Modeling Adoption Behavior toward Islamic Microfinance: A Comparative Study Between Malaysia and Indonesia

Main Article Content

Nur Liyana Zainal Abidin
Dwi Suhartanto
Dian Imanina Burhany


Islamic Microfinance, Young SME Leader, Theory of Planned Behavior, Malaysia, Indonesia


This study probes the focal factors influencing the intention of young SME leaders to adopt Islamic microfinance. The researchers merged the existing model together with new variables, such as the perception of financial benefits and the perception of financial cost along with awareness, religiosity, and knowledge behind TPB through attitude in order to construct the aid to amplify the predictive efficacy and examine its effects on young SME leaders’ willingness to adopt Islamic microfinance. The research questionnaire was distributed using Google Forms to young SME leaders in Malaysia and Indonesia with a total sample of 300 respondents. Data obtained were then analyzed using partial least squares (PLS) by employing SmartPLS. This study reveals that perceived behavioral control and subjective norms have a positive significant impact on young SME leaders’ intention to adopt Islamic microfinance. The findings underscore the importance of these two elements toward the intention, awareness, and religiosity toward the intention through attitude.


Download data is not yet available.
Abstract 109 | pdf Downloads 38


Abduh, M., & Omarov, D. (2013). Muslim’s awareness and willingness to patronize Islamic banking in Kazakhstan. Journal of Islamic Banking and Finance, 30(3), 16–24. retrieved from
Abdullah, A. (2017). A comparison between Malaysia and Indonesia in Islamic banking industry. Pressacademia, 4(3), 276–286. doi: 10.17261/pressacademia.2017.705
Ahmad, W. (2022). The Role of Islamic Microfinance in Poverty Alleviation: Evidence from Pakistan. Journal of Economic Impact, 4(1), 39–49. doi: 10.52223/jei4012205
Ahmed, R. R., Vveinhardt, J., Streimikiene, D., & Pilinkienė, V. (2019). Application of the Theory of Planned Behaviour Model for Examining Customers’ Intentions towards Islamic Hire Purchase Financing. Engineering Economics, 30(2), 236–245. doi: 10.5755/
Aigbovo, O., & Idolor, E. J. (2022). Patronage Factors and the Behavior of Customers towards Islamic Banking in Nigeria. Airlangga International Journal of Islamic Economics and Finance, 5(01), 49–69. doi: 10.20473/aijief.v5i01.37758
Ajzen, I. (1991). The Theory of Planned Behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–21. doi: 10.1016/0749-5978(91)90020-T
Alam, M. (2014). Factors affecting consumers’ adoption of mobile banking in Bangladesh: An empirical study. TNI Journal of Engineering and Technology, 2(2), 31–37.
Alam, S. S., Janor, H., Zanariah, Wel, C. A. C., & Ahsan, M. N. (2012). Is Religiosity an important factor in influencing the intention to undertake Islamic home financing in Klang Valley? World Applied Sciences Journal, 19(7), 1030–1041. doi: 10.5829/idosi.wasj.2012.19.07.392
Albaity, M., & Rahman, M. (2019). The intention to use Islamic banking: an exploratory study to measure Islamic financial literacy. International Journal of Emerging Markets, 14(5), 988–1012. doi: 10.1108/IJOEM-05-2018-0218
Ali, M., Raza, S. A., & Puah, C.-H. (2017). Factors affecting to select Islamic credit cards in Pakistan: the TRA model. Journal of Islamic Marketing, 8(3), 330–344. doi: 10.1108/JIMA-06-2015-0043
Amin, H. (2013). Factors influencing Malaysian bank customers to choose Islamic credit cards: Empirical evidence from the TRA model. Journal of Islamic Marketing, 4(3), 245–263. doi: 10.1108/JIMA-02-2012-0013
Amin, H., Abdul-Rahman, A.-R., & Abdul-Razak, D. (2016). Malaysian consumers’ willingness to choose Islamic mortgage products: An extension of the theory of interpersonal behaviour. International Journal of Bank Marketing, 34(6), 868–884. doi: 10.1108/IJBM-06-2015-0099
Amini, N. H., Muflih, M., & Marwansyah. (2020). The Effect of Religiosity and Financial Considerations on Behavioral Intention toward Islamic Banking Industry: The Mediating Role of Attitude. 198(Issat), 552–559. doi: 10.2991/aer.k.201221.091
Armitage, C. J., & Conner, M. (2001). Efficacy of the theory of planned behaviour: A meta-analytic review. British Journal of Social Psychology, 40(4), 471–499. doi: 10.1348/014466601164939
Asmy, M., Mohd, B., Thaker, T., Bin, H., Thas, M., Bin, A., Pitchay, A., Amin, F. Bin, & Khaliq, A. Bin. (2020). LEVERAGING ISLAMIC BANKING AND FINANCE FOR SMALL BUSINESSES : EXPLORING THE Asian Development Bank Institute. Adbi Working Paper, 1156, 1–24.
