is a non-significant moderator for the above relationships.

Originality/value

This study combines potential variables from the perspectives of marketing, human mindset, and individual beliefs. The findings of this study provide a wider understanding of consumer behavior toward Islamic banking products. Marketers of the Islamic banking industry can utilize these findings for effective market segmentation and well-crafted marketing strategies. This will ultimately contribute to the sustainable growth and development of the Islamic banking industry in the UAE and other regions.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 4 August 2022

Alya Al-Fori and Azmat Gani

Islamic finance is becoming a core part of the financial services economy in the Middle East countries. There is a strong likelihood that Islamic finance is also driving the…

Abstract

Purpose

Islamic finance is becoming a core part of the financial services economy in the Middle East countries. There is a strong likelihood that Islamic finance is also driving the expansion of trade in insurance services. However, research on Islamic finance’s effect on trade in insurance services is scant. This study aims to fill this gap by investigating if Islamic finance has promoted trade in insurance services.

Design/methodology/approach

This study adopts the gravity modelling framework and the panel data estimation procedure in understanding the effects of Islamic finance on trade in insurance.

Findings

The empirical results reveal a statistically significant positive correlation of Islamic finance with the exports and imports of insurance services. Economic sizes (domestic and trading partners), growth in trading partners, cost of doing business, legal rights and financial freedom are other statistically significant determinants.

Research limitations/implications

It makes a positive contribution to the Islamic financial services literature. Islamic finance is an integral part of the conventional banking and financial sector in the Middle East that actively fosters the expansion of insurance services that need support, given its essential role in services trade.

Originality/value

This study is unique as it directs attention to the role of Islamic finance in fostering trade in insurance services within an inclusive modelling framework that has been overlooked in the Islamic finance literature.

Details

Journal of Financial Economic Policy, vol. 14 no. 6
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 12 September 2023

Qaisar Ali, Shazia Parveen, Tasya Aspiranti, Nunung Nurhayati and Sulistya Rusgianto

The adoption of Islamic banking (AIB) among customers has remained in the limelight due to its significance in the strategic marketing of Islamic banking (IB) services. Although…

Abstract

Purpose

The adoption of Islamic banking (AIB) among customers has remained in the limelight due to its significance in the strategic marketing of Islamic banking (IB) services. Although researchers have devoted a significant effort to investigating the drivers of AIB, little is known about the exclusive barriers hampering AIB. Accordingly, this paper aims to examine the underlying barriers to the adoption of Islamic banking (BAIB) and categorize them into different research clusters using bibliometric analysis.

Design/methodology/approach

The data was collected from 132 articles published in Scopus database between 2007 and 2022 and analyzed using VOSviewer to explore BAIB.

Findings

The findings clustered the barriers to AIB into three groups, namely, efficiency of IB products and services (service quality, Shariah compliance level, availability of services), behavioral (knowledge and awareness, religiosity, trust and intention) and personal attributes (innovativeness, understanding of mobile/internet banking and technology acceptance) factors of Islamic bank customers.

Research limitations/implications

The sample size of this study is relatively small, as the data was imported from Scopus database only to perform Bibliometric analysis. Future studies may use larger sample size by retrieving data from other databases such as Web of Science and PubMed to develop better research clusters of BAIB.

Practical implications

The dynamic business environment and unprecedented changes in consumer behavior require managers creating suitable conditions to foster adoption of their services and capture a better market share.

Originality/value

Following the findings of this research, future research avenues are identified for strategic embeddedness and global development of IB by overcoming BAIB.

Details

International Journal of Ethics and Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9369

Keywords

Article
Publication date: 16 June 2021

Majed Alharthi, Imran Hanif, Hafeez Ur Rehman and Hawazen Alamoudi

This study aims to explore the potential determinants of customers’ satisfaction with the Islamic banking system and highlights the fact that both internal and external factors…

Abstract

Purpose

This study aims to explore the potential determinants of customers’ satisfaction with the Islamic banking system and highlights the fact that both internal and external factors play key roles in customer satisfaction (CS) during the COVID-19 pandemic.

Design/methodology/approach

Primary data from six Islamic banks (Al Baraka Bank Ltd, BankIslami Pakistan Ltd, Burj Bank Ltd, Dubai Islamic Bank Ltd, Meezan Bank Ltd and MCB-Islamic Bank Ltd) were analysed using a binary logit method.

Findings

The results showed that internal factors such as hand sanitisation facilities, strict compliance with wearing a mask before entering the bank, the distance between customers and dealing officers, an organised network of branches (in terms of health safety protocols), the behaviour of dealing officers and extended banking hours contributed significantly to enhancing the satisfaction of Islamic banking customers during the pandemic in Pakistan. The results showed that high service charges on loans have a significant adverse impact on CS. Concerning external factors, the results showed that mass media platforms that can update customers about new services and customer transactions’ processing timing, the number of operational branches in the pandemic period, available parking space in front of a bank and recommendations from family and friends to open an account with a particular bank increase CS levels.

Practical implications

The study’s results will be helpful for the policymakers and practitioners to design such policies that can promote the Islamic banking system in developing countries such as Pakistan.

Originality/value

Under the pandemic situation, the present study highlights the internal and external determinants of Islamic banking customers’ satisfaction in Pakistan. The study provides a foundation for Islamic Banks to revise their policy frameworks and marketing strategies to attract customer interest and improve their satisfaction levels.

