Technology advances in the financial sector have been a topic of much discussion within the banking industry. It is believed that the adoption of digital banking by banks depends greatly on their characteristics and the market they operate. This study examines the relationship between bank and market characteristics and the adoption of digital banking among banks that offer Islamic banking services in Indonesia. Data are gathered from banks’ annual reports, their first mobile banking app, financial reports, and banking statistics from 2010 to 2022. A panel logistic regression is utilized in the analysis. The results indicate that bank and market characteristics have a meaningful impact on a bank's decision to adopt digital banking. Additionally, it is found that banks are more inclined to adopt digital banking during the COVID-19 pandemic.
{"title":"THE DETERMINANTS OF DIGITAL BANKING ADOPTION AMONG BANKS OFFERING ISLAMIC BANKING SERVICES","authors":"Achmad Hidayat, Salina Kassim","doi":"10.21098/jimf.v9i4.1688","DOIUrl":"https://doi.org/10.21098/jimf.v9i4.1688","url":null,"abstract":"Technology advances in the financial sector have been a topic of much discussion within the banking industry. It is believed that the adoption of digital banking by banks depends greatly on their characteristics and the market they operate. This study examines the relationship between bank and market characteristics and the adoption of digital banking among banks that offer Islamic banking services in Indonesia. Data are gathered from banks’ annual reports, their first mobile banking app, financial reports, and banking statistics from 2010 to 2022. A panel logistic regression is utilized in the analysis. The results indicate that bank and market characteristics have a meaningful impact on a bank's decision to adopt digital banking. Additionally, it is found that banks are more inclined to adopt digital banking during the COVID-19 pandemic.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"198 s676","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138621461","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Empirical and theoretical literature points out that market timing could shape financing decisions and persistently affect capital structure. However, prior studies on market timing do not distinguish between Shariah-compliant and non-compliant firms although Shariah compliance considerations may affect market timing incentives. This paper aims to fill this gap in the literature by investigating whether market timing theory is relevant in the case of Shariah-compliant firms. We consider panel data consisting of 40 Malaysian Shariah-compliant companies that went public during the period from 1 January 2015 to 31 December 2018. We report evidence that managers of Malaysia Shariah-compliant IPOs tend to time the market by issuing equity when they perceive that their shares are overpriced and market conditions are favorable. However, the impact of these market timing on their capital structure quickly disappears. The findings provide useful implications for investors and portfolio managers interested in investing in Shariah-compliant IPOs. They should identify market timers in order to avoid low subsequent returns of equity issuers.
{"title":"DO MARKET TIMING INCENTIVES AFFECT THE DEBT-EQUITY CHOICE OF MALAYSIAN SHARIAH-COMPLIANT IPOS?","authors":"Khemaies Bougatef, Oumaima Kassem","doi":"10.21098/jimf.v9i4.1743","DOIUrl":"https://doi.org/10.21098/jimf.v9i4.1743","url":null,"abstract":"Empirical and theoretical literature points out that market timing could shape financing decisions and persistently affect capital structure. However, prior studies on market timing do not distinguish between Shariah-compliant and non-compliant firms although Shariah compliance considerations may affect market timing incentives. This paper aims to fill this gap in the literature by investigating whether market timing theory is relevant in the case of Shariah-compliant firms. We consider panel data consisting of 40 Malaysian Shariah-compliant companies that went public during the period from 1 January 2015 to 31 December 2018. We report evidence that managers of Malaysia Shariah-compliant IPOs tend to time the market by issuing equity when they perceive that their shares are overpriced and market conditions are favorable. However, the impact of these market timing on their capital structure quickly disappears. The findings provide useful implications for investors and portfolio managers interested in investing in Shariah-compliant IPOs. They should identify market timers in order to avoid low subsequent returns of equity issuers.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"122 50","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138608069","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study conducts a bibliometric analysis of the literature on shariah compliant asset pricing based on Scopus-indexed publications. The data on publications are collected employing a search string encompassing various keywords related to Islamic finance and asset pricing. Simple statistical techniques are applied, complemented by the utilization of VOS viewer software to analyze document trends by year, country, source, and patterns of collaboration among authors, co-citations, and keywords co-occurrence. The bibliometric analysis reveals a proliferation of publications across 127 journals, with the Pacific Basin Finance Journal being the most prominent. Collaboration among authors spans 56 countries, with Malaysia emerging as a key contributor. Notably, keywords like "Islamic finance" and "Shariah-compliant" have seen increased importance in recent years. The statistical results demonstrate a substantial surge in Scopus-indexed publications related to Shariah-compliant compliant Capital Asset Pricing Models, particularly in the past five years, reflecting the growing popularity and research opportunities within Islamic finance and asset pricing.
