Faith or Functionality? Evidence from Indonesia
DOI:
https://doi.org/10.33021/jaaf.v10i1.6466Keywords:
Islamic banking, adoption, theory of planned behavior, Shariah compliance, convenience, IndonesiaAbstract
This study examines the determinants of Islamic banking adoption in Indonesia, with particular attention to the relative roles of Shariah compliance and convenience. Using survey data from 196 valid respondents and partial least squares structural equation modeling within an extended theory of planned behavior framework, the results show that convenience and attitude significantly predict Islamic banking adoption, whereas perceived Shariah compliance has no significant direct effect. Attitude is the strongest antecedent of adoption intention, and intention, in turn, significantly drives actual adoption. Convenience exerts both direct and indirect effects on adoption through intention. These findings challenge the assumption that perceived religious compliance alone is sufficient to encourage Islamic banking adoption in Indonesia. The results suggest that Islamic banks should complement their Shariah-based value proposition by improving digital accessibility, service efficiency, and overall customer convenience.
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