Islamic banking adoption: invoking the congruity paradigm

Abstract

Purpose This study aims to explore whether customers’ perceived congruity between their self-concept and the brand personality of the Islamic banking system determines their intention to adopt Islamic banking services. Design/methodology/approach The authors use primary data collected through a structured questionnaire from 375 Malaysian bank customers. The scales were tested for psychometric soundness before the final data analysis. The authors examined the hypothesized linkages in the AMOS software package through structural equation modeling. Findings Customers’ actual self, ideal self and social self-congruity significantly predict their intention to adopt Islamic banking. However, the impact of actual self-congruity on Islamic banking adoption is stronger for publicly self-conscious customers. In contrast, public self-consciousness dampens the effect of ideal and social self-congruity on Islamic banking adoption. Originality/value Digressing from the conventional utilitarian position, this study offers a novel contribution to the Islamic banking literature by presenting an identity perspective of the determinants of Islamic banking adoption. The primary highlight of this study is the deployment of the congruity theory to emphasize the role of the customer’s self-concept in explaining her intention to adopt Islamic banking services.