Religiosity level and saving decisions in Baitul Maal wat Tamwil: the case of Indonesia
ISSN: 1759-0833
Article publication date: 2 October 2019
Issue publication date: 24 October 2020
Abstract
Purpose
This paper aims to examine the relationship between religiosity level and reasons for saving money in Islamic microfinance institutions [Baitul Maal wat Tamwil (BMT)] in Surakarta and Sukoharjo, Indonesia.
Design/methodology/approach
A chi-square test was used to identify the relationship between religiosity level and saving decisions in BMTs. In addition, the authors tested religiosity level and the reasons for transactions in both BMTs and conventional banking. Data were collected via a questionnaire. A total of 523 respondents from Surakarta and Sukoharjo, Indonesia, participated in the survey. The respondents are customers of 31 BMTs in Surakarta and Sukoharjo.
Findings
The authors find a significant relationship between one’s religiosity and the reason for saving money in BMTs. Products that are in accordance with Islamic principles form the highest reason for saving money in BMTs, followed by quality of service, recommendation from friends and location. In addition, purpose of business is the main reason for transactions in both BMTs and conventional banking. However, there is no significant relationship between religiosity level and the decision to transact in both BMTs and conventional banking.
Originality/value
There is a lack of literature discussing Islamic microfinance institutions, especially in Indonesia. Furthermore, BMT customers have different characteristics compared with those of large banks.
Keywords
Citation
Wijaya, I.F., Hakim, A.R., Saputro, N. and Mulyadi, M. (2020), "Religiosity level and saving decisions in Baitul Maal wat Tamwil: the case of Indonesia", Journal of Islamic Marketing, Vol. 11 No. 6, pp. 1465-1483. https://doi.org/10.1108/JIMA-09-2018-0160
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited