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Article
Publication date: 29 September 2021

Khadijah M. Sayuti and Hanudin Amin

Using the theory of planned behaviour (TPB) as an analytical framework, this paper aims to investigate the direct effects of attitude, subjective norm, perceived…

Abstract

Purpose

Using the theory of planned behaviour (TPB) as an analytical framework, this paper aims to investigate the direct effects of attitude, subjective norm, perceived behavioural control, price fairness and Islamic altruism. It also explores how these path linkages can be moderated by Islamic altruism.

Design/methodology/approach

Data are gathered via survey questionnaires on 287 Muslim bank customers in major cities of East Malaysia. The data are then tested using partial least squares.

Findings

The results show that attitude, subjective norm, perceived behavioural control, price fairness and Islamic altruism are significantly influenced by Muslim bank customers’ intention to choose Islamic home financing products. Islamic altruism is also found to significantly moderate the relationship between price fairness and behavioural intention.

Research limitations/implications

Three limitations are available for future research that include the geographical restriction, respondents’ selection and a limited number of battery items used.

Practical implications

Essentially, the results of this study serve as a guide for Islamic bank managers or mortgage providers to improve their pertinent marketing strategies, which are vital to enhancing the acceptance rate of Islamic mortgage.

Originality/value

This study extends the TPB model by incorporating price fairness and Islamic altruism into the Islamic home financing context.

Details

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

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Article
Publication date: 19 March 2020

Hanudin Amin

The purpose of this study is to examine the critical success factors (CSFs) for the receptiveness of Islamic home financing in Malaysia.

Abstract

Purpose

The purpose of this study is to examine the critical success factors (CSFs) for the receptiveness of Islamic home financing in Malaysia.

Design/methodology/approach

A framework of the CSFs for the receptiveness of Islamic home financing is developed. The framework evaluates the effects of product type, competitive value proposition, Islamic debt collection policy, Islamic bankers' knowledge and maqasid al-Shariah compliance on the receptiveness. Data from 744 usable questionnaires are analysed to confirm the applicability of the framework in Islamic home financing context.

Findings

The results suggest that product type, competitive value proposition, Islamic debt collection policy, Islamic bankers' knowledge and maqasid al-Shariah compliance are significantly related to the receptiveness of Islamic home financing.

Research limitations/implications

Two limitations are available for future studies. Firstly, the respondents of this study are limited to Malaysians, signifying further testing of the proposed model across different geographies is required to determine the generalisability of the model. Secondly, the contributions of the proposed framework are confined to a specific area of Islamic banking products. Thus, extending the framework to other banking products or conducting a comparative study between Islamic home financing and its conventional peer can improve its generalisability.

Practical implications

The results obtained offer a fresh direction on how to market Islamic home financing products successfully, where the new CSFs are brought into play.

Originality/value

This study examines the new proposed CSFs for the receptiveness of Islamic home financing in Malaysia.

Details

International Journal of Emerging Markets, vol. 15 no. 5
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 7 June 2011

Ayesha Hamid and Omar Masood

The aim of this research is to examine the selection criteria of customers for Islamic home financing in the context of Pakistan and to examine these factors with respect…

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Abstract

Purpose

The aim of this research is to examine the selection criteria of customers for Islamic home financing in the context of Pakistan and to examine these factors with respect to gender, age, income, and occupation.

Design/methodology/approach

This study uses a quantitative approach to investigate the choice criteria for Islamic home financing. All 18 independent variables are taken from previous research; for their analysis, descriptive statistics, independent sample t‐tests and ANOVA was used. Data were gathered from the customers of Islamic banking who use the services of Islamic home financing. The sample consists of 200 respondents. For the collection of data, a survey questionnaire with closed‐ended questions and a five‐point Likert scale was employed. The questionnaire was designed into two sections, one consisting of demographic information and the second relating to the selection criteria of Islamic home financing.

Findings

The results indicate that the shariah principle, fast and efficient services, price, bank reputation, and terms and conditions of product flexibility are the five most important factors considered by customers in choosing Islamic mortgages.

