Abstract
As an alternative banking system, Islamic banking provides a variety of services throughout the world. These services are utilised by many types of bank customers, including technopreneurs, in their regular financial and banking transactions. Nevertheless, the knowledge and adoption rate of these services in Malaysia appears to be below expectations. This is due to issues such as confusion of information and ignorance about the Islamic bank’s marketing of banking products. In addition, most individuals will select the bank they perceive to be the most profitable and easy to use. Thus, this study was conducted to identify the knowledge of technopreneurs in Kelantan regarding Islamic banking products, to analyse the factors that influence technopreneurs in Kelantan to adopt Islamic banking products, and to assess the level of usage of technopreneurs towards Islamic banking products. Several interviewees were selected to participate in this study, where a qualitative approach and an interview method were employed. Furthermore, ATLAS.ti analysis software and thematic analysis method were used in this study. The results indicated that technopreneurs in Kelantan have just a moderate awareness of Islamic banking products. Furthermore, it has been emphasized that the adherence to Sharia principles, recognition of the benefits of utilizing Islamic banking, improved awareness, and educational initiatives are key factors that impact the decision of technopreneurs in Kelantan to utilize Islamic banking products. The utilisation rate of Islamic banking products among technopreneurs is high; yet, some of them do not comprehend the concept of Islamic banking in its entirety. In general, the surrounding population plays a crucial role in promoting awareness of Islamic banking products.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Ahmad, N., Harun, S.: Perceptions of Malaysian corporate customers towards Islamic banking products and services. International Journal of Islamic Financial Services, 3(4), 13–29 (2002).
Amin, H., Ramayah, T., Suhartanto, D., Ali, M., Abdul Razak, D., Muhammad, M.Z.: Investing in Islamic fixed deposit accounts: a technology acceptance model perspective. International Journal of Business and Society, 23(2), 786–801 (2022).
Asad, M., Ahmad, I., Haider, S.H., Salman, R.: A critical review of Islamic and conventional banking in digital era: a case of Pakistan. International Journal of Engineering & Technology, 7(4), 57–59 (2018).
Bananuka, J., Kaawaase, T.K., Kasera, M., Nalukenge, I.: Determinants of the intention to adopt Islamic banking in a non-Islamic develo** country: the case of Uganda. ISRA International Journal of Islamic Finance, 11(2), 166–186 (2019).
Butt, I., Ahmad, N., Naveed, A., Ahmed, Z.: Determinants of low adoption of Islamic banking in Pakistan. Journal of Islamic Marketing, 9(3), 655–672 (2018).
Burhanudin, B.: The effect of Muslims’ tendency to regret being customers of conventional banks on their intention to save money in Islamic banks. Journal of Islamic Marketing, 13(5), 1050–1068 (2022).
Fathonih, A., Anggadwita, G., Ibraimi, S.: Sharia venture capital as financing alternative of Muslim entrepreneurs: opportunities, challenges and future research directions. Journal of Enterprising Communities: People and Places in the Global Economy, 13(3), 333–352 (2019).
Ibrahim, M.H.: Islamic banking and bank performance in Malaysia: an empirical analysis. Journal of Islamic Monetary Economics and Finance, 6(3), 487–502 (2020).
Islam, J., Rahman, Z.: Awareness and willingness towards Islamic banking among Muslims: an Indian perspective. International Journal of Islamic and Middle Eastern Finance and Management, 10(1), 92–101 (2017).
Jamshidi, D., Hussin, N., Lai Wan, H.: Islamic banking services adoption as a new banking restructure: examining its adoption from the perspective of DOI theory and trust in Malaysia. Humanomics, 31(2), 214–223 (2015).
Johan, Z. J., Hussain, M.Z., Mohd, R., Kamaruddin, B.H.: Muslims and non-Muslims intention to hold Shariah-compliant credit cards: a SmartPLS approach. Journal of Islamic Marketing, 12(9), 1751–1785 (2020).
Junaidi, J., Wicaksono, R., Hamka, H.: The consumers’ commitment and materialism on Islamic banking: the role of religiosity. Journal of Islamic Marketing, 13(8), 1786–1806 (2022).
Keong, L.L., Khor, M.L., Low, S.P., Wong, Z.H.: Awareness of Islamic banking products and services among non-Muslims in Malaysia. (Unpublished doctoral dissertation). Universiti Tunku Abdul Rahman, Perak, Malaysia (2012).
Khattak, N.A.: Customer satisfaction and awareness of Islamic banking system in Pakistan. African Journal of Business Management, 4(5), 662 (2010).
Kuyateh, M.A.: Shariah compliance prohibitions in Islamic banking and finance: the case of riba, gharar and maysir. Journal of Islamic Banking & Finance, 39(1), 29–36 (2022).
