1. Perception of Non-Muslims towards Islamic Banking Revisited: SEM Approach
- Author
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Hafizah Abdul Rahim and Wan Ahmad Wan Omar
- Subjects
genetic structures ,General Arts and Humanities ,media_common.quotation_subject ,General Social Sciences ,Validity ,Latent variable ,Structural equation modeling ,Confirmatory factor analysis ,Test (assessment) ,lcsh:Social Sciences ,lcsh:H ,Perception ,Psychology ,General Economics, Econometrics and Finance ,Social psychology ,Reliability (statistics) ,media_common ,Statistical hypothesis testing - Abstract
This study investigates the relationships between non-Muslims’ perceptions and acceptance towards Islamic banking in Malaysia. Specifically this research is to determine the significant contributing factors of perception and its measured indicators; and relationships between the factors which influence non-Muslims to accept Islamic banking. A total 250 respondents participated in the survey at selected areas in Kedah, Malaysia. A structural equation modelling (SEM) approach is employed for the study to provide a robustness to the perception and acceptance model which passes all validity and reliability tests to be a good fit model for causal hypotheses testing. Confirmatory factor analysis is utilised to test for model validity, reliability and goodness-of-fit of the model. The result of hypotheses has revealed that there is a significant relationship between perception among non-Muslims which is indicated by confidence and bank selection criteria, towards acceptance of Islamic banking system in Malaysia. Latent variable for perception also passes mediating test to be a significant mediator between the exogenous indicators and the endogenous acceptance towards Islamic banking. DOI: 10.5901/mjss.2016.v7n1p139
- Published
- 2015
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