Skip to main content
SpringerLink
Log in

Adoption of Islamic Banking in Mauritius

  • Chapter
  • First Online:
Finance, Accounting and Law in the Digital Age

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

  • 416 Accesses

Abstract

Islamic finance has gained increasing acceptance and recognition on a global scale. Islamic finance refers to the financial institutions, products, and services designed to comply with the Shariah law. Islamic banking, which is also known as interest free banking, is part of Islamic finance and abides by the Shariah principles. Islamic banking has been experiencing massive growth in the world, but in Mauritius it is still in its formative stage. The main objective of this research is to identify the factors affecting customers’ adoption of Islamic banking in Mauritius. A total of seven factors, namely relative advantage, complexity, observability, uncertainty, compatibility, trialability, and consumer awareness, are identified. This quantitative research used survey questionnaire as the means of data collection. The targeted population is the general public of Mauritius, which comprises both the users and nonusers of Islamic banking. The results show that relative advantage, observability, compatibility, trialability, and consumer awareness have a positive and significant effect on the adoption of Islamic banking in Mauritius. However, complexity and uncertainty have a negative effect on the adoption of Islamic banking. The research has found that customer awareness remains the core issue of the adoption of Islamic banking and that relative advantage has a positive influence on such adoption. Further the research indicates that complexity is a negative influence in the adoption of Islamic banking in Mauritius.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 189.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 249.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Rassool NH (2018) Towards establishing an Islamic retail bank in a Muslim-minority country: prospects and challenges in Mauritius. ISRA Int J Islamic Finance 10(1):84. https://www.emerald.com/insight/content/doi/10.1108/IJIF-11-2017-0048/full/html#ref010

    Article  Google Scholar 

  2. Ali M, Puah C (2017) Acceptance of Islamic banking as innovation: a case of Pakistan. Humanomics 33(4):499–516

    Article  Google Scholar 

  3. Haron S, Shanmugam B, Doran H (1997) Determinants of Islamic bank profitability

    Google Scholar 

  4. Chowdhury Y, Saba N, Habib M (2019) Factors affecting the choice of Islamic banking by the customers: a case study. Front Manage Res 3(1):1–5

    Article  Google Scholar 

  5. Saad W, El-Moussawi C (2012) The determinants of net interest margins of commercial banks in Lebanon. J Money Invest Bank 23:118–132

    Google Scholar 

  6. Rogers EM (2004) A prospective and retrospective look at the diffusion model. J Health Commun 9(S1):13–19

    Article  Google Scholar 

  7. Yusof MYR (1999) Islamic banking: adoption of a service Innovation, unpublished MSc Doctoral dissertation, Thesis, NTU, Singapore

    Google Scholar 

  8. Tornatzky LG, Klein KJ (1982) Innovation characteristics and innovation adoption-implementation: a meta-analysis of findings. IEEE Trans Eng Manage 1:28–45

    Article  Google Scholar 

  9. Gerrard P, Cunningham JB (2003) The diffusion of internet banking among Singapore consumers. Int J Bank Mark 21(1):16

    Article  Google Scholar 

  10. Frambach RT, Schillewaert N (2002) Organizational innovation adoption: a multi-level framework of determinants and opportunities for future research. J Bus Res 55(2):163–176

    Article  Google Scholar 

  11. Butt I, Saleem N, Ahmed H, Altaf M, Jaffer K, Mahmood J (2011) Barriers to adoption of Islamic banking in Pakistan. J Islamic Mark 2(3):259

    Article  Google Scholar 

  12. Thambiah S, Eze UC, Tan KS, Nathan RJ, Lai KP (2010) Conceptual framework for the adoption of Islamic retail banking services in Malaysia. J Electron Bank Syst 1:1–10

    Google Scholar 

  13. Kaabachi S, Obeid H (2016) Determinants of Islamic banking adoption in Tunisia: empirical analysis. Int J Bank Mark 34(7):1069

    Article  Google Scholar 

  14. Kotler P., Armstrong G. Saunders J, Wong V (2001) Understanding business: processes, p 69

    Google Scholar 

  15. Sathye M (1999) Adoption of internet banking by Australian consumers: an empirical investigation. Int J Bank Mark 17(7):5

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Faculty of Business and Management, Quest International University, Ipoh, Perak, Malaysia

    Sameerah Ramjane

  2. Faculty of Management and Information Technology, Universiti Sultan Azlan Shah, Kuala Kangsar, Perak, Malaysia

    Abdul Latif Salleh

Authors
  1. Sameerah Ramjane
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Abdul Latif Salleh
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Department of Finance, University of Sousse-Tunisia and University of Salamanca-Spain, Monastir, Tunisia

    Nadia Mansour

  2. Faculty of Law, University of Salamanca, Salamanca, Salamanca, Spain

    Lorenzo Mateo Bujosa Vadell

Rights and permissions

Reprints and permissions

Copyright information

© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Ramjane, S., Salleh, A.L. (2023). Adoption of Islamic Banking in Mauritius. In: Mansour, N., Bujosa Vadell, L.M. (eds) Finance, Accounting and Law in the Digital Age. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-031-27296-7_72

Download citation

Publish with us

Policies and ethics

Search

Navigation