Factors Influence Depositors- Withdrawal Behavior in Islamic Banks: A Theory of Reasoned Action
Unlike its conventional counterpart, Islamic principles
forbid Islamic banks to take any interest-related income and thus
makes deposits from depositors as an important source of fund for its
operational and financing. Consequently, the risk of deposit
withdrawal by depositors is an important aspect that should be wellmanaged
in Islamic banking. This paper aims to investigate factors
that influence depositors- withdrawal behavior in Islamic banks,
particularly in Malaysia, using the framework of theory of reasoned
action. A total of 368 respondents from Klang valley are involved in
the analysis. The paper finds that all the constructs variable i.e.
normative beliefs, subjective norms, behavioral beliefs, and attitude
towards behavior are perceived to be distinct by the respondents. In
addition, the structural equation model is able to verify the structural
relationships between subjective norms, attitude towards behavior
and behavioral intention. Subjective norms gives more influence to
depositors- decision on deposit withdrawal compared to attitude
towards behavior.
[1] M. Abduh and R. Ismal, "Depositors- withdrawal behavior in Indonesian
Islamic banks (Periodical styleÔÇöAccepted for publication)",
International Journal of Islamic and Middle Eastern Finance and
Management, to be published.
[2] M. Abduh, "Islamic banking service quality and withdrawal risk: The
Indonesian experience (Periodical styleÔÇöAccepted for publication)",
International Journal of Excellence in Islamic Banking and Finance, to
be published.
[3] Z. Abidin, M.K. Idris, and Faridahwati, "Predicting compliance
intention on zakah on employment income in Malaysia: An application
of reasoned action theory", Jurnal Pengurusan, vol. 28, pp. 85-102,
2009.
[4] H. Ahmed, A Microeconomic Model of an Islamic Bank. Research paper
No. 59, Islamic Research and Training Institute, Islamic Development
Bank, 2002.
[5] H. Ahmed, "Withdrawal risk in Islamic banks, market discipline and
bank stability (Published Conference Proceeding style)", in Int. Conf. on
Islamic Banking: Risk Management, Regulation and Supervision,
Jakarta, 2003.
[6] I. Ajzen and M. Fishbein, Understanding attitudes and predicting social
behavior. USA: Prentice-Hall, 1980.
[7] S. Al-Hajri, "The adoption of e-Banking: The case of Omani Banks",
International Review of Business Research Papers, vol. 4, no. 5, pp.
120-128, 2008.
[8] H. Amin, A. Abdulrahman, and T. Ramayah, "What makes
undergraduate students enroll into an elective course? The case of
Islamic accounting", International Journal of Islamic and Middle
Eastern Finance and Management, vol. 2, no. 4, pp. 289-304, 2009.
[9] H.H. Bauer, S.J. Barnes, T. Reichardt, and M.M. Neumann, "Driving
consumer acceptance of mobile marketing: A theoretical framework and
empirical study", Journal of Electronic Commerce Research, vol. 6, no.
3, pp. 181-192, 2005.
[10] B.M. Byrne, Structural equation modeling with AMOS: basic concepts,
applications, and programming. Routledge, USA, 2001.
[11] F.D. Davis, R.P. Bagozzi, and P.R. Warshaw, "User acceptance of
computer technology: A comparison of two theoretical models",
Management Science, vol. 35, no. 8, pp. 982-1003, 1989.
[12] M.T. Fauziah, T. Ramayah, and Dzuljastri, "Factors influencing
intention to use diminishing partnership home financing", International
Journal of Islamic and Middle Eastern Finance and Management, vol.
1, no. 3, pp. 235-248, 2008.
[13] A.H.A. Gait, "Libyan attitudes towards Islamic methods of finance: An
empirical analysis of retail consumers, business firms and banks
(Unpublished work style)", Unpublished PhD Dissertation, Griffith
University, Australia, 2009.
[14] J.F. Hair, W.C. Black, B.J. Babin, and R.E. Anderson, Multivariate Data
Analysis. Prentice Hall, 2009.
[15] R.H. Hoyle, The SEM approach: basic concepts and fundamental issues,
SAGE publication, USA, 1995.
[16] R. Ismal, "Depositors' withdrawal behavior in Islamic banking: case of
Indonesia". Humanomics, vol. 27, no. 1, pp. 61 - 76, 2011.
[17] G.D. Israel, Determining sample size. Agricultural Education and
Communication Department Series. Institute of Food and Agricultural
Sciences, University of Florida, 1992.
[18] G. Kalton, Introduction to Survey Sampling, SAGE Publication, USA,
1983.
[19] D. Kaplan, Structural Equation Modeling: Foundations and Extensions,
SAGE Publication, California, USA, 2000.
[20] S. Lada, G.H. Tanakinjal, and H. Amin, "Predicting intention to choose
halal products using theory of reasoned action", International Journal of
Islamic and Middle Eastern Finance and Management, vol. 2, no. 1, pp.
