What drives prospective investors to support small and medium enterprises via Islamic securities crowdfunding? An empirical evidence from Indonesia

IF 3.1 Q2 BUSINESS Journal of Islamic Marketing Pub Date : 2024-04-23 DOI:10.1108/jima-11-2023-0375

Rifaldi Majid

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Abstract

Purpose

The presence of securities crowdfunding (SCF) FinTech in the Islamic financial landscape opens investment opportunities through shares and sukuk (Sharia bond) instruments. This study aims to examine the effect of investment risk (IR), legal risk (LR), product knowledge (PK), Sharia compliance (SC) and subjective norm (SN) on investment decisions in businesses and projects run by small and medium enterprises (SMEs).

Design/methodology/approach

The questionnaires were distributed to prospective investors with prior knowledge of SCF and Islamic investment. The data collected was then examined using partial least square-structural equation modeling using SmartPLS 4.0.

Findings

The results show that LR has positive and significant implications for supporting investment through SCF, while IR has the opposite. The main findings in this study explain that PK and SC are proven to strengthen the intention to invest in SCF. Meanwhile, SN, which also strengthens intention, is the greatest influence. Therefore, it is highly recommended that SCF organizers collaborate with regulators (OJK), universities, academics and the investor community, as well as Muslim entrepreneurs, to provide education and literacy regarding SCF products and the underlying contracts, along with the consequences and uniqueness of investment vis SCF.

Practical implications

From a managerial side, Sharia expert educators can be appointed to increase investors’ literacy and confidence to support SMEs’ business expansion via SCF. In addition, to minimize investment risk, SCF organizers are also advised to issue sukuk and shares in different low-risk businesses/sectors, followed by investment amounts that are more affordable for novice investors.

Originality/value

Research on SCF as an alternative to SME financing is still scarce. To the best of the author’s knowledge, this is the first research to empirically test the relationship between risk, SC, PK and SN on potential investors’ decisions to support SMEs through the SCF mechanism.

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是什么促使潜在投资者通过伊斯兰证券众筹支持中小型企业？印度尼西亚的经验证据

目的证券众筹（SCF）金融科技在伊斯兰金融领域的出现，通过股票和伊斯兰债券（sukuk）工具开启了投资机会。本研究旨在考察投资风险（IR）、法律风险（LR）、产品知识（PK）、伊斯兰教法合规性（SC）和主观规范（SN）对中小型企业（SMEs）经营的企业和项目投资决策的影响。然后使用 SmartPLS 4.0 进行偏最小二乘法-结构方程建模，对收集到的数据进行研究。研究结果表明，LR 对通过 SCF 支持投资具有积极而重要的影响，而 IR 则相反。本研究的主要结果表明，PK 和 SC 被证明能够增强 SCF 投资意向。同时，SN 也能增强投资意向，是影响最大的因素。因此，强烈建议 SCF 组织者与监管机构（OJK）、大学、学术界和投资者社区以及穆斯林企业家合作，提供有关 SCF 产品和基础合同的教育和知识，以及投资 SCF 的后果和独特性。此外，为了最大限度地降低投资风险，还建议伊斯兰合作金融的组织者在不同的低风险企业/行业发行伊斯兰债券和股票，然后提供新手投资者更能负担得起的投资金额。就作者所知，这是第一项实证检验风险、SC、PK 和 SN 对潜在投资者决定通过 SCF 机制支持中小企业的影响的研究。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Islamic Marketing BUSINESS-

CiteScore

8.40

自引率

28.10%

发文量

期刊介绍： Launched in 2010, Journal of Islamic Marketing (JIMA) was the first journal dedicated to investigating Marketing’s relationship with Islam, in theory and practice, across Muslim majority and minority geographies. JIMA tackles the nuances associated with Muslim consumption patterns, doing business in Muslim markets, and targeting Muslim consumers. When considering the acronyms for the emerging economies to watch: in 2001 it was BRIC (Brazil, Russia, India, and China); and more recently in 2013 MINT (Mexico, Indonesia, Nigeria, Turkey), and CIVETS (Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa) – then it is apparent that economies with large Muslim populations are growing in importance. One quarter of the world''s population are Muslim, with well over half of Muslims today under the age of 25 - which prompted Miles Young, Global CEO of Ogilvy, to assert that Muslims are the "third one billion", following interest in Indian and Chinese billions, in terms of market opportunities.