THE MODERATOR EFFECTS OF OWNER-MANAGER KNOWLEDGE ON THE INTENTION TO ADOPT ISLAMIC FINANCING FACILITIES IN MALAYSIA

Purpose — The research aims to investigate owner-manager knowledge as a moderator variable enhancing the 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 were evaluated using the partial least squares (PLS) method to verify the hypothesis.

Findings — The findings demonstrate a considerable positive influence of relative advantage, top management support, owner-manager knowledge and competitive pressure on the intention to adopt IFF. It was also demonstrated that owner-manager knowledge had a negative and significant effect on the relationship between complexity, top management support, and the intention to apply IFF.

Originality/Value — The research identifies a number of gaps in the current literature. Firstly, it addresses the limitations of previous research on the adoption of IFF at an organisational level. Secondly, it examines the role of owner-manager knowledge as a moderating factor in the relationship between innovation, organisational 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.