Abstract: Islamic microfinance modes of financing are reportedly lacking penetration and characterized by high costs of transactions which resulted in the efficiency of many of the existing institutions. In this study, a model based on Decreased Participation has been proposed as an alternative to the modes of financing to improve the efficiency of the institutions. However, investigating the acceptability of innovation is a very important component for its adoption by potential beneficiaries. Using the theory of diffusion of innovation, this study conducted a survey to understand the behaviour of business owners in Klang Valley to determine the factors that are responsible for their acceptability. A total of 208 respondents were collected and analyzed using descriptive techniques, correlation analysis and regression analysis. It is found that all the independent variables are correlated with the dependent variables at a significance level of p < .001. In the regression analysis as well all the variables investigated were significantly influencing the acceptability of the business owners. With respect to the observed link between acceptability and the dimensions of the theory of diffusion of innovation, the study concludes that the acceptability of Decreased Participation will be influenced significantly by more relative advantage, compatibility, observability, trainability and less complexity.
Keywords: Islamic Microfinance, Decreased Participation.
Title: ACCEPTABILITY OF DECREASED PARTICIPATION MODEL IN ISLAMIC MICROFINANCE AMONG SMALL BUSINESS OWNERS IN SELANGOR
Author: Muhammad Saeed Zakaria, Barjoyai Bin Bardai
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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