66-76, 2009.
[21] J.C. Nunnelly, Psychometric theory (2nd Ed). U.S.A: McGraw Hill,
1978.
[22] O.E. Omar, "The retailing of life insurance in Nigeria: An assessment of
consumers- attitudes", Journal of Retail Marketing Management
Research, vol. 1, no. 1, pp. 41-47, 2007.
[23] J.A. Ouellette and W. Wood "Habit and intention in everyday life: The
multiple processes by which past behavior predicts future behavior",
Psychological Bulletin, vol. 124, no. 1, pp.54-74, 1998.
[24] T. Raykov and G.A. Marcoulides, A first course in structural equation
modeling, Routledge, USA, 2006.
[25] R. Sapingi, N. Ahmad, and M. Mohamad, "A study on zakah of
employment income: Factors that influence academics- intention to pay
zakah (Published Conference Proceeding style)", 2nd International
Conference On Business and Economic Research, 2011.
[26] R.E. Schumacker and R.G. Lomax, A Beginners Guide to Structural
Equation Modeling, RoutledgeÔÇöUSA, 2004.
[27] Y.Y. Shih and K. Fang, "The use of a decomposed theory of planned
behavior to study internet banking in Taiwan", Internet Research, vol.
14, no. 3, pp. 213-223, 2004.
[28] T.A. Shimp and A. Kavas, "The theory of reasoned action applied to
coupon usage", Journal of Consumer Research, Vol. 11, pp. 795-809,
1984.
[29] S. Taylor and P. Todd, "Understanding the information technology
usage: A test of competing models", Information System Research, vol.
6, no. 2, pp. 144-176, 1995.
[30] B. Wheaton, "Assessment of fit in over identified models with latent
variables", Sociological Methods and Research, vol. 16, pp. 118- 154,
1987.
[31] A.H.S. Zolait and A. Sulaiman, "Incorporating the innovation attributes
introduced by Roger-s theory into theory of reasoned action: An
examination of internet banking adoption in Yemen", Computer and
Information Science, vol. 1, no. 1, pp. 36-51, 2008.
[32] H.F. Kaiser and J. Rice, "Little Jiffy Mark", Educational and
Psychological Measurement, vol. 34, pp. 111-117, 1974.
[1] M. Abduh and R. Ismal, "Depositors- withdrawal behavior in Indonesian
Islamic banks (Periodical styleÔÇöAccepted for publication)",
International Journal of Islamic and Middle Eastern Finance and
Management, to be published.
[2] M. Abduh, "Islamic banking service quality and withdrawal risk: The
Indonesian experience (Periodical styleÔÇöAccepted for publication)",
International Journal of Excellence in Islamic Banking and Finance, to
be published.
[3] Z. Abidin, M.K. Idris, and Faridahwati, "Predicting compliance
intention on zakah on employment income in Malaysia: An application
of reasoned action theory", Jurnal Pengurusan, vol. 28, pp. 85-102,
2009.
[4] H. Ahmed, A Microeconomic Model of an Islamic Bank. Research paper
No. 59, Islamic Research and Training Institute, Islamic Development
Bank, 2002.
[5] H. Ahmed, "Withdrawal risk in Islamic banks, market discipline and
bank stability (Published Conference Proceeding style)", in Int. Conf. on
Islamic Banking: Risk Management, Regulation and Supervision,
Jakarta, 2003.
[6] I. Ajzen and M. Fishbein, Understanding attitudes and predicting social
behavior. USA: Prentice-Hall, 1980.
[7] S. Al-Hajri, "The adoption of e-Banking: The case of Omani Banks",
International Review of Business Research Papers, vol. 4, no. 5, pp.
120-128, 2008.
[8] H. Amin, A. Abdulrahman, and T. Ramayah, "What makes
undergraduate students enroll into an elective course? The case of
Islamic accounting", International Journal of Islamic and Middle
Eastern Finance and Management, vol. 2, no. 4, pp. 289-304, 2009.
[9] H.H. Bauer, S.J. Barnes, T. Reichardt, and M.M. Neumann, "Driving
consumer acceptance of mobile marketing: A theoretical framework and
empirical study", Journal of Electronic Commerce Research, vol. 6, no.
3, pp. 181-192, 2005.
[10] B.M. Byrne, Structural equation modeling with AMOS: basic concepts,
applications, and programming. Routledge, USA, 2001.
[11] F.D. Davis, R.P. Bagozzi, and P.R. Warshaw, "User acceptance of
computer technology: A comparison of two theoretical models",
Management Science, vol. 35, no. 8, pp. 982-1003, 1989.
[12] M.T. Fauziah, T. Ramayah, and Dzuljastri, "Factors influencing
intention to use diminishing partnership home financing", International
Journal of Islamic and Middle Eastern Finance and Management, vol.
1, no. 3, pp. 235-248, 2008.
