Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia evidence from SmartPLS

Purpose – The growth of Islamic banking seems to be tremendous and significant in the context of Malaysia. Moreover, together with Muslim loyalty towards Islamic banking, non-Muslims are also showing positive acceptance towards Islamic banking in Malaysia. Thus, this paper aims to examine the driv...

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Main Authors: Mohd Thas Thaker, Hassanudin, Sakaran, K Chandra, Nanairan, N. Madhavan, Mohd Thas Thaker, Mohamed Asmy, Iqbal Hussain, Hafezali
Format: Article
Language:English
English
Published: Emerald Publishing Limited 2020
Subjects:
Online Access:http://irep.iium.edu.my/80520/
http://irep.iium.edu.my/80520/7/80520%20Drivers%20of%20loyalty%20among%20non-Muslims.pdf
http://irep.iium.edu.my/80520/8/80520%20Drivers%20of%20loyalty%20among%20non-Muslims%20SCOPUS.pdf
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author Mohd Thas Thaker, Hassanudin
Sakaran, K Chandra
Nanairan, N. Madhavan
Mohd Thas Thaker, Mohamed Asmy
Iqbal Hussain, Hafezali
author_facet Mohd Thas Thaker, Hassanudin
Sakaran, K Chandra
Nanairan, N. Madhavan
Mohd Thas Thaker, Mohamed Asmy
Iqbal Hussain, Hafezali
author_sort Mohd Thas Thaker, Hassanudin
building IIUM Repository
collection Online Access
description Purpose – The growth of Islamic banking seems to be tremendous and significant in the context of Malaysia. Moreover, together with Muslim loyalty towards Islamic banking, non-Muslims are also showing positive acceptance towards Islamic banking in Malaysia. Thus, this paper aims to examine the drivers of loyalty among non-Muslim in their adoption of Islamic banking products in Malaysia. Design/methodology/approach – The primary data are collected from the survey administered to non-Muslim clients in Kuala Lumpur and Selangor. The total number of respondents involved are n = 300. The analysis of data is conducted by using a partial least square analysis. Findings – This study documented that loyalty among non-Muslim Islamic banking customers in Malaysia was mainly driven by convenience, product pricing, reliability and responsiveness, operational risk and security and value added services. Only one variable was found to be insignificant, which was accessibility. Practical implications – The results from this research is expected to provide important inputs on the critical factors for consideration by Islamic banks in maintaining further loyalty among their non-Muslim customers, thus enhancing the development of Islamic banking in Malaysia. Originality/value – This paper provides further literature evidence on the factors contributes to loyalty by considering non-Muslims patronization of Islamic banking in Malaysia.
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institution International Islamic University Malaysia
institution_category Local University
language English
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publishDate 2020
publisher Emerald Publishing Limited
recordtype eprints
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spelling iium-805202021-03-01T07:44:53Z http://irep.iium.edu.my/80520/ Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia evidence from SmartPLS Mohd Thas Thaker, Hassanudin Sakaran, K Chandra Nanairan, N. Madhavan Mohd Thas Thaker, Mohamed Asmy Iqbal Hussain, Hafezali H Social Sciences (General) Purpose – The growth of Islamic banking seems to be tremendous and significant in the context of Malaysia. Moreover, together with Muslim loyalty towards Islamic banking, non-Muslims are also showing positive acceptance towards Islamic banking in Malaysia. Thus, this paper aims to examine the drivers of loyalty among non-Muslim in their adoption of Islamic banking products in Malaysia. Design/methodology/approach – The primary data are collected from the survey administered to non-Muslim clients in Kuala Lumpur and Selangor. The total number of respondents involved are n = 300. The analysis of data is conducted by using a partial least square analysis. Findings – This study documented that loyalty among non-Muslim Islamic banking customers in Malaysia was mainly driven by convenience, product pricing, reliability and responsiveness, operational risk and security and value added services. Only one variable was found to be insignificant, which was accessibility. Practical implications – The results from this research is expected to provide important inputs on the critical factors for consideration by Islamic banks in maintaining further loyalty among their non-Muslim customers, thus enhancing the development of Islamic banking in Malaysia. Originality/value – This paper provides further literature evidence on the factors contributes to loyalty by considering non-Muslims patronization of Islamic banking in Malaysia. Emerald Publishing Limited 2020 Article PeerReviewed application/pdf en http://irep.iium.edu.my/80520/7/80520%20Drivers%20of%20loyalty%20among%20non-Muslims.pdf application/pdf en http://irep.iium.edu.my/80520/8/80520%20Drivers%20of%20loyalty%20among%20non-Muslims%20SCOPUS.pdf Mohd Thas Thaker, Hassanudin and Sakaran, K Chandra and Nanairan, N. Madhavan and Mohd Thas Thaker, Mohamed Asmy and Iqbal Hussain, Hafezali (2020) Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia evidence from SmartPLS. International Journal of Islamic and Middle Eastern Finance and Management, 13 (2). pp. 281-302. ISSN 1753-8394 E-ISSN 1753-8408 https://www.emerald.com/insight/content/doi/10.1108/IMEFM-07-2018-0211/full/html
spellingShingle H Social Sciences (General)
Mohd Thas Thaker, Hassanudin
Sakaran, K Chandra
Nanairan, N. Madhavan
Mohd Thas Thaker, Mohamed Asmy
Iqbal Hussain, Hafezali
Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia evidence from SmartPLS
title Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia evidence from SmartPLS
title_full Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia evidence from SmartPLS
title_fullStr Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia evidence from SmartPLS
title_full_unstemmed Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia evidence from SmartPLS
title_short Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia evidence from SmartPLS
title_sort drivers of loyalty among non-muslims towards islamic banking in malaysia evidence from smartpls
topic H Social Sciences (General)
url http://irep.iium.edu.my/80520/
http://irep.iium.edu.my/80520/
http://irep.iium.edu.my/80520/7/80520%20Drivers%20of%20loyalty%20among%20non-Muslims.pdf
http://irep.iium.edu.my/80520/8/80520%20Drivers%20of%20loyalty%20among%20non-Muslims%20SCOPUS.pdf