Content uploaded by Fahrettin Pala
Author content
All content in this area was uploaded by Fahrettin Pala on Jun 19, 2023
Content may be subject to copyright.
Analyzing the linkage between
Islamic financial literacy and
Islamic banking services adoption:
evidence from Turkey
Fahrettin Pala
AydınDo
gan Kelkit Vocational School, Gumushane Universtity,
Gumushane, Turkey
Aylin Erdoğdu
Department of Finance and Banking, Faculty of Economics and Administrative
Sciences, _
Istanbul Arel University, _
Istanbul, Turkey
Muhammad Ali
Graduate Business School, UCSI University, Kuala Lumpur, Malaysia
Faisal Alnori
Faculty of Economics and Administration, King Abdulaziz University,
Jeddah, Saudi Arabia, and
Abdulkadir Barut
Department of Accounting and Tax Practices, Harran University,
Sanliurfa, Turkey
Abstract
Purpose –The purpose of this study is twofold. First, this research explores the level of Islamic financial
literacy of customers in the context of Islamic banking. Second, this study examines the determinants of
customer adoption ofIslamic banking in Turkey.
Design/methodology/approach –This study gathered sample data from 409 participants determined
using the purposive sampling method. In the study, first, the reflective measurement model is used to examine the
reliability, validity and multicollinearity problems of the variables. Then, AMOS structural equation model (SEM)
is used to reveal the relationship between Islamic financial literacy and Islamic banking services. Additionally,
this study performed both descriptive and inferential analysis to understand customer literacy about Islamic
banking and their adoption behavior of Islamic banking.
Findings –The results obtained from descriptive assessment indicate that Turkish customers of Islamic
banking possess sufficient literacy about Islamic banking. Moreover, the results from SEM indicate that the
adoption of Islamic banking by customers is significantly predicted by the role of Sharia Board management,
Islamic banking and purpose of financial institution, religious factor and legitimacy of Islamic financial
system.
Research limitations/implications –This study focuses only on the level of knowledge and
perceptions of customers who have accounts in Islamic banks or financial institutions in Turkey. It does not
focus on the level of knowledge and perception of Muslims who do not have accounts in Islamic banks and
financial institutions.
Originality/value –Previous studies on Islamic banking are mostly studies that investigate customers’
perceptions of the Islamic banking system and why individuals prefer Islamic banks. In particular, studies
Islamic
banking
services
adoption
Received 23 December2021
Revised 3 March 2022
29 December 2022
8 March 2023
16 April 2023
Accepted 2 May 2023
Journal of Islamic Accounting and
Business Research
© Emerald Publishing Limited
1759-0817
DOI 10.1108/JIABR-12-2021-0324
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1759-0817.htm
examining the relationship between individuals’Islamic financial literacy level and Islamic banking
preferences are limited. This study is considered to be an original study as it investigates the relationship
between the Islamic financial literacy level of individuals and their adoption of Islamic banking services in
Turkey.
Keywords Islamic banking, Islamic financial literacy, AMOS, Survey method
Paper type Research paper
1. Introduction
The mid-1970s can be considered the initial days of efforts toward the interest-free banking
system. Banks operating under interest-free principles were included in the financial system and
became an essential alternative to conventional banks in countries with a predominantly
Muslim population. On the other side, conventional banks experienced a profitability problem,
especially during the global financial crisis in 2008, while interest-free banks continued their
growth and profitability until the situation negatively affected the real sector (TKBB, 2021).
These developments have led to increased interest in Islamic finance products, and Islamic
banking and Islamic financial products have become an important alternative for both Muslims
and non-Muslims (Chong and Liu, 2009;Setiawati et al.,2018;Kevser and Do
gan, 2021). In this
regard, the banking system known as interest-free or Islamic banking in the world is called
participation banking in Turkey (Parlakkaya and Çürük, 2011,p.397).
Despite having an active account in Islamic banking and financial institutions, the low
level of financial knowledge and Islamic financial literacy is a problem. The low level of
financial knowledge and Islamic financial literacy may cause investments not to be made in
the right investment tools, causing economic losses. After the global financial crisis of 2019,
many businesses faced the danger of bankruptcy due to problems in providing credit.
Keeping savings inactive and not included in the financial system is a significant loss in the
economic system. Additionally, the need for financial resources and their constant
circulation is essential to support a stable financial environment. Suppose a part of the
money is pushed out of the economy and kept idle. In that case, financing problems start
when insufficient cash is in circulation and may turn into economic problems (Uluyol, 2011).
In this case, it causes a waste of financial capital, and savings cannot be used as a monetary
value because they remain idle and cause challenges in the financial system. The concept of
waste in financial capital describes the extravagance caused by individuals’inability to use
their savings in traditional financial systems. As a result of the waste generated by these
idle and unused values, there will be deficits in the savings that the financial system can use.
Furthermore, the new investments, which represent an increase in the physical capital stock
of the country, cannot be made due to the lack of financing and the dependency on investors’
participation. As a result of all these, a cycle will occur that feeds the rate of increase in the price
level in the country (Yazıcı, 2020). Likewise, individuals with low Islamic financial literacy are
often reluctant to get involved in the financial system. Therefore, it is important to investigate
the existence of these problems and make suggestions according to the research results.
In summary, individuals’Islamic financial literacy knowledge levels can be
determinative in financial decisions and behaviors, such as savings, investment, retirement
planning and bank preference, such as interest-based financial literacy knowledge level, as
in conventional banking. Theoretically, it can be expected that as the Islamic finance literacy
of financial consumers increases, their orientation toward the interest-free banking system
will increase. Moreover, the basis of prejudices and criticisms toward the interest-free
banking system is based on financial consumers’incomplete or erroneous knowledge about
Islamic finance (Yıldız, 2020). Additionally, Islamic financial literacy is a quality of financial
JIABR
management (such as incomeand expenditure); it is not limited to basic issues such as zakat
and philanthropy. It is also considered as the ability to understand finance based on Sharia
compliance. Especially after the 2008 financial crisis, world economies started to focus on
Islamic finance again. For that reason, the Islamic finance industry is filled with a wide
variety of financial instruments and asset options for not only Muslim but also non-Muslim
investors. From this point of view, this study will try to determine the harmony between the
theoretical expectation and the actual behavior of individuals regarding their bank
preference.
In the past literature, we observed limited studies on Islamic finance literacy in the
literatüre. Some studies investigate why individuals prefer Islamic banks (Haque et al., 2009;
Gerrard and Cunningham, 2001;Chowdhury et al., 2019), as well as studies that determine
the level of Islamic financial literacy (Çömlekçi, 2017). Earlier studies mainly aim to assess
the level of Islamic financial literacy by analyzing the perception of adopting Islamic
banking services. However, past studies also investigated the level of Islamic finance
literacy and the preference of participating banks, but the evidence is limited and demands
more investigation. Thus, this study attempts to determine the level of Islamic finance
literacy and adoption of Islamic banking services, especially for individuals who have
accounts in participation banks.
Likewise, since the study provides information about the level of Islamic financial
literacy and financial behavior in Turkey, we are also certain that this study contributes to
the literature as it can form a basis for future research on developing strategies to increase
investor behaviors in Turkey.
2. Literature review
2.1 Islamic financial literacy
The concept of financial literacy, which is discussed from different perspectives in the
literature, with its most general definition; It is defined as:
The ability to evaluate one’s own money efficiently, thanks to the ability to master basic financial
issues such as interest, savings, inflation, and borrowing, and to make mathematical calculations
regarding them (Yıldız, 2020).
As can be seen, individuals’financial literacy levels are measured with concepts and
calculations based on interest. Again, the participation of financial literacy knowledge level
in money and capital markets and its effects on savings and investment decisions are
evaluated within this framework (Yıldız, 2020). It should be noted that in societies, there are
individuals who make financial decisions based on their financial knowledge and skills, as
well as individuals who shape their financial preferences in line with their beliefs and values
(Yıldız, 2020). Because the religious values of individuals are important elements that
regulate their lives and direct their tendencies about how they should behave in various
situations. Financial needs that may arise in the process of realizing the various needs and
wishes of individuals will also require them to apply their attitudes under the influence of
religious provisions (Turan and Demirci, 2019). To meet these needs, the participation
banking system, whose financial activities are based on profit and loss sharing and which
works with the principle of interest-free, has been established (Yıldız, 2020). This system is
the unit that mediates individuals, who want to avoid interest, to bring their idle funds,
which are out of the financial system, to economic life (Özsoy et al., 2013). It is important for
individuals who want to shape their financial decisions in line with their beliefs and values
to be at least basic-level Islamic finance literate. Because the level of knowledge of Islamic
finance literacy is an important factor that affects individuals’attitudes toward making
Islamic
banking
services
adoption
financial decisions in accordance with Islamic rules. On the other hand, it is argued that the
information on the difference between deposit banks and participation banks also depends
on the level of Islamic finance literacy (Antara et al.,2016;Yıldız, 2020).
2.2 Empirical studies and hypotheses
Similar to the change and development experienced in thefinance sector, it is also seen in the
field of Islamic finance in the Islamic geography. Islamic finance provides an environment
for individuals to evaluate their income, expenditures, savings and investments following
Islamic rules. Islamic finance awareness and literacy began to gain importance as it
developed and took its place in the Islamic finance sector, which is in today’sfinancial
system (Altundere Do
gan, 2020). The importance of Islamic financial literacy has made it
necessary to conduct research on Islamic financial literacy and define this concept. Since the
concept of literacy in Islamic finance is a relatively new field, there is no generally accepted
definition. This concept can be defined as a new perspective brought to the finance literature
(Bekereci et al., 2018). From this point of view, the concept of Islamic financial literacy is
defined as the degree of knowledge, awareness and skills related to Islamic financial
services (Yıldız, 2020). Another definition, Islamic financial literacy, can be defined as the
ability to understand finance based on Sharia compliance (Abdullah et al., 2016). Antara
et al. (2016) defined the concept of Islamic financial literacy as the ability to have knowledge
about Islamic products and services, to observe the basic principles of Islamic finance while
making financial decisions and to act in the awareness of Islamic rules and rules. The most
basic feature of the Islamic finance system is that it provides interest-free finance
alternatives, especially to those with religious sensitivities, by carrying out its activities
without using the interest-bearing transactions that the religion of Islam has forbidden
(Altundere Do
gan, 2020). This feature of the Islamic financial system is what distinguishes
the Islamic financial system from other conventional banking systems. The main aspects
that distinguish the products used by the Islamic financial system from those used by the
conventional financial system are their philosophical differences. These differences are as
follows: while in the conventional system, there is no obligation to base transactions on a
real asset, that is, a commercial transaction, in the Islamic financial system, these
transactions should be based on a real asset, that is, a commercial transaction. While there
are elements that are important for customers as a source of information, such as interest,
uncertainty and excessive risk in the conventional system, prohibition of illegal transactions
and speculative behaviors, such as interest, excessive risk and uncertainty in the Islamic
financial system. While pricing volatility is high in times of crisis in the conventional
system, pricing volatility is low in times of crisis in the Islamic financial system. In the
conventional system, the loan agreement (lending contract) is valid, while in the Islamic
financial system, the financing and proxy contract (purchase and sale contract) is valid.
Again, in the conventional system, funds are given in return for various noncompulsory
assets (mortgages, etc.), while the financial support given in the Islamic finance system is
given in return for a good or service (Yazıcı,2020). Thus, this study reports the following
hypotheses:
H1. Islamic banking and financial services information will have a significant impact on
the adoption of Islamic banking.
