Browsing by Author "Abdulhadi Muzemil"

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    The Moderating Effect of Religious Beliefs on the Factors Affecting Adoption of IFB in Ethiopia: Evidence from Selected Private Commercial Banks
    (AAU, 2023-06-14) Abdulhadi Muzemil; Lakew Alemu (PhD)
    The main objective of this study was to examine the moderating effect of religious beliefs on the factors affecting the adoption of Interest-Free Banking (IFB) in selected private banks in Ethiopia: Bank of Abyssinia, Oromia Bank, and Zamzam Bank. The study followed an explanatory research design and utilized a quantitative approach. The population consisted of customers of IFB, experts involved in policy-making, individuals providing support to the business, consultants, and members of the Sharia’h advisory committee in the country. Purposive sampling was used to select samples from each bank, resulting in a sample size of 210 participants. A close-ended questionnaire with a five-point Likert scale was employed to collect data, and both descriptive and inferential statistics were used for analysis. The findings of the study indicated that Sharia’h compliance, customers' awareness of IFB products and services, perceived relative advantage, and networking exhibited a positive and strong relationship with the adoption of IFB. However, the accessibility of IFB services showed a negative relationship with the adoption of IFB. The moderating variable was found moderate the relationship between Sharia’h compliance and accessibility of IFB services, but it did not moderate the relationships between networking, customers' awareness, and perceived relative advantage with the adoption of IFB. Based on the results, the researcher recommends that the respective banks focus on improving the accessibility and convenience of IFB services while maintaining Sharia’h compliance to achieve their organizational and financial goal despite having religious components. Additionally, it is suggested that future research should include a larger number of respondents and encompass a broader range of banks adopting IFB across all generations. In conclusion, this study provides insights into the moderating effect of religious beliefs on the adoption of IFB in selected private banks in Ethiopia. The findings contribute to the understanding of the factors influencing the adoption of IFB and offer practical recommendations for banks to enhance their IFB services