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Theorising attitude towards Islamic financing adoption in an integrative model of behavioural prediction: A proposed conceptual framework

Author

Listed:
  • Purnomo M. Antara

    (Faculty of Business Management – Universiti Teknologi MARA, MALAYSIA)

  • Rosidah Musa

    (Institute of Business Excellence, Faculty of Business Management – Universiti Teknologi MARA, MALAYSIA)

  • Faridah Hassan

    (Faculty of Business Management – Universiti Teknologi MARA, MALAYSIA)

Abstract

Halalfood and Islamic finance industry in Malaysia have been reported to be the two fastest growing Shari’a-compliant industries with an annual growth rate at 15% to 20%. Despite being the largest market in Islamic finance, there is a low penetration of Islamic financing among halal business operators in Malaysia. In fact, there is a limited empirical research on the linkage between halalfood industry and Islamic finance industry. Thus, it is important to examine the connection between these industries. Besides, a study on the attitude of business operators towards Islamic financing is important to identify what factors may have influenced the attitude of halal business operators in choosing their financing method to either conventional or Islamic financing. This study aims at theorising attitude towards Islamic financing adoption using the Integrative Model of Behavioural Prediction (IMBP). An empirical study is conducted by reviewing literature and seven antecedents of attitude identified for the study. The proposed antecedents that influence attitude of food service business owners towards Islamic financing adoption include religion obligation, business support, cost benefits, reputation, customer service quality, Islamic financial literacy and Halal literacy. The research findings contribute towards new theoretical knowledge by discovering factors affecting the attitudes towards the adoption of Islamic financing in businesses using the IMBP theory. Besides, it may further help the government and policy makers in formulating strategies and policies related with the development of halalindustry especially in integrating the halalproduction and Islamic financing.

Suggested Citation

  • Purnomo M. Antara & Rosidah Musa & Faridah Hassan, 2015. "Theorising attitude towards Islamic financing adoption in an integrative model of behavioural prediction: A proposed conceptual framework," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 1(1), pages 35-41.
    • Handle: RePEc:apb:jabsss:2015:p:35-41
    DOI: 10.20474/jabs-1.1.6
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    References listed on IDEAS

    as
    1. Salehudin, Imam, 2009. "Halal Literacy: A Concept Exploration and Measurement Validation," MPRA Paper 54339, University Library of Munich, Germany, revised Apr 2010.
    2. Glaser, Markus & Weber, Martin, 2007. "Why inexperienced investors do not learn: They do not know their past portfolio performance," Finance Research Letters, Elsevier, vol. 4(4), pages 203-216, December.
    3. Andrew C. Worthington & Alsadek H. Gait, 2009. "Libyan Business Firm Attitudes towards Islamic Methods in Finance," Discussion Papers in Finance finance:200910, Griffith University, Department of Accounting, Finance and Economics.
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