IDEAS home Printed from https://ideas.repec.org/a/pos/journl/42-1.html
   My bibliography  Save this article

Evaluating the Customer Satisfaction’s Effect on Murabahah and Mudarabah Financing in Islamic Banking

Author

Listed:
  • Bashir Baba

    (Universiti Tun Hussein Onn Malaysia)

  • Shafie Mohamed Zabri

    (Universiti Tun Hussein Onn Malaysia)

  • Ahmed Kaseri Ramin

    (Universiti Tun Hussein Onn Malaysia)

Abstract

There are a considerable number of studies on the service quality dimensions of banking industries, but little researches were carried out on the product quality dimensions, and this led to the minimal understanding of the impact of product quality dimensions from the customers’ standpoints, This research sought to identify the impact Islamic banking products (Murabahah and Mudarabah) dimensions on customer satisfaction. The study surveyed Islamic bank customers (users of the Islamic bank’s products in Nigeria) using questionnaires to seek responses, a convenient sampling technique was conducted to reach out to customers, and the use of PLS-SEM 3 was employed for the analysis of the data. The result model shows an R2 value of 0.414 (for Murabahah), which means 41 % of the variance in customer satisfaction is explained by the exogenous constructs of perceived quality, cost, convenience and compliance of Murabahah, and R2 value of 0.309 (for Mudarabah) which means 31 % of the variance in customer satisfaction is explained by the exogenous constructs of perceived quality, cost, convenience and compliance of Mudarabah. The values of R2 for Murabahah and Mudarabah show that the constructs were moderate in determining the satisfaction level of customers as they produced 0.414 and 0.309 respectively.

Suggested Citation

  • Bashir Baba & Shafie Mohamed Zabri & Ahmed Kaseri Ramin, 2019. "Evaluating the Customer Satisfaction’s Effect on Murabahah and Mudarabah Financing in Islamic Banking," Traektoriâ Nauki = Path of Science, Altezoro, s.r.o. & Dialog, vol. 5(1), pages 2001-2022, January.
    • Handle: RePEc:pos:journl:42-1
    DOI: 10.22178/pos.42-2
    as

