The Mediating Role of Religiosity in the Influence of Social Culture and Sharia Financial Literacy on Islamic Banking Product Adoption Among MSMEs in Sembalun

Muaidy Yasin; Akung Daeng; Busaini Busaini; Mohammad Najib Roodhi; Bunga Fajriati

doi:10.31538/iijse.v9i2.9679

Muaidy Yasin Universitas Mataram, Mataram, Indonesia
Akung Daeng Universitas Mataram, Mataram, Indonesia
Busaini Busaini Universitas Mataram, Mataram, Indonesia
Mohammad Najib Roodhi Universitas Mataram, Mataram, Indonesia
Bunga Fajriati Universitas Mataram, Mataram, Indonesia

DOI: https://doi.org/10.31538/iijse.v9i2.9679

Keywords: Sharia Financial Literacy, Religiosity, MSMEs, Social Culture, Mixed Methods

Abstract

This study investigates the influence of Sharia financial literacy and financial social culture on the adoption of Islamic banking products among micro, small, and medium enterprises (MSMEs) in Sembalun, Lombok, Indonesia, with religiosity examined as a mediating variable. Employing a mixed-methods approach with a sequential exploratory design, the research integrates qualitative insights from in-depth interviews and focus group discussions with quantitative survey data collected from 117 MSME owners. The data were analyzed using structural equation modeling (SEM) with AMOS software. The findings reveal that both Sharia financial literacy and financial social culture exert significant positive effects on religiosity and the adoption of Islamic banking products. Additionally, religiosity demonstrates a direct positive influence on adoption behavior. However, Sobel test results indicate that religiosity does not serve as a significant mediator between literacy and adoption or between social culture and adoption. These results underscore the value of developing culturally-grounded financial education programs and leveraging local socio-cultural systems to enhance Islamic financial inclusion. This study offers practical guidance for policymakers and Islamic financial institutions seeking to design more effective, culturally-sensitive outreach strategies while contributing to theoretical knowledge by elucidating the direct and indirect pathways that shape financial adoption behavior among underserved MSMEs.

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