Research limitations/implications

The limitations relate to the sample area for the study, which is confined to Lahore, and due to the limited sample size, the findings cannot be generalized. Second, only four banks are considered.

Practical implications

This study is beneficial for practitioners in Pakistan by offering insight into choice criteria for Islamic home financing. The results should also be useful for Islamic bank managers who are also policy makers, as they can study and plan for attractive schemes and policies for customers through which they can fulfill their needs and expectations. For the researcher, this study will also add to the existing body of knowledge by providing novel evidence on the selection criteria used for Islamic home financing.

Originality/value

This topic has never been examined in the context of Pakistan, so this study initiates the choice criteria for Islamic home financing among Pakistani banks' customers. The paper provides potentially useful information for both customers (in selecting Islamic banks) and bank managers to identify the factors needed to attract customers.

Details

Qualitative Research in Financial Markets, vol. 3 no. 2
Type: Research Article
ISSN: 1755-4179

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Article
Publication date: 7 October 2019

Hanudin Amin

This study aims to examine the factors that determine consumer behaviour of ijarah home financing using the Islamic theory of consumer behaviour (ITCB). In particular, the…

Abstract

Purpose

This study aims to examine the factors that determine consumer behaviour of ijarah home financing using the Islamic theory of consumer behaviour (ITCB). In particular, the specific contract used is al-ijarah muntahia biltamleek. Subsequently, the term al-ijarah muntahia biltamleek home financing is used throughout the paper.

Design/methodology/approach

Drawing upon the ITCB, the present study examines patronage factors for al-ijarah muntahia biltamleek home financing. This study’s data were drawn from valid 409 usable questionnaires.

Findings

Partial least square results suggest that the role of iman, Islamic mortgage support and maqasid consumer index are significantly related to consumer behaviour. In turn, consumer behaviour is instrumental in determining religious satisfaction.

Research limitations/implications

Two limitations were observed that provide direction for future studies. Firstly, the current study is only tested in one particular Islamic home financing product that may explain why the generalisation is an issue. Secondly, the theory is still in its infancy stage, which, of course leads to some criticisms pertinent to its parsimony and applicability to other settings. Despite these limitations, however, this study aims to suggest a so-called Islamic model of factors that can explain consumer behaviour of a particular Islamic home financing product. In particular, scrutinising the product acceptance from the context of the ITCB can open a new debate in this area.

Practical implications

This study indeed reduces the theory–practice gap by suggesting new indicators that are workable to improve consumers’ positive perception of Islamic home financing. Given the results obtained, the ITCB provides a better prediction for consumer behaviour of al-ijarah muntahia biltamleek home financing.

Originality/value

This study expands the applicability of the ITCB to include al-ijarah muntahia biltamleek home financing.

Details

Journal of Asia Business Studies, vol. 13 no. 4
Type: Research Article
ISSN: 1558-7894

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Article
Publication date: 7 October 2013

Hanudin Amin, Abdul-Rahim Abdul-Rahman and Dzuljastri Abdul-Razak

The purpose of this paper is to investigate the effects of subjective norm, relative advantage, simplicity, compatibility and perceived behavioural control on the Islamic

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3656

Abstract

Purpose

The purpose of this paper is to investigate the effects of subjective norm, relative advantage, simplicity, compatibility and perceived behavioural control on the Islamic home financing adoption. It also examines the effects of subjective norm, relative advantage, simplicity and compatibility on attitude. Analyses of attitude as a mediating factor are also provided.

Design/methodology/approach

Survey data from 237 usable questionnaires are employed to test the hypothesized relationships. The proposed hypothesized relationships are examined using partial least squares (PLS). Similarly, PLS is also extended to analyse attitude as a potential mediator for the relationships between subjective norm, relative advantage, simplicity and compatibility with the Islamic home financing adoption. Baron and Kenny's (1986) procedure is used to evaluate the role of attitude as a potential mediating factor in the research's framework.

