“Should I adopt Islamic banking services?” Factors affecting non-Muslim customers’ behavioral intention in the Malaysian context.

Abstract

Purpose: The acceptance of Islamic banking services by non-Muslim customers is not promising in the Malaysian context. Thus, this study aims to examine the effect factors that may motivate this customer group to adopt the Islamic banking services in the Malaysian context. Design/methodology/approach: A self-administered questionnaire was used to collect data through google docs from 188 respondents. Structural equation modelling partial least squares (PLS-SEM) was used to analyze the hypothetical model of this study. Findings: The result of this study found that knowledge about Islamic banking exerts a positive effect on non-Muslim beliefs (attitudinal, control and norm). Moreover, this study found a significant relationship between attitude, subjective norm, perceived behavioral control with non-Muslim Intention towards Islamic banking services. Furthermore, the mediating effect of attitude, subjective norm and perceived behavioral control was supported. Originality/value: This is a pioneer study that contributes to the consumer behavior literature by extending the theory of planned behavior by incorporating knowledge in the model. In addition, this study develops comparatively new relationships, practically the mediation role of beliefs (attitudinal, control and norm) between knowledge and intention.