Innovation diffusion theory and customers’ behavioral intention for Islamic credit card

Purpose

One of the main challenge when launching new banking services is to overcome resistance to change so as to accelerate market acceptance. This is the case of an Islamic credit card (ICC). Grounded in innovation diffusion theory (IDT) and theory of reasoned action (TRA), this paper aims to study the purposes and empirically tests an integrated model to explore, which factors influence of ICC.

Design/methodology/approach

Partial least squares and structural equation modeling was used to assess the hypotheses. Accordingly, the empirical results, obtained in a sample of 762 bank customers.

Findings

Intentions to use of ICC are mostly determined by relative advantage, compatibility, customer awareness, satisfaction and attitude. The combination of IDT and TRA significantly explain the ICC adoption.

Originality/value

This research has provided a theoretical understanding of the ICC adoption determinants with the intent of promoting a more in-depth understanding of various elements influencing acceptance and usage of this Islamic banking service.