Investigation Customer’s Intention to Purchase Online from SMEs based on Sharia Perspective

Investigation Customer’s Intention to Purchase Online from SMEs based on Sharia Perspective

1Mr. Khald M. Hassen Wane

Computer Engineering

Higher Institute of Sciences and Technology Aljufra-Sokna-Libya

2 Mr. Abdalslam S Imhmed Mohmed

Computer Engineering Faculty of Science and Technology,

Universiti Sains Islam K.L Malaysia

3Mr. Nabil. Abulgasem. Ali. Abrebish

Computer Engineering

Higher Institute of Sciences and Technology Aljufra-Sokna-Libya

Abstract – The main purpose of the study was to investigate the relationship between theory of planned behavior factors and purchase intention of Muslim customers to purchase Online from SMEs. E-commerce is associated many challenges, such challenges are associated with the Islamic belief and culture. Samples of 304 postgraduate students in Islamic universities of Malaysia were asked to complete a 42 items survey using a closed interval questions. From the square multiple correlation result, it is noted that the model fit criteria are solved and there was 0.50 (50%) of influence of behavioral attitude on intention to purchase. It was also confirmed that TPB factors (behavioral attitude, perceived behavioral control, subjective norms) were indicators for predicting the intention of the customers to purchase via e-commerce with sharia perspectives. Thus, a better understanding on the sharia instruments like Islamic assurance and Islamic background for the products increases the intention to purchase.

Keywords – Theory of Planned Behavior, E-commerce, Purchase intention, Sharia

1. INTRODUCTION

   1. commerce is the most growing technology nowadays for doing business online. This technology is getting rapid implementation in most of business portals and companies are becoming global sellers because of e-commerce technology. The adopting e-commerce bear many challenges and there are certain barriers that should be identified and eliminated before the implementation process, some of the barriers are technological capacity and infrastructure in a particular country and government support. Some of these factors are associated with behavior of the buyers and their intention to purchase online. This study will produce a general knowledge about the usage and intention to purchase from e-commerce adopted by Small and Medium Enterprises in Malaysia, and identify the main impact of Islamic factors such as Islamic assurance and Islamic background on the intention to purchase from e-commerce.

      4Mrs. Mabrouka M. A. Algherini

      Computer Engineering Cyprus international university

      Cyprus lafkosha

2. PROBLEM STATMENT

   The works of Abdulgani and Suhaimi (2014) revealed that usually, consumers are attracted dealers with cost-effective deals, this happens when such unbelievable deals are available on the dealers website. This hints of some fraudulent or misuse of credit and personal information. Niesel (2011) revealed that developing online trust and coping with the risks of online transactions are major challenges of e-commerce in the Malaysian e-commerce industry. With increasing ecommerce research (Bouhlel, Mzoughi, Ghachem, and Negra, 2010; Ling, Chai, and Piew, 2010; Meskaran, Ismail, and Shanmugam, 2013; San Martín and Herrero, 2012), online purchase intention and the demand for secured online transaction has progressed because awareness has been created on such issues as security, privacy, trust and consumers awareness.

   This makes it seemingly difficult for consumers to be reliant on this information when performing transactions. Hence, before embarking on further research, it becomes necessary to understand the legal issues involved in e- commerce, that is, from an Islamic perspective. In the Malaysian context, Amin (2008) emphasized the legal issues, prospects and challenges of transacting business within Islamic sharia. Through the study of e-commerce, customers behavioral intention and trust has been studied for many years, there are not enough studies that tread the sharia aspect. Trust and assurance have a significant impact on the motivation of consumers, their acceptance and their intention when purchasing online. Still, in their studies, they emphasized that it might result in a negative consequence when the overall e- commerce industry is concerned due to the inability to the quench the eccentric desire of Muslim internet users (Muhammad and Muhammad, 2013).

3. THE OBJECTIVE

   1. To identify the factors that influence purchase intention of customers to perform e- commerce dealing with SMEs.

   2. To investigate the relationship between Islamic factors and purchase intention of customers to perform e-commerce dealing with SMEs.

   3. To verify the validity and confirm the proposed new TPB model in accordance with assessment approach of purchase intention of customers.

4. THE QUESTIONS

   1. What are the factors that affect online purchase intention of customers dealing with SMEs?

   2. To what extent the Sharia perspective affect online purchase intention of customer dealing with SMEs?

   3. How can the new proposed TPB model including Sharia instrument be validated and practically used?

5. THE METHODOLOGY

   Confirmatory factor analysis (CFA) through SEM technique was utilized to test the hypotheses. This study investigates to generate findings by examining the data collected based on the observed and unobserved variables. Thus this study is a confirmatory research that utilizes quantitative analysis for the given purpose and problem statement addressed in the previous studies. According to (Baeza-Yates, Calderón-Benavides, and González-Caro (2006); Yuserrie, Noor Azlinna, & Panigrahi, 2014) quantitative method is able to demonstrate situation factors, practices, and other phenomena (Sekaran, 2003). As suggested by Yuserrie et al. (2014) customers with IT knowledge are able to provide information accurately through the survey questionnaire. Customers having experience on e-commerce usage were chosen as unit of analysis. There are no specific industries or sector targeted in this study, but the main focus was on the Muslim customers who are bounded with sharia law while performing online transactions.

