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Open Access
Article
Publication date: 12 April 2024

Huong Ha, Man Chung Wong and Hui Shan Loh

This study examines whether corporate social responsibility (CSR) initiatives positively impact customers’ selection of retail banks in Hong Kong (HK) and identifies which CSR…

Abstract

Purpose

This study examines whether corporate social responsibility (CSR) initiatives positively impact customers’ selection of retail banks in Hong Kong (HK) and identifies which CSR domains affect customers’ selection of banks.

Design/methodology/approach

This study adopted a quantitative approach. Primary data were collected from 416 customers of 22 retail banks in HK. The theoretical framework of this study was developed from a literature review, prior studies by Oberseder et al. (2013 and 2014), and CSR initiatives implemented by leading retail banks in HK. Descriptive statistics and statistical tests were used to analyze the data.

Findings

The study found that CSR initiatives positively affect customers’ bank selection. CSR initiatives related to the customer and environment domains are likely to have a greater impact on customers than those related to the society domain and are not likely to significantly impact customers’ bank selection.

Originality/value

This study contributes to the CSR literature by offering enhanced insight into the dynamics of CSR and its effects on customer bank selection. Furthermore, this study tests consumers’ perceptions of CSR initiatives in each CSR domain in the banking sector in Hong Kong – a novel approach that has not been previously explored in existing studies. These findings can help banks review the effectiveness of their CSR initiatives and make informed decisions on which initiatives should pursue improved CSR performance and efficient resource allocation.

Details

Journal of Asian Business and Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2515-964X

Keywords

Article
Publication date: 24 April 2023

Enyew Mulu Zelie

This study aimed to explore the importance of various factors considered in the bank selection decisions of micro- and small-sized enterprises (MSEs) in Ethiopia.

Abstract

Purpose

This study aimed to explore the importance of various factors considered in the bank selection decisions of micro- and small-sized enterprises (MSEs) in Ethiopia.

Design/methodology/approach

The study used a structured questionnaire to collect data from 300 MSEs selected through a convenience sampling technique. Descriptive statistics, exploratory factor analysis and linear regression analysis methods are used to identify the most important factors determining bank selection by MSEs.

Findings

The results of exploratory factor analysis revealed that the availability of credit at a reasonable interest rate, lower service charges and the availability of better automated teller machine (ATM) services are the priorities of MSEs in their bank selection decisions. In addition, the results of regression analysis indicated that price competitiveness is the most important factor determining bank selection decisions of MSEs.

Research limitations/implications

This study has two major limitations: first, due to resource constraints, the samples included in this study were taken only from the capital city of the country, Addis Ababa. As customer preferences are likely to vary from region to region, future studies could be carried out by including samples from other cities and rural areas of the country. Second, the study relied on a single data collection instrument. The use of additional data collection instruments, such as interviews and focus group discussions, could provide additional insights into the topic.

Practical implications

Commercial banks need to devise a flexible lending policy and set affordable interest rates and collateral requirements to meet the credit needs of MSEs. MSEs, on the other hand, need to improve their bankability by improving their operating and financial reporting practices. Further research can be conducted by covering other cities and the rural parts of the country.

Originality/value

The topic of bank selection has not been explored with a specific reference to MSEs in Ethiopia. The present study addressed this gap by investigating the factors influencing bank selection decisions of MSEs.

Details

International Journal of Bank Marketing, vol. 41 no. 6
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 31 May 2022

Mohammed Ali Al-Awlaqi and Ammar Mohamed Aamer

Although Islamic banks offer superior financial services than other interest-based conventional banks, they could not expand their share and dominate the markets in several…

Abstract

Purpose

Although Islamic banks offer superior financial services than other interest-based conventional banks, they could not expand their share and dominate the markets in several Islamic countries. This problem could be attributed to some causes not addressed. The current study proposes Islamic financial literacy as an important factor that could help aggress this problem. Due to a wide variety of Islamic financial services and the lack of understanding of these services, the banks' small business customers are indifferent between Islamic and interested-based conventional services to finance their business.

Design/methodology/approach

This study uses the exploratory technique of multiple correspondence analysis to detect any potential role of Islamic financial literacy in customers' preference for Islamic banks over conventional ones. The potential effect was tested with other essential factors, such as the customers' age, gender, and educational level. This analysis was conducted on a data set from 2061 banks' small businesses customers using the mall-intercept survey method.

Findings

The study shows a low level of Islamic financial literacy among Yemeni banks' small business owners' customers. Furthermore, despite integrating some critical factors that could influence the actual bank selection process among Yemini banks' customers, the authors found a decisive potential role of Islamic financial literacy as one of the key determinants of bank selection preferences.

