Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)

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Factors Affecting Customer Intentions to Seek Islamic Microfinancing: Evidence from Indonesia

Authors
Amanda Riany Putri, Irfani Fithria, Rahmatina Awaliah Kasri
Corresponding Author
Irfani Fithria
Available Online October 2019.
DOI
10.2991/aprish-18.2019.33How to use a DOI?
Keywords
Islamic microfinance, theory of planned behavior, religious factor, pricing factor, intention to use, MSMEs, Islamic microfinance institutions
Abstract

Abstract-Micro, small, and medium-sized enterprises (MSMEs) contribute significantly to global GDP and employment, especially in developing economies like Indonesia. Unfortunately, MSMEs have little access to formal sources of external finance. The rise of Islamic microfinance potentially can overcome this constraint. This study analyzes five factors that determine MSMEs' intention to seek Islamic microfinance as a source of business financing. Drawing upon the Theory of Planned Behavior, we sample 160 customers from four branches of two Islamic microfinance institutions in Indonesia. Using partial least squares structural equation modeling, we measured the influences of five variables on their microfinancing intentions: attitude, subjective norms, perceived behavioral control, pricing, and religiosity. Results show that attitude, subjective norms, perceived behavioral control, and religiosity influence intention to seek Islamic microfinance. Pricing had a negative effect. These results help Islamic financial institutions to improve attract clients and design strategies to expand markets.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
October 2019
ISBN
10.2991/aprish-18.2019.33
ISSN
2352-5398
DOI
10.2991/aprish-18.2019.33How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Amanda Riany Putri
AU  - Irfani Fithria
AU  - Rahmatina Awaliah Kasri
PY  - 2019/10
DA  - 2019/10
TI  - Factors Affecting Customer Intentions to Seek Islamic Microfinancing: Evidence from Indonesia
BT  - Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)
PB  - Atlantis Press
SP  - 257
EP  - 261
SN  - 2352-5398
UR  - https://doi.org/10.2991/aprish-18.2019.33
DO  - 10.2991/aprish-18.2019.33
ID  - Putri2019/10
ER  -