{"title":"BIBLIOMETRIC ANALYSIS OF SHARIAH COMPLIANT CAPITAL ASSET PRICING MODELS","authors":"Nihal Touti, Asmâa Alaoui Taïb","doi":"10.21098/jimf.v9i4.1849","DOIUrl":"https://doi.org/10.21098/jimf.v9i4.1849","url":null,"abstract":"This study conducts a bibliometric analysis of the literature on shariah compliant asset pricing based on Scopus-indexed publications. The data on publications are collected employing a search string encompassing various keywords related to Islamic finance and asset pricing. Simple statistical techniques are applied, complemented by the utilization of VOS viewer software to analyze document trends by year, country, source, and patterns of collaboration among authors, co-citations, and keywords co-occurrence. The bibliometric analysis reveals a proliferation of publications across 127 journals, with the Pacific Basin Finance Journal being the most prominent. Collaboration among authors spans 56 countries, with Malaysia emerging as a key contributor. Notably, keywords like \"Islamic finance\" and \"Shariah-compliant\" have seen increased importance in recent years. The statistical results demonstrate a substantial surge in Scopus-indexed publications related to Shariah-compliant compliant Capital Asset Pricing Models, particularly in the past five years, reflecting the growing popularity and research opportunities within Islamic finance and asset pricing.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":" 9","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138610040","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Sustainability and halal stocks have become increasingly popular in the digital and globalized world after the COVID-19 pandemic, even in Muslim-minority developed countries. This study examines whether there exist sustainability, size, Shariah compliance, sector, and stock exchange effects in financial performance. We collect the cross-section data for 2022–2023 covering 270 public-listed companies. These include earning-per-share (EPS) representing performance, market capitalization representing firm size, and business sectors from Compustat, halal status and level from Musaffa, and Environmental, Social, and Governance (ESG) rating and risk representing sustainability from Sustainalytics. Using the partial least square structural equation model (PLS-SEM), we discover the significance of sustainability and size but the debatably significant moderating effect of Shariah, sector, and stock exchange on performance. We explain these findings by the Stakeholder Theory and Resource-Based View. These results should prove beneficial to managers in backing their green and Shariah compliance strategies for financial performance.
{"title":"FINANCIAL PERFORMANCE: SUSTAINABILITY, SIZE, SHARIAH, AND SECTOR EFFECTS IN MUSLIM-MINORITY STOCK EXCHANGES","authors":"Dwi Kartikasari","doi":"10.21098/jimf.v9i4.1765","DOIUrl":"https://doi.org/10.21098/jimf.v9i4.1765","url":null,"abstract":"Sustainability and halal stocks have become increasingly popular in the digital and globalized world after the COVID-19 pandemic, even in Muslim-minority developed countries. This study examines whether there exist sustainability, size, Shariah compliance, sector, and stock exchange effects in financial performance. We collect the cross-section data for 2022–2023 covering 270 public-listed companies. These include earning-per-share (EPS) representing performance, market capitalization representing firm size, and business sectors from Compustat, halal status and level from Musaffa, and Environmental, Social, and Governance (ESG) rating and risk representing sustainability from Sustainalytics. Using the partial least square structural equation model (PLS-SEM), we discover the significance of sustainability and size but the debatably significant moderating effect of Shariah, sector, and stock exchange on performance. We explain these findings by the Stakeholder Theory and Resource-Based View. These results should prove beneficial to managers in backing their green and Shariah compliance strategies for financial performance.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":" 7","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138619542","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article analyzes the performance of Islamic banking in Malaysia and Indonesia using a comprehensive evaluation framework. Malaysia is known for its leading role in Islamic finance, while Indonesia has faced criticism for slower growth. The study argues that assessing Islamic banking performance solely based on financial metrics is insufficient and proposes a broader framework based on the Maqasid Shariah (objectives of Islamic law) for a more objective standard. Using data from 2010 to 2019, the study constructs a Maqasid Shariah Index of Islamic Bank (MSI-iB) and adopts a T-test as well as a panel data model to evaluate their performance. The index includes five sub-indices representing different aspects of the Maqasid Shariah framework. Results show varied scores among Islamic banks in both countries with no statistical difference between the two countries, but with Indonesia leading in religiosity and intellectuality dimensions and Malaysia leading in the posterity dimension. These results challenge the perception that Malaysia's Islamic banking performance is inherently superior to Indonesia's based solely on financial metrics. Considering the Maqasid Shariah framework is crucial to evaluating Islamic banking performance, highlighting the significance of non-financial indicators. The study concludes that a comprehensive perspective is necessary, incorporating both financial and non-financial factors, to assess overall performance.