Originality/value

This is the first paper to explore the potential role of Islamic financial literacy on the actual selection between Islamic Banks and their counterparts: the conventional banks in Yemen. The research results could build a more comprehensive theoretical model on Islamic banks' customer behavior.

Details

International Journal of Emerging Markets, vol. 18 no. 12
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 8 February 2024

Muneer Ahmad, Muhammad Bilal Zafar and Abida Perveen

This study aims to investigate the comparative importance of factors influencing the customer shift behavior from conventional to Islamic banking for consumer finance in Pakistan.

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Abstract

Purpose

This study aims to investigate the comparative importance of factors influencing the customer shift behavior from conventional to Islamic banking for consumer finance in Pakistan.

Design/methodology/approach

First, a comprehensive analysis of the existing literature was conducted to identify a broad range of factors related to customer shift behavior. Through an expert sampling, 14 essential factors were chosen for further investigation. Second, a questionnaire was developed using the analytical hierarchy process (AHP). This questionnaire was then distributed among customers who had previously been using conventional banking services but had made a shift toward Islamic banking. The purpose of this questionnaire was to gather data and insights regarding their motivations and decision-making process behind the shift, and a sample 215 customers are taken in the study.

Findings

The results of AHP depicts that the religiosity is a most important factor influencing customers to shift from conventional to Islamic banking, and the second most important factor is pricing. The other subsequent important factors are reputation of the bank, marketing and promotion, service quality, behavior of banks staff, Shariah compliance, management, convenience, fastness and charges/fees. Whereas documentation, ambiance and recommendation are found least important factors to patronize Islamic banking.

Practical implications

The study recommends Islamic banks to create awareness, concentrating on religious factor to have a greater impact on growth of Islamic banking and shrinking of conventional banking. Further, it suggests Islamic banks to apply Shariah-recommended approach of doing business, to help community in best possible way and to launch differentiated marketing techniques to attract customers. It also proposes regulatory authorities to provide facilitation to Islamic banking business by providing level playing field similar to conventional banking, tax equality and conversion of public financing from conventional banking to Islamic banking.

Originality/value

The originality of this study lies in its comprehensive analysis of factors influencing consumer shift behavior from conventional to Islamic banking in the context of consumer finance in Pakistan. By using the AHP, the study provides a structured approach to understanding the relative importance of these factors. This is the uniqueness of the paper that it applies the AHP for the analysis. Furthermore, the study offers practical implications for Islamic banks and regulatory authorities to effectively address and capitalize on this consumer shift trend.

Details

Journal of Islamic Marketing, vol. 15 no. 5
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 3 April 2024

Muhammad Nazir and Shahab E. Saqib

Considering the speedy growth of Islamic finance and limited research work on Muslim behavior regarding Islamic Banking, this study aims to investigate to comprehend the stimulus…

Abstract

Purpose

Considering the speedy growth of Islamic finance and limited research work on Muslim behavior regarding Islamic Banking, this study aims to investigate to comprehend the stimulus of religiosity on customer’s behavior.

Design/methodology/approach

A conceptual model is developed on existing literature. The key dimensions of religiosity in the model include practice, knowledge, experience and consequences to capture the whole religiosity of customers. Model of the study investigates the impact of customer’s religiosity on their behavior in decision-making about selection of Islamic bank. Analysis of the study is based on the sample of 370 customers of Islamic banks from District Nowshera Khyber Pakhtunkhwa, Pakistan. The data for the study collected through random sampling by a comprehensive survey questionnaire. Binary logistic model is used to test the data for statistical analysis.

Findings

The key findings of the study suggest that religiosity influence customer behavior positively in decision-making regarding Islamic finance. Service standards of Islamic banking has also significant impact on customer perception, while the financial education of the customers has insignificant impact on customer behavior.

Research limitations/implications

This study mainly focused on the curiosity of the customer religious commitment, so religiosity is a vast phenomenon; there are deep sections in each dimension of religiosity, so further study is suggested for the comprehensive capture of each dimension of religiosity.

Practical implications

The results of the study have a great importance for the managers of Islamic finance industry to identify and detect the potential customers and divide the target market of banking industry on the base of religiosity. Furthermore, the study may bring significant managerial suggestions for marketing planners and can help them in market segmentation strategies.

Originality/value

The study examined the association between Muslim religiosity and Islamic banking customer’s selection behavior. This study spread the understanding of religiosity and its impact on Islamic banking customer’s behavior. Furthermore, the study is valuable to discover the level to which religiosity determines the inclinations of customers. This study helps marketing practitioners and researchers to grow their knowledge about customer’s motives in terms of religious commitment.

