An integrated adoption model for Islamic credit card: PLS-SEM based approach

One challenge when launching new banking services is to overcome resistance to change so as to accelerate market acceptance. This is the case of Islamic credit card (ICC). In response, this study aims to develop a conceptual framework that combines the innovation diffusion theory (IDT) and the theory of reasoned action (TRA) with religious obligation and customer awareness to explain behavior intention and usage behavior of ICC.

To test the conceptual model, the data are collected from 649 bank customers in Malaysia, and the structural equation modeling technique is used to test the forecasting model.

The study results support some relationships of IDT and TRA, such as relative advantage, compatibility, trialability, observability, attitude and also the customer awareness as a stronger predictor of intention of ICC.

To the author’s knowledge, there have not been any attempt to develop a conceptual model for identifying the factors that influence the adoption of ICC by integrating IDT and TRA and other added measures. Therefore, this study adds to the body of knowledge regarding ICC adoption studies by extending the IDT in this domain and integrating it with TRA as two well-established models in the area of acceptance and usage behavior studies.