Service quality in Malaysian Islamic Banks: Empirical Study

Service quality is an important and effective tool for banks to achieve customer satisfaction and earn their loyalty, especially under intense competition. Indeed, there is a strong competition between Islamic banks in Malaysia whereby each practitioner is working hard to satisfy their customers’ ne...

Full description

Bibliographic Details
Main Authors: Abdul Razak, Dzuljastri, Fodol, Mohamed Zakaria, Jama, Ahmed Abdilahi, Burhan, Ali Ahmad
Format: Article
Language:English
Published: Research Centre for Islamic Economics (IKAM) 2020
Subjects:
Online Access:http://irep.iium.edu.my/79676/
http://irep.iium.edu.my/79676/7/79676_Service%20quality%20in%20Malaysian%20Islamic%20Banks.pdf
_version_ 1848788815929409536
author Abdul Razak, Dzuljastri
Fodol, Mohamed Zakaria
Jama, Ahmed Abdilahi
Burhan, Ali Ahmad
author_facet Abdul Razak, Dzuljastri
Fodol, Mohamed Zakaria
Jama, Ahmed Abdilahi
Burhan, Ali Ahmad
author_sort Abdul Razak, Dzuljastri
building IIUM Repository
collection Online Access
description Service quality is an important and effective tool for banks to achieve customer satisfaction and earn their loyalty, especially under intense competition. Indeed, there is a strong competition between Islamic banks in Malaysia whereby each practitioner is working hard to satisfy their customers’ needs for service excellence. There are few studies that have included Shariah compliance with five other variables namely tangibles, reliability, responsiveness, assurance and empathy known as CARTER model however, majority of these studies have not been conducted for Malaysia. The few studies that were conducted for Malaysia used only descriptive statistics and their sample sizes were small. Hence, this study addresses this gap by conducting the survey in Klang valley region which includes Kuala Lumpur, Gombak and Shah Alam. The method was carried out by conducting a survey of 300 respondents. Data is analyzed using factor analysis and multiple regressions to measure the relationship between the variables. The results indicated that compliance, reliability, and empathy have a positive relationship with customer satisfaction and are significant while assurance, tangibility, and responsiveness are insignificant. Hence, practitioners can emphasize on the three significant factors in improving their service quality. The academicians can benefit by conducting further research into this body of knowledge.
first_indexed 2025-11-14T17:46:50Z
format Article
id iium-79676
institution International Islamic University Malaysia
institution_category Local University
language English
last_indexed 2025-11-14T17:46:50Z
publishDate 2020
publisher Research Centre for Islamic Economics (IKAM)
recordtype eprints
repository_type Digital Repository
spelling iium-796762020-11-27T06:39:33Z http://irep.iium.edu.my/79676/ Service quality in Malaysian Islamic Banks: Empirical Study Abdul Razak, Dzuljastri Fodol, Mohamed Zakaria Jama, Ahmed Abdilahi Burhan, Ali Ahmad HG Finance HG3368 Islamic Banking and Finance Service quality is an important and effective tool for banks to achieve customer satisfaction and earn their loyalty, especially under intense competition. Indeed, there is a strong competition between Islamic banks in Malaysia whereby each practitioner is working hard to satisfy their customers’ needs for service excellence. There are few studies that have included Shariah compliance with five other variables namely tangibles, reliability, responsiveness, assurance and empathy known as CARTER model however, majority of these studies have not been conducted for Malaysia. The few studies that were conducted for Malaysia used only descriptive statistics and their sample sizes were small. Hence, this study addresses this gap by conducting the survey in Klang valley region which includes Kuala Lumpur, Gombak and Shah Alam. The method was carried out by conducting a survey of 300 respondents. Data is analyzed using factor analysis and multiple regressions to measure the relationship between the variables. The results indicated that compliance, reliability, and empathy have a positive relationship with customer satisfaction and are significant while assurance, tangibility, and responsiveness are insignificant. Hence, practitioners can emphasize on the three significant factors in improving their service quality. The academicians can benefit by conducting further research into this body of knowledge. Research Centre for Islamic Economics (IKAM) 2020-02 Article PeerReviewed application/pdf en http://irep.iium.edu.my/79676/7/79676_Service%20quality%20in%20Malaysian%20Islamic%20Banks.pdf Abdul Razak, Dzuljastri and Fodol, Mohamed Zakaria and Jama, Ahmed Abdilahi and Burhan, Ali Ahmad (2020) Service quality in Malaysian Islamic Banks: Empirical Study. Turkish Journal of Islamic Economics, 7 (1). pp. 13-42. ISSN 2147-9054 E-ISSN 2148-3809 https://www.tujise.org/content/7-issues/13-7-1/a068/tujise_7-1-19-48.pdf
spellingShingle HG Finance
HG3368 Islamic Banking and Finance
Abdul Razak, Dzuljastri
Fodol, Mohamed Zakaria
Jama, Ahmed Abdilahi
Burhan, Ali Ahmad
Service quality in Malaysian Islamic Banks: Empirical Study
title Service quality in Malaysian Islamic Banks: Empirical Study
title_full Service quality in Malaysian Islamic Banks: Empirical Study
title_fullStr Service quality in Malaysian Islamic Banks: Empirical Study
title_full_unstemmed Service quality in Malaysian Islamic Banks: Empirical Study
title_short Service quality in Malaysian Islamic Banks: Empirical Study
title_sort service quality in malaysian islamic banks: empirical study
topic HG Finance
HG3368 Islamic Banking and Finance
url http://irep.iium.edu.my/79676/
http://irep.iium.edu.my/79676/
http://irep.iium.edu.my/79676/7/79676_Service%20quality%20in%20Malaysian%20Islamic%20Banks.pdf