Findings

This study discovers an integrative approach that is valid in the case of Islamic home financing. The paper's results, however, have not supported the effect of compatibility on attitude towards Islamic home financing preference and it is also reported that attitude does not mediate for the relationship between compatibility and the Islamic home financing adoption.

Research limitations/implications

This study, however, suffers from three limitations which further stimulate new researches in this area. First, this research does not consider additional measures to capture Islamic home financing adoption. Second, this study discovers attitude does not mediate the relationship between compatibility and the Islamic home financing adoption. Third, there is a possibility that attitude also serves as a moderator, however, but it is presently unconsidered.

Practical implications

This study has several implications for Islamic banks to develop proper planning for Islamic home financing products. Those implications are provided.

Originality/value

This study is the first research in Islamic home financing's area to integrate two models namely the theory of planned behaviour (the TPB) and the innovation diffusion theory (the IDT) in a single research in order to expound Islamic home financing adoption. This study contributes to the literature by examining an integrative approach for understanding Islamic home financing adoption in Malaysia.

Details

International Journal of Bank Marketing, vol. 31 no. 7
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 2 January 2018

Rosylin Mohd Yusof, Farrell Hazsan Usman, Akhmad Affandi Mahfudz and Ahmad Suki Arif

This study aims to investigate the interactions among macroeconomic variable shocks, banking fragility and home financing provided by conventional and Islamic banks in…

Abstract

Purpose

This study aims to investigate the interactions among macroeconomic variable shocks, banking fragility and home financing provided by conventional and Islamic banks in Malaysia. Identifying the causes of financial instability and the effects of macroeconomic shocks can help to foil the onset of future financial turbulence.

Design/methodology/approach

The autoregressive distributed lag bound-testing cointegration approach, impulse response functions (IRFs) and forecast error variance decomposition are used in this study to unravel the long-run and short-run dynamics among the selected macroeconomic variables and amount of home financing offered by both conventional and Islamic banks. In addition, the study uses Granger causality tests to investigate the short-run causalities among the selected variables to further understand the impact of one macroeconomic shock to Islamic and conventional home financing.

Findings

This study provides evidence that macroeconomic shocks have different long-run and short-run effects on amount of home financing offered by conventional and Islamic banks. Both in the long run and short run, home financing provided by Islamic banks is more linked to real sector economy and thus is more stable as compared to home financing provided by conventional banks. The Granger causality test reveals that only gross domestic product (GDP), Kuala Lumpur Syariah Index (KLSI)/Kuala Lumpur Composite Index (KLCI) and house price index (HPI) are found to have a statistically significant causal relationship with home financing offered by both conventional and Islamic banks. Unlike the case of Islamic banks, conventional home financing is found to have a unidirectional causality with interest rates.

Research limitations/implications

This study has focused on analyzing the macroeconomic shocks on home financing. However, this study does not assess the impact of financial deregulation and enhanced information technology on amount of financing offered by both conventional and Islamic banks. In addition, it is not within the ambit of this present study to examine the effects of agency costs and information asymmetry.

Practical implications

The analysis of cointegration and IRFs exhibits that in the long run and short run, home financing provided by Islamic banks are more linked to real sector economy like GDP and House Prices (HPI) and therefore more resilient to economic vulnerabilities as compared to home financing provided by conventional banks. However, in the long run, both conventional and Islamic banks are more susceptible to fluctuations in interest rates. The results of the study suggest that monetary policy ramifications to improve banking fragility should focus on stabilizing interest rates or finding an alternative that is free from interest.

Social implications

Because interest plays a significant role in pricing of home loans, the potential of an alternative such as rental rate is therefore timely and worth the effort to investigate further. Therefore, Islamic banks can explore the possibility of pricing home financing based on rental rate as proposed in this study.

Originality/value

This paper examines the unresolved issues in Islamic home financing where Islamic banks still benchmark their products especially home financing, to interest rates in dual banking system such as in the case of Malaysia. To the best of the authors’ knowledge, studies conducted in this area are meager and therefore is imperative to be examined.

