Abstract
This study aims to examine the effect of Service Quality on the satisfaction of the SMEs owners on the Islamic Microfinance Products. Due to the increasing importance of Islamic banking and financing system, the concern is to what extent this system can satisfy the consumers and contributes to the overall economic development. The model of this study was developed to examine the effectiveness of Islamic banking and financing system. To test the hypothesized model, the data were collected from the SMEs owners in Yemen through a self-administered questionnaire. Out of 250 distributed questionnaires, 151 were returned and were used for data analysis. The results of this study shown the significant effect of Service Quality on the SMEs owners’ satisfaction and the perceived benefits obtained through their dealing with Islamic Microfinance system. In addition, the results of this study confirmed that the perceived benefit partially mediates the relationship between Service Quality and SMEs owners’ satisfaction. However, the moderating effect of perceived benefits on the relationship between service quality and satisfaction was not confirmed.
Highlights
The main principal of Islamic banking and finance system is to support the poor through the microfinance system (Rahman, 2007)
As it is the usual practice in the literature, the construct validity and reliability were established through the measurement analysis before the hypotheses have been examined. 9.1 The Measurement Model In order to establish the goodness of measurement, the content validity and the construct validity were confirmed as discussed in the following. 9.1.1 The Content Validity As defined in the multivariate analysis literature, the content validity of a construct implies that all the items used to measure a construct should show high loadings on their respective constructs
The results showed that the model goodness of fit measure based on the average variance explained is large which indicate an adequate level of global Partial Least Squares (PLS) model validity
Summary
The main principal of Islamic banking and finance system is to support the poor through the microfinance system (Rahman, 2007). The Islamic finance industry has an annual growth between 10% to 15% percent and becoming more competitive with traditional financing sectors (Othman & Owen, 2001). In the current challenging environment, all financial institutions have to give a great attention to the customer satisfaction on their services or products. Customers are the most important factor for them to achieve the success (Hennig, Thurau & Klee, 1997). If the customers are satisfied, they are more likely to be loyal to services provider (Deng et al, 2009). The main aim of any organization is to satisfy the customers’ needs and meet their expectations to sustain their business (Turel & Serenko, 2006)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