[13] A.H.A. Gait, "Libyan attitudes towards Islamic methods of finance: An
empirical analysis of retail consumers, business firms and banks
(Unpublished work style)", Unpublished PhD Dissertation, Griffith
University, Australia, 2009.
[14] J.F. Hair, W.C. Black, B.J. Babin, and R.E. Anderson, Multivariate Data
Analysis. Prentice Hall, 2009.
[15] R.H. Hoyle, The SEM approach: basic concepts and fundamental issues,
SAGE publication, USA, 1995.
[16] R. Ismal, "Depositors' withdrawal behavior in Islamic banking: case of
Indonesia". Humanomics, vol. 27, no. 1, pp. 61 - 76, 2011.
[17] G.D. Israel, Determining sample size. Agricultural Education and
Communication Department Series. Institute of Food and Agricultural
Sciences, University of Florida, 1992.
[18] G. Kalton, Introduction to Survey Sampling, SAGE Publication, USA,
1983.
[19] D. Kaplan, Structural Equation Modeling: Foundations and Extensions,
SAGE Publication, California, USA, 2000.
[20] S. Lada, G.H. Tanakinjal, and H. Amin, "Predicting intention to choose
halal products using theory of reasoned action", International Journal of
Islamic and Middle Eastern Finance and Management, vol. 2, no. 1, pp.
66-76, 2009.
[21] J.C. Nunnelly, Psychometric theory (2nd Ed). U.S.A: McGraw Hill,
1978.
[22] O.E. Omar, "The retailing of life insurance in Nigeria: An assessment of
consumers- attitudes", Journal of Retail Marketing Management
Research, vol. 1, no. 1, pp. 41-47, 2007.
[23] J.A. Ouellette and W. Wood "Habit and intention in everyday life: The
multiple processes by which past behavior predicts future behavior",
Psychological Bulletin, vol. 124, no. 1, pp.54-74, 1998.
[24] T. Raykov and G.A. Marcoulides, A first course in structural equation
modeling, Routledge, USA, 2006.
[25] R. Sapingi, N. Ahmad, and M. Mohamad, "A study on zakah of
employment income: Factors that influence academics- intention to pay
zakah (Published Conference Proceeding style)", 2nd International
Conference On Business and Economic Research, 2011.
[26] R.E. Schumacker and R.G. Lomax, A Beginners Guide to Structural
Equation Modeling, RoutledgeÔÇöUSA, 2004.
[27] Y.Y. Shih and K. Fang, "The use of a decomposed theory of planned
behavior to study internet banking in Taiwan", Internet Research, vol.
14, no. 3, pp. 213-223, 2004.
[28] T.A. Shimp and A. Kavas, "The theory of reasoned action applied to
coupon usage", Journal of Consumer Research, Vol. 11, pp. 795-809,
1984.
[29] S. Taylor and P. Todd, "Understanding the information technology
usage: A test of competing models", Information System Research, vol.
6, no. 2, pp. 144-176, 1995.
[30] B. Wheaton, "Assessment of fit in over identified models with latent
variables", Sociological Methods and Research, vol. 16, pp. 118- 154,
1987.
[31] A.H.S. Zolait and A. Sulaiman, "Incorporating the innovation attributes
introduced by Roger-s theory into theory of reasoned action: An
examination of internet banking adoption in Yemen", Computer and
Information Science, vol. 1, no. 1, pp. 36-51, 2008.
[32] H.F. Kaiser and J. Rice, "Little Jiffy Mark", Educational and
Psychological Measurement, vol. 34, pp. 111-117, 1974.
@article{"International Journal of Business, Human and Social Sciences:50034", author = "Muhamad Abduh and Jarita Duasa and Mohd. Azmi Omar", title = "Factors Influence Depositors- Withdrawal Behavior in Islamic Banks: A Theory of Reasoned Action", abstract = "Unlike its conventional counterpart, Islamic principles
forbid Islamic banks to take any interest-related income and thus
makes deposits from depositors as an important source of fund for its
operational and financing. Consequently, the risk of deposit
withdrawal by depositors is an important aspect that should be wellmanaged
in Islamic banking. This paper aims to investigate factors
that influence depositors- withdrawal behavior in Islamic banks,
particularly in Malaysia, using the framework of theory of reasoned
action. A total of 368 respondents from Klang valley are involved in
the analysis. The paper finds that all the constructs variable i.e.
normative beliefs, subjective norms, behavioral beliefs, and attitude
towards behavior are perceived to be distinct by the respondents. In
addition, the structural equation model is able to verify the structural
relationships between subjective norms, attitude towards behavior
and behavioral intention. Subjective norms gives more influence to
depositors- decision on deposit withdrawal compared to attitude
towards behavior.", keywords = "Islamic bank, structural equation model, theory of
reasoned action, withdrawal behavior", volume = "5", number = "12", pages = "1766-6", }