H2. Islamic banking and financial services will have a significant impact on the
adoption of Islamic banking.
JIABR
The simplest answer to the question of why the Islamic finance system uses noninterest
instruments, although perhaps it serves the same purpose, result and similar pricing with
interest-free transactions, is that Islam looks at the process, not the result, in economic
transactions. In other words, Islam did not prohibit generating income from commercial
transactions; on the contrary, itencouragedit. However, in this incentive, he gave importance
to risk sharing in the contracts between the parties. Naturally, there is always risk in a
business activity. Assuming that there is no gain without risk, the risk must be shared so
that the interest prohibited by religion and making money out of money are not involved
(Yazıcı,2020). At this point, it is predicted that those who want to participate in the financial
system in accordance with Islamic conditions will have positive effects on their participation
in the Islamic finance system if they become aware of Islamic finance and have knowledge
about Islamic finance methods, that is, gaining Islamic finance awareness and literacy
(Altundere Do
gan, 2020). In parallel with the developments and changes in the financial
system in recent years, the Islamic finance sector has developed and started to take its place
in the general financial system. At this point, it has become important to determine the
Islamic finance literacy level of individuals and to understand the effect of this on their
adoption of Islamic banking services. Despite this importance, studies on this subject are
very limited. National and international studies on the subject in the literature are
summarized below. Previous studies on Islamic banking were carried out primarily to
determine customers’perceptions of the Islamic banking system. There have been many
studies focusing on different determinants of Islamic banking adoption, such as the role of
the Sharia Board, customer relationship, education level, religion, group and awareness level.
However, in addition to recent studies investigating why individuals prefer Islamic banks
(Haque et al.,2009;Gerrard and Cunningham, 2001;Chowdhury et al.,2019), some studies
determine the level of Islamic financial literacy (Çömlekçi, 2017). In the Turkish context, the
literature is limited to Sharia Board and customer relationships as the determinants of
Islamic banking adoption. Therefore, this research postulates the following hypotheses:
H3. Role of Sharia Board management will have a significant impact on the adoption of
Islamic banking.
H4. Customer relations in Islamic banking and financial institutions will have a
significant impact on the adoption of Islamic banking.
In the literature of studies investigating the reasons why you choose to do Islamic banking
in Turkey Dayı(2019), the selection of Islamic banks has determined that it is effective to
collect a fee for religious sensibilities and processes. Durak et al. (2017) found that the two
most effective factors in choosing Islamic banking are close relations and respect for branch
personnel. Anaç and Kaya (2017) found that interest and religious sensitivities were
effective in choosing an Islamic bank. Özsoy et al. (2013) found that service and product
quality is the most influential factor in the preference of Islamic banks. Karakaya and
Karamustafa (2004) stated that religious reasons, corporate image and friend suggestions
were effective in choosing an Islamic bank. Okumus(2005) found that the most important
factor in choosing an Islamic bank is religious sensitivities. Metawa and Almossawi (1998),
in their study in Bahrain, in which they determined the factors affecting the bank
preferences of the customers of Islamic banks, primarily the adherence of the customers to
the principles of Islamic finance; second, they determined that they preferred the bank by
considering the rate of return on the money they invested. Dusuki and Abdullah (2007),in
their study in which they investigated the reasons for customers prefer Islamic banks in
Malaysia, determined that the most important reason is that the personnel are
Islamic
banking
services
adoption
knowledgeable, talented, sincere and respectful. Wakhid and Efrita (2007), in their study on
the customer service quality of Islamic banks in Indonesia, concluded that religious reasons
are the most important factor in the adoption of Islamic banks. In a study conducted by
Amin (2008) on the reasons for the preference for Islamic banks in Malaysia, the bank’s
interest-free nature, low loan rates, transparency and face-to-face financing were determined
as the factors affecting the preferences of customers, respectively. Haque et al. (2009) studied
the preferences of customers in Malaysia for Islamic banks and found that the quality and
availability of services, social and religious perspectives and trust were the main
determinants of influencing customers. Bhatti et al. (2010), in a study on the reasons for the
preference for Islamic banks in Pakistan, found that religious reasons and profitability were
the most effective reasons. Amin et al. (2011), in their studies with customers of two full-
fledged Islamic banks in Malaysia, Bank Islam Malaysia Berhad and Bank Muammalat
Malaysia Berhad, stated that the most influential factors were attitude, Islamic pricing and
social impact. Lee and Ullah (2011), in their study, investigating the factors that affect
customers’decision to choose Islamic banks in Pakistan, found that they prefer Islamic
banks mainly because they act in accordance with Sharia laws. In their study, Ltifiet al.
(2016) determined that the most important determinants of customer satisfaction (CS) with
Islamic banking in Tunisia are the quality of services, trust and compliance with Sharia.
Thayeb (2019) determined in his study that profit-sharing was the positive and most
influential factor on the interest of non-Muslims in becoming an Islamic bank customers. In
their study, Afriani and Asandimitra (2020) found that high profit sharing was effective in
choosing Islamic banks. Hence, this study realized that the purpose of Islamic banking as a
financial institution and the religious factors is important to determine the adoption
behavior of customers.Therefore, we proposed thefollowing hypotheses:
H5. Islamic banking and the purpose of financial institution will have a significant
impact on the adoption of Islamic banking.
H6. The religious factor will have a significant impact on the adoption of Islamic banking.
Moreover, this study noted that the legitimacy of Islamic banking may also increase the
adoption behavior of customers. This implies that Muslim customers are attracted toward
the legitimacy of Islamic banking. Similarly, the CS is also an important factor to increase
the level of Islamic banking adoption. In this regard, Ali and Raza (2017) argued that Islamic
banking CS is an essential factor to understand the customer inclination toward Islamic
banking. In the Turkish context, our literature search highlights that fewer studies have
generated inferences that explain Islamic banking adoption in relation to the legitimacy of
Islamic banking and CS. Thus, this study intends to explore this relationship and suggest
the following hypotheses:
H7. Legitimacy of the Islamic financial system will have a significant impact on the
adoption of Islamic banking.
H8. Customer Satisfaction will have a significant impact on the adoption of Islamic
banking.
3. Methods
3.1 Research approach
This study used a quantitative research approach due to the subject of the research is based
on the cause-and-effect relationship. In other words, it is to reveal the relationship between
JIABR
dependent and independent variables using relevant statistical approaches. In this study,
the effect of independent variables related to Islamic financial literacy on the acceptance of
Islamic banking dependent variable is investigated.
3.2 Research framework
To measure the effects of Islamic financial literacy on the adoption of Islamic banking
services, Zaman et al. (2017) conceptual model was used along with past empirical support.
The basis for the derivation of this model is that the foundations of Islamic banking theory
are based on Sharia law. In terms of Islamic banking, Sharia law is based on the idea that
interest is prohibited because it has a wide variety of negative effects on society (Haron and
Azmi, 2009). Additionally, we used a survey-based instrument for data collection. This
design was chosen because it is suitable for documenting the opinion of individuals on
Islamic banking (Amin and Isa, 2008;Zaman et al., 2017;Ali et al.,2022;Amin et al.,2022;Ali
et al.,2017).
This study developed a model based on the assumptions of the research that aims to
determine the Islamic financial literacy of individuals and to reveal how effective Islamic
financial literacy is in adopting Islamic banking services. Our model foundation is rooted in
Zaman et al. (2017) study due to several reasons. The first is that Pakistan has the largest
Muslim community in the world (Ali et al., 2021). Second, the ethnic structure in Pakistan
and Turkey is quite similar due to the Muslim majority. In other words, the existence of
various ethnic groups, the majority of the Sunni and Hanafisect and approximately 96% of
its people are Muslim. The third is that Islamic provisions based on the Quran and Sunnah
are implemented in Pakistan. Because the purpose of the establishment of Islamic banking is
to prohibit the phenomenon of interest in the Quran and Sunnah, which are the source of
religious values of individuals. Thus, Figure 1 shows the hypothesized model of this study.
The variables within the scope of the research are variables of a reflective nature.
Because each item in the scale is an indicator of the variable being measured, and they
are shaped by the variable. The expressions of the scales in the research reflect the structure
they represent. In our research framework, we used nine independent variables, while
the acceptance of Islamic banking variable was used as the dependent variable. The
independent variables include the following: the role of the Shari’ah council administration,
Islamic banking and financial service knowledge, Islamic banking and the purposes of
financial institutions, religious factors, legitimacy of the Islamic financial system (LIFS),
customer relations (CR) in Islamic banking and financial service organizations, CS and
Islamic bank and financial service; hence, Table 1 illustrates the description of variables
used in this study.
3.3 Data and sampling
The analysis of the study is conducted at the level of individuals who have commercial and/
or individual accounts in any Islamic bank or Islamic financial institution. The sample data
was collected from individuals situated in Turkey with accounts in Islamic banks or Islamic
financial institutions. There are six banks under the name of participation banking that
carry out Islamic banking activities in Turkey. These are, respectively, Albaraka Türk
Katılım BankasıA.S., Kuveyt Türk Katılım BankasıA.S., Türkiye Emlak Katılım Bankası
A.S. Türkiye Finans Katılım BankasıA.S., VakıfKatılım BankasıA.S. and Ziraat Katılım
BankasıA.S. This study used a purposive sampling technique and distributed a total of 427
questionnaires. Later, we eliminated 18 responses from the research because of incomplete
and missing information. The possible reason could be that the respondents paid a lack
of attention or interest to participate in the survey. Therefore, a total of 409 usable
Islamic
banking
services
adoption
questionnaires were analyzed in the statistical process. The survey was conducted in May
2019 and November 2019.
3.4 Measurement instrument
As mentioned above, we gathered sample data using the survey technique due to its features
of obtaining quality data in primary studies. Our questionnaire was divided into two
Figure 1.
Research framework
Customer Relaons in
Islamic Banking and
Financial Instuons
(CR)
Customer
Sasfacon (CS)
Religious Factor (RF)
Islamic Banking &
Financial Services
(IB&FS)
Role of Sharia Board
Management (RSBM)
Islamic Banking &
Purpose of Financial
Instuon (IB&PFI)
Islamic Banking &
Financial Services
Informaon (IB&FSI)
Adopon of Islamic
Banking (AIB)
Legimacy of Islamic
Financial System
(LIFS)
H1
H2
H3
H4
H5
H6
H7
H8
Source: Figure by authors
JIABR
sections. The first part of the questionnaire measures demographic information, such as
gender, age, education level and region of residence of the participants. The second and third
parts consist of statements about the participants’acceptance of Islamic financial literacy
and Islamic banking. These questions exist in the literature, Zaman et al. (2017) based on the
scale we adopted in this study. The questions in the scales are converted to Turkish, taking
into account the opinions of the academicians and experts. For all the questions about
Islamic financial literacy and accepting Islamic banking, a five-point Likert-type scale is
used. Five-point Likert type scale, which is classified as 1 (Strongly Disagree), 2 (Disagree), 3
(Undecided), 4 (Agree)and 5 (Strongly Agree).
4. Data analysis
4.1 Demographic
According to the personal information of the participants included in the sample, the
distribution and the answers given by the participants to the questions are summarized in
Tables 2–11.
Table 2 shows the demographic information of the study. The results indicate that 67.7%
of the participants are men and 32.3% are women. It is seen that among these participants,
those between the age range of 18–25 represent 40.3% of the total sample, and those with 63
and above represent only 0.5%. It is observed that the majority of the participants are
undergraduate graduates, 41.4%, and the least participants are primary education
graduates, only 0.7%. Likewise, when the regions of the participants are examined, it is
determined that most of them are from the Güney Do
gu Anadolu region at 31.8%, and the
least participant is from the Ege region at 17%.