    Download full text from publisher

    File URL: https://pathofscience.org/index.php/ps/article/download/549/593
    Download Restriction: no
    File URL: https://libkey.io/10.22178/pos.42-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. De Vita, Luisa & Mari, Michela & Poggesi, Sara, 2014. "Women entrepreneurs in and from developing countries: Evidences from the literature," European Management Journal, Elsevier, vol. 32(3), pages 451-460.
    2. Yudistira, Donsyah, 2004. "Efficiency In Islamic Banking: An Empirical Analysis Of Eighteen Banks," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 12, pages 2-19.
    3. Levine, Ross, 1998. "The Legal Environment, Banks, and Long-Run Economic Growth," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 30(3), pages 596-613, August.
    4. Aliyu, Shehu Usman Rano, 2012. "Islamic banking and finance in Nigeria: issues, challenges and opportunities," MPRA Paper 42573, University Library of Munich, Germany, revised 05 Nov 2012.
    5. Dey, Prasanta Kumar & Bhattacharya, Arijit & Ho, William, 2015. "Strategic supplier performance evaluation: A case-based action research of a UK manufacturing organisation," International Journal of Production Economics, Elsevier, vol. 166(C), pages 192-214.
    6. Sumantra Ghoshal & Christopher A. Bartlett, 1994. "Linking organizational context and managerial action: The dimensions of quality of management," Strategic Management Journal, Wiley Blackwell, vol. 15(S2), pages 91-112, June.
    7. Martin Čihák & Heiko Hesse, 2010. "Islamic Banks and Financial Stability: An Empirical Analysis," Journal of Financial Services Research, Springer;Western Finance Association, vol. 38(2), pages 95-113, December.
    8. Patrick A. Imam & Mr. Kangni R Kpodar, 2010. "Islamic Banking: How Has it Diffused?," IMF Working Papers 2010/195, International Monetary Fund.
    9. Mohammed Ishaq Mohammed & Noralfishah Sulaiman & Dahiru Adamu, 2018. "Dimensionality and Reliability of the Determinants of Reverse Mortgage Use Intention," Traektoriâ Nauki = Path of Science, Altezoro, s.r.o. & Dialog, vol. 4(2), pages 1013-1023, February.
    10. Blut, Markus & Beatty, Sharon E. & Evanschitzky, Heiner & Brock, Christian, 2014. "The Impact of Service Characteristics on the Switching Costs–Customer Loyalty Link," Journal of Retailing, Elsevier, vol. 90(2), pages 275-290.
    11. Syed Ali Raza & Syed Tehseen Jawaid & Ayesha Hassan, 2015. "Internet banking and customer satisfaction in Pakistan," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 7(1), pages 24-36, February.
    12. Olson, Dennis & Zoubi, Taisier, 2017. "Convergence in bank performance for commercial and Islamic banks during and after the Global Financial Crisis," The Quarterly Review of Economics and Finance, Elsevier, vol. 65(C), pages 71-87.
    13. Ken Moak, 2017. "Developed Nations and the Economic Impact of Globalization," Springer Books, Springer, number 978-3-319-57903-0, December.
    14. Hanudin Amin & Abdul Rahim Abdul Rahman & Dzuljastri Abdul Razak & Hamid Rizal, 2017. "Consumer attitude and preference in the Islamic mortgage sector: a study of Malaysian consumers," Management Research Review, Emerald Group Publishing Limited, vol. 40(1), pages 95-115, January.
    15. Hok-Ling Lee & Kwai-Sang Chin, 2017. "Development of a Systematic Model for Improving Software Quality in the Finanical Service Organization," Management Challenges in a Network Economy: Proceedings of the MakeLearn and TIIM International Conference 2017,, ToKnowPress.
    16. Triki, Thouraya & Kouki, Imen & Dhaou, Mouna Ben & Calice, Pietro, 2017. "Bank regulation and efficiency: What works for Africa?," Research in International Business and Finance, Elsevier, vol. 39(PA), pages 183-205.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bashir Baba & Shafie Mohamed Zabri & Ahmad Kaseri, 2018. "Assessing the Influence of Islamic Banks' Products' Quality Features on Customer Satisfaction in Nigeria," Traektoriâ Nauki = Path of Science, Altezoro, s.r.o. & Dialog, vol. 4(6), pages 4001-4015, June.
    2. Sandrine Kablan & Ouidad Yousfi, 2015. "Performance of Islamic Banks across the World: An Empirical Analysis over the Period 2001-2008," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 4(1), pages 27-46.
    3. Izzeldin, Marwan & Johnes, Jill & Ongena, Steven & Pappas, Vasileios & Tsionas, Mike, 2021. "Efficiency convergence in Islamic and conventional banks," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 70(C).
    4. Wassim RAJHI & Slim A. HASSAIRI, 2013. "Islamic Banks And Financial Stability: A Comparative Empirical Analysis Between Mena And Southeast Asian Countries," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 37, pages 149-177.
    5. Risfandy, Tastaftiyan & Tarazi, Amine & Trinugroho, Irwan, 2022. "Competition in dual markets: Implications for banking system stability," Global Finance Journal, Elsevier, vol. 52(C).
    6. Baele, Lieven & Farooq, Moazzam & Ongena, Steven, 2014. "Of religion and redemption: Evidence from default on Islamic loans," Journal of Banking & Finance, Elsevier, vol. 44(C), pages 141-159.
    7. Pejman Abedifar & Shahid M. Ebrahim & Philip Molyneux & Amine Tarazi, 2015. "Islamic Banking And Finance: Recent Empirical Literature And Directions For Future Research," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 637-670, September.
    8. Pejman Abedifar & Philip Molyneux & Amine Tarazi, 2013. "Risk in Islamic Banking," Review of Finance, European Finance Association, vol. 17(6), pages 2035-2096.
    9. Mr. Enrique A Gelbard & Mr. Mumtaz Hussain & Mr. Rodolfo Maino & Mr. Yibin Mu & Mr. Etienne B Yehoue, 2014. "Islamic Finance in Sub-Saharan Africa: Status and Prospects," IMF Working Papers 2014/149, International Monetary Fund.
    10. Moazzam Farooq & Sweder van Wijnbergen & Sajjad Zaheer, 2015. "Will Islamic Banking make the World less risky? An Empirical Analysis of Capital Structure, Risk Shifting and Financial Stability," Tinbergen Institute Discussion Papers 15-051/VI/DSF92, Tinbergen Institute.
    11. Ljerka Cerovic & Stella Suljic Nikolaj & Dario Maradin, 2017. "Comparative Analysis Of Conventional And Islamic Banking: Importance Of Market Regulation," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 26(1), pages 241-263, june.
    12. Hassan B. Ghassan & Stefano Fachin, 2016. "Time series analysis of financial stability of banks: Evidence from Saudi Arabia," Review of Financial Economics, John Wiley & Sons, vol. 31(1), pages 3-17, November.
    13. Baele, L. & Farooq, M. & Ongena, S., 2012. "Of Religion and Redemption : Evidence from Default on Islamic Loans (Replaces CentER DP 2010-136)," Other publications TiSEM 44a4a19c-3959-4e99-b96b-4, Tilburg University, School of Economics and Management.
    14. Fadzlan Sufian & Fakarudin Kamarudin, 2013. "Efficiency of the Bangladesh Banking Sector: Evidence from the Profit Function," Jindal Journal of Business Research, , vol. 2(1), pages 43-57, June.
    15. Kablan, S & Yousfi, O, 2011. "Efficiency of islamic and conventional banks in countries with islamic banking," MPRA Paper 32951, University Library of Munich, Germany.
    16. Oparah Felix Chukwudi & James Tumba Henry, 2020. "Monetary Policy and Financial Stability in the Nigerian Banking Industry," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(1), pages 82-114, January.
    17. Mimouni, Karim & Smaoui, Houcem & Temimi, Akram & Al-Azzam, Moh'd, 2019. "The impact of Sukuk on the performance of conventional and Islamic banks," Pacific-Basin Finance Journal, Elsevier, vol. 54(C), pages 42-54.
    18. Marei Elbadri & Eralp Bektaş, 2022. "Dynamic relationship among the bank stability, oil, and gold prices: Evidence from the Islamic banks operating in the Gulf Cooperation Council countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 2153-2168, April.
    19. Anwar Al-Gasaymeh & Miral R. Samarah, 2023. "Does Country Risk Affect Banking Efficiency: Empirical Evidence from Turkey and Selected Countries from the European Union," Global Business Review, International Management Institute, vol. 24(6), pages 1401-1417, December.
    20. Othman, Norfaizah & Abdul-Majid, Mariani & Abdul-Rahman, Aisyah, 2017. "Partnership financing and bank efficiency," Pacific-Basin Finance Journal, Elsevier, vol. 46(PA), pages 1-13.

    More about this item

    Keywords

    Islamic bank; products; services; customer satisfaction;
    All these keywords.

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pos:journl:42-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Andrey Kataev (email available below). General contact details of provider: http://pathofscience.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.