Publication: Adoption Of Islamic Trade Financing Facilities Among Smes In North-west Nigeria: A Preliminary Investigation
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Date
2022
Journal Title
Journal ISSN
Volume Title
Publisher
Penerbit Universiti Sains Islam Malaysia
Abstract
The existence, growth and development of Small and Medium-sized Enterprises (SMEs) depend on trade and commercial activities. Trading activities, especially cross-border trade, have been acknowledged as an important instrument for sustainable economic growth, development, poverty alleviation, inclusiveness and global stability. However, for the smooth flow of trade and commercial activities, SMEs need a specialized form of financing (i.e., trade finance). North-West Nigeria being a Muslim-majority region, Islamic trade finance should be a better alternative than conventional trade finance. Thus, this preliminary study aims to examine the significant factors influencing the adoption of Islamic trade financing products among SMEs owner-managers in North-West Nigeria. Besides, the study investigates the moderating effects of age, gender and education on the adoption of Islamic trade financing products among SMEs owner-managers. To achieve this aim, a quantitative survey of 36 randomly selected SMEs was undertaken of which 35 were valid for analysis. A hierarchal multiple regression approach was employed to analyse the data. The results of hypotheses testing revealed that religious obligation and awareness have a direct and significant influence on the adoption of Islamic trade financing products. On the contrary, relative advantage, compatibility, complexity, perceived risk, social influence, and government support were found to be insignificant. Also, age, gender, and education were found to be insignificant moderators in this study. The results of this preliminary study indicate the need for massive awareness and the importance of promoting the “Islamicity” of Islamic trade financing facilities by Islamic banks in North-West Nigeria.
Description
Volume 19 No: 1 (page: 63-85)
Keywords
Citation
Nurudeen Abdulkadir, Safeza Mohd Sapian, & Norhazlina Ibrahim. (2022). Adoption of Islamic trade financing facilities among SMEs in North-West Nigeria: A preliminary investigation. The Journal of Muamalat and Islamic Finance Research, 19(1), 63-85. https://doi.org/10.33102/jmifr.v19i1.414