Owner/Managers’ External Financing Used and Preference towards Islamic Banking
Economic development and growth are significantly
linked to the consistent and sustainable sector of small and medium
enterprises (SMEs). Banks are the frontrunners in financing and
advising SMEs. The main objective of the study is to assess the
tendency of SMEs to use the Islamic bank. Model was developed
using quantitative method with a hypothetical-deductive testing
approach. Model (N = 364) used primary data on the tendency of
SMEs to use Islamic banks gathered from questionnaire. It is found
by Mann-Whitney test that the tendency to use Islamic bank varies
between those firms which consider formal financing with the ones
relying on informal financing with the latter tends more to use
Islamic bank. This study can serve academic researchers, policy
makers, and developing countries as a model of SMEs’ desirability to
Islamic banking.
[1] Zhenyu, Wu. Jess H. Chua & James J. Chrisman. 2007. “Effects of
Family Ownership and Management on Small Business Equity
Financing”. Journal of Business Venturing. Vol. 22. pp. 875-895.
[2] Boohene, Rosemond, Alison S. & Bernice K. 2008. “Gender, Personal
Values, Strategies and Small Business Performance a Ghanaian Case
Study”. Equal Opportunities International. Vol. 27. pp. 237-257.
[3] Kamel, Mariam R.2012, (October 31). “SMEs in Libya: Promises and
Challenges” Libya Business TV. Retrieved from http://libyabusiness.tv
/video/smes-in-libya-promises-and-challenges-1#sthash.HozPv2lz.Fu
WjUHlj.dpuf. Online Avalible 10 October 2013.
[4] Gallardo, J.1997. “Leasing to Support Micro and Small Enterprises
Financial” Sector Development Department, the World Bank.
[5] AL. Wurfali, Toria .A. H.10 2006. “Small and Medium Enterprises in
Libya: Present and Hoping”. Workingpaper17, 18 April 2006. Online
avalible: 10 November 2009, http://www.kantakji.com/fiqh /Fil es /Ec o
nomics/88001.pdf.
[6] Alrubaie, Falah. K. Ali. 2006. “ An Analysis Study to the Problems of
Financing Small Projects with Reference to Experience of LIBYAN
Development Bank in Darna City” Journal of Munich Persona RePEc
Archive. Online available 12 October 2009 http://mpra.ub.unimuenchen.
de/8494/.
[7] Futaisi, Mhmoed .A. 2007. “Small and Medium Enterprises under
Restructuring of the Libya Economy” Working paper Online available
17 November 2009 <http//www. npc.gov.>.
[8] Salh, Edris Mohammed.2009. “Small and Medium Enterprises (SMEs)
in Libya and Its Role in the Development Process” (master thesis) the
Arabic Open Academy in Denmark. Online available 6 October 2013.
Https<//www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd
=3&cad=rja&ved=0CDoQFjAC&url=http%3A%2F%2Fwww>.
[9] Kamel, Mariam R.2012, (October31). “SMEs in Libya: Promises and
Challenges” Libya Business TV. Retrieved from http://libyabusiness.tv
/video/smes-in-libya-promises-and-challenges-1#sthash.HozPv2lz.Fu
WjUHlj.dpuf. Online Avalible 10 October 2013.
[10] Badri, Abdul Enwaje .2006. "The Reality of Small and Medium-Sized
Projects in Libya," A Symposium on Growth and Development of Small
and Medium-Sized Projects in Libya, Center for Economic Research,
Benghazi.
[11] Salh, Edris Mohammed. 2009. “Small and Medium Enterprises (SMEs)
in Libya and Its Role in the Development Process” (master thesis) the
Arabic Open Academy in Denmark. Online available 6 October 2013.
Https<//www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd
=3&cad=rja&ved=0CDoQFjAC&url=http%3A%2F%2Fwww>.