{"title":"IS ISLAMIC BANKING PERFORMANCE IN MALAYSIA TRULY BETTER THAN INDONESIA?","authors":"Abdul Hakam Naja","doi":"10.21098/jimf.v9i4.1784","DOIUrl":"https://doi.org/10.21098/jimf.v9i4.1784","url":null,"abstract":"This article analyzes the performance of Islamic banking in Malaysia and Indonesia using a comprehensive evaluation framework. Malaysia is known for its leading role in Islamic finance, while Indonesia has faced criticism for slower growth. The study argues that assessing Islamic banking performance solely based on financial metrics is insufficient and proposes a broader framework based on the Maqasid Shariah (objectives of Islamic law) for a more objective standard. Using data from 2010 to 2019, the study constructs a Maqasid Shariah Index of Islamic Bank (MSI-iB) and adopts a T-test as well as a panel data model to evaluate their performance. The index includes five sub-indices representing different aspects of the Maqasid Shariah framework. Results show varied scores among Islamic banks in both countries with no statistical difference between the two countries, but with Indonesia leading in religiosity and intellectuality dimensions and Malaysia leading in the posterity dimension. These results challenge the perception that Malaysia's Islamic banking performance is inherently superior to Indonesia's based solely on financial metrics. Considering the Maqasid Shariah framework is crucial to evaluating Islamic banking performance, highlighting the significance of non-financial indicators. The study concludes that a comprehensive perspective is necessary, incorporating both financial and non-financial factors, to assess overall performance.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":" 22","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138617977","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Income inequality is evident in all countries regardless of the level of development or income status. Islamic financial system has Shariah-compliant financial instruments that, when properly utilized, can facilitate equitable income distribution in the OIC member countries. This study examines the effect of Islamic financial development and human development on income inequality in the OIC. The study also analyzes the validity of the Islamic finance Kuznets curve hypothesis. We employ FMOLS and DOLS estimators with data from 20 OIC member countries covering the period from 2012 to 2022. The results show that Islamic financial development and human development promote equitable income distribution. The findings also confirm the validity of the Islamic finance Kuznets curve hypothesis. Thus, to reduce the income gap in the OIC, Islamic financial institutions should expand further via for examples innovation in Shariah-compliant Islamic financial products and services. In addition, policymakers should prioritize policies and programs that can promote Islamic financing and improve human development in the OIC member countries.