Details

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

Keywords

Article
Publication date: 4 September 2023

Abid Mahmood Muhammad, Mohamed Bilal Basha and Gail AlHafidh

This paper aims to investigate customer attitude towards the use of emerging social media platforms (SMPs) for promotional activities by United Arab Emirates (UAE)-based Islamic…

Abstract

Purpose

This paper aims to investigate customer attitude towards the use of emerging social media platforms (SMPs) for promotional activities by United Arab Emirates (UAE)-based Islamic banks, particularly, in the post-COVID-19 era. The key drivers of this research include analysing, anticipating and providing recommendations to reinvigorate the marketing and promotional strategies of the UAE Islamic banks to spark renewed customer interest.

Design/methodology/approach

This study is anticipatory and descriptive in nature. Primary data is used to understand customer perception towards the use of emerging social media marketing tools by the UAE-based Islamic banks. Reliability, factor analysis and multiple regression analysis are applied to understand customer attitude. While focusing on the current COVID-19 scenario, the need for innovative structure is envisaged to meet the post-COVID-19 needs.

Findings

The findings of this research highlight the significance of emerging SMPs such as WhatsApp, TikTok, Pinterest, Viber, Snapchat and their application as promotional tools to inspire the purchase intention of customers in this virtual age. The results of the study reveal these emerging SMPs are predicted to be used as the preferred promotional tools for Islamic banks.

Research limitations/implications

This paper is limited to the UAE Islamic banks and to a specified set of SMPs as promotional tools. Nevertheless, its findings have important implications that can be extended and validated through studying the post-COVID-19 customer attitude towards other innovative promotional tools used by commercial banks in general and Islamic banks in particular, in the GCC and Middle East and North Africa (MENA) regions.

Originality/value

There is currently limited available research on the innovative social media marketing techniques and promotional strategies. This study is a novel attempt to examine the adoption of the emerging SMPs as promotional tools by the UAE Islamic banks. This paper extends value to the existing studies on the impact of the pandemic on the promotional activities of the UAE Islamic banking industry. Nonetheless, while regionally specific, it is valuable in its potential application to the Islamic banking sector in the entire GCC and MENA region in the post-COVID-19 era.

Details

Journal of Islamic Marketing, vol. 15 no. 2
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 19 December 2023

Roni Andespa, Yulia Hendri Yeni, Yudi Fernando and Dessy Kurnia Sari

This study aims to investigate what past scholars have learned about Muslim consumer compliance behaviour in Islamic banks and identify what future research is needed. In…

Abstract

Purpose

This study aims to investigate what past scholars have learned about Muslim consumer compliance behaviour in Islamic banks and identify what future research is needed. In addition, it also explores the relationship model between the previously studied determining factors and the customer’s Sharia compliance behaviour.

Design/methodology/approach

This study used a bibliometric–systematic literature review analysis using the Preferred Reporting Items for Systematic reviews and Meta-Analyses (PRISMA) technique by reviewing the articles published from 2013 to 2023. The PRISMA procedures involved several stages, including identification, screening, eligibility, analysis and conclusion based on the findings.

Findings

The results found that customer Sharia compliance behaviour determinants in Islamic banks are attitude, subjective norms, perceived behavioural control, Islamic financial literacy, religiosity, consumer conformity, Islamic branding and behavioural intention. Interestingly, the results indicated that such factors as consumer conformity, Islamic branding and sustainable intentions are less discussed.

Practical implications

Decision-makers in Islamic banks must use digital technology to offer better service and make operations more reachable for customers to access information, complete transactions and manage their accounts by Sharia principles. Therefore, the bank needs to continually produce innovative products and services so that customers have a greater variety of options to suit their Sharia-compliant financial needs. Theoretically, this study has contributed by finding the main critical domains influencing customers’ Sharia compliance behaviour, such as attitudes, subjective norms, perceptions of behavioural control, knowledge of Islamic finance, religiosity, consumer conformity, Islamic branding and behavioural intentions. Then, it makes a theoretical contribution by establishing a model that explains how customers make decisions based on Sharia-related factors in the context of their purchases.

Originality/value

Past studies focused on the Sharia compliance behaviour in paying Zakat for takaful customers. Therefore, this study provides critical factors of Sharia compliance behaviour on conformity, Islamic branding and sustainable intention regarding unexplored consensus on the determinants and outcomes of customer Sharia compliance behaviour of Islamic banking.

Details

Journal of Islamic Marketing, vol. 15 no. 4
Type: Research Article
ISSN: 1759-0833

Keywords

Book part
Publication date: 14 December 2023

Ahsan Riaz, Nimra Riaz, Hamad Raza and Farhan Mirza

This chapter review studies on green banking practices and identifies information gaps to justify future research approaches.