[12] Mews, Constant J. & Ibrahim Abraham. 2007. “Usury and Just
Compensation: Religious and Financial Ethics in Historical
Perspective”. Journal of Business Ethics. Vol. 72. pp. 1–15. DOI
10.1007/s10551-006-9151-0.
[13] Annual the Report of the National Programmer for Small and Medium
Enterprises in Libya. 2010. Unpublished.
[14] Mahrouq, Maher. H. 2003. The Small Firm Lone Guarantee Scheme in
Jordan: An Empirical Investigation (PhD Thesis) University Of
Newcastle.
[15] Salh, Edris Mohammed.2009. “Small and Medium Enterprises (SMEs)
in Libya and Its Role in the Development Process” (master thesis) the
Arabic Open Academy in Denmark. Online available 6 October 2013.
Https<//www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd
=3&cad=rja&ved=0CDoQFjAC&url=http%3A%2F%2Fwww>.
[16] Abd Wahab, Kalsom & Abdesamed, Khalid .2012. “Small and Medium
Enterprises (SMEs) Financing Practice and Accessing Bank Loan
Issues- The Case of Libya”. World Academy of Science, Engineering
and Technology .Vol.72.pp.1535-1540.
[17] Metwally, M .1996. “Attitudes of Muslims towards Islamic Banks in a
Dual-Banking System”. American Journal of Islamic Finance. Vol. 6.
pp.11−17.
[18] Idris, Asma’ Rashidah, Khadijah Nik Muhammad Naziman, Siti Sarah
Januri, Fadli Fizari Abu Hassan Asari, Norrini Muhammad, Sabiroh Md
Sabri & Kamaruzaman Jusoff. 2011. “Religious Value as the Main
Influencing Factor to Customers Patronizing Islamic Bank”. World
Applied Sciences Journal (Special Issue on Bolstering Economic
Sustainability): 08-13, 2011 ISSN 1818-4952.
[19] Gerrard, P., & Cunningham, J. 1997. “Islamic Banking: A Study in
Singapore”. International Journal of Bank Marketing. Vol.15. pp.204-
216.
[20] Ahmad, Norafifah & Haron Sudin .2002. “Perceptions of Malaysian
Corporate Customers towards Islamic Banking Products & Services”.
International Journal of Islamic Financial Services. Vol. 3. pp.32–45.
[21] Okumus, S. H. 2005. “Interest Free Banking in Turkey: A Study of
Customer Satisfaction and Bank Selection Criteria”. Journal of
Economic Cooperation. Vol. 26. pp. 51-86.
[22] Metawa, S. & Almossawi, M. 1998. “Banking behaviour of Islamic bank
customers: perspectives and Implications”. International Journal of
Bank Marketing. Vol. 16, pp.299-315.
[23] Gait, Alsadek H. & Worthington, Andrew. C. 2009. “Libyan Business
Firm Attitudes towards Islamic Methods of Finance” Online available 4
October 2011. http://www.griffith.edu.au/ __data/assets/pdf_file/0009/
146871/2009-10-libyan-business-firm-attitudes-towards-islamicmethods-
in-finance.pdf.
[24] Idris, Asma’ Rashidah, Khadijah Nik Muhammad Naziman, Siti Sarah
Januri, Fadli Fizari Abu Hassan Asari, Norrini Muhammad, Sabiroh Md
Sabri & Kamaruzaman Jusoff.2011. “Religious Value as the Main
Influencing Factor to Customers Patronizing Islamic Bank”. World
Applied Sciences Journal (Special Issue on Bolstering Economic
Sustainability): 08-13, 2011 ISSN 1818-4952.
[25] Abdul Rehman, A. & Masood. O.2012. “Why do Customers Patronize
Islamic Banks? A Case Study of Pakistan”. Qualitative Research in
Financial Markets. Vol. 4 .pp. 130-141.
