Choice Criteria for Halal Financing: Religiosity as Mediator

This paper aims to examine the factors of Muslims' intention toward halal
financing by considering religiosity as a mediator. The data were collected
through a survey of 220 Muslims in Malaysia and were analyzed using the
Structural Equation Modelling (SEM) technique. The returned survey was
N=211, and the results showed that attitudes and subjective norms positively
affect the intention to use halal financing. Religiosity has a mediation effect on
the intention to use halal financing. Managers and marketers of Islamic banks
may benefit from the findings of this study, which provide insight into the factors
that should be considered to promote halal financing. The findings contribute
to the literature on halal financing products by demonstrating the drivers of
intention to use halal financing. The study also extends the literature by testing
the mediating role of religiosity. Furthermore, the study extends the Theory of
Reasoned Action (TRA) in the context of halal financing by introducing
religiosity as a potential driver of intention and mediator effect.