An aspirational hope of a Sharīʿah-based microfinance model to alleviate extreme poverty

Purpose - This study aims to propose a Sharīʿah-based and information and communication technology-driven microfinance model (SIMM) to reduce extreme poverty in rural areas. Existing microfinance models run by microfinance institutions exclude severely poor individuals from their activities. Design/methodology/approach - This study uses an exploratory sequential mixed-method design structured as Studies 1 and 2. Study 1 uses the grounded theory methodology to develop the emergent SIMM through interviews and focus group discussions with the participants (12 rich, 6 rural elites and 18 poor) of the target village. Study 2 uses a survey of 421 household members in the target village to evaluate their attitudes (ATT), subjective norms (SN) and perceived behavioural control (PBC) related to SIMM. Partial least squares-based structural equation modelling is used to evaluate relationships between constructs. Findings - Study 1 identifies seven themes, in which aspirational hope is recognised as a core theme. Study 2 indicates significant relationships between ATT and PBC and between SN and PBC. Thus, the SIMM can alleviate poverty in rural communities. Practical implications - The application of the SIMM in the pilot study provides aspirational hope for eradicating extreme poverty. Social implications - Other rural communities should be encouraged to apply the SIMM to alleviate extreme poverty in their villages. Originality/value - This study contributes to the development of an innovative microfinance model (SIMM) to eradicate extreme poverty in rural areas.