[26] Echchabi, Abdelghani & Oladokun Nafiu Olaniyi. 2012. “Malaysian
Consumers’ Preferences for Islamic Banking Attributes”. International
Journal of Social Economic .Vol. 39 .pp. 859-874.
[27] Alam, Syed Shah. Hawati Janor, Zanariah, Che .Aniza Che Wel & Mst.
Nilufar Ahsan. 2012. “Is Religiosity an Important Factor in Influencing
the Intention to Undertake Islamic Home Financing in Klang Valley?”
World Applied Sciences Journal .Vol.19. pp. 1030-1041.
[28] Sayani, Hameedah & Miniaoui, Hela.2013. “Determinants of Bank
Selection in the United Arab Emirates”. International Journal of Bank
Marketing. Vol. 31. pp. 206-228.
[29] Haron, S., Ahmad, N., & Planisek, S. 1994. “Bank Patronage Factors of
Muslim and Non-Muslim Customers”. International Journal of Bank
Marketing. Vol. 12. pp 32-40.
[30] Jalaluddin, A & Metwally M.1999. “Profit/Loss Sharing: An Alternative
Method of Financing Small Businesses in Australia”. The Middle East
Business and Economic Review. Vol. 11.pp. 8−14.
[31] Naser, K., Jamal, A., & Al-Khatib, K. 1999. “Islamic Banking: A Study
of Customer Satisfaction and Preference in Jordan”. International
Journal of Bank Marketing. Vol .17, pp.135-50.
[32] Mansour, Walid. Mohamed Ben Abdelhamid G.S.K. Niazi. 2010.
“Islamic Banking and Customers’ Preferences: The Case of the UK”.
Qualitative Research in Financial Markets Vol. 2.pp. 185-199.
[33] Awan, Hayat M. & Bukhari, K. Shahzad.2011. “Customer’s Criteria for
Selecting an Islamic Bank: Evidence from Pakistan”. Journal of Islamic
Marketing. Vol. 2. pp. 14-27.
[34] Pepinsky, thomas b. 2012. “Development, Social Change, and Islamic
Finance in Contemporary Indonesia”. World Development .Vol. 41. pp.
157–167.
[35] Shahrauddain, Amir, Suhaila Abdul Hamid., Yasmin Hanai M. Safian &
Muhamad Muda. 2005. “A Study on Small and Medium Sized
Enterprises Perception towards Islamic Banking Products”. Journal of
Muamalat and Islamic Finance Research. Vol. 2. No. 1. pp. 1-26.
[36] Haron, S., Ahmad, N., & Planisek, S. 1994. “Bank Patronage Factors of
Muslim and Non-Muslim Customers”. International Journal of Bank
Marketing. Vol. 12. pp 32-40.
[37] Abdul Rahim, Abdul Rahman. 2007. “Islamic Banking and Finance:
between Ideals and Realities”. Journal of Economics and management.
Vol. 15. pp. 123-141. By the international Islamic university Malaysia. [38] Martin, Čihák & Heiko Hesse. 2010. “Islamic Banks and Financial
Stability: An Empirical Analysis”. Journal Finance Service Research.
Vol. 38 .pp. 95–113.
[39] Schreiner, Martin. 2010. “Islamic Finance”. Journal Economics. Vol.
100. pp.91-93.
[40] Nejullah, Siddiqi Mohammad. 2006. “Islamic Banking and Finance in
Theory and Practice; A Survey of State of the Art”. Journal Economic
studies. Vol.13.pp.1-48.
[41] Zarrokh, Ehsan. 2010. “Iranian Islamic Banking”. Journal Law
Economics. Vol. 29. pp. 177–193.
[42] Usmani, Muhammad Imran Ashraf. 2002. Meezan Banks Guide to
Islamic Banking. Darul-Ishaat Karachi.
[43] Mews, Constant J. & Ibrahim Abraham. 2007. “Usury and Just
Compensation: Religious and Financial Ethics in Historical
Perspective”. Journal of Business Ethics. Vol. 72. pp.1–15. DOI
10.1007/s10551-006-9151-0.