{"title":"THE EFFECT OF ISLAMIC FINANCIAL DEVELOPMENT AND HUMAN DEVELOPMENT ON INCOME INEQUALITY: DOES ISLAMIC FINANCE KUZNETS CURVE VALID IN THE OIC COUNTRIES?","authors":"Kabiru Kamalu, Wan Hakimah Binti Wan Ibrahim","doi":"10.21098/jimf.v9i4.1903","DOIUrl":"https://doi.org/10.21098/jimf.v9i4.1903","url":null,"abstract":"Income inequality is evident in all countries regardless of the level of development or income status. Islamic financial system has Shariah-compliant financial instruments that, when properly utilized, can facilitate equitable income distribution in the OIC member countries. This study examines the effect of Islamic financial development and human development on income inequality in the OIC. The study also analyzes the validity of the Islamic finance Kuznets curve hypothesis. We employ FMOLS and DOLS estimators with data from 20 OIC member countries covering the period from 2012 to 2022. The results show that Islamic financial development and human development promote equitable income distribution. The findings also confirm the validity of the Islamic finance Kuznets curve hypothesis. Thus, to reduce the income gap in the OIC, Islamic financial institutions should expand further via for examples innovation in Shariah-compliant Islamic financial products and services. In addition, policymakers should prioritize policies and programs that can promote Islamic financing and improve human development in the OIC member countries. ","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":" 17","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138612597","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This research investigates the inclination of economically disadvantaged households in East Java, Indonesia, towards microtakaful adoption, utilizing an extended Theory of Planned Behavior (TPB). Analyzing data from 304 respondents through online and face-to-face surveys, the study reveals a significant demand for microtakaful among low-income households. Behavioral intention is positively influenced by factors such as attitude, subjective norms, price, and knowledge, with price being the most critical determinant. Notably, a substantial number of respondents from low-income backgrounds express positive intention toward microtakaful. The study underscores the importance of microtakaful providers raising awareness, offering affordable structures, and highlighting microtakaful's value as a risk management tool. By employing an advanced TPB model, this research offers profound insights into the perceptions and behavioral tendencies of East Java's low-income households regarding microtakaful. The findings suggest actionable strategies for providers to enhance outreach and participation among this vulnerable group, contributing to improved financial inclusion and resilience.
{"title":"INDONESIAN LOW-INCOME HOUSEHOLDS’ ACCEPTANCE OF MICROTAKAFUL IN EAST JAVA","authors":"Muh Zul Hazmi Rapi, Salina Kassim","doi":"10.21098/jimf.v9i4.1898","DOIUrl":"https://doi.org/10.21098/jimf.v9i4.1898","url":null,"abstract":"This research investigates the inclination of economically disadvantaged households in East Java, Indonesia, towards microtakaful adoption, utilizing an extended Theory of Planned Behavior (TPB). Analyzing data from 304 respondents through online and face-to-face surveys, the study reveals a significant demand for microtakaful among low-income households. Behavioral intention is positively influenced by factors such as attitude, subjective norms, price, and knowledge, with price being the most critical determinant. Notably, a substantial number of respondents from low-income backgrounds express positive intention toward microtakaful. The study underscores the importance of microtakaful providers raising awareness, offering affordable structures, and highlighting microtakaful's value as a risk management tool. By employing an advanced TPB model, this research offers profound insights into the perceptions and behavioral tendencies of East Java's low-income households regarding microtakaful. The findings suggest actionable strategies for providers to enhance outreach and participation among this vulnerable group, contributing to improved financial inclusion and resilience.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"50 3","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138626481","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Yassine Kouach, Abderrahim El Attar, Mostafa Elhachloufi
Driven by the need to manage risk by the newly created Moroccan Takaful operators, the Moroccan Insurance and Social Welfare Control Authority has authorized the Central Reinsurance Company to create a ReTakaful window for the purpose of reinsuring Takaful operations. Nevertheless, the main challenge is determining the appropriate ReTakaful model for the Moroccan Islamic insurance sector by ensuring compliance with Shariah. With this in mind, this article aims to determine the optimal ReTakaful contributions model for the Moroccan Takaful industry via Machine Learning algorithms. We select the best model by comparing the performance of each algorithm. The achieved results of this study demonstrate the potential of using Machine Learning algorithms to compute ReTakaful contributions that are more suitable for Takaful operators and more optimal for the ReTakaful operator.
