A preliminary study of factors influencing the intention to adopt islamic financing facilities among Halal-Certified companies in Malaysia
Date
2023-06Author
Mohd Zukime, Mat Junoh
Tunku Salha, Tunku Ahmad
Md. Aminul Islam
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Show full item recordAbstract
Halal business and Islamic finance adhere to the same fundamental principles and core
beliefs. However, there is a divergence between these two industries, particularly in Malaysia,
where the utilisation and adoption rate of Islamic financial facilities is still relatively low.
This disconnect is particularly prevalent in Malaysia. In order for a company to run in a
manner that is really halal, not only must it concentrate on halal production, but it must also
finance the firm using shariah-compliant financing; this is something that has not yet been
entirely accomplished. As a result, the purpose of this study is to evaluate the efficacy of the
survey instrument in determining the influence of relative advantage, complexity,
compatibility, top management support, owner-manager expertise, competitive pressure,
and customer pressure on the desire to adopt Islamic finance facilities. Specifically, the aim
of this study is to review the usefulness of the survey instrument in determining these factors.
At the Halal Fiesta (Halfest), a survey was carried out with 30 halal-certified companies
utilising a straightforward random sampling approach. This survey served as a preliminary
assessment. The findings of the study provide evidence that there is a need for additional
improvement and suggest that the survey instrument is appropriate for a more in-depth
study that involves a bigger and more representative sample within the halal business.