[44] Al- Quran. Surah Al-Rum, verse 39.
[45] Al- Quran. Surah Al-Imran, verses 130-2.
[46] World Bank, 2008. “Finance for all? Policies and Pitfalls in Expanding
Access“. World Bank Policy Research Report. Online available 19
December 2009 <http://siterecouces.worldbank.org.>
[47] Mahrouq, Maher. H. 2003. The Small Firm Lone Guarantee Scheme in
Jordan: An Empirical Investigation (PhD Thesis) University Of
Newcastle.
[48] Salh, Edris Mohammed. 2009. “Small and Medium Enterprises (SMEs)
in Libya and Its Role in the Development Process” (master thesis) The
Arabic Open Academy in Denmark. Online available 6 October 2013.
https<//www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd
=3&cad=rja&ved=0CDoQFjAC&url=http%3A%2F%2Fwww>.
[49] Abd Wahab, Kalsom & Abdesamed, Khalid. 2012. “Small and Medium
Enterprises (SMEs) Financing Practice and Accessing Bank Loan
Issues- The case of Libya”. World Academy of science, Engineering and
Technology .Vol.72. pp.1535-1540.
[50] Metwally, M .1996. “Attitudes of Muslims towards Islamic Banks in a
Dual-Banking System”. American Journal of Islamic Finance. Vol.
6.pp.11−17.
[51] Gerrard, P., & Cunningham, J. 1997. “Islamic Banking: A study in
Singapore”. International Journal of Bank Marketing. Vol.15. pp.204-
216.
[52] Idris, Asma’ Rashidah, Khadijah Nik Muhammad Naziman, Siti Sarah
Januri, Fadli Fizari Abu Hassan Asari, Norrini Muhammad, Sabiroh Md
Sabri & Kamaruzaman Jusoff. 2011. “Religious Value as the Main
Influencing Factor to Customers Patronizing Islamic Bank”. World
Applied Sciences Journal (Special Issue on Bolstering Economic
Sustainability): 08-13, 2011 ISSN 1818-4952.
[53] Metawa, S. & Almossawi, M. 1998. “Banking Behaviour of Islamic
Bank Customers: Perspectives and Implications”. International Journal
of Bank Marketing. Vol. 16, pp.299-315.
[54] Okumus, S.H. 2005. “Interest Free Banking in Turkey: A Study of
Customer Satisfaction and Bank Selection Criteria”. Journal of
Economic Cooperation. Vol. 26.pp. 51-86.
[55] Gait, Alsadek H. & Worthington, Andrew. C.2009. “Libyan Business
Firm Attitudes towards Islamic Methods of Finance” Online available 4
October 2011. <http://www.griffith.edu.au/__data/assets/pdf_file/0009/
146871/2009-10-libyan-business-firm-attitudes-towards-islamicmethods-
in-finance.pdf>.
[56] Idris, Asma’ Rashidah, Khadijah Nik Muhammad Naziman, Siti Sarah
Januri, Fadli Fizari Abu Hassan Asari, Norrini Muhammad, Sabiroh Md
Sabri & Kamaruzaman Jusoff.2011. “Religious Value as the Main
Influencing Factor to Customers Patronizing Islamic Bank”. World
Applied Sciences Journal (Special Issue on Bolstering Economic
Sustainability): 08-13, 2011 ISSN 1818-4952.
[57] Abdul Rehman, A. & Masood. O.2012. “Why do Customers Patronize
Islamic Banks? A Case Study of Pakistan”. Qualitative Research in
Financial Markets. Vol. 4 .pp. 130-141.
[58] Echchabi, Abdelghani & Oladokun Nafiu Olaniyi. 2012. “Malaysian
Consumers’ Preferences for Islamic Banking Attributes”. International
Journal of Social Economic .Vol. 39 .pp. 859-874.
