Intention to Adopt Islamic Microfinance in the Gambia: The Mediating Role of Attitude

Abstract

This study investigates the factors that influence existing and potential customers’ intention to adopt Islamic microfinance in the Gambia using the Theory of Planned Behavior (TPB). The study further examines the mediating role of attitude towards the intention to adopt Islamic microfinance. Collecting data from 350 respondents in the Gambia through a self-administered questionnaire, we analyze the relationships between TPB constructs and the intention to adopt Islamic microfinance using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results reveal significant relationships between TPB constructs and the intention to adopt Islamic microfinance. Further results show that awareness and knowledge significantly influence intention to adopt Islamic microfinance through the mediating role of attitudes. This research adds to the extant literature on Islamic microfinance by providing empirical evidence on factors influencing behavioral intentions. It extends the application of TPB to Islamic microfinance, offering valuable insights to policymakers and practitioners. Findings suggest that enhancing awareness and knowledge about Islamic microfinance can positively influence attitudes towards its adoption. In light of the findings, policymakers and financial institutions should focus on educational campaigns and information dissemination to promote Islamic microfinance as a viable financial inclusion tool.