Table 3 is about the independent variable scale, which includes explanations of
the awareness of Islamic banking products. When Table 3 is analyzed, it is seen that the
average of the answers given by the participants to the eight questions regarding the scale
of Islamic banking and financial service knowledge ranged from 2.56 to 3.19. This situation
indicates that the participants are undecided about “Islamic banking and financial service
knowledge.”
Table 4 relates to the scale of the independent variable, which includes explanations of
the role of the Shariah Board management. When Table 4 is examined, it is seen that the
average of the answers given by the participants to the four questions regarding the role of
Shariah council management ranged between 2.56 and 2.72. This situation shows that the
participants are undecided about the “role of the Shariah board management.”
Table 1.
Variable description
Variable Abbreviation
Islamic banking and financial service information IB&FSI
The role of Sharia Board management RSBM
Customer Relations in Islamic banking and financial institutions CR
Purposes of Islamic banking and financial institutions IB&PFI
Religious factors RF
Legitimacy of the Islamic financial system LIFS
Customer satisfaction CS
Islamic bank and financial services IB&FS
Adoption of Islamic banking AIB
Source: Authors’creation
Islamic
banking
services
adoption
Table 5 is related to the independent variable scale, which includes explanations about CR in
Islamic banking and finance institutions. When Table 5 is examined, it is seen that the
average of the answers given by the participants to three questions regarding the CR
scale ranged from 2.49 to 2.72. This situation indicates that the participants are hesitant
about the explanations regarding “customer relations in Islamic banking and financial
institutions.”
Table 2.
Demographic
information
Frequency %
Gender
Male 277 67.7
Female 132 32.3
Age
18–25 165 40.3
26–33 126 30.8
34–41 78 19.1
41–48 24 5.9
48–55 11 2.7
55–63 3 0.7
63 and over 2 0.5
Education status
Primary education 3 0.7
Secondary education 10 2.4
High school 27 6.6
Associate degree 71 17.4
Undergraduate 169 41.4
Master and doctorate 129 31.5
The region you live in
Marmara 50 12.2
Ege 17 4.2
Akdeniz 32 7.8
Karadeniz 72 17.6
Do
gu Anadolu 72 17.6
Güney Do
gu 130 31.8
_
Iç Anadolu 36 8.8
Source: Authors’estimation
Table 3.
Answers to the
Islamic banking and
financial service
knowledge scale
Substance NMean SD
I am aware of Islamic banking products 409 3.19 1.34
I understand the concept of Islamic banking 409 3.18 1.34
I know what is Mudarabah 409 2.59 1.40
I know what is Musarakah 409 2.57 1.40
I know what is Murabahah 409 2.56 1.33
I know what is Ijarah 409 2.85 1.46
I know that Islamic banking includes the profit and loss sharing principle 409 3.12 1.44
There is no significant difference between the products and services offered by Islamic
banks or traditional banks, except for their names 409 2.73 1.43
Source: Authors’estimation
JIABR
Table 6 is related to the independent variable scale, which includes explanations of the
purposes of Islamic banking and financial institutions. When Table 6 is analyzed, it is seen
that the average of the answers given by the participants to the five questions regarding the
scale of the aims of Islamic banking and financial institutions varied between 2.25 and 3.15.
This situation indicates that the participants are undecided about the explanations
regarding the “purpose of Islamic banking and financial institutions.”
Table 7 is about the independent variable scale, which includes explanations for Islamic
banks and financial services. When Table 7 is analyzed, it is seen that the average of the
Table 4.
Answers the role of
Sharia Board
management scale
Substance NMean SD
Products are offered after close examination by the Shariah Board 409 2.56 1.20
New products are started to be applied after passing the Shariah Board 409 2.63 1.17
Shariah Boards give opinion to Sharia on new product 409 2.59 1.14
Sharia Board acts as consultant 409 2.72 1.22
Source: Authors’estimation
Table 5.
Answers to the
customer
relationship scale in
Islamic banking and
financial institutions
Substance NMean SD
Islamic banks do not abuse their customers in any way 409 2.49 1.27
Islamic banks do not make misleading advertisements 409 2.59 1.25
Islamic banking and financial institutions comply with the principles of fair dealing,
justice and charity 409 2.72 1.26
Source: Authors’estimation
Table 6.
Answers to the scale
of the purpose of
Islamic banking and
financial institutions
Substance NMean SD
Profit maximization is the main purpose of Islamic banks 409 2.73 1.26
They increased awareness of saving 409 2.25 1.21
They provide the opportunity to earn income according to Islamic values 409 2.76 1.20
A good resource for promoting Islamic values 409 3.15 1.33
They offer applicable and competitive financial products 409 2.87 1.28
Source: Authors’estimation
Table 7.
Answers the scale of
the Islamic bank and
financial services
Substance NMean SD
Offers enough retail products 409 2.71 1.21
Contributes to social welfare 409 2.79 1.26
It is the collection and distribution of zakat 409 2.44 1.29
Performance is evaluated only with a good percentage of profit/return 409 2.78 1.22
Uses modern technology to perform banking transactions 409 3.09 1.34
The Islamic banking system provides a completely alternative banking system 409 2.85 1.27
Source: Authors’estimation
Islamic
banking
services
adoption
answers given by the participants to the six questions regarding the Islamic banking and
financial services scale ranged from 2.44 to 3.09. This shows that the participants are
indecisive about “Islamic banking and financial services.”
Table 8 is related to the independent variable scale that contains explanations for
religious factors in Islamic banking. When Table 8 is examined, it is observed that the
average of the answers given by the participants to the four questions on the scale of
religious factors ranged from 2.81 to 3.24. This indicates that the participants are undecided
about the explanations regarding “religious factors in Islamic banking.”
Table 9 is related to the independent variable scale, which contains explanations for the
LIFS. When Table 9 is examined, it is seen that the average of the answers given by the
participants to the three questions regarding the legitimacy scale of the Islamic financial
system varies between 2.73 and 2.76. This situation demonstrates that the participants are
undecided about the explanations regarding the “legitimacy of the Islamic financial system.”
Table 10 is related to the independent variable scale containing explanations for CS in the
Islamic banking and finance system. When Table 10 is examined, it is seen that the average
of the answers given by the participants to three questions regarding the scale ranged from
2.91 to 2.98. This situation shows that the participants are hesitant about the explanations
regarding “customer satisfaction in the Islamic banking and financial system.”
Table 8.
Answers on the
religious factors scale
Substance NMean SD
Religious reasons behind using Islamic banking 409 3.07 1.46
The Islamic banking system was introduced as Muslims are forbidden to
receive and pay interest 409 3.24 1.46
Nonmuslim customers do not use Islamic products and services 409 2.86 1.38
Islamic banking is only for Muslims 409 2.81 1.42
Source: Authors’estimation
Table 9.
Answers the
legitimacy scale of
the Islamic financial
system
Substance NMean SD
Islamic banking and finance personnel have adequate knowledge about Islamic
teachings and work in this direction 409 2.60 1.22
Islamic banking acts according to Islamic principles 409 2.76 1.23
Rules and regulations given by Shariah experts follow the Quran and Sunnah 409 2.73 1.22
Source: Authors’estimation
Table 10.
Answers to the
customer satisfaction
scale
Substance NMean SD
Transparency practices of Islamic banks are more pronounced than traditional ones 409 2.91 1.20
Islamic banks offer important factors such as assurance, reliability and empathy for
customer satisfaction 409 2.98 1.19
Products and services in Islamic banks are more expensive than traditional banking 409 2.94 1.26
Source: Authors’estimation
JIABR
Table 11 is related to the dependent variable scale, which includes explanations for the
acceptance of Islamic banking. When Table 11 is examined, it is seen that the average of the
answers given by the participants to the four questions regarding the acceptance of Islamic
banking scale ranged from 2.83 to 3.03. This situation demonstrates that the participants are
undecided about the “acceptance of Islamic banking.”
4.2 Measurement model
Explanatory factor analysis (EFA) and confirmatory factor analysis (CFA) were used to test
the construct validity of the scales within the scope of the study, and Cronbach’s alpha
method is used to test the reliability (internal consistency) of the scales in question. In the
literature, Cronbach’s alpha coefficient of 0.70 or above is considered sufficient (Cronbach,
1951;Nunnally and Bernsteın, 1978). SPSS and AMOS software is used to analyze the data.
Even if the scales used in the study have already adopted a validated measurement
model (structure), EFA has been performed because the dimensions of the structure may
have changed in the current study context. In the EFA, the rotated factor matrix is run to
obtain nameable and interpretable factors of the scales. In the study, the varimax method,
which ensures the minimum number of variables with a high load on a factor in orthogonal
rotation methods, is preferred due to its ease of interpretation and frequency of use
(Albayrak, 2006, p. 163). As a result of the EFA, it is determined that the scale questions
were loaded on nine different factors.
In structural equation modeling (SEM), testing of models and/or models is done with fit
indices. How well the predetermined models explain the data is determined by the fit
statistics. These fit statistics test the appropriateness of the parameters of the proposed
models and the statistics obtained from sample data. In the analysis, there is no certainty as
to which fit indices will be evaluated. However, in general, Chi-square, CMIN/SD,
comparative fit index (CFI), goodness-of-fit index (GFI), normed fit index (NFI), root mean
square error of approximation (RMSEA), etc., indexes are provided (Karagöz, 2019).
Statistical values for these values are given in Table 12.
4.3 Reliability and validity analysis of scales
The most common method used in the SEM literature to evaluate whether the data support
the model is the two-stage method (Anderson and Gerbing, 1988). As the first step in the
analysis, first, the measurement model is tested (Huchting et al., 2008); it is checked whether
the measurements of the structures in the model measure the relevant structures correctly,
and in the second stage, the structural models are examined. If the researcher does not have
an accurate measurement, if the statements he assumes to measure the structures do not
adequately measure the structure in question, there will be no point in analyzing the
Table 11.
Answers the
acceptance of Islamic
banking scale
Substance NMean SD
I should be willing to switch to a halal Islamic banking product that is provided with
the same quality as traditional banking services 409 2.90 1.42
The perception that Islamic banks do not follow Islamic principles fully hinders the
adoption of Islamic banking 409 3.03 1.39
I can prefer Islamic banking without financial opportunities 409 2.83 1.32
I agree to a profit and loss contract to compensate for losses 409 2.84 1.31
Source: Authors’estimation
Islamic
banking
services
adoption
structural model (Dursun and Kocagöz, 2010). Therefore, reliability and validity analyze of
the scales are important for the continuation of the study.
Accordingly, the reliability and validity analysis results of the scales within the scope of
the research are given in Tables 13, 14, 15, 16, 17, 18, 19, 20, 21and 22.
Reliability analysis results regarding the EFA, CFA and the obtained factors to test
the construct validity of the Islamic banking and financial service information scale are
summarized in Table 13. As a result of the EFA, one of the questions in the questionnaire
regarding the scale of Islamic banking and financial service knowledge, the question,
“There is no significant difference between the products and services offered by (IB and
FHB8) Islamic banks or traditional banks, except the difference between their names”is
under another factor for that reason it has been removed from the analysis. Likewise, the
question of “(IB and FHB1) I am aware of Islamic banking products”is also excluded from
the analysis due to the interlocking situation because it takes place in more than one
factor and the difference between the values in these two factors is less than 0.10. When
the analysis results of the remaining six variables are examined, it was found that the
Cronbach’s alpha coefficient took the value of 0.913, and thus, the scale is quite reliable.