[59] Alam, Syed Shah. Hawati Janor, Zanariah, Che. Aniza Che Wel & Mst.
Nilufar Ahsan. 2012. “Is Religiosity an Important Factor in Influencing
the Intention to Undertake Islamic Home Financing in Klang Valley?”
World Applied Sciences Journal .Vol.19. pp. 1030-1041.
[60] Sayani, Hameedah & Miniaoui, Hela.2013. “Determinants of Bank
Selection in the United Arab Emirates”. International Journal of Bank
Marketing. Vol. 31. pp. 206-228.
[61] Haron, S., Ahmad, N., & Planisek, S. 1994. “Bank Patronage Factors of
Muslim and non-Muslim customers”. International Journal of Bank
Marketing. Vol. 12. pp 32-40.
[62] Naser, K., Jamal, A., & Al-Khatib, K. 1999. “Islamic Banking: A Study
of Customer Satisfaction and Preference in Jordan”. International
Journal of Bank Marketing. Vol. 17, pp.135-50.
[63] Ahmad, Norafifah & Haron Sudin. 2002. “Perceptions of Malaysian
Corporate Customers towards Islamic Banking Products & Services”.
International Journal of Islamic Financial Services. Vol.3.pp.32 – 45.
[64] Mansour,Walid. Mohamed Ben Abdelhamid G.S.K. Niazi. 2010.
“Islamic Banking and Customers’ Preferences: The Case of the UK”.
Qualitative Research in Financial Markets Vol. 2.pp. 185-199
[65] Awan, Hayat M. & Bukhari, K. Shahzad.2011. “Customer’s Criteria for
Selecting an Islamic Bank: Evidence from Pakistan”. Journal of Islamic
Marketing. Vol. 2. pp. 14-27.
[66] Pepinsky, Thomas b. 2012. “Development, Social Change, and Islamic
Finance in Contemporary Indonesia”. World Development .Vol. 41. pp.
157–167.
[67] Ahmad, Norafifah & Haron Sudin .2002. “Perceptions of Malaysian
Corporate Customers towards Islamic Banking Products & Services”.
International Journal of Islamic Financial Services. Vol. 3, pp.32 – 45.
[68] Shahrauddain, Amir, Suhaila Abdul Hamid., Yasmin Hanai M. Safian &
Muhamad Muda. 2005. “A Study on Small and Medium sized
Enterprises Perception towards Islamic Banking Products”. Journal of
Muamalat and Islamic Finance Research. Vol. 2. No. 1. pp. 1-26.
[69] Shahrauddain, Amir, Suhaila Abdul Hamid., Yasmin Hanai M. Safian &
Muhamad Muda. 2005. “A Study on Small and Medium sized
Enterprises Perception towards Islamic Banking Products”. Journal of
Muamalat and Islamic Finance Research. Vol. 2. No. 1. pp. 1-26.
[70] Awan, Hayat M. & Bukhari, K. Shahzad. 2011. “Customer’s Criteria for
Selecting an Islamic Bank: Evidence from Pakistan”. Journal of Islamic
Marketing. Vol. 2. pp. 14-27.
[71] Shahrauddain, Amir, Suhaila Abdul Hamid., Yasmin Hanai M. Safian &
Muhamad Muda. 2005. “A Study on Small and Medium Sized
Enterprises Perception towards Islamic Banking Products”. Journal of
Muamalat and Islamic finance research. Vol. 2. No. 1. pp. 1-26.
[1] Zhenyu, Wu. Jess H. Chua & James J. Chrisman. 2007. “Effects of
Family Ownership and Management on Small Business Equity
Financing”. Journal of Business Venturing. Vol. 22. pp. 875-895.
[2] Boohene, Rosemond, Alison S. & Bernice K. 2008. “Gender, Personal
Values, Strategies and Small Business Performance a Ghanaian Case
Study”. Equal Opportunities International. Vol. 27. pp. 237-257.
