Abstract:
Purpose ‒ The research aims to investigate the owner-manager knowledge as a moderator variable enhancing intention to adopt Islamic financing facilities (IFF).
Design/Methodology/Approach ‒ The research obtained primary data by conducting a survey of 237 participants from halal-certified companies in Malaysia. The data was analyzed using partial least squares (PLS) to provide support for the hypotheses.
Findings ‒ The results show that relative advantage, top management support, owner-manager knowledge, and competitive pressure have a significant positive impact on the intention to adopt IFF. Owner-manager knowledge was also found to have a negative and significant effect on the relationship between complexity, top management support, and the intention to adopt IFF.
Originality/Value ‒ The research identifies a number of gaps in current literature. Firstly, it addresses the limitations of previous research on the adoption of IFF at an organizational level. Secondly, it examines the role of owner-manager knowledge as a moderating factor in the relationship between innovation, organizational and environmental (IOE) characteristics, and adoption intention, which has not been explored in any empirical studies to date.
Research Limitations ‒ This study has two main limitations. Firstly, the data analysis is based on a cross-sectional design, which cannot provide empirical evidence to support causal inferences. Secondly, the majority of the respondents are from the food/beverage/food supplement industry, as revealed in the results.
Practical Implications ‒ These findings can guide stakeholders in developing effective strategies to enhance the adoption of IFF by halal-certified companies in Malaysia.
