A Multigroup Structural Equation Modelling Approach To Moderating The Influence Of Religion On The Adoption Of Islamic Home Financing

Studies have examined the intention of home buyers to adopt Islamic home financing without considering the effect of religion. The present study, therefore, examines the moderating influence of religion on the adoption of Islamic home financing. The study used the decomposed theory of planned behaviour and SEM multigroup analysis approach. Data collected from 518 prospective home buyers in Nigeria using survey questionnaires indicates a difference between Muslims and non-Muslims. The chi-square result shows that the difference is significant and that religion moderates the relationship between independent variables (attitude, subjective norms, perceived behavioural control) and dependent variable (intention). This paper discusses the implications for academicians to replicate the method used in this study and the stakeholders and bankers to promote Islamic finance. It suggests that religious disparity should be avoided in order to promote Islamic finance and create awareness irrespective of religion.