[3] Kamel, Mariam R.2012, (October 31). “SMEs in Libya: Promises and
Challenges” Libya Business TV. Retrieved from http://libyabusiness.tv
/video/smes-in-libya-promises-and-challenges-1#sthash.HozPv2lz.Fu
WjUHlj.dpuf. Online Avalible 10 October 2013.
[4] Gallardo, J.1997. “Leasing to Support Micro and Small Enterprises
Financial” Sector Development Department, the World Bank.
[5] AL. Wurfali, Toria .A. H.10 2006. “Small and Medium Enterprises in
Libya: Present and Hoping”. Workingpaper17, 18 April 2006. Online
avalible: 10 November 2009, http://www.kantakji.com/fiqh /Fil es /Ec o
nomics/88001.pdf.
[6] Alrubaie, Falah. K. Ali. 2006. “ An Analysis Study to the Problems of
Financing Small Projects with Reference to Experience of LIBYAN
Development Bank in Darna City” Journal of Munich Persona RePEc
Archive. Online available 12 October 2009 http://mpra.ub.unimuenchen.
de/8494/.
[7] Futaisi, Mhmoed .A. 2007. “Small and Medium Enterprises under
Restructuring of the Libya Economy” Working paper Online available
17 November 2009 <http//www. npc.gov.>.
[8] Salh, Edris Mohammed.2009. “Small and Medium Enterprises (SMEs)
in Libya and Its Role in the Development Process” (master thesis) the
Arabic Open Academy in Denmark. Online available 6 October 2013.
Https<//www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd
=3&cad=rja&ved=0CDoQFjAC&url=http%3A%2F%2Fwww>.
[9] Kamel, Mariam R.2012, (October31). “SMEs in Libya: Promises and
Challenges” Libya Business TV. Retrieved from http://libyabusiness.tv
/video/smes-in-libya-promises-and-challenges-1#sthash.HozPv2lz.Fu
WjUHlj.dpuf. Online Avalible 10 October 2013.
[10] Badri, Abdul Enwaje .2006. "The Reality of Small and Medium-Sized
Projects in Libya," A Symposium on Growth and Development of Small
and Medium-Sized Projects in Libya, Center for Economic Research,
Benghazi.
[11] Salh, Edris Mohammed. 2009. “Small and Medium Enterprises (SMEs)
in Libya and Its Role in the Development Process” (master thesis) the
Arabic Open Academy in Denmark. Online available 6 October 2013.
Https<//www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd
=3&cad=rja&ved=0CDoQFjAC&url=http%3A%2F%2Fwww>.
[12] Mews, Constant J. & Ibrahim Abraham. 2007. “Usury and Just
Compensation: Religious and Financial Ethics in Historical
Perspective”. Journal of Business Ethics. Vol. 72. pp. 1–15. DOI
10.1007/s10551-006-9151-0.
[13] Annual the Report of the National Programmer for Small and Medium
Enterprises in Libya. 2010. Unpublished.
[14] Mahrouq, Maher. H. 2003. The Small Firm Lone Guarantee Scheme in
Jordan: An Empirical Investigation (PhD Thesis) University Of
Newcastle.
[15] Salh, Edris Mohammed.2009. “Small and Medium Enterprises (SMEs)
in Libya and Its Role in the Development Process” (master thesis) the
Arabic Open Academy in Denmark. Online available 6 October 2013.
Https<//www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd
=3&cad=rja&ved=0CDoQFjAC&url=http%3A%2F%2Fwww>.
[16] Abd Wahab, Kalsom & Abdesamed, Khalid .2012. “Small and Medium
Enterprises (SMEs) Financing Practice and Accessing Bank Loan
Issues- The Case of Libya”. World Academy of Science, Engineering
and Technology .Vol.72.pp.1535-1540.
