Modeling the Demand for Islamic Microfinance Services: An Application of PLS-SEM Approach
The access to capital is very crucial for ensuring the financial sustainability of microfinance clients. It is also equally important to determine the demand for microfinance services among the clients. This study aims to identify the factors affecting the demand for Islamic microfinance (IsMF) serv...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
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Universitas Muhammadiyah Yogyakarta
2022-01-01
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| Series: | International Journal of Islamic Economics and Finance |
| Subjects: | |
| Online Access: | https://journal.umy.ac.id/index.php/ijief/article/view/11776 |
| _version_ | 1797856346388824064 |
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| author | Mohamed Asmy Bin Mohd Thas Thaker Salina Kassim Md Fouad Bin Amin Marhanum Che Mohd Salleh Nadhrah Othman Siti Nadhirah Kassim |
| author_facet | Mohamed Asmy Bin Mohd Thas Thaker Salina Kassim Md Fouad Bin Amin Marhanum Che Mohd Salleh Nadhrah Othman Siti Nadhirah Kassim |
| author_sort | Mohamed Asmy Bin Mohd Thas Thaker |
| collection | DOAJ |
| description | The access to capital is very crucial for ensuring the financial sustainability of microfinance clients. It is also equally important to determine the demand for microfinance services among the clients. This study aims to identify the factors affecting the demand for Islamic microfinance (IsMF) services among the women micro-entrepreneurs in Malaysia. This study has collected a total of 250 samples from the field survey on women micro-entrepreneurs who are also the clients of Amanah Ikhtiar Malaysia (AIM). In addition, Partial Least Squares (PLS) method used to identify the potential factors (4As) i.e., affordability, accessibility, adequacy and awareness affecting the demand for IsMF. The results show that only “accessibility” has significant and positive relation with the demand for IsMF. Besides, the measurements items of accessibility such as distance of IsMF institution, collateral requirement, guarantor requirement, application procedure and process, repayment method, service efficiency, advise and consultation, and number of IsMF centers are the key factors affecting the demand for IsMF services in Malaysia. This paper provides some insights for the policy makers of Islamic microfinance and recommends that IsMF providers should take accessibility factor into greater consideration for the economic upliftment of women in microenterprises in Malaysia |
| first_indexed | 2024-04-09T20:38:54Z |
| format | Article |
| id | doaj.art-464f9fed59a042df8ac958ab950cd68c |
| institution | Directory Open Access Journal |
| issn | 2622-3562 2622-4372 |
| language | English |
| last_indexed | 2024-04-09T20:38:54Z |
| publishDate | 2022-01-01 |
| publisher | Universitas Muhammadiyah Yogyakarta |
| record_format | Article |
| series | International Journal of Islamic Economics and Finance |
| spelling | doaj.art-464f9fed59a042df8ac958ab950cd68c2023-03-30T05:41:33ZengUniversitas Muhammadiyah YogyakartaInternational Journal of Islamic Economics and Finance2622-35622622-43722022-01-01518910610.18196/ijief.v5i1.117765597Modeling the Demand for Islamic Microfinance Services: An Application of PLS-SEM ApproachMohamed Asmy Bin Mohd Thas Thaker0Salina Kassim1Md Fouad Bin Amin2Marhanum Che Mohd Salleh3Nadhrah Othman4Siti Nadhirah Kassim5International Islamic University Malaysia, Malaysia, Scopus ID: 57191286702Institute of Islamic Banking and Finance, International Islamic University MalaysiaDepartment of Economics, King Saud UniversityDepartment of Finance, International Islamic University MalaysiaInstitute of Islamic Banking and Finance, International Islamic University MalaysiaInstitute of Islamic Banking and Finance, International Islamic University MalaysiaThe access to capital is very crucial for ensuring the financial sustainability of microfinance clients. It is also equally important to determine the demand for microfinance services among the clients. This study aims to identify the factors affecting the demand for Islamic microfinance (IsMF) services among the women micro-entrepreneurs in Malaysia. This study has collected a total of 250 samples from the field survey on women micro-entrepreneurs who are also the clients of Amanah Ikhtiar Malaysia (AIM). In addition, Partial Least Squares (PLS) method used to identify the potential factors (4As) i.e., affordability, accessibility, adequacy and awareness affecting the demand for IsMF. The results show that only “accessibility” has significant and positive relation with the demand for IsMF. Besides, the measurements items of accessibility such as distance of IsMF institution, collateral requirement, guarantor requirement, application procedure and process, repayment method, service efficiency, advise and consultation, and number of IsMF centers are the key factors affecting the demand for IsMF services in Malaysia. This paper provides some insights for the policy makers of Islamic microfinance and recommends that IsMF providers should take accessibility factor into greater consideration for the economic upliftment of women in microenterprises in Malaysiahttps://journal.umy.ac.id/index.php/ijief/article/view/11776islamic microfinancewomenamanah ikthiar malaysia4as |
| spellingShingle | Mohamed Asmy Bin Mohd Thas Thaker Salina Kassim Md Fouad Bin Amin Marhanum Che Mohd Salleh Nadhrah Othman Siti Nadhirah Kassim Modeling the Demand for Islamic Microfinance Services: An Application of PLS-SEM Approach International Journal of Islamic Economics and Finance islamic microfinance women amanah ikthiar malaysia 4as |
| title | Modeling the Demand for Islamic Microfinance Services: An Application of PLS-SEM Approach |
| title_full | Modeling the Demand for Islamic Microfinance Services: An Application of PLS-SEM Approach |
| title_fullStr | Modeling the Demand for Islamic Microfinance Services: An Application of PLS-SEM Approach |
| title_full_unstemmed | Modeling the Demand for Islamic Microfinance Services: An Application of PLS-SEM Approach |
| title_short | Modeling the Demand for Islamic Microfinance Services: An Application of PLS-SEM Approach |
| title_sort | modeling the demand for islamic microfinance services an application of pls sem approach |
| topic | islamic microfinance women amanah ikthiar malaysia 4as |
| url | https://journal.umy.ac.id/index.php/ijief/article/view/11776 |
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