When the factor loadings (EFA) are examined, it is seen that it took values between 0.56 and
0.81. Since these values are above the 0.50 threshold value stated in the literature, the factors
are considered valid. The Kaiser–Meyer–Olkin (KMO) value being greater than the 0.70
threshold value (0.874) stated in the literature indicates that the sample is sufficient for
factor analysis. The fact that the result of the Bartlett test is also significant (p= 0.000)
Table 12.
Statistical values
regarding the fitof
the structural
equation model
Model fit criterion Good fit Acceptable fit
x
2
(Chi-square) fit test 0.05 <p#1 0.01 <p#0.05
CMIN/SD x
2
/sd #3x
2
/sd #5
NFI 0.95 #NFI 0.90 #NFI
CFI 0.97 #CFI 0.95 #CFI
RMSEA RMSEA #0.05 RMSEA #0.08
Source: Authors’estimation
Table 13.
Explanatory factor
analysis (EFA),
confirmatory factor
analysis (CFA) and
reliability analysis
results of Islamic
banking and
financial service
knowledge scale
Factor loads
Scale items Cronbach’s alpha (
a
) EFA CFA*
IB&FSI2. I understand the concept of Islamic banking 0.913 0.56 0.60
IB&FSI3. I know what is Mudarabah 0.81 0.92
IB&FSI4. I know what is Musarakah 0.78 0.91
IB&FSI5. I know what is Murabahah 0.77 0.87
IB&FSI6. I know what is Ijarah 0.68 0.76
IB&FSI7. I know that Islamic banking includes the profit
and loss sharing principle
0.60 0.62
Disclosed variance (%) 69.94
Eigenvalue 4.196
Kaiser–Meyer–Olkin (KMO) 0.874
Bartlett’s test (degree of sphericity) 1,806.987; Sig. (p) = 0.000
Notes: (*) CFA results refer to the modified model. Standardized coefficients for CFA are reported
Source: Authors’estimation
JIABR
indicates that there is a high correlation between variables and that the data come from
multiple normal distributions (Karagöz, 2019, p. 121). These two test results show that the
data are suitable for factor analysis. The cumulative variance amount explained by the
eigenvalues explains 69.94% of the total variance. Since this value is above the 60% value
(Karagöz, 2019: 122), which is accepted as the best subvalue for social sciences, the model
structure ensures its validity.
When Table 13 is examined, it is seen that CFA was applied to evaluate the compatibility
of the single-factor structure obtained as a result of the EFA with the data. While creating
the CFA model, the covariance definition is made between the error terms of some variables
representing the same factor, taking into account the modification indices proposed to
contribute to the model fit(Simsek, 2007:89–90; Sezerel et al., 2015: 103). In this context, the
error terms of “IB and FSI2”with “IB and FSI7”and “IB and FSI6”and “IB and FSI7”
variables are associated (Figure 2), and after this step, the modified structure specified in all
tested models is used. While the fit index values before improvement were (x
2
/df: 17.423,
CFI: 0.918, GFI: 0.890, NFI: 0.985, RMSEA: 0.201), postimprovement fit index values (x
2
/df:
2.784, CFI: 0.993, GFI: 0.985, NFI: 0.989, RMSEA: 0.066) and it isseen that these values areat
acceptable levels.
EFA has been made to reveal the structure of Shariah Board management’s role, and as
seen in Table 14, it has been grouped under one factor in line with institutional expectations.
When the table is examined, Cronbach’s alpha coefficient is 0.958, and this shows that the
scale is quite reliable. Likewise, when factor loadings (EFA) are examined, it is seen that
they take values between 0.86 and 0.91. Sincethese values are abovethe 0.50 threshold value
stated in the literature, the factors are considered valid. The KMO value being greater than
the 0.70 threshold value (0.850) stated in the literature indicates that the sample is sufficient
for factor analysis. The fact that the result of the Bartlett test is also significant (p= 0.000)
indicates that there are high correlations between variables and that the data come from
multiple normal distributions. These two test results show that the data are suitable for
factor analysis. The cumulative variance amount is explained by the eigenvalues explain
Figure 2.
Path diagram of
Islamic banking and
financial service
knowledge scale
Islamic
banking
services
adoption
89.02% of the total variance. Since this value is above 60%, which is accepted as the best
subvalue for social sciences, the model provides structure validity.
When Table 14 is examined, it is seen that CFA was applied to evaluate the compatibility
of the single-factor structure obtained as a result of the EFA with the data. While creating
the CFA model, considering the modification indices proposed to contribute to the model fit
and which can be accepted as logical in terms of theory, a covariance definition was made
between the error terms of some variables representing the same factor. In this context,
the error terms of “RSBM3”and “RSBM4”variables were associated (Figure 3), and after
this step, the modified structure specified in all tested models was used. While the fit index
values before improvement were (x
2
/df: 21.981, CFI: 0.978, GFI: 0.946, NFI: 0.977, RMSEA:
0.227), postimprovement fit index values (x
2
/df: 2.391, CFI: 0.999, GFI: 0.997, NFI: 0.999,
RMSEA: 0.058) and it is seen that these values are at acceptable levels.
Table 14.
Explanatory factor
analysis (EFA),
confirmatory factor
analysis (CFA) and
reliability analysis
results on the role of
Sharia Board
management scale
Factor loads
Scale items Cronbach’s alpha (
a
) EFA CFA*
RSBM1. Products are offered after close examination by the
Shariah Board
0.958 0.89 0.94
RSBM2. New products are started to be applied after
passing the Shariah Board
0.91 0.96
RSBM3. Shariah Boards give opinion to Sharia on new
product
0.91 0.91
RSBM4. Sharia Board acts as consultant 0.86 0.86
Disclosed variance (%) 89.02
Eigenvalue 3.561
Kaiser–Meyer–Olkin (KMO) 0.850
Bartlett’s test (degree of sphericity) 1,899.014; Sig. (p) = 0.000
Notes: (*) CFA results refer to the modified model. Standardized coefficients for CFA are reported
Source: Authors’estimation
Figure 3.
Path diagram of the
scale of the role of the
Shariah Board
governance
JIABR
Figure 4 illustrates the structure of CR in Islamic banking and financial institutions. EFA
has been made, and as seen in Table 15, it has been gathered under a single factor following
corporate expectations. When the table is examined, it can be said that Cronbach’s alpha
coefficient is 0.919, and with this value, the scale is quite reliable. Likewise, when the
factor loadings (EFA) are examined, it is seen that they take values between 0.83 and 0.90.
Since these values are above the 0.50 threshold value stated in the literature, the factors are
considered valid. A KMO value greater than the 0.70 threshold value (0.744) stated in the
literature indicates that the sample is sufficient for factor analysis. The fact that the result of
the Bartlett test is also significant (p= 0.000) indicates that there are high correlations
between variables and that the data come from multiple normal distributions. These two
Figure 4.
Path diagram of the
customer relationship
scale in Islamic
banking and financial
institutions
Table 15.
Explanatory factor
analysis (EFA),
confirmatory factor
analysis (CFA) and
reliability analysis
results on customer
relationship scale in
Islamic banking and
financial institutions
Factor loads
Scale items Cronbach’s alpha (
a
) EFA CFA*
CR1. Islamic banks do not abuse their customers in any way 0.919 0.83 0.84
CR2. Islamic banks do not make misleading advertisements 0.90 0.95
CR3. Islamic banking and financial institutions comply with
the principles of fair dealing, justice and charity
0.86 0.89
Disclosed variance (%) 86.14
Eigenvalue 2.584
Kaiser–Meyer–Olkin (KMO) 0.744
Bartlett’s test (degree of sphericity) 920.854; Sig. (p) = 0.000
Notes: (*) CFA results refer to the modified model. Standardized coefficients for CFA are reported
Source: Authors’estimation
Islamic
banking
services
adoption
test results show that the data are suitable for factor analysis. The cumulative variance
amount explained by the eigenvalues explains 86.14% of the total variance. Since this value
is above 60%, which is accepted as the best lower value for social sciences, the model
provides construct validity.
When Table 15 is examined, it is seen that CFA is applied to evaluate the compatibility of
the single-factor structure obtained as a result of the EFA with the data. As a result of the
analysis, it is determined that the model fit values of the three variables representing the
scale of CR in Islamic banking and financial institutions (x
2
/df: 0.000, CFI: 1.000, GFI: 1.000,
NFI: 1.000) were at acceptable levels.
When Table 16 is examined, it is seen that all fit indices are at acceptable levels. This
indicates that the model is acceptable. RMSEA value is not given in the table. The RMSEA
value is greatly affected by the sample size. The number of samples in the model may cause
the RMSEA value to exceed its acceptable level. In the study, the RMSEA value is not taken
into account in DFA in order not to reject the model because the RMSEA is found to be much
higher than its acceptable level.
EFA was conducted to reveal the structure of the purpose of Islamic banking and
financial institutions (Figure 5). As seen in Table 16, it was grouped under one factor in line
with institutional expectations. As a result of the EFA, the factor load of the question “(IB
and PFI2) Increase awareness of saving”from the questions in the questionnaire regarding
the purpose and scale of Islamic banking and financial institutions were excluded from the
analysis because it was far below the threshold value of 0.50 stated in the literature. When
the analysis results of the remaining four variables are examined, it is seen that Cronbach’s
alpha coefficient has a value of 0.894, and the scale is reliable. Likewise, when factor
loadings (EFA) are examined, it is seen that they take values between 0.67 and 0.81. Since
these values are above the 0.50 threshold value stated in the literature, the factors are
considered valid. The KMO value being greater than the 0.70 threshold value (0.836) stated
in the literature indicates that the sample is sufficient for factor analysis. The fact that the
result of the Bartlett test is also significant (p= 0.000) indicates that there are high
correlations between variables and that the data come from multiple normal distributions.
Both of these test results show that the data are suitable for factor analysis. The cumulative
variance amount explained by the eigenvalues explains 75.90% of the total variance. Since
Table 16.
Explanatory factor
analysis (EFA),
confirmatory factor
analysis (CFA) and
reliability analysis
results for the scale
of the purpose of
Islamic banking and
financial institutions
Factor loads
Scale items Cronbach’s alpha (
a
) EFA CFA*
IB&PFI1. Profit maximization is the main purpose of Islamic
banks
0.894 0.76 0.83
IB&PFI3. They provide the opportunity to earn income
according to Islamic values
0.67 0.74
IB&PFI4. A good resource for promoting Islamic values 0.81 0.87
IB&PFI5. They offer applicable and competitive financial
products
0.79 0.86
Disclosed variance (%) 75.90
Eigenvalue 3.036
Kaiser–Meyer–Olkin (KMO) 0.836
Bartlett’s test (degree of sphericity) 967.283; Sig. (p) = 0.000
Notes: (*) CFA results refer to the modified model. Standardized coefficients for CFA are reported
Source: Authors’estimation
JIABR
this value is above 60%, which is accepted as the best lower value for social sciences, the
model structure provides validity.
When Table 16 is examined, it is seen that CFA was applied to evaluate the compatibility
of the single-factor structure obtained as a result of the EFA with the data. As a result of the
analysis, it was determined that the fit values of the model belonging to four variables
representing the scale of the purpose of Islamic banking and financial institutions (x
2
/df:
2.967, CFI: 0.996, GFI: 0.993, NFI: 0.994, RMSEA: 0.069) areat acceptable levels.