{"title":"RETAKAFUL CONTRIBUTIONS MODEL USING MACHINE LEARNING TECHNIQUES","authors":"Yassine Kouach, Abderrahim El Attar, Mostafa Elhachloufi","doi":"10.21098/jimf.v9i3.1681","DOIUrl":"https://doi.org/10.21098/jimf.v9i3.1681","url":null,"abstract":"Driven by the need to manage risk by the newly created Moroccan Takaful operators, the Moroccan Insurance and Social Welfare Control Authority has authorized the Central Reinsurance Company to create a ReTakaful window for the purpose of reinsuring Takaful operations. Nevertheless, the main challenge is determining the appropriate ReTakaful model for the Moroccan Islamic insurance sector by ensuring compliance with Shariah. With this in mind, this article aims to determine the optimal ReTakaful contributions model for the Moroccan Takaful industry via Machine Learning algorithms. We select the best model by comparing the performance of each algorithm. The achieved results of this study demonstrate the potential of using Machine Learning algorithms to compute ReTakaful contributions that are more suitable for Takaful operators and more optimal for the ReTakaful operator.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"59 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84717191","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Darwis Harahap, Ahmad Afandi, Try Mahendra Siregar
This study examines factors that influence Indonesian Islamic banking customers’ behavioral intention to utilize digital banking services using the Unified Theory of Acceptance and Use of Technology (UTAUT 2). The factors examined include effort and performance expectations, social influence, facilitating conditions, price value, hedonic motivation, habits, trialability, and spiritual motivation. The study also examines whether Islamic lifestyle moderates the roles of social influence, habits, and spiritual motivation in the tendency to utilize Islamic digital banking. Gathering data from 195 Indonesian millennials and utilizing the partial least squares structural equation modeling approach (SEM-PLS), we find that not all factors have a positive effect on the propensity to utilize Islamic digital banking services. The performance expectations, social influences, price values, habits, and Islamic lifestyles all have a strong favorable effect on the desire to use digital banking. Meanwhile, the facilitating condition, hedonic motivation, trialability, and spiritual motivation only slightly affect the intention to use digital banking. Finally, the paper notes that absence of Islamic lifestyle’s moderating role.
{"title":"THE ISLAMIC BANKING CUSTOMERS’ INTENTION TO USE DIGITAL BANKING SERVICES: AN INDONESIAN STUDY","authors":"Darwis Harahap, Ahmad Afandi, Try Mahendra Siregar","doi":"10.21098/jimf.v9i3.1673","DOIUrl":"https://doi.org/10.21098/jimf.v9i3.1673","url":null,"abstract":"This study examines factors that influence Indonesian Islamic banking customers’ behavioral intention to utilize digital banking services using the Unified Theory of Acceptance and Use of Technology (UTAUT 2). The factors examined include effort and performance expectations, social influence, facilitating conditions, price value, hedonic motivation, habits, trialability, and spiritual motivation. The study also examines whether Islamic lifestyle moderates the roles of social influence, habits, and spiritual motivation in the tendency to utilize Islamic digital banking. Gathering data from 195 Indonesian millennials and utilizing the partial least squares structural equation modeling approach (SEM-PLS), we find that not all factors have a positive effect on the propensity to utilize Islamic digital banking services. The performance expectations, social influences, price values, habits, and Islamic lifestyles all have a strong favorable effect on the desire to use digital banking. Meanwhile, the facilitating condition, hedonic motivation, trialability, and spiritual motivation only slightly affect the intention to use digital banking. Finally, the paper notes that absence of Islamic lifestyle’s moderating role.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"27 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90809388","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
By applying the Stimulus-Organism-Response (SOR) model, this study investigates whether influencers’ credibility and halal awareness influence customer’s perceived value which, in turn, affects their purchase intention. Gathering data using an online survey and applying the SEM-PLS method, we find that influencers' credibility and halal awareness have a positive effect on the customer’s perceived value for local Indonesian halal beauty products. In addition, the perceived value also affects customers purchase interest. The results related to halal awareness emphasizes the role of halal certification in the customer’s purchase intention. This study provides valuable insight to the halal local beauty industry to improve the marketing strategy and contributes to the theoretical literature in the field of management and marketing.
{"title":"PURCHASE INTENTION OF HALAL LOCAL BEAUTY BRAND DURING COVID-19: THE ROLE OF INFLUENCERS’ CREDIBILITY AND HALAL AWARENESS","authors":"Ismi Tazlia, Dety Nurfadilah, Sasotya Pratama","doi":"10.21098/jimf.v9i3.1623","DOIUrl":"https://doi.org/10.21098/jimf.v9i3.1623","url":null,"abstract":"By applying the Stimulus-Organism-Response (SOR) model, this study investigates whether influencers’ credibility and halal awareness influence customer’s perceived value which, in turn, affects their purchase intention. Gathering data using an online survey and applying the SEM-PLS method, we find that influencers' credibility and halal awareness have a positive effect on the customer’s perceived value for local Indonesian halal beauty products. In addition, the perceived value also affects customers purchase interest. The results related to halal awareness emphasizes the role of halal certification in the customer’s purchase intention. This study provides valuable insight to the halal local beauty industry to improve the marketing strategy and contributes to the theoretical literature in the field of management and marketing.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"10 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86630980","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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