The intention to adopt Islamic financing in emerging economies: evidence from Uganda
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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Islamic Accounting and Business Research
Abstract
The purpose of this paper is to establish whether there is a relationship between religiosity,
religious preferences, firm age and intention to adopt Islamic financing in an emerging economy like Uganda
which is a secular state and adopting Islamic financing for the first time.
Design/methodology/approach – This study uses a cross-sectional and mixed-methods design. The
authors administered closed-ended questionnaires and these were supplemented by semi-structured interviews.
Findings – Results indicate that religiosity is significantly associated with intention to adopt Islamic financing.
Further, religious experience as a dimension of religiosity is significantly associated with intention to adopt
Islamic financing unlike ideology. Religious preferences and firm age are also significantly associated with
intention to adopt Islamic financing. A one-way analysis of variance (ANOVA) reveals that there are significant
differences in between religions whereby Muslims are more ready for Islamic financing than the Christians are.
Research limitations/implications – This study’s main limitation is that it uses evidence from
Uganda’s micro businesses which account for 70 per cent of Uganda’s total businesses. It is unclear on
whether this study results can be generalized to the remaining 30 per cent of the businesses and if results of
this study can be generalized to other national settings.
Originality/value – Islamic financing being an emerging phenomenon on the African continent especially
in the Sub-Saharan Africa where most countries are secular states, there are few empirical studies exploring
religiosity, religious preferences, firm age and intention to adopt Islamic financing in an emerging economy
perspective. To the best of the authors’ knowledge, this is the first paper that provides some insights into
religiosity, religious preference, firm age and intention to adopt Islamic financing from a Ugandan perspective
using a mixed methods research design.
Description
Keywords
Islamic banking, Religiosity, Intention, Uganda, UTAUT model, Islamic financing, Firm age, Religious preference
Citation
Bananuka, J., Mukyala, V., Tumwebaze, Z., Ssekakubo, J., Kasera, M., & Najjuma, MS (2020). The intention to adopt Islamic financing in emerging economies: evidence from Uganda. Journal of Islamic Accounting and Business Research , 11 (3), 610-628. DOI 10.1108/JIABR-07-2017-0108