EFA is conducted to reveal the structure of Islamic banks and financial services. As
shown in Table 17, they are grouped under one factor in line with corporate expectations. As
a result of the EFA, the question “(IB and FS3) is the collection and distribution of Zakat”is
excluded from the analysis because it is under another factor. Here, it can be concluded that
Cronbach’s alpha coefficient is 0.902 and the scale is reliable. Likewise, when factor loadings
(EFA) are examined, it is seen that they take values between 0.62 and 0.77. Since these
values are above the 0.50 threshold value, the factors are considered valid. The KMO value
is greater than the 0.70 threshold value, indicating that the sample is sufficient for factor
analysis. The fact that the result of the Bartlett test is also significant (p= 0.000) indicates
that there are high correlations between variables and that the data come from multiple
normal distributions. Both of these test results show that the data are suitable for factor
analysis. The cumulative variance amount is explained by the eigenvalues explain 71.88%
of the total variance. Since this value is above 60%, which is accepted as the best lower
value for social sciences, the model structure provides validity.
When Table 17 is examined, it is seen that CFA was applied to evaluate the compatibility
of the single-factor structure obtained as a result of the EFA with the data. While creating
the CFA model, considering the modification indices proposed to contribute to the model fit
and which can be accepted as logical in terms of theory, a covariance definition was made
between the error terms of some variables representing the same factor. In this context, the
error terms of the variables “IB and FS1”and “IB and FS2”were associated (Figure 6), and
the modified structure specified was used in all models tested after this stage. While
the fit index values before improvement (x
2
/df: 4,561 CFI: 0.986, GFI: 0.978, NFI: 0.982,
Figure 5.
Path diagram of the
scale of the purpose
of Islamic banking
and financial
institutions
Islamic
banking
services
adoption
RMSEA: 0.093) were (x
2
/df: 1.807, CFI: 0.997, GFI: 0.993, NFI: 0.994, RMSEA: 0.044) and
these values seem to be at acceptable levels.
EFA is performed to reveal the structure of religious factors, and they are grouped under
one factor following institutional expectations, as seen in Table 18. When the table is
examined, it can be said that Cronbach’s alpha coefficient is 0.939, and this result makes the
scale quite reliable. Likewise, when factor loadings (EFA) are examined, it is seen that they
take values between 0.75 and 0.90. Since these values are above the 0.50 threshold value
stated in the literature, the factors are considered valid. The KMO value being greater than
the 0.70 threshold value (0.804) stated in the literature indicates that the sample is sufficient
for factor analysis. The fact that the result of the Bartlett test is also significant (p= 0.000)
indicates that there are high correlations between variables and that the data come from
multiple normal distributions. These two test results show that the data are suitable for
Table 17.
Explanatory factor
analysis (EFA),
confirmatory factor
analysis (CFA) and
reliability analysis
results of Islamic
banking and
financial services
scale
Factor loads
Scale items Cronbach’s alpha (
a
) EFA CFA*
IB&FS1. Offers enough retail products 0.902 0.62 0.69
IB&FS2. Contributes to social welfare 0.76 0.82
IB&FS4. Performance is evaluated only with a good
percentage of profit/return
0.68 0.77
IB&FS5. Uses modern technology to perform banking
transactions
0.77 0.87
IB&FS6. The Islamic banking system provides a
completely alternative banking system
0.76 0.85
Disclosed variance (%) 71.88
Eigenvalue 3.594
Kaiser–Meyer–Olkin (KMO) 0.878
Bartlett’s test (degree of sphericity) 1,235.937; Sig. (p) = 0.000
Notes: (*) CFA results refer to the modified model. Standardized coefficients for CFA are reported
Source: Author’s estimation
Figure 6.
Path diagram of the
Islamic banking and
financial services
scale
JIABR
factor analysis. The cumulative variance amount is explained by the eigenvalues explain
84.60% of the total variance. Since this value is above 60%, which is accepted as the best
lower value for social sciences, the model structure provides validity.
_
In Table 18, this study performed a CFA to evaluate the compatibility of the single-factor
structure obtained as a result of the EFA with the data. While creating the CFA model,
considering the modification indices proposed to contribute to the model fit and which can
be accepted as logical in terms of theory, a covariance definition was made between the error
terms of some variables representing the same factor. In this context, the error terms of
“RF1”and “RF2”variables are associated (Figure 7), and the modified structure specified
Table 18.
The explanatory
factor analysis
(EFA), confirmatory
factor analysis (CFA)
and reliability
analysis results
of the religious
factors scale
Factor loads
Scale items Cronbach’s alpha (
a
) EFA CFA*
RF1. Religious reasons behind using Islamic banking 0.939 0.90 0.88
RF2. The Islamic banking system is introduced as Muslims
are forbidden to receive and pay interest
0.75 0.73
RF3. Nonmuslim customers do not use Islamic products
and services
0.86 0.94
RF4. Islamic banking is only for Muslims 0.87 0.95
Disclosed variance (%) 84.60
Eigenvalue 3.384
Kaiser–Meyer–Olkin (KMO) 0.804
Bartlett’s test (degree of sphericity) 1,632.633; Sig. (p) = 0.000
Notes: (*) CFA results refer to the modified model. Standardized coefficients for CFA are reported
Source: Authors’estimation
Figure 7.
Path diagram of
religious factors scale
Islamic
banking
services
adoption
was used in all models tested after this stage. While the fit index values before improvement
(x
2
/df: 56,691 CFI: 0.932, GFI: 0.875, NFI: 0.931, RMSEA: 0.369) were (x
2
/df: 2.138, CFI: 0.999,
GFI: 0.997, NFI after improvement: 0.999, RMSEA: 0.053), it is seen that these values are at
acceptable levels.
EFA is conducted to reveal what kind of structure the LIFS will take place (Figure 8). As
seen in Table 19, it is grouped under one factor in line with institutional expectations. When
the table is examined, it can be stated that Cronbach’s alpha coefficient is 0.910, and this
result makes the scale quite reliable. Likewise, when factor loadings (EFA) are examined, it
is seen that they take values between 0.80 and 0.89. Since these values are above the 0.50
threshold value stated in the literature, the factors are considered valid. The KMO value
being greater than the 0.70 threshold value (0.738) stated in the literature indicates that the
sample is sufficient for factor analysis. The fact that the result of the Bartlett test is also
Figure 8.
Path diagram of the
legitimacy scale of
the Islamic financial
system
Table 19.
Results of
explanatory factor
analysis (EFA),
confirmatory factor
analysis (CFA) and
reliability analysis of
the legitimacy scale
of the Islamic finance
system
Factor loads
Scale items Cronbach’s alpha (
a
) EFA CFA*
LIFS1. Islamic banking and finance personnel have
adequate knowledge about Islamic teachings and work in
this direction
0.910 0.80 0.81
LIFS2. Islamic banking acts according to Islamic principles 0.89 0.94
LIFS3. Rules and regulations given by Shariah experts
follow the Quran and Sunnah
0.86 0.89
Disclosed variance (%) 84.73
Eigenvalue 2.542
Kaiser–Meyer–Olkin (KMO) 0.738
Bartlett’s test (degree of sphericity) 853.186; Sig. (p) = 0.000
Notes: (*) CFA results refer to the modified model. Standardized coefficients for CFA are reported
Source: Authors’estimation
JIABR
significant (p= 0.000) indicates that there are high correlations between variables and that
the data come from multiple normal distributions. These two test results show that the data
are suitable for factor analysis. The cumulative variance amount is explained by the
eigenvalues explain 84.73% of the total variance. Since this value is above 60%, which is
accepted as the best lower value for social sciences, the model structure provides validity.
When Table 19 is examined, it is seen that CFA is applied to evaluate the compatibility of
the single-factor structure obtained as a result of the EFA with the data. As a result of the
analysis, it is determined that the model fit values of three variables representing the
legitimacy scale of the Islamic financial system (x
2
/df: 000, CFI: 1.000, GFI: 1.000, NFI: 1.000)
are at acceptable levels.
When Table 20 is analyzed, it is seen that all fit indices are at acceptable levels. This
indicates that the model is acceptable. RMSEA value is not given in the table. The RMSEA
value is greatly affected by the sample size. The number of samples in the model may cause
the RMSEA value to exceed its acceptable level. In the study, the RMSEA value is not taken
into account in DFA in order not to reject the model because the RMSEA is found to be much
higher than its acceptable level.
Figure 9 illustrated the EFA to reveal the structure of CS and has been collected under a
single factor following corporate expectations, as seen in Table 19. When the table is
examined, it shows that Cronbach’s alpha coefficient is 0.940, and this result indicates that
the scale is quite reliable. Likewise, when factor loadings (EFA) are examined, it is seen that
they take values between 0.85 and 0.92. Sincethese values are abovethe 0.50 threshold value
stated in the literature, the factors are considered valid. The KMO value being greater than
the 0.70 threshold value (0.747) stated in the literature indicates that the sample is sufficient
for factor analysis. The fact that the result of the Bartlett test is also significant (p= 0.000)
indicates that there are high correlations between variables and that the data come from
multiple normal distributions. These two test results show that the data are suitable for
factor analysis. The cumulative variance amount explained by the eigenvalues explains
89.45% of the total variance. Since this value is above 60%, which is accepted as the best
lower value for social sciences, the model structure provides validity.
When Table 20 is examined, it is seen that CFA was applied to evaluate the compatibility
of the single-factor structure obtained as a result of the EFA with the data. As a result of the
analysis, it was determined that the model fit values of three variables representing the CS
scale were (x
2
/df: 000, CFI: 1.000,GFI: 1.000, NFI: 1.000, RMSEA: 0.081) atacceptable levels.
Table 20.
Explanatory factor
analysis (EFA),
confirmatory factor
analysis (CFA) and
reliability analysis
results of the
customer satisfaction
scale
Factor loads
Scale items Cronbach’s alpha (
a
) EFA CFA*
CS1. Transparency practices of Islamic banks are more
pronounced than traditional ones
0.940 0.92 0.96
CS2. Islamic banks offer important factors such as
assurance, reliability and empathy for customer satisfaction
0.92 0.95
CS3. Products and services in Islamic banks are more
expensive than traditional banking
0.85 0.85
Disclosed variance (%) 89.45
Eigenvalue 2.684
Kaiser–Meyer–Olkin (KMO) 0.747
Bartlett’s test (degree of sphericity) 1,173.754; Sig. (p) = 0.000
Notes: (*) CFA results refer to the modified model. Standardized coefficients for CFA are reported
Source: Authors’estimation
Islamic
banking
services
adoption
EFA is conducted to reveal the structure of the acceptance of Islamic banking, and it was
grouped under one factor following corporate expectations, as seen in Table 21. When the
table is examined, it can be said that Cronbach’s alpha coefficient is 0.928, and this result
makes the scale quite reliable. Likewise, when factor loadings (EFA) are examined, it is seen
that they take values between 0.80 and 0.85. Since these values are above the 0.50 threshold
value stated in the literature, the factors are considered valid. The KMO value is greater
than the 0.70 threshold value (0.822) stated in the literature, indicating that the sample is
Table 21.