Aviva, I. Y., & Kusuma, H. (2021). The Attitude And Behaviour Of Customers Islamic Banks : An Extension Of The Theory Of Planned Behavior. 12(7), 11449–11461.
Awn, A. M., & Azam, S. M. F. (2020). Libyan investors’ intention to invest in Islamic sukuk : Theory of planned behaviour Approach. European Journal of Economic and Financial Research, 4(1), 71–90. doi: 10.5281/zenodo.3774672
Badan Pusat Statistik. (2022). Jumlah Koperasi Aktif Menurut Provinsi (Unit), 2019-2021. Badan Pusat Statistik.retrieved from
Becker, J. M., Cheah, J. H., Gholamzade, R., Ringle, C. M., & Sarstedt, M. (2022). PLS-SEM’s most wanted guidance. International Journal of Contemporary Hospitality Management. doi: 10.1108/IJCHM-04-2022-0474
Charag, A. H., Fazili, A. I., & Bashir, I. (2020). Determinants of consumer’s readiness to adopt Islamic banking in Kashmir. Journal of Islamic Marketing, 11(5), 1125–1154. doi: 10.1108/JIMA-10-2018-0182
Chin, W. W. (1998). The Partial Least Squares Approach to Structural Formula Modeling. Advances in Hospitality and Leisure, 8(2)(January 1998), 5. retrieved from
Comrey, A. L., & Lee, H. B. (1992). A First Course in Factor Analysis. In A First Course in Factor Analysis. doi: 10.4324/9781315827506
Darmansyah, Fianto, B. A., Hendratmi, A., & Aziz, P. F. (2020). Factors determining behavioral intentions to use Islamic financial technology: Three competing models. Journal of Islamic Marketing, 12(4), 794–812. doi: 10.1108/JIMA-12-2019-0252
Fauzi, R. U. A., Ahmad, A., Niam, Z. B., Idris, I., & Ningrum, I. I. P. (2022). The Effect of Religiosity, Profit Loss And Sharing on Consumer Trust and Intention to Financing in Islamic Bank. Li Falah: Jurnal Studi Ekonomi Dan Bisnis Islam, 6(2), 21. doi: 10.31332/lifalah.v6i2.3211
Fauzi, R. U. A., Budiyanto, & Suhermin. (2020). The Influence Of Religiosity, Profit Loss And Sharing And Corporate Image Toward Consumer Intentions Of Muamalat Bank Financing. Journal of Accounting Finance and Auditing Studies (JAFAS), 6(2), 105–123. doi: 10.32602/jafas.2020.013
Febianto, I., Johari, F. B., & Kefeli@Zulkefli, Z. B. (2019). The Role of Islamic Microfinance For Poverty Alleviation in Bandung, Indonesia. Ihtifaz: Journal of Islamic Economics, Finance, and Banking, 2(1), 55–72. doi: 10.12928/ijiefb.v2i1.736
Fincham, J. E. (2008). Response rates and responsiveness for surveys, standards, and the Journal. American Journal of Pharmaceutical Education, 72(2), 43. doi: 10.5688/aj720243
Fishbein, M., & Ajzen, I. (1975). Belief, Attitude, Intention, and Behavior: An Introduction to Theory and Research. In Computers in Human Behavior (Vol. 72). doi: 10.1016/j.chb.2016.12.049
Florencio, G., Papelo, P., & Amin, H. (2019). Explaining Awareness of Islamic Banking System Among Mozambique ’ S People : an Empirical Test. Proceedings of the International Conference on Economics 2019, 2019(Ice), 46–59.
Fornell, C., & Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. 18(3), 382–388. doi: 10.18196/ijief.2119
Gan, L. L., & Maysami, R. C. (2006). Credit Card Selection Criteria: Singapore Perspective. Economic Growth Centre Working Paper Series.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling. In Long Range Planning (Vol. 46, Issues 1–2). doi: 10.1016/j.lrp.2013.01.002
HRDF. (2019). Human Capital Report.
