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

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...

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Main Authors: Mohd Thas Thaker, Hassanudin *, Chandra Sakaran, K., Nanairan, N. M., Mohd Thas Thaker, M. A., Hafezali, I. H.
Format: Article
Published: Emerald 2020
Subjects:
Online Access:http://eprints.sunway.edu.my/1417/
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author Mohd Thas Thaker, Hassanudin *
Chandra Sakaran, K.
Nanairan, N. M.
Mohd Thas Thaker, M. A.
Hafezali, I. H.
author_facet Mohd Thas Thaker, Hassanudin *
Chandra Sakaran, K.
Nanairan, N. M.
Mohd Thas Thaker, M. A.
Hafezali, I. H.
author_sort Mohd Thas Thaker, Hassanudin *
building SU Institutional 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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publishDate 2020
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spelling sunway-14172020-10-07T04:02:01Z http://eprints.sunway.edu.my/1417/ Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia Mohd Thas Thaker, Hassanudin * Chandra Sakaran, K. Nanairan, N. M. Mohd Thas Thaker, M. A. Hafezali, I. H. HF Commerce 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 2020-01-02 Article PeerReviewed Mohd Thas Thaker, Hassanudin * and Chandra Sakaran, K. and Nanairan, N. M. and Mohd Thas Thaker, M. A. and Hafezali, I. H. (2020) Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia. International Journal of Islamic and Middle Eastern Finance and Management, 13 (2). pp. 281-302. ISSN 1753-8394 http://doi.org/10.1108/IMEFM-07-2018-0211 doi:10.1108/IMEFM-07-2018-0211
spellingShingle HF Commerce
Mohd Thas Thaker, Hassanudin *
Chandra Sakaran, K.
Nanairan, N. M.
Mohd Thas Thaker, M. A.
Hafezali, I. H.
Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia
title Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia
title_full Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia
title_fullStr Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia
title_full_unstemmed Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia
title_short Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia
title_sort drivers of loyalty among non-muslims towards islamic banking in malaysia
topic HF Commerce
url http://eprints.sunway.edu.my/1417/
http://eprints.sunway.edu.my/1417/
http://eprints.sunway.edu.my/1417/