The role of perceived values and awareness upon the acceptance of islamic financial products and services in Dagestan

Abstract

Growing industry of Islamic Banking has been introduced in Islamic Countries and westerns countries for last three decades. Due to its justice system it become the fastest growing industry globally. However, in Russia, Islamic Banking and Finance industry is still on its first stages. This research was conducted in Republic of Dagestan, part of Russian Federation, where Muslims are the majority. This research is aimed at examining the level of awareness and perceived values among Dagestanians in patronizing Islamic Banking product and services. Theory of Reasoned Action (TRA) was implemented to analyze factors affecting Dagestanians behavioral intention to patronize Islamic Banking. The samples of 400 questionnaires were available for analysis. SPSS were implemented to analyze respondent’s profile. AMOS was used to run Confirmatory Factor Analysis (CFA) and Structural Equation Model (SEM). The study findings indicate that awareness has a positive influence on attitude and subjective norm have positive influence on intention to perform. The results indicate general awareness of public on Islamic Banking, without having fundamental knowledge about Islamic Banking.