   Hypothesis testing was performed through several analyses for the initial 42 items. Reliability findings suggested that the Cronbachs alpha value of the variables were having reliability of above 80%, exceeding the acceptance criteria of

   0.70 provided by (Cronbach, 1951).

6. THE RESULT AND DISCUSSION

   The purpose of the survey instrument used in this study was to investigate the extent to which the TPB factors improve customers intention to purchase SMEs products with sharia perspectives. Regression analysis and confirmatory factor analysis were utilized to test the hypotheses postulated in the study. Null hypotheses were rejected, accepting the four real hypotheses. In addition it was found that information quality was having high beta coefficient with intention to purchase, confirming that quality of information is more important factor that intention of customers to purchase from SMEs with sharia perspectives.

   From the qualitative findings it was confirmed that information quality and sharia instrument for the SMEs products are the main components that customers are concerned with while purchasing online through e-commerce.

7. CONCLUSION

   It is reasonable to conclude that a multidimensional approach to the study of customers purchase intention and attitude with regardto e-commerce usage for SMEs products through sharia instruments results into a better understanding and provisions for the requirement of customers in order to go for e-commerce purchase. The findings from this study revealed that a better understanding on the sharia instruments like Islamic assurance and Islamic background for the products increases the intention to purchase. Further consideration should be given to SMEs managers to encourage customers with the usage of e-commerce for their products bounded with sharia instruments. This consideration would not only increase customers trust and belief on such products but would also lead to increase their confidence and get products in cheaper price with good quality.

8. STRUCTURAL MODEL

   In the structural model, direct relationship between behavioral attitudes, perceived behavioral control, subjective norms on intention to purchase represents the hypothesized relationship between the two variables. This study aims to develop the model of (TPB) by adding extra dimensions which are deemed to be correlated with the intention to purchase online. These dimensions are (Trust, Cultural Effect, Information Quality, Islamic Assurance IA and Islamic Background IB).

   Behavioral Attitude Trust in Technology Evaluation

   Behavioral Attitude Trust in Technology Evaluation

   Subjective Norms

   Cultural Effect Islamic

   Subjective Norms

   Cultural Effect Islamic

   H

   H

   Perceived Behavioral Control

   Control Beliefs

   Perceived Behavioral Control

   Control Beliefs

   Behavi oral Intentio

   H

   H

   Information Quality

   Completeness Accuracy

   Information Quality

   Completeness Accuracy

   Fig.1Develop the model of the (TPB) with Sharia Perspective

9. REFERENCES

1. Abdulgani, M. A., & Suhaimi, M. A. (2014). Exploring factors that influence Muslim intention to purchase online. Paper presented at the Information and Communication Technology for The Muslim World (ICT4M), 2014 The 5th International Conference on.

2. Cushman, D. P., & McPhee, R. D. (2013). MessageAttitude Behavior Relationship: Theory, Methodology, and Application: Elsevier.

3. Jun, G., & Jaafar, N. I. (2011). A study on consumers attitude towards online shopping in China. International Journal of Business and Social Science, 2(22), 122-132.

4. Yuserrie, Z., Noor Azlinna, A., & Panigrahi, S. (2014). Investigating Key Determinants for the Success of Knowledge Management System (KMS) in Higher Learning Institutions of Malaysia using Structural Equation Modeling. The International Journal of Humanities & Social Studies (IJHSS), 2(6), 202-209.

5. Bouhlel, Mzoughi, Ghachem, and Negra,( 2010).

6. Ling, Chai, and Piew, 2010; Meskaran, Ismail, and Shanmugam, (2013)

7. San Martín and Herrero, 2012).

8. Cronbach, L. J. 1951. Coefficient alpha and the internal structure of tests. Psychometrika, 16(3), 297-334.

9. Amin, H. 2008. E-business from Islamic perspectives: Prospects and challenges. Journal of Internet Banking and Commerce, 13(3), 1-13.

10. Muhammad, M., Muhammad, M., Suhaimi, M. A., Hussin, H., Jalaldeen, M., Razi, M., and Abdullah, K. 2013. Building trust in e- commerce from an Islamic perspective: A literature review. American Academic and Scholarly Research Journal, 5(5), 161-168.

11. Nielsen, J. 2011. E-commerce usability. useit. com: Jakob Nielsens Website.