Details

Journal of Islamic Marketing, vol. 13 no. 11
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 6 January 2021

Ishfaq Ahmed, Ahmad Usman, Waqas Farooq and Muhammad Usman

With the advent of technology and internet banking, the role and value of bank’s websites have increased. Additionally, the Islamic banking boom has also increased the role of…

Abstract

Purpose

With the advent of technology and internet banking, the role and value of bank’s websites have increased. Additionally, the Islamic banking boom has also increased the role of Shariah-based banking in the market. But neither web-based information nor Shariah board members have been investigated for their possible effects on the branding of Islamic banks. Against this backdrop, this study aims to explore web-based information and Shariah board as a source of branding of Islamic financial institutions (IFIs).

Design/methodology/approach

An interpretivism-based thematic inquiry is carried out through semi-structured interviews of 22 customers of Islamic banks.

Findings

The findings of the study highlighted the fact that customers’ perceived web-based information is in line with the Shariah objectives but showed low level of trust on that information. They assumed that the practices are not consistent with this information. Moreover, the Shariah board members were considered as brand ambassadors, and customers valued board members more than the Shariah board and Islamic bank itself. Findings further highlight the more knowledge customers have about the Shariah board members (experience, qualification, achievements, etc.) the greater is the impact on the branding of the IFIs.

Originality/value

This study offers a novel perspective by considering the value of web-based information and Shariah board on branding of Islamic banks. As there is no such study available in literature, up to the best of researchers' knowledge, the qualitative inquiry may suffice the study objectives and research questions.

Article
Publication date: 23 December 2020

Rana Muhammad Ayyub, Saira Naeem, Shehzad Ahmed and Chanaka Jayawardhena

The main purpose of this paper is to study the changing consumer behavior toward broiler meat and apprise its consequences toward food insecurity.

Abstract

Purpose

The main purpose of this paper is to study the changing consumer behavior toward broiler meat and apprise its consequences toward food insecurity.

Design/methodology/approach

This is a sequential exploratory mixed-method study in which qualitative data were collected through semi-structured interviews (n = 38) by snowball sampling. The quantitative data were collected through a questionnaire survey (n = 975) by convenience sampling. The qualitative data were analyzed through NVivo 10 software by using thematic analysis, i.e. the qualitative content analysis (QCA). The theory of consumer alienation provides the theoretical underpinning for a quantitative study. The established scales were adopted and adapted. The quantitative data was analyzed through AMOS 24 software by using structural equation modeling (SEM).

Findings

It was found that people have many reservations regarding broiler meat. Thus, consumer alienation negatively (ß = −0.10) and the subjective norm positively (ß = 0.82) affects the intention to buy broiler meat.

Research limitations/implications

The ongoing consumer alienation toward broiler will force them to avoid using this cheapest protein and ultimately will lead to food insecurity in developing countries. It is recommended that people must be adequately educated about the real broiler business and its operations to counter their ongoing misperceptions.

Originality/value

It is the original empirical Research Work.

Details

British Food Journal, vol. 123 no. 5
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 16 December 2020

Shinaj Valangattil Shamsudheen, Ziyaad Mahomed and Shamsher Mohamad

This paper aims to investigate the differences in patronage factors influencing “retail customers” and “institutional clients” to bank Islamically and to identify the reasons…

Abstract

Purpose

This paper aims to investigate the differences in patronage factors influencing “retail customers” and “institutional clients” to bank Islamically and to identify the reasons bankers perceive that their customers’ bank with them in the United Arab Emirates (UAE).

Design/methodology/approach

A total of 237; 416; and 70 balanced responses were collected from Islamic bankers, retail customers and institutional clients of UAE, respectively. Weighted average scores were computed for ranking the selection criteria factors across the data set and paired comparison analysis was conducted to analyse the variation of selection criteria between the data sets.

Findings

Empirical results indicate that Islamic banking practitioners maintain an identical perception with retail customers in relation to the selection criteria of Islamic banking products and services, with the “Sharīʿah-compliance” factor dominating other factors under examination. With respect to the perception regarding institutional/corporate clients, Islamic bankers exhibited a divergent perception in connection with selection criteria of Islamic banking products and services and the factor “cost and affordability” and “rates and return” are prioritized above factor “Sharīʿah-compliance”.

Research limitations/implications

The scope of the study is limited to a single country. Hence, the finding of this study cannot be generalized to the other regions. Although the study covers a considerable sample from each segment, still there is an avenue for improvement by covering more respondents into the survey. Consequently, the results of this study should be read with these limitations. Further, analysis of the variation among intra divisions of each segment such as Muslim and non-Muslim with respect to retail customers; the different level of management at the banks and focusing the specific sector of the industry is beyond the scope of this study. These directions provide avenues for future research.

Practical implications

The study provides useful insights for bankers to revisit their marketing strategies to attract and retain more clients. Hence, the findings also suggest policy recommendations for nascent Islamic banking markets to move to the next stages of maturity. The findings of this study have implications for firms’ strategic directions and future investments of organizations, especially when the competition in the industry is intense. Future studies are recommended in other countries where the Islamic financial market share is significant.

Originality/value

While ample perception studies have carried out in the Islamic banking industry of the UAE, studies that focus on institutional clients, especially with reference to the factors that determine the selection criteria; studies examining banker’s perception towards Islamic banks and their clients (retail and institutional); studies that reconcile the perception of bankers and customers (retail and institutional) are all inadequately covered in existing literatures. This study attempts to fill some of these significant gaps.

Details

Journal of Islamic Accounting and Business Research, vol. 12 no. 1
Type: Research Article
ISSN: 1759-0817

Keywords

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