Mahdzan, N.S., Zainudin, R., Au, S.: The adoption of Islamic banking services in Malaysia. Journal of Islamic Marketing, 8(3), 496–512 (2017).
Mariadas, P.A., Murthy, U.: Factors influencing the adoption of Islamic banking in Malaysia. International Journal of Business and Management, 12(11), 187–193 (2017).
Mohd Thas Thaker, H., Mohd Thas Thaker, M.A., Khaliq, A., Allah Pitchay, A., Iqbal Hussain, H.: Behavioural intention and adoption of internet banking among clients’ of Islamic banks in Malaysia: an analysis using UTAUT2. Journal of Islamic Marketing, 13(5), 1171–1197 (2020a).
Mohd Thas Thaker, H., Sakaran, K.C., Nanairan, N.M., Thaker, M.A.M.T., Hussain, H.I.: 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), 281–302 (2020b).
Muhammad, A.M., Basha, M.B., Al-Hafidh, G.: UAE Islamic banking promotional strategies: an empirical review. Journal of Islamic Marketing, 11, 2, 405–422 (2019).
Muhammad, M.Z., Amboala, T. Mohd Din, N., Ghazali, M.F., Redzuan, R.H.: A model development of Shariah principle in e-payment: the case of Malaysia. Lecture Notes in Networks and Systems 194, 1758–1771 (2021a).
Muhammad, M.Z., Muhamad, F.H., Muhamad, M., Ibrahim, W.M.Y.W., Kesuma, T.M.: Why Kelantan entrepreneurs prefer takaful over conventional insurance? Lecture Notes in Networks and Systems, 194, 1146–1152 (2021b).
Muhammad, M.Z., Muhamad, F.H., Doktoralina, C.M., Mukhtar, D., Ghazali, M.F., Rahman, M.K., Mohd Din, N.: Online banking of Islamic banks: the customer’s perceptions in Kelantan. Lecture Notes in Networks and Systems, 487, 859–873 (2023a).
Muhammad, M.Z., Mat Yunoh, M.N., Muhamad, F.H., Zainol, N.R., Mohd Din, N. Yasoa’, M.R., Abdullah, A.R., Abd Hamid, N.F.: The assumption of unlimited human wants (AUHW) in Islamic economics: a tasawur perspective. Lecture Notes in Networks and Systems, 487, 907–924 (2023b).
Naim, A.M., Hamid, M.L.A., Wahab, M.Z.H.: The roles of lifestyle, future need and customer preferences in customer’s satisfaction on Islamic banks products and services. The Journal of Muamalat and Islamic Finance Research, 60–76 (2019).
Pandey, P., Pandey, M.M.: Research methodology tools and techniques. Romania: Bridge Center (2021).
Rahmi, M., Azma, N., Obad, F.M., Zaim, M., Rahman, M.: Perceptions of Islamic banking products: evidence from Malaysia. Asian Journal of Business Environment, 10(3), 35–42 (2020).
Salman, A., Nawaz, H.: Islamic financial system and conventional banking: a comparison. Arab Economic and Business Journal, 13(2), 155–167 (2018).
Shaikh, A.A., Karjaluoto, H.: Mobile banking adoption: A literature review. Telematics and Informatics, 32(1), 129–142 (2015).
Tara, N., Irshad, M., Khan, M.R., Yamin, M., Rizwan, M.: Factors influencing adoption of Islamic banking: A study from Pakistan. Journal of Public Administration and Governance, 4(3), 352–367 (2014).
Thambiah, S., Eze, U.C., Tan, K.S., Nathan, R.J., Lai, K.P.: Conceptual framework for the adoption of Islamic retail banking services in Malaysia. Journal of Electronic Banking Systems, 1, 1–10 (2010).
Thambiah, S., Ramanathan, S., Mazumder, M.N.H.: The determinants of Islamic retail banking adoption in Malaysia. International Business & Economics Research Journal (IBER), 11(4), 437–442 (2012).
Acknowledgements
The authors would like to thank the students, namely, Nur Hafizah Mohamad Redzuan, Nur Ismaniza Misman, Nur Najihah Ismail Nur, and Najihah Kamaruddin for their assistance in completing this research.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2023 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this paper
Cite this paper
Muhammad, M.Z. et al. (2023). Factors Influencing Technopreneurs’ Adoption of Islamic Banking Products. In: Yusoff, M.N.H. (eds) Industry Forward and Technology Transformation in Business and Entrepreneurship. InCEBT 2022. Springer, Singapore. https://doi.org/10.1007/978-981-99-2337-3_3
Download citation
DOI: https://doi.org/10.1007/978-981-99-2337-3_3
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-99-2336-6
Online ISBN: 978-981-99-2337-3
eBook Packages: Business and ManagementBusiness and Management (R0)