Abstract

Purpose

This chapter review studies on green banking practices and identifies information gaps to justify future research approaches.

Design methodology/approach

A systematic literature review has been conducted by analyzing 44 Scopus-indexed articles on adopting green banking practices through the PRISMA flowchart and analyzed through Vosviewer software.

Findings

The findings indicate that survey studies comprised 82% of the selected papers. The Journal of Cleaner Production was the most-cited publication, with 471 citations. France was most frequently involved in collaborative research, with connections to six other countries. Notably, two-thirds of the listed countries had collaborated internationally in publications, but with less than 10 countries involved, based on the 44 studies included in the analysis.

Originality

According to the authors' best knowledge, no systematic literature review on green banking practices from the Scopus database utilizing the PRISMA approach has been published in academic literature.

Research implication

The pitfalls observed in previous research, such as the paucity of an empirical and conceptual methodology and a systematic investigation of theory development, give numerous opportunities for future research. Following this, many new trends in green banking are outlined to assist researchers in identifying gaps in the literature and future study directions.

Practical Implication

The study aids researchers, professionals, and managers in understanding green banking adoption's significance. Banks can increase their economic scenarios by using this concept in new markets with excessive potential for employment and business avenues. In addition, the study highlights the value of sustainable practices, environmental concerns, and the importance of green banking.

Details

Entrepreneurship and Green Finance Practices
Type: Book
ISBN: 978-1-80455-679-5

Keywords

Article
Publication date: 6 June 2023

Fahrettin Pala, Aylin Erdoğdu, Muhammad Ali, Faisal Alnori and Abdulkadir Barut

The purpose of this study is twofold. First, this research explores the level of Islamic financial literacy of customers in the context of Islamic banking. Second, this study…

Abstract

Purpose

The purpose of this study is twofold. First, this research explores the level of Islamic financial literacy of customers in the context of Islamic banking. Second, this study examines the determinants of customer adoption of Islamic banking in Turkey.

Design/methodology/approach

This study gathered sample data from 409 participants determined using the purposive sampling method. In the study, first, the reflective measurement model is used to examine the reliability, validity and multicollinearity problems of the variables. Then, AMOS structural equation model (SEM) is used to reveal the relationship between Islamic financial literacy and Islamic banking services. Additionally, this study performed both descriptive and inferential analysis to understand customer literacy about Islamic banking and their adoption behavior of Islamic banking.

Findings

The results obtained from descriptive assessment indicate that Turkish customers of Islamic banking possess sufficient literacy about Islamic banking. Moreover, the results from SEM indicate that the adoption of Islamic banking by customers is significantly predicted by the role of Sharia Board management, Islamic banking and purpose of financial institution, religious factor and legitimacy of Islamic financial system.

Research limitations/implications

This study focuses only on the level of knowledge and perceptions of customers who have accounts in Islamic banks or financial institutions in Turkey. It does not focus on the level of knowledge and perception of Muslims who do not have accounts in Islamic banks and financial institutions.

Originality/value

Previous studies on Islamic banking are mostly studies that investigate customers’ perceptions of the Islamic banking system and why individuals prefer Islamic banks. In particular, studies examining the relationship between individuals’ Islamic financial literacy level and Islamic banking preferences are limited. This study is considered to be an original study as it investigates the relationship between the Islamic financial literacy level of individuals and their adoption of Islamic banking services in Turkey.

Details

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

Keywords

Article
Publication date: 22 February 2024

ShabbirHusain R.V., Balamurugan Annamalai and Shabana Chandrasekaran

This study aims to conduct a systematic literature review on consumer behavior (CB) in Islamic banking (IB), encompassing an overview of researched contexts and topics…

Abstract

Purpose

This study aims to conduct a systematic literature review on consumer behavior (CB) in Islamic banking (IB), encompassing an overview of researched contexts and topics, identifying literature gaps and proposing a comprehensive future research agenda.

Design/methodology/approach

By using bibliometric citation and content analysis, this study investigates 135 documents sourced from Scopus indexed publications.

Findings

This study delves into the growing field of CB in IB, offering a comprehensive understanding that encompasses influential journals, theories, research context, characteristics and methods used in IB research.

Originality/value

To the best of the authors’ knowledge, this study is the first to provide a comprehensive review of CB studies in the IB domain detailing research topics, prevailing theories, research settings, important variables and research methods.

Details

Journal of Islamic Marketing, vol. 15 no. 5
Type: Research Article
ISSN: 1759-0833

Keywords

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