Article Sidebar

Download
Full text PDF
Statistic
Read Counter : 452 Download : 694

Downloads

Download data is not yet available.

Main Article Content

Abstract

Purpose − This study examines the effect of knowledge of Islamic FinTech products and services of Micro, Small, and Medium Enterprises (MSMEs) actors on their intentions to adopt it.
Methodology − This study adopts a quantitative method with primary data filled in by MSME actors in Indonesia. A hundred samples were analyzed using Partial Least Square - Structural Equation Modeling (SEM) by SmartPLS software.
Findings − The results showed that both Perceived Usefulness (PU) and Perceived Ease of Use (PEoU) were empirically proven to have a significant positive effect on Attitude Toward Behavior (ATB). Likewise, ATB has been proven to be significant in mediating PU and PEoU on the Behavioral Intention (BI) of MSME actors in using Islamic FinTech products and services. The main finding in this research is that the higher the knowledge/literacy of Islamic finance by MSMEs, the more they will strengthen their intention to use FinTech products.
Implications − The socialization of Islamic FinTech products and services by regulators such as the Financial Services Authority through collaboration with the industry players, professional and expertise organizations, the Muslim entrepreneur community, and universities need to be continuously to improve Islamic financial literacy. In addition, amid ongoing business digitalization, MSMEs are expected to be integrated with FinTech, not only in terms of funding but also in improving business performance regarding operations, finance, human resources, and others.
Originality − This paper extends TAM with product knowledge on objects in the form of MSME actors in Indonesia.

Keywords

Islamic Financial Literacy Islamic FinTech MSMEs TAM

Article Details

License

Copyright (c) 2022 Rifaldi Majid, Herti Mawaddah

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution ShareAlike License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).

