Purpose—The purpose of this study is to investigate barriers in the adoption of
Islamic banking under different levels of religiosity and usage. The thesis aims to
focus on barriers impeding adoption of Islamic banking perceived between
consumers with different religious commitment in consuming Islamic products and
services (i.e., religiosity), and with different usage rate in banking services
utilization (i.e., usage).
Design/methodology/approach—Based on a literature study, the thesis develops
hypotheses that distinguish the barriers on Islamic banking adoption among
different consumer segments based on religiosity and usage. Data were collected
by means of a survey, resulting in an effective sample of 195 respondents.
Findings—In the case of religiosity, the Facility and Spiritual Value factors are
perceived to be higher by the highly religious group, while the Habit, Economic
Value, Risk, and Tradition factors are perceived to be lower. In the case of usage,
all of the six factors are perceived to be higher for the heavy usage group. There are
significant differences between each group of the independent variables; however,
there is no significant interaction effect found between the two independent
variables on the combined resistance factors.
Practical implications—The results suggest that managers should develop a more
sophisticated understanding of barriers to adoption of Islamic banking.
Distinguishing between different levels of religiosity and usage offers managers the
opportunity to differentiate their communication strategies and design more
compelling ways for consumers to overcome the specific barriers they perceive in
each group.



Supervisor: Amelia E.Maulana