Examination of Smes' Attitudes and Perceptions Regarding Financial System Specific to Participation Banking

Abstract

The Islamic finance system is a system that is outside the traditional financial system and offers alternative financing methods instead of traditional financing methods. Interest in the Islamic financial system is increasing day by day. Due to this increasing interest, the literature on the subject is gradually developing. In this study, it is aimed to test the relationship between the knowledge of Small and Medium Enterprises (SMEs) about Islamic finance investment products and the tendency of SMEs to invest in Islamic finance instruments. The alternative investment and financing system awareness questionnaire used in the data collection part was applied to SMEs operating in the province of Erzincan. Independent sample t-test, one-way ANOVA test, Tukey HSD test, Pearson Correlation analysis and multiple regression analysis were used in the analysis of the data. The findings show that there is a positive and significant relationship between the predictive variables of the Islamic financial system and the tendency to use the Islamic financial system. The most effective predictor variable on the tendency of SMEs to use the Islamic finance system was found to be awareness of Islamic finance. The positive relationship between the tendency to use the Islamic finance system and the predictive variables (attitudes, subjective norms, perceived behavioral control and awareness of Islamic finance) can be interpreted as SMEs tend to invest in Islamic finance instruments.