The purpose of this study is to establish the relationship between relative advantage, social influence, trust, compatibility, knowledge and adoption of Islamic banking among non-Muslim bank customers in a Muslim zone of Nigeria.
Usable questionnaires were received from 350 participants. Structural equation modeling is used to assess the relationships between latent unobserved constructs. Composite reliability and average variance extracted were used to test the reliability and validity of the instrument. This study uses the correlational research design to test the hypotheses.
The findings indicate that relative advantage, social influence, trust and compatibility significantly influence adoption of Islamic banking among non-Muslim customers in a Muslim zone of Nigeria. However, knowledge of Islamic banking operations does not significantly influence adoption of Islamic banking.
The existing literature focuses on factors that influence the adoption of Islamic banking, without due emphasis on non-Muslims. The religious divides of Nigeria compel this research to determine the factors that influence the adoption of Islamic banking among non-Muslim customers. Hence, this research seeks to bridge the gap in the existing literature by embarking on an investigation using innovation diffusion theory to identify factors influencing the adoption of Islamic banking among non-Muslim customers in the Nigerian context.