[17] Metwally, M .1996. “Attitudes of Muslims towards Islamic Banks in a
Dual-Banking System”. American Journal of Islamic Finance. Vol. 6.
pp.11−17.
[18] Idris, Asma’ Rashidah, Khadijah Nik Muhammad Naziman, Siti Sarah
Januri, Fadli Fizari Abu Hassan Asari, Norrini Muhammad, Sabiroh Md
Sabri & Kamaruzaman Jusoff. 2011. “Religious Value as the Main
Influencing Factor to Customers Patronizing Islamic Bank”. World
Applied Sciences Journal (Special Issue on Bolstering Economic
Sustainability): 08-13, 2011 ISSN 1818-4952.
[19] Gerrard, P., & Cunningham, J. 1997. “Islamic Banking: A Study in
Singapore”. International Journal of Bank Marketing. Vol.15. pp.204-
216.
[20] Ahmad, Norafifah & Haron Sudin .2002. “Perceptions of Malaysian
Corporate Customers towards Islamic Banking Products & Services”.
International Journal of Islamic Financial Services. Vol. 3. pp.32–45.
[21] Okumus, S. H. 2005. “Interest Free Banking in Turkey: A Study of
Customer Satisfaction and Bank Selection Criteria”. Journal of
Economic Cooperation. Vol. 26. pp. 51-86.
[22] Metawa, S. & Almossawi, M. 1998. “Banking behaviour of Islamic bank
customers: perspectives and Implications”. International Journal of
Bank Marketing. Vol. 16, pp.299-315.
[23] Gait, Alsadek H. & Worthington, Andrew. C. 2009. “Libyan Business
Firm Attitudes towards Islamic Methods of Finance” Online available 4
October 2011. http://www.griffith.edu.au/ __data/assets/pdf_file/0009/
146871/2009-10-libyan-business-firm-attitudes-towards-islamicmethods-
in-finance.pdf.
[24] Idris, Asma’ Rashidah, Khadijah Nik Muhammad Naziman, Siti Sarah
Januri, Fadli Fizari Abu Hassan Asari, Norrini Muhammad, Sabiroh Md
Sabri & Kamaruzaman Jusoff.2011. “Religious Value as the Main
Influencing Factor to Customers Patronizing Islamic Bank”. World
Applied Sciences Journal (Special Issue on Bolstering Economic
Sustainability): 08-13, 2011 ISSN 1818-4952.
[25] Abdul Rehman, A. & Masood. O.2012. “Why do Customers Patronize
Islamic Banks? A Case Study of Pakistan”. Qualitative Research in
Financial Markets. Vol. 4 .pp. 130-141.
[26] Echchabi, Abdelghani & Oladokun Nafiu Olaniyi. 2012. “Malaysian
Consumers’ Preferences for Islamic Banking Attributes”. International
Journal of Social Economic .Vol. 39 .pp. 859-874.
[27] Alam, Syed Shah. Hawati Janor, Zanariah, Che .Aniza Che Wel & Mst.
Nilufar Ahsan. 2012. “Is Religiosity an Important Factor in Influencing
the Intention to Undertake Islamic Home Financing in Klang Valley?”
World Applied Sciences Journal .Vol.19. pp. 1030-1041.
[28] Sayani, Hameedah & Miniaoui, Hela.2013. “Determinants of Bank
Selection in the United Arab Emirates”. International Journal of Bank
Marketing. Vol. 31. pp. 206-228.
[29] Haron, S., Ahmad, N., & Planisek, S. 1994. “Bank Patronage Factors of
Muslim and Non-Muslim Customers”. International Journal of Bank
Marketing. Vol. 12. pp 32-40.
[30] Jalaluddin, A & Metwally M.1999. “Profit/Loss Sharing: An Alternative
Method of Financing Small Businesses in Australia”. The Middle East
Business and Economic Review. Vol. 11.pp. 8−14.