Ibrahim, M. A., Fisol, W. N. M., & Haji-Othman, Y. (2017). Customer Intention on Islamic Home Financing Products: An Application of Theory of Planned Behavior (TPB). Mediterranean Journal of Social Sciences, 8(2), 77–86. doi: 10.5901/mjss.2017.v8n2p77
James, G., Witten, D., Hastie, T., & Tibshirani, R. (2021). An Introduction to Statistical Learning. Springer Texts, 102, 618.
Jogiyanto. (2007). Sistem Informasi Keperilakuan.
Khalid, H. A., & Kalsom, A. W. (2014). Financing of small and medium enterprises (SMEs): Determinants of bank loan application. African Journal of Business Management, 8(17), 717–727. doi: 10.5897/ajbm2013.7222
Khaliffarah, A., & Abdinur, M. A. (2018). Perception of Customers Towards Islamic Banking in Las-Anod. International Journal of Interdisciplinary Research and Innovations, 7(1), 314–321.
Kim, J. H. (2019). Multicollinearity and misleading statistical results. Korean Journal of Anesthesiology, 72(6), 558–569. doi: 10.4097/kja.19087
Kim, M. ‐S, & Hunter, J. E. (1993). Attitude‐Behavior Relations: A Meta‐Analysis of Attitudinal Relevance and Topic. Journal of Communication, 43(1), 101–142. doi: 10.1111/j.1460-2466.1993.tb01251.x
Kreitner, Robert, Kinicki, & Angelo. (2010). Organizational Behavior. McGraw-Hill International Editions.
Krueger, N. F., Reilly, M. D., & Carsrud, A. L. (2000). Competing models of entrepreneurial intentions. Journal of Business Venturing, 15(5), 411–432. doi: 10.1016/S0883-9026(98)00033-0
Lowry, P. B., & Gaskin, J. (2014). Partial Least Squares ( PLS ) Structural Equation Modeling (SEM) for Building and Testing Behavioral Causal Theory: When to Choose It and How to Use It. 57(2), 123–146.
Luarn, P., & Lin, H. H. (2005). Toward an understanding of the behavioral intention to use mobile banking. Computers in Human Behavior, 21(6), 873–891. doi: 10.1016/j.chb.2004.03.003
Mahmoud, L. O. M., & Abduh, M. (2014). The Role of Awareness in Islamic Bank Patronizing Behavior of Mauritanian : An Application of TRA. Journal of Islamic Finance, 3(2), 30–38. doi: 10.12816/0025103
Manggu, S. A. R., & Dahlia, D. (2019). The Influence of Perceptions Towards Preference Communities on Islamic Banks in Polewali Mandar District, West Sulawesi. doi: 10.4108/eai.1-4-2019.2287181
Mardoni, Y., Putra, P., Huda, N., & Rini, N. (2012). The Analysis of Attitudes, Subjective Norms, and Behavioral Control on Muzakki’s Intention to Pay Zakah. In International Journal of Business and Social Science (Vol. 3, Issue 22). retrieved from
Maryam, S. Z., Mehmood, M. S., & Khaliq, C. A. (2019). Factors influencing the community behavioral intention for adoption of Islamic banking: Evidence from Pakistan. International Journal of Islamic and Middle Eastern Finance and Management, 12(4), 586–600. doi: 10.1108/IMEFM-07-2017-0179
Masyita, D., & Ahmed, H. (2013). Why Is Growth of Islamic Microfinance Lower Than Its Conventional Counterparts in Indonesia ? Islamic Economic Studies, 21(1), 35–62. doi: 10.12816/0000239
Maulana, H., Razak, D. A., & Adeyemi, A. A. (2018). Factors influencing behaviour to participate in Islamic microfinance. International Journal of Islamic and Middle Eastern Finance and Management, 11(1), 109–130. doi: 10.1108/IMEFM-05-2017-0134
Mukhtar, A., & Butt, M. M. (2012). Intention to choose Halal products: The role of religiosity. Journal of Islamic Marketing, 3(2), 108–120. doi: 10.1108/17590831211232519
Muslichah, I., & Sanusi, S. (2019). The effect of religiosity and financial literacy on intention to use Islamic banking products. Asian Journal of Islamic Management (AJIM), 1(2), 85–92. doi: 10.20885/ajim.vol1.iss2.art2
OECD. (2021). Promoting the Productivity of SMEs in ASEAN Countries. 1–132.
