Employees’ attitude towards Islamic banking: Measurement development and validation

Ali, Syed Ahmad and Hassan, Arif and Juhdi, Nurita and Razali, Siti Salwani (2018) Employees’ attitude towards Islamic banking: Measurement development and validation. International Journal of Ethics and Systems, 34 (1). pp. 78-100. ISSN 2514-9369

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Abstract

Purpose – Despite widespread acceptance and exponential growth of Islamic banking acrossmany countries, research indicates some critical issues that can potentially downturn this industry. Literature suggests that like other stakeholders such as customers, some employees too have ambivalent attitude towards its concept and practices. This calls for an empirical assessment. As no such comprehensive instrument was available, this study aims to develop a scalemeasuring employees' attitude towards Islamic banking. Design/methodology/approach – This scale development process begins with literature review pertinent to employees’ perspective in Islamic banking, followed by a series of steps critical to achieve robustness and to ensure validity and reliability of the instrument. Research methods include a detailed set of qualitative interviews, content validation, pilot testing and exploratory factor analysis with subsequent confirmatory factor analysis. Findings – The final scale embodies five orthogonal dimensions: awareness of Islamic banking, usefulness of Islamic banking, perception of Shariah compliance, patronage towards Islamic banking and attractiveness towards Islamic banking. Research limitations/implications – This instrument may be used both by research scholars and practicing managers to measure employees’ attitude towards Islamic banking system and practices. It may also serve as a diagnostic tool to identify the areas of strength and weaknesses in the Islamic banking system as perceived by the employees themselves. Originality/value – An instrument to measure employees’ attitude towards Islamic banking system is much needed as no such comprehensive instrument is available to the best of authors’ knowledge. The study attempts to fulfil this need.

Item Type:	Article (Journal)
Additional Information:	2898/62695
Uncontrolled Keywords:	Malaysia, Islamic banking, Scale development, Employees’ attitude
Subjects:	H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5549 Personnel management
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Business Administration
Depositing User:	Dr. Nurita Juhdi
Date Deposited:	04 Apr 2018 16:41
Last Modified:	27 Dec 2018 19:14
URI:	http://irep.iium.edu.my/id/eprint/62695

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