Explanatory factor
analysis (EFA),
confirmatory factor
analysis (CFA) and
reliability analysis
results of the Islamic
banking acceptance
scale
Factor loads
Scale items Cronbach’s alpha (
a
) EFA CFA*
AIB1. I should be willing to switch to a halal Islamic
banking product that is provided with the same quality as
traditional banking services
0.928 0.81 0.91
AIB2. The perception that Islamic banks do not follow
Islamic principles fully hinders the adoption of Islamic
banking
0.80 0.83
AIB3. I can prefer Islamic banking without financial
opportunities
0.85 0.82
AIB4. I agree to a profit and loss contract to compensate for
losses
0.83 0.92
Disclosed variance (%) 82.29
Eigenvalue 3.291
Kaiser–Meyer–Olkin (KMO) 0.822
Bartlett’s test (degree of sphericity) 1,321.963; Sig. (p) = 0.000
Notes: (*) CFA results refer to the modified model. Standardized coefficients for CFA are reported
Source: Authors’estimation
Figure 9.
Path diagram
of customer
satisfaction scale
JIABR
sufficient for factor analysis. The fact that the result of the Bartlett test is also significant
(p= 0.000) indicates that there are high correlations between variables and that the data
come from multiple normal distributions. These two test results show that the data are
suitable for factor analysis. ”he c’mulative variance amount explained by the eigenvalues
explains 82.29% of the total variance. Since this value is above 60%, which is accepted as
the best lower value for social sciences, the model structure provides validity.
When Table 21 is examined, it is seen that CFA is applied to evaluate the compatibility of
the single-factor structure obtained as a result of the EFA with the data. While creating the
CFA model, considering the modification indices proposed to contribute to the model fit and
which can be accepted as logical in terms of theory, a covariance definition is made between
the error terms of some variables representing the same factor. In this context, the error
terms of “AIB1”and “AIB4”variables are associated (Figure 10), and the modified structure
specified in all models tested after this stage is used. While the fit index values before
improvement were (x
2
/df: 19.165, CFI: 0.973, GFI: 0.961, NFI: 0.971, RMSEA: 0.211), the fit
index values after improvement (x
2
/df: 0.899, CFI: 1.000, GFI: 0.999, NFI: 0.999, RMSEA:
0.00) and it is seen that these values are at acceptable levels.
4.4 Analysis of data and findings
SEM is used to test the research model developed. The structures modified as previously
described are used in the analysis. As a result of the analysis, it is determined that the model
fit values are at acceptable levels, and the fit index values are shown in Table 22, and the
image of the model and the predictive power of the variables are shown in Figure 11.
Similarly, SEM analysis results are given in Table 23.
In Table 22,CFAfit values of the scales belonging to the general model are given. When
the CFA model is examined, the x
2
value is shown with CMIN and the degree of freedom
Figure 10.
Path diagram of the
acceptance of Islamic
banking scale
Islamic
banking
services
adoption
with the abbreviation df. For the model to be considered sufficient, the x
2
value must be
high and p<0.5 (Kiraz et al.,2020, p. 2192). For the degrees of freedom on the AMOS
output screen, the x
2
value for 552 was obtained as 1,487.670 and the p-value as 0.000.
From here, the x
2
/df value was determined as 2.695. This indicates that the model is at an
acceptable level.
When Table 22 is examined, it is seen that other fit indices, except for GFI and CFI, are at
acceptable levels. TheGFI value is expected to be 0.90 and above, but in some sources, it has
been stated that this value in the range of 0.80–0.89 can be considered a suitable value
(Segars and Varun, 1993;Doll et al.,1994;Okur and Yalçın-Özdilek, 2012;Okur-Berbero
glu
Figure 11.
Path diagram after
modification for the
model under test
Table 22.
CFA analysis fit
values of scales
belonging to the
general model
Fit index Before improvement Acceptable fit value
x
2
/df 2.695 0 #x
2
/sd #5
CFI 0.935 0.95 #CFI #1.00
GFI 0.840 0.90 #GFI #1.00
NFI 0.901 0.90 #NFI #1.00
RMSEA 0.064 0 #RMSEA #0.08
Source: Authors’estimation
JIABR
and Uygun, 2012). GFI value is at an acceptable level since it is between 0.80–0.89 threshold
values (0.840) stated in the literature. CFI is a criterion that takes into account the degree of
freedom and sample size in the model in the evaluation of model fit. A CFI value above 0.90
indicates an adequate level, and a value above 0.95 indicates a perfect fit(U
gurlu and
Arslan, 2019: 83). In this case, the CFI value indicates adequate fit.
Table 23 depicts the assessment of SEM. The results indicate that Islamic banking and
financial service information (IB&FSI) has a positive but insignificant impact on the
adoption of Islamic banking (AIB) (
b
= 0.041, p= 0.281). Similarly, B&FS also shows a
positive and insignificant impact on AIB (
b
= 0.027, p= 0.648). Furthermore, the role
of Sharia Board management (RSBM) exhibits a positive and significant influence on AIB
(
b
= 0.122, p= 0.012 **), while CR shows a negative but insignificant impact on AIB (
b
=
0.009, p= 0.855). Our results also indicate that purposes of Islamic banking and financial
institutions (IB&PFI) (
b
= 0.427, p= 0.000 ***), religious factors (RF) (
b
= 0.157, p= 0.000
***) and LIFS (
b
= 0.181, p= 0.022 **) have a positive and significant impact on AIB.
Finally, this study found a positive but insignificant influence of CS on AIB (
b
= 0.029,
p= 0.379). Therefore, we conclude that out of eight, H3,H5,H6 and H7 were supported,
while H1,H2,H4 and H8 were not supported. The R
2
value; shows the power of the
independent variable to explain dependent variables. In the literature, if this value is 0.25, it
is stated that the ratio of the independent variable to explain the dependent variable is weak,
0.50 is medium and 0.75 is strong (Henseler et al., 2009;Hair et al.,2011). Table 23 indicates
that the value of R
2
is 680, which shows that 68% of the acceptance of Islamic banking is
explained by independent variables.
5. Conclusion and discussion
The study aims to determine the awareness, understanding and perception of Islamic
banking products and services and their effects on their adoption. For this purpose, in
Turkey, Islamic banks and Islamic financial institutions that account for and fill out the
questionnaire accepted have reached 427 people. Additionally, we excluded 18 because they
are incomplete or incorrect. The remaining 409 questionnaires are included in the study.
SPSS and AMOS software programs are used to analyze the data.
In the research, first, the demographic information and frequency distributions of the
answers to the questions are explained. Later, since the reliability and validity of the scales
are important for the continuation of the study, these analyzes are made for all variables.
Table 23.
Standardized
equation model
(SEM) results
Hypothesis Path B-coefficient S.E. t-values p-value Remarks
H1 IB&FSI !AIB 0.041 0.054 0.759 0.281 Not supported
H2 IB&FS !AIB 0.027 0.091 0.297 0.648 Not supported
H3 RSBM !AIB 0.122 0.060 2.033 0.012** Supported
H4 CR !AIB 0.009 0.059 0.152 0.855 Not supported
H5 IB&PFI !AIB 0.427 0.098 4.357 0.000*** Supported
H6 RF !AIB 0.157 0.046 3.413 0.000*** Supported
H7 LIFS !AIB 0.181 0.102 1.774 0.022** Supported
H8 CS !AIB 0.029 0.037 0.783 0.379 Not supported
R-squared 0.680
Note: ***, ** indicates that they are significant at 1 and 5% significance levels
Source: Authors’estimation
Islamic
banking
services
adoption
Within the scope of the research, CFA is used to test the construct validity of the scales and
Cronbach’s Alpha method is used to test their reliability (internal consistency). After
ensuring the reliability and validity of the scales, the SEM is used to test the research model.
When the SEM regression analysis results were examined, it was determined that among
all variables, IB and PFI and RF were effective at 1% and RSBM and LIFS at a 5%
significance level on the acceptance of banking. This shows that as the Islamic finance
literacy scores of the participants on IB and PFI increase, the likelihood of adopting
Islamic banking services also increases. In other words, knowing the purpose of Islamic
banking and financial institutions has a positive effect on the acceptance of Islamic
banking. As with conventional banks, Islamic banks aim to make a profit. However, the
methods of making a profit are different from each other. Since the method of making
profits by Islamic banks and financial institutions is different from the interest system, it
is thought that investors’purposes to generate income according to Islamic values have
more influence on the acceptance of Islamic banking. Concerning RF, as expected, the
higher the Islamic finance literacy scores of the participants, the more likely they are to
adopt Islamic banking services. In other words, religious factors have a positive effect on
the acceptance of Islamic banking. Besides, the establishment purposes of Islamic banks
and financial institutions are also religious factors. Many consumers prefer Islamic
banking because of their desire to use financial services from an interest-free institution.
They prefer banks that provide them with halal income and profits compared to
conventional banks that focus on making money in a non-Islamic way (Dayı, 2019;Anaç
and Kaya (2017);Zaman et al., 2017;Karakaya and Karamustafa, 2004).
In RSBM, it is seen that as the Islamic finance literacy scores of the participants
increase, the probability of adopting Islamic banking services also increases. In other
words, the role of the Shariah Board management has a positive effect on the acceptance
of Islamic banking. There are already six-participation banks in Turkey. The oldest of
these is Albaraka Türk KatılımA.S. and Kuveyt Türk KatılımA.S. are the pioneers of
interest-free banking. Albaraka Türk A.S. Albaraka Banking Group, its main
shareholder, offers financial products and services in the Gulf, Middle East and North
Africa regions where it operates. Likewise, Kuveyt Türk KatılımBankasıA.S.Itsbiggest
partner in Turkey is the Kuwait finance house. In the regions where the activities of these
institutions, i.e. management systems are carried out according to the provisions of
Islamic Sharia law following different management systems in Turkey. In this case, it is
thought that the participants preferred Islamic banking because they think that the Sharia
Board management plays an active role in their banking activities. The results of the
research, Zaman et al. (2017) study provide support. The LIFS results show that the higher
the Islamic finance literacy scores of the participants, the more likely they are to adopt
Islamic banking services. In other words, the LIFS has a positive effect on the acceptance
of Islamic banking. As stated above, the first representative of Islamic banking in Turkey,
Albaraka Turk Inc., and Kuveyt Türk A.S.’s main headquarters are in regions governed
by Sharia rules, and it is thought to be effective in their acceptance of Islamic banking
since it gives the impression that banking activities are carried out according to Islamic
rules. The results of the research, Zaman et al. (2017) study provide support. It has been
determined that IB and FSI, IB&FS, CR and CS do not have a significant effect on the
acceptance of banking.
When the general results of the tables containing descriptive statistics are summarized, it
is seen that the views and opinions of the participants on Islamic banking are unstable. In
this case, we can say that the participants do not have sufficient knowledge about Islamic
banking. This situation is thought to cause the participants’financial knowledge levels and
JIABR
Islamic financial literacy levels to be low. These results are supported by the study results of
Kevser and Do
gan (2021),Gunawan et al. (2021),Saputra and Rahmatia (2021),Yıldırım
(2020),Durak et al. (2020),Tekin (2019),Durmusand Yardımcıo
glu (2018) Çömlekçi (2017),
Baysa and Karaca (2016) and Er et al. (2015).
In recent years, research measuring the level of financial literacy of individuals has
been carried out by countries and international organizations. The results of this research
revealed that the level of financial literacy knowledge is generally low (Alkaya and Ya
glı,
2015;Çam and Barut, 2015). Numerous financial education programs have been initiated to
solve this problem, which is low. The organization for economic cooperation and
development is one of the leading organizations in financial literacy and financial education
with its numerous international studies. In Turkey, the Central Bank of the Republic of
Turkey conducts research focusing on financial literacy and provides financial literacy and
economics education suitable for all age groups (Altundere Do
gan, 2020).