[31] Naser, K., Jamal, A., & Al-Khatib, K. 1999. “Islamic Banking: A Study
of Customer Satisfaction and Preference in Jordan”. International
Journal of Bank Marketing. Vol .17, pp.135-50.
[32] Mansour, Walid. Mohamed Ben Abdelhamid G.S.K. Niazi. 2010.
“Islamic Banking and Customers’ Preferences: The Case of the UK”.
Qualitative Research in Financial Markets Vol. 2.pp. 185-199.
[33] Awan, Hayat M. & Bukhari, K. Shahzad.2011. “Customer’s Criteria for
Selecting an Islamic Bank: Evidence from Pakistan”. Journal of Islamic
Marketing. Vol. 2. pp. 14-27.
[34] Pepinsky, thomas b. 2012. “Development, Social Change, and Islamic
Finance in Contemporary Indonesia”. World Development .Vol. 41. pp.
157–167.
[35] Shahrauddain, Amir, Suhaila Abdul Hamid., Yasmin Hanai M. Safian &
Muhamad Muda. 2005. “A Study on Small and Medium Sized
Enterprises Perception towards Islamic Banking Products”. Journal of
Muamalat and Islamic Finance Research. Vol. 2. No. 1. pp. 1-26.
[36] Haron, S., Ahmad, N., & Planisek, S. 1994. “Bank Patronage Factors of
Muslim and Non-Muslim Customers”. International Journal of Bank
Marketing. Vol. 12. pp 32-40.
[37] Abdul Rahim, Abdul Rahman. 2007. “Islamic Banking and Finance:
between Ideals and Realities”. Journal of Economics and management.
Vol. 15. pp. 123-141. By the international Islamic university Malaysia. [38] Martin, Čihák & Heiko Hesse. 2010. “Islamic Banks and Financial
Stability: An Empirical Analysis”. Journal Finance Service Research.
Vol. 38 .pp. 95–113.
[39] Schreiner, Martin. 2010. “Islamic Finance”. Journal Economics. Vol.
100. pp.91-93.
[40] Nejullah, Siddiqi Mohammad. 2006. “Islamic Banking and Finance in
Theory and Practice; A Survey of State of the Art”. Journal Economic
studies. Vol.13.pp.1-48.
[41] Zarrokh, Ehsan. 2010. “Iranian Islamic Banking”. Journal Law
Economics. Vol. 29. pp. 177–193.
[42] Usmani, Muhammad Imran Ashraf. 2002. Meezan Banks Guide to
Islamic Banking. Darul-Ishaat Karachi.
[43] Mews, Constant J. & Ibrahim Abraham. 2007. “Usury and Just
Compensation: Religious and Financial Ethics in Historical
Perspective”. Journal of Business Ethics. Vol. 72. pp.1–15. DOI
10.1007/s10551-006-9151-0.
[44] Al- Quran. Surah Al-Rum, verse 39.
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@article{"International Journal of Business, Human and Social Sciences:71366", author = "Khalid Hassan Abdesamed and Kalsom Abd Wahab", title = "Owner/Managers’ External Financing Used and Preference towards Islamic Banking", abstract = "Economic development and growth are significantly
linked to the consistent and sustainable sector of small and medium
enterprises (SMEs). Banks are the frontrunners in financing and
advising SMEs. The main objective of the study is to assess the
tendency of SMEs to use the Islamic bank. Model was developed
using quantitative method with a hypothetical-deductive testing
approach. Model (N = 364) used primary data on the tendency of
SMEs to use Islamic banks gathered from questionnaire. It is found
by Mann-Whitney test that the tendency to use Islamic bank varies
between those firms which consider formal financing with the ones
relying on informal financing with the latter tends more to use
Islamic bank. This study can serve academic researchers, policy
makers, and developing countries as a model of SMEs’ desirability to
Islamic banking.", keywords = "Formal financing, informal financing, Islamic bank,
SMEs.", volume = "9", number = "9", pages = "3257-6", }
