The Adoption of Ar-Rahnu and Financial Wellbeing of Microentrepreneurs in Malaysia

Azman, Nik Hadiyan Nik and Zabri, Mohd Zaidi Md and Masron, Tajul Ariffin and Malim, Nurhafiza Abdul Kader (2020) The Adoption of Ar-Rahnu and Financial Wellbeing of Microentrepreneurs in Malaysia. International Journal of Academic Research in Business and Social Sciences, 10 (6). pp. 36-53. ISSN 2222-6990

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There is an urgent call for a potential justification on how and to what extent customers (microentrepreneurs) of Ar-Rahnu institutions in Malaysia are successfully driven their living standards from B10 (hardcore poverty) to B40 (low income). This study classified Ar-Rahnu’s adoption factors into three categories, namely, Shari’ah governance, uniqueness of Ar-Rahnu, and efficiency. 150 questionnaires were distributed to micro-entrepreneurs that used Ar-Rahnu and analysed using SmartPLS 3.0. Based on the results, it shows that Shari’ah governance has a low correlation and insignificant relationship towards Ar-Rahnu adoption. Stated differently, it means that customers find Shari’ah-compliance requirements not as important and it does not get in their way of getting instant cash from Ar-Rahnu. The other two constructs, namely as uniqueness and efficiency, have positive relationships with Ar-Rahnu adoption. It shows a significant and positive relationship with the Ar- Rahnu financing output. Unlike previous studies within the body of knowledge that mainly focuses on the adoption factors of Ar-Rahnu, this study went a step further by addressing the after-effect or impact of Ar-Rahnu adoption towards customers’ wellbeing, especially in terms of financial wellbeing and have found positive results.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory > HB522-715 Income. Factor shares
Divisions: Pusat Pengajian Pengurusan (School of Management) > Article
Zoom Profil Pakar (Expert Profile) > Nik Hadiyan Nik Azman (Management)
Depositing User: Administrator Automasi
Date Deposited: 28 Aug 2020 02:25
Last Modified: 28 Aug 2020 02:26

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