According to the results of the study, it is thought that the instability of the
participants’views on Islamic banking is due to their low level of Islamic financial
literacy. Although the participants consisted of people who have accounts in Islamic
banks or financial institutions, the low level of knowledge of the participants on Islamic
financial literacy, according to the results of the research, indicates the existence of
educational problems. This problem can only be solved with Islamic financial literacy
education. Because after the 2008 financial crisis, the interest in Islamic banking and/or
financial system has increased day by day. It is understood from the results of the
research that financial literacy training for conventional banking should be given within
Islamic financial literacy.
When the research results are evaluated in terms of banks, the lack of sufficient
information about Islamic banking and its products reduces the interest in these institutions
and their products. Although studies (Dayı,2019;Chenguel, 2019;Anaç and Kaya (2017);
Karakaya and Karamustafa, 2004) revealed that the main reason for adopting the Islamic
banking system is religious values, the demand for these institutions has been increasing in
recent years. The reason for this is the increase in product diversity, as in the conventional
banking system of Islamic financial institutions and the increase in trust in these
institutions. According to the results of the research, Islamic banks and financial institutions
should develop comprehensive educational programs and projects about their services,
especially the functioning of the system, to attract more customers.
When the effects of the research results on society are evaluated, it is seen that the most
influential factor among the reasons for choosing Islamic financial institutions is religious
reasons. Since interest is haram, people do not use funds from the conventional banking
system and, at the same time, do not use their savings in these institutions. The fact that the
savings owners do not bring these savings to the economy and keep them idle under the
pillow affects economic growth negatively. This causes the share to be taken from
the national income to decrease and the social quality of life standards to decrease. It is
thought that Islamic financial institutions will develop awareness-raising training projects
for such investors, and it will be important for investors to make correct and profitable
investments and to bring idle values under the pillow to the economy.
5.1 Policy implications and future studies
The results of the analysis revealed that the participants do not have full knowledge of
Islamic banking. Because the average of the answers given to the questions ranges between
2.40 and 3.5. This shows that the participants are undecided about Islamic banking. In this
case, the adoption of Islamic banking; education can be increased through financial
Islamic
banking
services
adoption
literacy, improved customer service quality and diversification of banking services.
Therefore, policymakers and other regulatory institutions, especially higher education
institutions, should promote Islamic financial literacy and awareness of Islamic banking
and financial products among customers. Likewise, they should raise awareness and
encourage people about Islamic banking by using different mass media or face-to-face
sessions on the services of Islamic banking and financial service providers. This study
suggests forthcoming studies explore more variables to evaluate the research results more
comprehensively. This research also suggests future studies to extend our model and
implement mediation and moderation testing to get more useful insights. Finally, this
study also recommends future studies to conduct an assessment of different countries to
generate a consensus among the researchers.
References
Abdullah, M.A., Wahab, S.N.A., Sabar, S. and Abu, F. (2016), “Factors determining Islamic financial
literacy among undergraduates”,Journal of Emerging Economies and Islamic Research, Vol. 5
No. 2, pp. 67-76.
Afriani, T. and Asandimitra, N. (2020), “Determinants of customer preference to Save in Islamic bank”,
al-Uqud: Journal of Islamic Economics, Vol. 4 No. 1, pp. 1-17.
Albayrak, A.S. (2006), UygulamalıÇok De
giskenli _
Istatistik Teknikleri, Asil YayınDa
gıtım, Ankara.
Ali, M. and Raza, S.A. (2017), “Service quality perception and customer satisfaction in Islamic banks of
Pakistan: the modified SERVQUAL model”,Total Quality Management and Business Excellence,
Vol. 28 Nos 5/6, pp. 559-577.
Ali, M., Raza, S.A., Khamis, B., Puah, C.H. and Amin, H. (2021), “How perceived risk, benefit and trust
determine user fintech adoption: a new dimension for Islamic finance”,foresight, Vol. 23 No. 4,
pp. 1156-1177.
Ali, M., Raza, S.A., Puah, C.H. and Karim, M.Z.A. (2017), “Islamic home financing in Pakistan: a SEM-
based approach using modified TPB model”,Housing Studies, Vol. 32 No. 8, pp. 1155-177.
Ali, M., Raza, S.A., Puah,C.H. and Mubarik, M.S. (2022), “Customer acceptance toward Islamic personal
financing in Pakistan”,Journal of Financial Services Marketing, Vol. 28 No. 2, pp. 1-15.
Alkaya, A. and Ya
glı,_
I. (2015), “Finansal Okuryazarlık-Finansal bilgi, davranısve tutum: Nevsehir
hacıbektasveli üniversitesi _
I_
IBF ö
grencileri üzerine bir uygulama”,UluslararasıSosyal
Arastırmalar Dergisi, Vol. 8 No. 40, pp. 585-599.
Altundere Do
gan, M.B. (2020), “Islamic financial literacy and its effect on financial choices”,BDDK
Bankacılık Ve Finansal Piyasalar Dergisi, Vol. 14 No.1, pp. 69-98.
Amin, H. (2008), “Choice criteria for Islamic home financing: Empirical ınvestigation among Malaysian
bank customers”,International Journal of Housing Markets and Analysis, Vol. 1 No. 3,
pp. 256-274.
Amin, M. and Isa, Z. (2008), “An examination of the relationship between service quality perception and
customer satisfaction: a SEM approach towards Malaysian Islamic banking”,International
Journal of Islamic and Middle Eastern Finance and Management, Vol. 1 No. 3, pp. 191-209.
Amin, H., Rahman, A.R.A., Sondoh, S.L. Jr. and Hwa, A.M.C. (2011), “Determinants of customers’
intention to use Islamic personal financing: the case of Malaysian ıslamic banks”,Journal of
Islamic Accounting and Business Research, Vol. 2No. 1, pp. 22-42.
Amin, H., Ramayah, T.,Suhartanto, D., Ali, M., Razak, D.A. and Muhammad, M.Z. (2022), “Investing in
Islamic fixed deposit accounts: a technology acceptance model perspective”,International
Journal of Business and Society, Vol. 23 No. 2, pp. 786-801.
Anaç, T. and Kaya, F. (2017), “Bireysel Müşterilerin KatılımBankacılığınıTercih”,İktisadi ve İdari
Bilimler Fakültesi Dergisi, p. 145.
JIABR
Anderson, J.C. and Gerbing, D.W. (1988), “Structural equation modeling in practice: a review and
recommended two-step approach”,Psychological Bulletin, Vol. 103 No. 3, p. 411.
Antara, P.M., Musa, R. and Hassan, F. (2016), “Bridging Islamic financial literacy and halal literacy: the
way forward in halal ecosystem”,Procedia Economics and Finance, Vol. 37, pp. 196-202.
Baysa, E. and Karaca, S.S. (2016), “Finansal okuryazarlık ve banka müsteri segmentasyonlarıüzerine
bir uygulama”,Muhasebe Ve Finansman Dergisi, No. 71, pp. 109-126.
Bekereci, N.E., AYRIÇAY, Y. and Dündar, K.Ö.K. (2018), “İSLAMİFİNANSAL OKURYAZARLIK:
KAHRAMANMARAŞSÜTÇÜ İMAM ÜNİVERSİTESİ’NDE BİR ALAN ARAŞTIRMASI”,
Pamukkale Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, Vol. 33, pp. 45-60.
Bhatti, G.A., Hussain, H. and Akbar, Z.A. (2010), “Determinants of customer satisfaction and bank
selection in Pakistan”,Interdisciplinary Journal of Contemporary Research in Business, Vol. 2
No. 6, pp. 536-554.
Chenguel, M.B. (2019), “The determinants affecting the preference of Islamic banking services in
Tunisia”,International Journal of Decision Sciences, Risk and Management, Vol. 8 No. 3,
pp. 135-148.
Chong, B.S. and Liu, M.H. (2009), “Islamic banking: interest free or interest based?”,Pacific-Basin
Finance Journal, Vol. 17No. 1, pp. 125-144.
Chowdhury, A.Y., Saba, N. and Habib, M.M. (2019), “Factors affecting the choice of Islamic banking by
the customers: a case study”,Frontiers in Management Research, Vol. 3 No. 1, pp. 1-5.
Cronbach, L.J. (1951), “Coefficient alpha and the internal structure of tests”,Psychometrika, Vol. 16
No. 3, pp. 297-334.
Çam, A. and Barut, A. (2015), “Finansal okuryazarlık düzeyi ve davranısları: Gümüshane üniversitesi
önlisans ö
grencileri üzerinde bir arastırma”,Global Journal of Economics and Business Studies,
Vol. 4 No. 7, pp. 63-72.
Çömlekçi, _
I. (2017), “Determination of Islamic financial literacy level: a research on the client of the
participation banks”,Electronic Journal of Social Sciences, Vol. 16 No. 63, pp. 1423-1439.
Dayı, F. (2019), “The effect of preferred reasons of participation banking on loyalty and
confidence: a case in Turkey”,Third Sector Social Economic Review, Vol. 54 No. 4,
pp. 1788-1806.
Doll, W.J., Weidong, X. and Gholamreza, T. (1994), “A confirmatory factor analysis of the end-user
computing satisfaction instrument”,MIS Quarterly, Vol. 18 No. 4, pp. 453-461.
Durak, _
I., Bayat, M., Arslan, H. and Murat, M. (2017), “Customer preferences ın bank selectıon:
an empırıcal analysıs on partıcıpatıon banks”,The Journal of Social Science, Vol. 1 No. 2,
pp. 60-70.
Durak, _
I., Öncü, M.A. and Kartal, O. (2020), “Measuring Islamic financial literacy and discovering its
relations with entrepreneurship among university students in Turkey”,Bilimname, Vol. 2020
No. 42, pp. 215-242.
Durmus, M.E. and Yardımcıo
glu, F. (2018), “How much literate theology students in Islamic finance?”,
Research Journal of Politics, Economics and Management, Vol. 6 No. 1, pp. 167-183.
Dursun, Y. and Kocagöz, E. (2010), “Yapisal eşitlik modellemesi ve regresyon: karşilaştirmali bir
analiz”,Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, Vol. 35, pp. 1-17.
Dusuki, A.W. and Abdullah, N.I. (2007), “Why do Malaysian customers patronise Islamic banks”,
International Journal of Bank Marketing, Vol. 25 No. 3, pp. 142-160.
Er, B., Mutlu, M. and Sahin, Y.E. (2015), “Daha bilgili, daha do
gru: _
Islami finans okuryazarlı
gıüzerine
bir arastırma”,International Congress on Islamic Economics and Finance (ICISEF) 2015
Proceedings, Vol. 2, pp. 1-22.
Gerrard, P. and Cunningham, J.B. (2001), “Singapore’s undergraduates: how they choosewhich bank to
patronise”,International Journal of Bank Marketing, Vol. 19 No. 3, pp. 104-114.
Islamic
banking
services
adoption
Gunawan, A., Asmuni, A. and Siregar, S. (2021), “Islamic financial literacy and financial behavior: the
case of muhammadiyah community in medan city”,Journal of Accounting and Investment,
Vol. 22 No. 3, pp. 501-516.
Hair, J.F., Ringle, C.M. and Sarstedt, M. (2011), “PLS-SEM: Indeed a silver bullet”,Journal of Marketing
Theory and Practice, Vol. 19 No. 2, pp. 139-152.
Haque, A., Osman, J. and Ismail, A.Z. (2009), “Factor influences selection of Islamic banking: a study on
Malaysian customer preferences”,American Journal of Applied Sciences, Vol. 6 No. 5,
pp. 922-928.
Haron, S. and Azmi, N.W. (2009), Islamic Finance Banking System, McGraw-Hill, Singapore.
