Determinants of Malaysian Halal Certified Firms’ Intention to Adopt Islamic Trade Financing: Theory of Interpersonal Behaviour Perspectives

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Hazalina Mat Soha1 , Mohd Zukime Mat Junoh2
1-2 School of Business Innovation &Technopreneurship, Universiti Malaysia Perlis (This email address is being protected from spambots. You need JavaScript enabled to view it., This email address is being protected from spambots. You need JavaScript enabled to view it.)

 

ABSTRACT

The integration of Islamic finance and the Halal industry have the potential to encourage Halal certified firms to reach a wholly Shariah-compliant status. Nevertheless, there is still low adoption of Islamic trade financing among Malaysian Halal certified firms. The purpose of the present study is to determine the intention of adopting Islamic trade financing among Malaysian Halal certified firms. The current research proposes a model based on the theory of interpersonal behaviour (TIB) to examine the effects of three explanatory factors, namely affect, social factors, and facilitating conditions on such intention. In the case of the present study, the model was tested using data survey form distributed to a total of 111 Malaysian Halal certified firms that were selected as the respondents of this study. The results indicated that affect and social factors significantly influence the intention to adopt Islamic trade financing. Overall, the results are able to help the government and bank managers in making improved decisions regarding the factors that can effectively market Islamic trade financing products.

Keywords: Islamic Trade Financing, Halal Certified Firms, TIB Theory, Malaysia.