Details

Journal of Islamic Accounting and Business Research, vol. 9 no. 1
Type: Research Article
ISSN: 1759-0817

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Article
Publication date: 16 January 2017

Hanudin Amin, Abdul Rahim Abdul Rahman, Dzuljastri Abdul Razak and Hamid Rizal

The purpose of this study is to investigate the effects of service quality, product choice and Islamic debt policy on consumer attitude within the context of Islamic

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2405

Abstract

Purpose

The purpose of this study is to investigate the effects of service quality, product choice and Islamic debt policy on consumer attitude within the context of Islamic mortgage sector in Malaysia. The present study also examines the effect of attitudinal-behaviour on consumer preference towards preference of Islamic mortgage selection.

Design/methodology/approach

The study is based on questionnaire survey. Data are collected using sample from customers of Islamic banks in Malaysia. The study collects 351 respondents. Data are analysed using partial least squares (PLS).

Findings

The results indicate that service quality, product choice and Islamic debt policy significantly influence consumer attitude, in turn, affecting the Islamic home financing preference. Consumer attitude also mediates the effects of service quality, product choice and Islamic debt policy on the Islamic home financing preference.

Research limitations/implications

Several limitations warrant future research. First, this study considers only a specific user group in one public university. Second, this study does not consider attitude as a moderator. Third, this study suffers from the limited number of factors used. These limitations, however, provide directions for future research.

Practical implications

Our results will add value to the consumer preference topic for Islamic home financing literature. The present study provides bank managers with valuable insights into better planning of Islamic home financing services in Malaysia.

Originality/value

This study is a pioneering effort at exploring consumer attitude and preference from the context of Islamic mortgage sector in Malaysia. The use of PLS analysis provides another important contribution to the literature in this area.

Details

Management Research Review, vol. 40 no. 1
Type: Research Article
ISSN: 2040-8269

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Article
Publication date: 29 August 2008

Hanudin Amin

The purpose of this paper is to investigate the choice criteria for Islamic home financing in Malaysian Islamic banks. Most importantly, this study considers establishing…

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6008

Abstract

Purpose

The purpose of this paper is to investigate the choice criteria for Islamic home financing in Malaysian Islamic banks. Most importantly, this study considers establishing a specific rank of choice criteria for Islamic home financing. Moreover, these choice criteria will also be ranked according to the selected demographic elements such as gender, marital status and age range.

Design/methodology/approach

This study uses a quantitative study similar to what was employed by previous researchers. The study presents primary data collected by self‐administered questionnaires involving a sample of 150 Malaysian bank customers in Labuan, Malaysia. Of these, 141 questionnaires were returned with a response rate equivalent to 94 per cent. The Islamic home financing choice criteria as perceived by the Malaysian bank customers are analysed using frequencies, independent samples t‐test and ANOVA.

Findings

The results suggest that “Shariah principle”, “lower monthly payment”, “transparency practice”, “interest‐free practice” and “100 per cent financing” are the first five decision criteria considered as being very important. The least preferred criteria, among others, are “recommendation”, “longer financing period”, “product range” and “branch location”. Results also suggested that a small number of significant differences are apparent in the importance of choice criteria with respect to gender, marital status and age range.

Research limitations/implications

The study contains three limitations. The first limitation was based on the sample area for the study which is confined to Labuan, Malaysia. Second, this study restricted the use of factor analysis since the data did not allow for aggregation. Third, this study was also unable to perform ANOVA for religion differences as the sample consisted largely of Muslims.

Practical implications

The results are primarily beneficial to academics and practitioners in Malaysia by offering an insight into choice criteria for Islamic home financing. This study provides new results about different kinds of customer types and their preferences with regards to Islamic home financing selection. As such, Islamic bank managers can learn and plan to offer attractive schemes for the Islamic home financing market that meet Malaysian bank customers' needs. For the researcher, this study contributes to existing body of knowledge by providing an investigation of choice criteria in the Islamic home financing. Indeed, this study is considered an “eye‐opener” for Islamic home financing choice criteria which has limited previous studies. Originality/value –This study introduces the choice criteria for Islamic financing among Malaysian bank customers. The study offers an insight into Islamic home financing choice criteria in Malaysia which has limited previously been investigated.

