Modelling public behavioral intention to adopt Islamic banking in Uganda: the theory of reasoned action

Purpose – Islamic banking (IB) has resulted in abundant cross-border financial flows and diversified economic inter-linkages with over US$2tn in assets that have extended beyond Muslim countries to more established global financial centres and other emerging economies. Despite this remarkable diffus...

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Main Authors:	Lujja, Sulaiman, Mohammed, MustafaOmar, Hassan, Rusni
Format:	Article
Language:	English English English
Published:	Emerald Group Publishing Limited 2016
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/53583/ http://irep.iium.edu.my/53583/ http://irep.iium.edu.my/53583/ http://irep.iium.edu.my/53583/1/Modelling%20public%20behavorial%20intention%20to%20adopt%20islamic%20banking%20in%20uganda.pdf http://irep.iium.edu.my/53583/7/53583_Modelling%20public%20behavioral%20intention%20to%20adopt%20Islamic%20banking_scopus.pdf http://irep.iium.edu.my/53583/12/53583_Modelling%20public%20behavioral%20intention_wos.pdf

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recordtype	eprints
spelling	iium-535832017-10-12T10:49:11Z http://irep.iium.edu.my/53583/ Modelling public behavioral intention to adopt Islamic banking in Uganda: the theory of reasoned action Lujja, Sulaiman Mohammed, MustafaOmar Hassan, Rusni HG1501 Banking Purpose – Islamic banking (IB) has resulted in abundant cross-border financial flows and diversified economic inter-linkages with over US$2tn in assets that have extended beyond Muslim countries to more established global financial centres and other emerging economies. Despite this remarkable diffusion, numerous developing and least-developed countries are yet to embrace IB. This study aims to examine the factors that determine public intention to adopt IB in Uganda. Design / methodology /approach – This study undertook a quantitative approach where the theory of reasoned action (TRA) was used as a theoretical framework and structural equation modelling technique was applied to determine the relationship between attitude, subjective norm and public intention to adopt IB. Thus, a sample of 300 bank customers was surveyed using a questionnaire. Findings – Initially, the measurement model did not fit the data well. So, the model was modified by removing an indicator with a lower loading. Finally, the structural model under maximum likelihood estimate analysis confirmed a good model fit for the data. Key findings were as follows: attitude positively influenced intention to adopt IB, whereas subjective norm influence to intention is mediated by attitude. Furthermore, public intention to adopt IB in Uganda can be predicted by attitude (R2 0.89) which also mediates the prediction of subjective norm to intention (R2 0.58). Originality/value – To the best of the authors’ knowledge, no study has used the TRA on the feasibility and adoption of IB. Thus, the present study is relevant in extending the theoretical body of knowledge by validating the TRA in a new field. Emerald Group Publishing Limited 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/53583/1/Modelling%20public%20behavorial%20intention%20to%20adopt%20islamic%20banking%20in%20uganda.pdf application/pdf en http://irep.iium.edu.my/53583/7/53583_Modelling%20public%20behavioral%20intention%20to%20adopt%20Islamic%20banking_scopus.pdf application/pdf en http://irep.iium.edu.my/53583/12/53583_Modelling%20public%20behavioral%20intention_wos.pdf Lujja, Sulaiman and Mohammed, MustafaOmar and Hassan, Rusni (2016) Modelling public behavioral intention to adopt Islamic banking in Uganda: the theory of reasoned action. International Journal of Islamic and Middle Eastern Finance and Management Vol. 9 No. 3, 2016 pp. 417-434, 9 (4). . 583-600. ISSN 1753-8394 http://www.emeraldinsight.com/doi/full/10.1108/IMEFM-08-2015-0092 http://dx.doi.org/10.1108/IMEFM-08-2015-0092
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Lujja, Sulaiman Mohammed, MustafaOmar Hassan, Rusni Modelling public behavioral intention to adopt Islamic banking in Uganda: the theory of reasoned action
description	Purpose – Islamic banking (IB) has resulted in abundant cross-border financial flows and diversified economic inter-linkages with over US$2tn in assets that have extended beyond Muslim countries to more established global financial centres and other emerging economies. Despite this remarkable diffusion, numerous developing and least-developed countries are yet to embrace IB. This study aims to examine the factors that determine public intention to adopt IB in Uganda. Design / methodology /approach – This study undertook a quantitative approach where the theory of reasoned action (TRA) was used as a theoretical framework and structural equation modelling technique was applied to determine the relationship between attitude, subjective norm and public intention to adopt IB. Thus, a sample of 300 bank customers was surveyed using a questionnaire. Findings – Initially, the measurement model did not fit the data well. So, the model was modified by removing an indicator with a lower loading. Finally, the structural model under maximum likelihood estimate analysis confirmed a good model fit for the data. Key findings were as follows: attitude positively influenced intention to adopt IB, whereas subjective norm influence to intention is mediated by attitude. Furthermore, public intention to adopt IB in Uganda can be predicted by attitude (R2 0.89) which also mediates the prediction of subjective norm to intention (R2 0.58). Originality/value – To the best of the authors’ knowledge, no study has used the TRA on the feasibility and adoption of IB. Thus, the present study is relevant in extending the theoretical body of knowledge by validating the TRA in a new field.
format	Article
author	Lujja, Sulaiman Mohammed, MustafaOmar Hassan, Rusni
author_facet	Lujja, Sulaiman Mohammed, MustafaOmar Hassan, Rusni
author_sort	Lujja, Sulaiman
title	Modelling public behavioral intention to adopt Islamic banking in Uganda: the theory of reasoned action
title_short	Modelling public behavioral intention to adopt Islamic banking in Uganda: the theory of reasoned action
title_full	Modelling public behavioral intention to adopt Islamic banking in Uganda: the theory of reasoned action
title_fullStr	Modelling public behavioral intention to adopt Islamic banking in Uganda: the theory of reasoned action
title_full_unstemmed	Modelling public behavioral intention to adopt Islamic banking in Uganda: the theory of reasoned action
title_sort	modelling public behavioral intention to adopt islamic banking in uganda: the theory of reasoned action
publisher	Emerald Group Publishing Limited
publishDate	2016
url	http://irep.iium.edu.my/53583/ http://irep.iium.edu.my/53583/ http://irep.iium.edu.my/53583/ http://irep.iium.edu.my/53583/1/Modelling%20public%20behavorial%20intention%20to%20adopt%20islamic%20banking%20in%20uganda.pdf http://irep.iium.edu.my/53583/7/53583_Modelling%20public%20behavioral%20intention%20to%20adopt%20Islamic%20banking_scopus.pdf http://irep.iium.edu.my/53583/12/53583_Modelling%20public%20behavioral%20intention_wos.pdf
first_indexed	2023-09-18T21:15:47Z
last_indexed	2023-09-18T21:15:47Z
_version_	1777411552619528192

Modelling public behavioral intention to adopt Islamic banking in Uganda: the theory of reasoned action

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