Henseler, J., Ringle, C.M. and Sinkovics, R.R. (2009), “The use of partial least squares path modeling in
international marketing”,New Challenges to _
International Marketing, Emerald Group
Publishing, Bingley, pp. 277-319.
Huchting, K., Lac, A. and LaBrie, J.W. (2008), “An application of the theory of planned behavior to
sorority alcohol consumption”,Addictive Behaviors, Vol. 33 No. 4, pp. 538-551.
Karagöz, Y. (2019), SPSS AMOS META UygulamalıNitel-Nice-Karma Bilimsel Arastırma Yöntemleri
Ve Yayın Eti
gi, Nobel, Ankara.
Karakaya, A. and Karamustafa, O. (2004), “Bankalarda teknoloji yo
gun finansal ürünlerin
kullanılmasında müsteri özelliklerinin rolü”,Active Bankacılık Ve Finans Dergisi,Vol. 38, pp. 1-6.
Kevser, M. and Do
gan, M. (2021), “Islamic financial literacy and ıts determinants: a field study on
Turkey”,JTSR, Vol. 28, pp. 91-120.
Kiraz, A., Canpolat, O., Özkurt, C., Taskın, H. and Sarp, E. (2020), “Examination of the criteria affecting
ındustry 4.0 with structural equation model and a pilot study”,Journal of the Faculty of
Engineering and Architecture of Gazi University, Vol. 35 No. 4, pp. 2183-2196.
Lee, K. and Ullah, S. (2011), “Customers’attitude toward Islamic banking in Pakistan”,International
Journal of Islamic and Middle Eastern Finance and Management, Vol. 4 No. 2, pp. 131-145.
Ltifi, M., Hikkerova, L., Aliouat, B. and Gharbi, J. (2016), “The determinants of the choice of Islamic
banks in Tunisia”,International Journal of Bank Marketing, Vol. 34 No. 5, pp. 710-730.
Metawa, S.A. and Almossawi, M. (1998), “Banking behaviour of Islamic bank customers: perspectives
and ımplications”,International Journal of Bank Marketing, Vol. 16 No. 7, pp. 299-313.
Nunnally, J.C. and Bernsteın, I.H. (1978), Psychometric Theory, McGraw-Hill, New York, NY.
Okumus, H.S. (2005), “Interest-Free banking in Turkey: a study of customer satisfaction and bank
selection criteria”,Journal Of Economic Cooperation, Vol. 26 No. 4, pp. 51-86.
Okur, E. and Yalçın-Özdilek, S. (2012), “Environmental attitude scale developed by structural equation
modeling”,Elementary Education Online, Vol. 11 No. 1, pp. 85-94.
Okur-Berbero
glu, E. and Uygun, S. (2012), “Checking over relationship between environmental
awareness and environmental attitudes by structural equation modelling”,Journal of Uluda
g
University Education Faculty, Vol. 25 No. 2, pp. 459-473.
Özsoy, _
I., Görmez, B. and Mekik, S. (2013), “Reasons for preference of participatory banks in
Turkey: an empirical ınvestigation”,Journal Of Management And Economıcs, Vol. 20 No. 1,
pp. 187-206.
Parlakkaya, R. and Çürük, S.A. (2011), “Using financial ratios to distinguish between participation
and conventional banks: a case study of Turkey”,Ege Academic Review, Vol. 11 No. 3, pp. 397-405.
Saputra, A.D. and Rahmatia, A. (2021), “Islamic financial literacy ındex of students: Bridging SDGs of
Islamic finance”,Economics and Finance in Indonesia, Vol. 67 No. 1, pp. 34-50.
Segars, A.H. and Varun, G. (1993), “Re-examining perceived ease of use and usefulness: a confirmatory
factor analysis”,MIS Quarterly, Vol. 17No. 4, pp. 517-525.
Setiawati, R., Nidar, S.R., Anwar, M. and Masyita, D. (2018), “Islamic financial literacy: construct
process and validity”,Academy of Strategic Management Journal, Vol. 17No. 4, pp. 1-12.
JIABR
Sezerel, H., Bostan, S. and Okan, T. (2015), “The mediatör role of psychological effects between
mobbing behaviors towards personality and physiological effect”,ISGUC The Journal of
Industrial Relations and Human Resources, Vol. 17 No. 3, pp. 93-118.
Simsek, Ö.F. (2007), Yapısal Esitlik Modellemesine Giris: Temel _
Ilkeler Ve LISREL Uygulamaları,
Ekinoks, Ankara.
Tekin, B. (2019), “Üniversite ö
grencilerinde katılım bankacılı
gıalgısı:Çankırıkaratekin üniversitesi
_
I_
IBF ö
grencileri örne
gi”,SETSCI Conference Proceedings, Vol. 4 No. 8, pp. 22-30.
Thayeb, N.A. (2019), “The effect of service and profit sharing on the interests of Non-Muslim customer
to be customer of Sharia bank (casestudy At BRI syariah KC (branch office) manado) tasharruf”,
Journal Economics and Business of Islam, Vol. 3 No. 2, pp. 201-225.
TKBB (2021), “Turkey participation banking strategy update report (2021-2025)”, available at:
https://tkbb.org.tr/Documents/Yonetmelikler/EY_TKBB_Rapor_TR_v16_WEB_2021-2025.pdf
(accessed 20 April 2021).
Turan, Y. and Demirci, _
I. (2019), “Akademisyenlerin faiz ve faizsiz finans kullanımına yönelik
tutumları”,Bilimname, Vol. 2019 No. 39, pp. 247-283.
U
gurlu, C.T. and Arslan, C. (2019), “A study of reliability and validity of union attitude scale”,Inonu
University Journal of the Graduate School of Education, Vol. 6 No. 11, pp. 80-90.
Uluyol, O. (2011), “Bir finansman kayna
gıolarak “yastıkaltıtasarruf”ların ekonomik sisteme
kazandırılmasıve tüketicilerin/bireylerin yastıkaltıe
gilimlerinin belirlenmesine yönelik bir
arastırma”,Yönetim Bilimleri Dergisi, Vol. 9 No. 1, pp. 261-272.
Wakhid, S.C. and Efrita, S. (2007), “Adapting Islamic banks’carter model: an empirical study in Riau’s
syariah banks, Indonesia”,Proceeding Pesat, Vol. 2, pp. 120-127.
Yazıcı, R. (2020), “Finansal sermaye israfının önlenebilmesinde katılımfinans sisteminin gelistirilebilece
gi
faizsiz araçlar”,UluslararasıEkonomi, _
IsletmeVePolitikaDergisi,Vol.4No.1,pp.185-204.
Yıldırım, M.V. (2020), “Determining the Islamic financial literacy level: the case of tıkat gaziosmanpasa
university”, Unpublished Master’s Thesis, Tokat Gaziaosmanpasa University Social Siciences
Institute, Tokat.
Yıldız, S.B. (2020), “Performance analysis of Turkey’s participation and conventional indices using TOPSIS
method”,Journal of Islamic Accounting and Business Research, Vol. 11 No. 7, pp. 1403-1416.
Zaman, Z., Mehmood, B., Aftab, R., Siddique, M.S. and Ameen, Y. (2017), “Role of Islamic financial
literacy in the adoption of Islamic banking services: an empirical evidence from Lahore,
Pakistan”,Journal of Islamic Business and Management, Vol. 7 No. 2, pp. 230-247.
Further reading
Alfarisi, M.F., Agestayani, A. and Delfiani, S. (2020), “The ımpact of Islamic economics and finance
courses on Islamic financial literacy”,IQTISHADIA, Vol. 13 No. 2, pp. 197-215.
Antara, P.M., Musa, R. and Hassan, F. (2015), “Theorising attitude towards Islamic financing adoption
in an integrative model of behavioural prediction: a proposed conceptual framework”,Journal of
Administrative and Business Studies, Vol. 1 No. 1, pp. 1-14.
Berekeci, N.E., Ayrıçay, Y. and Kök, D. (2018), “I˙slami finansal okuryazarlık: Kahramanmarassütçü
I˙mam Üniversitesi’nde bir alan arasôtırması”,Pamukkale ÜNiversitesi Sosyal Bilimler EnstitüSü
Dergisi, Vol. 33, pp. 45-60.
Bhushan, P. and Medury, Y. (2013), “Financial literacy and its determinants”,International Journal of
Engineering, Business and Enterprise Applications, Vol. 4 No. 2, pp. 55-160.
Daradkah, D., Aldaher, A. and Shinaq, H. (2020), “Islamic financial literacy: evidence from Jordan”,
Journal Transition Studies Review, Vol. 27 No. 2, pp. 131-145.
Dawami, Q. (2020), “Factors ınfluencing the preference of customers Towards Islamic banking:
evidence from Malaysia”,Journal of Islamic Economic Laws, Vol. 3 No. 1, pp. 48-67.
Islamic
banking
services
adoption
Hassan Al-Tamimi, H.A. and Anood Bin Kalli, A. (2009), “BAE yatırımcılarınınfinansal okuryazarlı
gı
ve yatırım kararları”,The Journal of Risk Finance, Vol. 10 No. 5, pp. 500-516.
Islamic Financial Services Board (IFSB) (2021), available at: www.ifsb.org/sec03.php (accessed 20 April
2021).
Kaakeh, A., Hassan, M.K. and Almazor, S.F.V.H. (2019), “Factors affecting customers’attitude
towards Islamic banking in UAE”,International Journal of Emerging Markets, Vol. 14 No. 4,
pp. 668-688.
Kline Rex, B. (2011), Principles and Practice of Structural Equation Modeling, 3rd ed., The Guilford
Press, London; New York, NY.
Mehmood, B., Aftab, R., Siddique, M.S. and Ameen, Y. (2017), “Role of Islamic financial literacy in the
adoption of Islamic banking services: an empirical evidence from Lahore, Pakistan”,Journal of
Islamic Business and Management, Vol. 7 No. 2, pp. 230-247.
Miller, M., Godfrey, N., Levesque, B. and Stark, E. (2009), “The case for financial literacy in developing
countries: Promoting access to finance by empowering consumers”,World Bank, DFID, OECD,
and CGAP joint note, Washington, DC, World Bank, available at: www.oecd.org/dataoecd/35/32/
43245359.pdf
Nidar, S.R. and Bestari, S. (2012), “Personal financial literacy among university students (case study at
padjadjaran university students, Bandung, Indonesia)”,World Journal of Social Sciences, Vol. 2
No. 4, pp. 162-171.
Okan, T. and Özbek, M.F. (2016), “
_
Isyükü talebi, _
Istatminsizli
gi ve isten ayrılma niyeti arasındaki
iliskilerde _
Is-Aile çatısmasıve _
Isstresinin ara de
gisken rolü: Sa
glık çalısanlarıörne
gi”,
Gumushane Universitesi Sosyal Bilimler Elektronik Dergisi, Vol. 7 No. 17, pp. 203-226.
Turhan, A. and Kaya. (2017), “Bireysel müsterilerin katılım bankacılı
gınıtercih etmesini etkileyen
faktörler”,Üniversitesi _
Iktisadi Ve _
Idari Bilimler Fakültesi Dergisi, Vol. 8 No. 15, pp. 145-182.
Corresponding author
Abdulkadir Barut can be contacted at: kadirbarut@harran.edu.tr
For instructions on how to order reprints of this article, please visit our website:
www.emeraldgrouppublishing.com/licensing/reprints.htm
Or contact us for further details: permissions@emeraldinsight.com
JIABR