Panggi, F., Amin, H., & Shaikh, I. M. (2022). Determinants of millennials’ acceptance towards tawarruq home financing in Sandakan, Sabah, Malaysia. International Journal of Housing Markets and Analysis. doi: 10.1108/IJHMA-05-2022-0067
Pantari, E. D., & Aji, H. M. (2020). Investigating Muslim non-consumers’ intention to use Islamic bank: perceived social value (PSV) and awareness. Jurnal Siasat Bisnis, 24(2), 187–198. doi: 10.20885/jsb.vol24.iss2.art8
Pratiwi, I. E., & Affandy, F. F. (2020). Knowledge and Perception of Muslim and Non-Muslim Customers in Papua Province Towards Islamic Banking. International Journal of Islamic Economics and Finance Studies, 336–356. doi: 10.25272/ijisef.693027
Purwanto, P., Abdullah, I., Ghofur, A., Abdullah, S., & Elizabeth, M. Z. (2022). Adoption of Islamic microfinance in Indonesia an empirical investigation: an extension of the theory of planned behaviour. Cogent Business and Management, 9(1). doi: 10.1080/23311975.2022.2087466
Rachmawati, E. (2018). the Review of Understanding of Product Knowledge Differences. 1991, 283–288.
Ramadhani, E. B., Hakim, A., & Pratiwi, R. (2019). Jurnal Ekonomi dan Perbankan Syariah 6 | Estu Banyu Ramadhani , Adril Hakim , Rianti Pratiwi : Effect of Perfection on Sharia Bank and Variety Seeking on Customer Switching Invention From Conventional Banks in Bekasi City. Jurnal Ekonomi Dan Perbankan Syariah, 7(2), 5–19.
Ramayah, T., Taib, F. M., & Ling, K. P. (2006). Classifying users and non-users of Internet banking in northern Malaysia. Journal of Internet Banking and Commerce, 11(2), 304–306.
Riaz, U., Khan, M., & Khan, N. (2017). An Islamic banking perspective on consumers’ perception in Pakistan. Qualitative Research in Financial Markets, 9(4), 337–358. doi: 10.1108/QRFM-03-2017-0020
Rivis, A., & Sheeran, P. (2003). Descriptive norms as an additional predictor in the theory of planned behaviour: A meta-analysis. Current Psychology, 22(3), 218–233. doi: 10.1007/s12144-003-1018-2
Rogers, E. M. (1983). Diffusion of Innovations (3rd ed.). The Free Press.
Saiti, B., Ardo, A. A., & Yumusak, I. G. (2022). Why non-Muslims subscribe to Islamic banking? Qualitative Research in Financial Markets, 14(2), 247–269. doi: 10.1108/QRFM-01-2018-0005
Suhartanto, D. (2020). Analisa Untuk Riset Bisnes: SPSS, AMOS, PLS (2nd ed.). Politeknik Negeri Bandung.
Suhartanto, D., Farhani, N. H., Muflih, M., & Setiawan. (2018). Loyalty intention towards Islamic Bank: The role of religiosity, image, and trust. International Journal of Economics and Management, 12(1), 137–151.
Sutisna. (2002). Perilaku konsumen dan komunikasi pemasaran. Remaja Rosdakarya.
Tasos, S., Ahmed, I., Awan, M. S., & Waqas, M. (2020). Poverty alleviation and microfinance for the economy of Pakistan: A case study of Khushhali Bank in Sargodha. Economies, 8(3). doi: 10.3390/ECONOMIES8030063
Utama, S. P., & Rochman, F. (2013). Pengaruh Faktor Sosial dan Faktor Pribadi Terhadap Sikap dan Minat Pembelian Film Bajakan (Studi pada Masyarakat Kota Malang). Jurnal Aplikasi Manajemen, 11(No. 4), 640–647. retrieved from https://bincangmedia.
Utamy, O. D. B., & Widhiastuti, R. (2020). The effect of Sharia bank knowledge, promotion, and facilities on savings decisions at Sharia banks with savings interest as mediation variables. Journal of Islamic Economics, Management, and Business (JIEMB), 1(1), 1–28. doi: 10.21580/jiemb.2019.1.1.3986
Yandell, K. E. (2016). Philosophy of Religion. In Routledge Taylor & Francis Group. doi: 10.1017/9781316779651.028
Yu, C.-S. (2012). Factors affecting individuals to adopt mobile banking: Empirical evidence from the utaut model. Journal of Electronic Commerce Research, 13(2), 105–121.