Details

International Journal of Housing Markets and Analysis, vol. 1 no. 3
Type: Research Article
ISSN: 1753-8270

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Article
Publication date: 13 November 2017

Hanudin Amin

The purpose of this study is to examine the contributing factors that affect consumer behaviour of Islamic home financing in Malaysia. The effects of perceived religiosity…

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2407

Abstract

Purpose

The purpose of this study is to examine the contributing factors that affect consumer behaviour of Islamic home financing in Malaysia. The effects of perceived religiosity on property, perceived Islamic debt principle and perceived maqasid on homeownership on consumer behaviour are examined. Furthermore, the effects of perceived religiosity and consumer behaviour on religious satisfaction are also investigated.

Design/methodology/approach

Using the theory of Islamic consumer behaviour (TiCB) as a baseline theory identified from the literature, this study proposes a conceptual model of consumer behaviour of Islamic home financing in Malaysia. Data from the 205 usable questionnaires are analysed using partial least squares (PLS).

Findings

The PLS results suggest that perceived religiosity on property, perceived Islamic debt principle and perceived maqasid on homeownership are instrumental in determining consumer behaviour, thus revealing these factors as “Islamic factors” that represent the TiCB. Furthermore, the effect of consumer behaviour on religious satisfaction is also significant, implying that good behaviour makes people happier – seeking pleasure for doing well that is blessed and approved by Allah (S.W.T).

Research limitations/implications

Two limitations are available for future studies. First, this study included only Malaysians in East Malaysia, suggesting that further testing of the proposed model should be conducted across different geographies to determine the generalisability of this study’s findings. Second, this study’s contributions are narrowed down to the factors examined. These limitations, however, provide directions for further future research.

Practical implications

The results provide directions to bank managers to effectively manage Islamic home financing services for the benefit of their customers. Islamic home financing products tend to be used by consumers if the patronage factors investigated are considered more profoundly.

Originality/value

This study examines the behaviour of consumers of Islamic home financing using the proposed framework derived from TiCB.

Details

Humanomics, vol. 33 no. 4
Type: Research Article
ISSN: 0828-8666

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Article
Publication date: 28 January 2020

Hanudin Amin

This study aims to examine the impacts of Shariah-compliant products, value-added benefits, mortgage repayment policy and well-versed bankers on the consumer acceptance of…

Abstract

Purpose

This study aims to examine the impacts of Shariah-compliant products, value-added benefits, mortgage repayment policy and well-versed bankers on the consumer acceptance of Islamic home financing. These variables, thereafter, are called the “critical success factors” (the CSFs) for Islamic home financing.

Design/methodology/approach

Guided by the Islamic theory of consumer behaviour (ITCB), this study intends to propose the specific CSFs that ensure consumer acceptance of Islamic home financing a success. The term success refers to consumers’ willingness to take up the facility. A questionnaire survey was conducted to elicit responses pertinent to the level of agreement/disagreement of the CSFs. A total of 460 respondents usable responses were obtained and analysed accordingly.

Findings

The results obtained indicate that Shariah-compliant products, value-added benefits, mortgage repayment policy and well-versed bankers are instrumental to influence the consumer acceptance of Islamic home financing.

Research limitations/implications

Like other works, this study has confined its context to capture only a limited geographical area, and the study’s contributions are restrained to the variables analysed to a specific context of Islamic home financing in Malaysia.

Practical implications

The results obtained can become as a yardstick to measure the consumer acceptance of Islamic home financing.

Originality/value

New proposed CSFs can help to address the new demand of Islamic home financing accordingly, where a new area of improvement is brought into play. This study also extends the applicability of the ITCB to include Islamic home financing products.

Details

Journal of Islamic Accounting and Business Research, vol. 11 no. 7
Type: Research Article
ISSN: 1759-0817

Keywords

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