Empirical Study on Adoption of Islamic Banking System Using Quantitative Method: A Case Study of Afghanistan
Although the background of the banking system goes back as far as 1933, Islamic finance is still new in Afghanistan. The history of the first full-fledged Islamic bank began as recently as 2018 with the conversion of Bakhtar Bank, a conventional bank, to the Islamic Bank of Afghanistan (IBA). There...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
İLKE İlim Kültür Eğitim Vakfı
2021-08-01
|
| Series: | Türkiye İslam İktisadı Dergisi |
| Subjects: | |
| Online Access: | https://tujise.org/content/6-issues/17-2/5-a169/a169.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849220812617285632 |
|---|---|
| author | Khatera Naseri Ashurov Sharofiddin |
| author_facet | Khatera Naseri Ashurov Sharofiddin |
| author_sort | Khatera Naseri |
| collection | DOAJ |
| description | Although the background of the banking system goes back as far as 1933, Islamic finance is still new in Afghanistan. The history of the first full-fledged Islamic bank began as recently as 2018 with the conversion of Bakhtar Bank, a conventional bank, to the Islamic Bank of Afghanistan (IBA). There have been numerous studies done worldwide, but no empirical study has examined the subject of Islamic banking adoption in the specific context of Afghanistan. Therefore, this present study investigates the adoption of Islamic banking in Afghanistan, using a case study of Herat province, based on Rogers’ (1983) Diffusion of Innovation Theory, to determine the impact of awareness, product knowledge, religiosity, relative advantage, compatibility, and complexity on the adoption of Islamic banking. A quantitative approach to the stratified convenience sampling method was used in this study. Questionnaires were distributed to 334 bank customers and the responses analyzed using SPSS v22. The multiple regression analysis finding indicated that product knowledge, relative advantage, and religiosity significantly and positively influenced the adoption of Islamic banking. It is suggested that the government and financial institutions should support Islamic banking with beneficial policies and initiatives to enhance the knowledge of the public about the significance of Islamic banking activities. |
| format | Article |
| id | doaj-art-1b25ac85684d4f188ef16041db5f5f2f |
| institution | Kabale University |
| issn | 2148-3809 |
| language | English |
| publishDate | 2021-08-01 |
| publisher | İLKE İlim Kültür Eğitim Vakfı |
| record_format | Article |
| series | Türkiye İslam İktisadı Dergisi |
| spelling | doaj-art-1b25ac85684d4f188ef16041db5f5f2f2024-12-02T08:58:13ZengİLKE İlim Kültür Eğitim VakfıTürkiye İslam İktisadı Dergisi2148-38092021-08-018257159510.26414/A169Empirical Study on Adoption of Islamic Banking System Using Quantitative Method: A Case Study of AfghanistanKhatera Naseri0https://orcid.org/0000-0002-5429-1662Ashurov Sharofiddin1https://orcid.org/0000-0001-9100-2113Herat UniversityInternational Islamic University Malaysia (IIUM)Although the background of the banking system goes back as far as 1933, Islamic finance is still new in Afghanistan. The history of the first full-fledged Islamic bank began as recently as 2018 with the conversion of Bakhtar Bank, a conventional bank, to the Islamic Bank of Afghanistan (IBA). There have been numerous studies done worldwide, but no empirical study has examined the subject of Islamic banking adoption in the specific context of Afghanistan. Therefore, this present study investigates the adoption of Islamic banking in Afghanistan, using a case study of Herat province, based on Rogers’ (1983) Diffusion of Innovation Theory, to determine the impact of awareness, product knowledge, religiosity, relative advantage, compatibility, and complexity on the adoption of Islamic banking. A quantitative approach to the stratified convenience sampling method was used in this study. Questionnaires were distributed to 334 bank customers and the responses analyzed using SPSS v22. The multiple regression analysis finding indicated that product knowledge, relative advantage, and religiosity significantly and positively influenced the adoption of Islamic banking. It is suggested that the government and financial institutions should support Islamic banking with beneficial policies and initiatives to enhance the knowledge of the public about the significance of Islamic banking activities.https://tujise.org/content/6-issues/17-2/5-a169/a169.pdfdiffusion of innovation theoryislamic bankingadoptionafghanistan |
| spellingShingle | Khatera Naseri Ashurov Sharofiddin Empirical Study on Adoption of Islamic Banking System Using Quantitative Method: A Case Study of Afghanistan Türkiye İslam İktisadı Dergisi diffusion of innovation theory islamic banking adoption afghanistan |
| title | Empirical Study on Adoption of Islamic Banking System Using Quantitative Method: A Case Study of Afghanistan |
| title_full | Empirical Study on Adoption of Islamic Banking System Using Quantitative Method: A Case Study of Afghanistan |
| title_fullStr | Empirical Study on Adoption of Islamic Banking System Using Quantitative Method: A Case Study of Afghanistan |
| title_full_unstemmed | Empirical Study on Adoption of Islamic Banking System Using Quantitative Method: A Case Study of Afghanistan |
| title_short | Empirical Study on Adoption of Islamic Banking System Using Quantitative Method: A Case Study of Afghanistan |
| title_sort | empirical study on adoption of islamic banking system using quantitative method a case study of afghanistan |
| topic | diffusion of innovation theory islamic banking adoption afghanistan |
| url | https://tujise.org/content/6-issues/17-2/5-a169/a169.pdf |
| work_keys_str_mv | AT khateranaseri empiricalstudyonadoptionofislamicbankingsystemusingquantitativemethodacasestudyofafghanistan AT ashurovsharofiddin empiricalstudyonadoptionofislamicbankingsystemusingquantitativemethodacasestudyofafghanistan |