How to Cite
Majid, R., & Mawaddah, H. . (2022). FinTech and MSMEs: The role of product knowledge. Asian Journal of Islamic Management (AJIM), 4(1), 15–24. https://doi.org/10.20885/AJIM.vol4.iss1.art2
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Aaron, M., Rivadeneyra, F., & Sohal, S. (2017). Fintech: Is this time different? A framework for assessing risks and opportunities for central banks. Staff Discussion Paper. https://www.bankofcanada.ca/wp-content/uploads/2017/07/sdp2017-10.pdf
  2. AFTECH Indonesia. (2021). Annual members survey 2021. https://fintech.id/storage/files/shares/Annual Member Survey 2019/2022/Spreads lowres_AFTECH - Annual Members Survey 2021_Bahasa update 28mar final.pdf
  3. Aji, H. M., Albari, A., Muthohar, M., Sumadi, S., Sigit, M., Muslichah, I., & Hidayat, A. (2020). Investigating the determinants of online infaq intention during the Covid-19 pandemic: An insight from Indonesia. Journal of Islamic Accounting and Business Research, 12(1), 1–20. https://doi.org/10.1108/JIABR-05-2020-0136
  4. Ajzen, I., & Fishbein, M. (1970). The prediction of behavior from attitudinal and normative variables. Journal of Experimental Social Psychology, 6(4), 466–487. https://doi.org/10.1016/0022-1031(70)90057-0
  5. Ajzen, I., Timko, C., & White, J. B. (1982). Self-monitoring and the attitude-behavior relation. Journal of Personality and Social Psychology, 42(3), 426–453. https://doi.org/10.1037/0022-3514.42.3.426
  6. Chuang, L.-M., Liu, C.-C., & Kao, H.-K. (2016). The adoption of fintech service: TAM perspective. International Journal of Management and Administrative Sciences (IJMAS), 3(07), 1–15. https://www.ijmas.org/3-7/IJMAS-3601-2016.pdf
  7. Darmansyah, Fianto, B. A., Hendratmi, A., & Aziz, P. F. (2020). Factors determining behavioral intentions to use Islamic financial technology: Three competing models. Journal of Islamic Marketing, ahead-of-p(ahead-of-print). https://doi.org/10.1108/JIMA-12-2019-0252
  8. Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly: Management Information Systems, 13(3), 319–340. https://doi.org/10.2307/249008
  9. Dospinescu, O., Dospinescu, N., & Agheorghiesei, D. T. (2021). Fintech services and factors determining the expected benefits of users: Evidence in Romania for millennials and generation Z. E&M Economics and Management, 24(2), 101–118. https://doi. org/10.15240/tul/001/2021-2-007
  10. Financial Services Authority. (2020). Perkembangan fintech lending, Agustus 2020. https://www.ojk.go.id/id/kanal/iknb/data-dan-statistik/fintech/Pages/-Statistik-Fintech-Lending-Periode-Agustus-2020.aspx
  11. Findexable (2019). The Global Fintech Index 2020. The global fintech index city rankings report. https://findexable.com/wp-content/uploads/2019/12/Findexable_Global-Fintech-Rankings-2020exSFA.pdf
  12. Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121. https://doi.org/10.1108/EBR-10-2013-0128
  13. Jerene, W., & Sharma, D. (2020). The adoption of financial technology in Ethiopia: A study of bank customers perspective. Journal of Banking and Financial Technology, 4(1), 53–63. https://doi.org/10.1007/s42786-020-00015-0
  14. Johan, Z. J., Hussain, M. Z., Mohd, R., & Kamaruddin, B. H. (2020). Muslims and non-Muslims intention to hold shariah-compliant credit cards: A SmartPLS approach. Journal of Islamic Marketing, ahead-of-p(ahead-of-print). https://doi.org/10.1108/JIMA-12-2019-0270
  15. Kasri, R. A., & Chaerunnisa, S. R. (2020). The role of knowledge, trust, and religiosity in explaining the online cash waqf amongst Muslim millennials. Journal of Islamic Marketing, ahead-of-p(ahead-of-print). https://doi.org/10.1108/JIMA-04-2020-0101
  16. Khan, G. F., Sarstedt, M., Shiau, W. L., Hair, J. F., Ringle, C. M., & Fritze, M. P. (2019). Methodological research on partial least squares structural equation modeling (PLS-SEM): An analysis based on social network approaches. Internet Research, 29(3), 407–429. https://doi.org/10.1108/IntR-12-2017-0509
  17. Kim, Y., Choi, J., Park, Y. J., & Yeon, J. (2016). The adoption of mobile payment services for “fintech.” International Journal of Applied Engineering Research, 11(2), 1058–1061. https://www.coursehero.com/file/53268982/The-Adoption-of-Mobile-Payment-Services-for-Fintechpdf/
  18. Majid, R. (2021). The role of religiosity in explaining the intention to use Islamic fintech amongst MSME actors. International Journal of Islamic Economics and Finance (IJIEF), 4(July), 207–232. https://doi.org/10.18196/ijief.v4i2.11833
  19. Majid, R., & Nugraha, R. A. (2022). Crowdfunding and Islamic securities: The role of financial literacy. Journal of Islamic Monetary Economics and Finance, 8(1), 89–112. https://doi.org/10.21098/jimf.v8i1.1420
  20. Marzuki, M., & Nurdin, N. (2020). The influence of halal product expectation, social environment, and fiqih knowledge on intention to use shariah financial technology products. International Journal of Innovation, Creativity and Change, 13(1), 171–193. https://www.researchgate.net/publication/341792651_The_Influence_of_Halal_Product_Expectation_Social_Environment_and_Fiqih_Knowledge_on_Intention_to_Use_Shariah_Financial_Technology_Products
  21. Niswah, F. M., Mutmainah, L., & Legowati, D. A. (2019). Muslim Millennial’s intention of donating for charity using fintech platform. Journal of Islamic Monetary Economics and Finance, 5(3), 623–644. https://doi.org/10.21098/jimf.v5i3.1080
  22. Purwantini, A. H., Athief, F. H. N., & Waharini, F. M. (2020). Indonesian consumers’ intention of adopting Islamic financial technology services. Shirkah, 5(2), 171–196. http://shirkah.or.id/new-ojs/index.php/home/article/view/304/91
  23. Shaikh, I. M., Qureshi, M. A., & Noordin, K. (2020). Acceptance of Islamic financial technology (fintech) banking services by Malaysian users: An extension of technology acceptance model. Foresight, 22(3), 367–383. https://doi.org/https://doi.org/10.1108/FS-12-2019-0105
  24. Singapore Fintech Association. (2021). Fintech in ASEAN 2021: Digital Takes Flight. https://www.uobgroup.com/techecosystem/news-insights-fintech-in-asean-2021.html
  25. Sulaeman. (2021). Factors determining behavioral intentions to use Islamic crowdfunding platform in times of Covid-19 in Indonesia: Evidence from TAM approach. Jurnal Ekonomi & Keuangan Islam, 7(1), 31–44. https://doi.org/doi.org/10.20885/JEKI.vol 7.iss1.art3
  26. Thaker, M. A. B. M. T. (2018). Factors influencing the adoption of the crowdfunding-waqf model (CWM) in the waqf land development. Journal of Islamic Marketing, 9(3), 578–597. https://doi.org/10.1108/JIMA-05-2016-0043
  27. Thaker, M. A. B. M. T., Amin, M. F. Bin, Mohd Thas Thaker, H. Bin, & Allah Pitchay, A. Bin. (2019). What keeps Islamic mobile banking customers loyal? Journal of Islamic Marketing, 10(2), 525–542. https://doi.org/10.1108/JIMA-08-2017-0090
  28. Usman, H., Projo, N. W. K., Chairy, C., & Haque, M. G. (2021). The exploration role of sharia compliance in technology acceptance model for e-banking (case: Islamic bank in Indonesia). Journal of Islamic Marketing, ahead-of-p(ahead-of-print). https://doi.org/10.1108/JIMA-08-2020-0230
  29. Venkatesh, V., & Bala, H. (2008). Technology acceptance model 3 and a research agenda on interventions. decision sciences, 39(2), 273–315. https://doi.org/10.1111/j.1540-5915.2008.00192.x
  30. Venkatesh, V., & Davis, F. D. (2000). A theoretical extension of the technology acceptance model : Four longitudinal field studies. Management Science 46(2), 186-204. http://dx.doi.org/10.1287/mnsc.46.2.186.11926
  31. Yuspita, R., Pebruary, S., & Kamala, A. Z. H. (2019). The society’s perceptions on the use of fintech services in sharia financial institutions. Jurnal Ekonomi & Keuangan Islam, 5(2), 87–92. https://doi.org/10.20885/jeki.vol5.iss2.art6.