Analysing ar-rahnu in the context of informal credit market theory : Evidence from women micro-entrepreneurs in Malaysia
Joint Authors
Adeyemi, Adewale Abidin
Qasim, Salina Haji
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 10, Issue 2 (31 Dec. 2018), pp.237-250, 14 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2018-12-31
Country of Publication
Malaysia
No. of Pages
14
Main Subjects
Economics & Business Administration
Abstract EN
Purpose – This study aims to offer a new area of discourse by investigating the factors determining the usage of the Islamic non-bank financing product ar-rahnu (Islamic pawnbroking) among women microentrepreneurs in Malaysia within the framework of the informal credit market theory.
Design/methodology/approach – The study is based on primary data obtained by using selfadministered questionnaires distributed in three states in Malaysia: Kedah, Kelantan and Terengganu.
The questionnaires were distributed to a total of 750 participants, with each state contributing 250 respondents.
Total number of respondents valid for data analysis was however 600.
Findings – Based on descriptive and inferential statistics by using the IBM statistical package for the social sciences and structural equation modelling analysis of moment structures, the results show that the main factor influencing women micro-entrepreneurs to use ar-rahnu is the service charge.
Research limitations/implications – This study only covers three states in Malaysia and is limited to examining the use of ar-rahnu by women micro-entrepreneurs in those states.
Practical implications – As micro-entrepreneur s often face constraints to obtaining financial access in the formal credit market, ar-rahnu provides an alternative mode of obtaining business financing to female micro-entrepreneurs, so they can sustain their operations and even expand their businesses.
The significance of such factors like service fee, as revealed in this study, indicates that managers should focus on this element when offering Islamic financial products, especially to women micro-entrepreneurs.
Originality/value – The informal credit market theory is frequently used in conventional studies.
This paper adds Sharīʿah compliance in the context of this theory as a new area to be considered when discussing Islamic financial products.
American Psychological Association (APA)
Qasim, Salina Haji& Adeyemi, Adewale Abidin. 2018. Analysing ar-rahnu in the context of informal credit market theory : Evidence from women micro-entrepreneurs in Malaysia. ISRA International Journal of Islamic Finance،Vol. 10, no. 2, pp.237-250.
https://search.emarefa.net/detail/BIM-965763
Modern Language Association (MLA)
Qasim, Salina Haji& Adeyemi, Adewale Abidin. Analysing ar-rahnu in the context of informal credit market theory : Evidence from women micro-entrepreneurs in Malaysia. ISRA International Journal of Islamic Finance Vol. 10, no. 2 (2018), pp.237-250.
https://search.emarefa.net/detail/BIM-965763
American Medical Association (AMA)
Qasim, Salina Haji& Adeyemi, Adewale Abidin. Analysing ar-rahnu in the context of informal credit market theory : Evidence from women micro-entrepreneurs in Malaysia. ISRA International Journal of Islamic Finance. 2018. Vol. 10, no. 2, pp.237-250.
https://search.emarefa.net/detail/BIM-965763
Data Type
Journal Articles
Language
English
Notes
Text in English ; abstracts in .
Record ID
BIM-965763