Developing a model for Syariah banking acceptance among Non-Moslem majority population: a case study from Bali, Indonesia


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The study intends to explore the acceptance model of Syariah banking in Bali, Indonesia. It considers that local values, especially menyama-braya, are one of the local wisdoms, and they might encourage people to accept Syariah banks, since Syariah banking emphasizes harmonious relations. Environment marketing theory is useful to explain the importance of local values. Perceived benefit and fairness are thought as perceived values of Islamic banks. Quantitative approach is applied to find relationships between menyama-braya, perceived benefit, and perceived fairness and acceptance model. It follows Malhotra (1993) for sample size, and applies Smart PLS 3 for statistical analysis. The study conceives that menyama-braya as one of the local wisdom does have a significant effect on the acceptance, while perceived benefit does not. Perceived fairness is seen to have a direct effect on the acceptance. Perceived benefit and perceived fairness both have moderating effect on the relationship between menyama-braya and the acceptance. Managers and employers of Islamic banks should consider relevant local values to strengthen their institutional acceptance among non-Moslem majority population. The study is among the few that include local value in the acceptance model, and the first that attends Islamic banking in non-Moslem majority population.

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    • Figure 1. Relationship between variables