The Role of Ar-Rahn in Enhancing Financial Inclusion: A Structural Equation Modeling Approach
Peranan Ar-Rahnu dalam Meningkatkan Inklusif Kewangan: Suatu Pendekatan Permodelan Persamaan Berstruktur

Department of Economics, Faculty of Management and
Economics
Universiti Pendidikan Sultan Idris
35900 Tanjung Malim, Perak, MALAYSIA.

azila@fpe.upsi.edu.my

Department of Economics, Faculty of Management and
Economics
Universiti Pendidikan Sultan Idris
35900 Tanjung Malim, Perak, MALAYSIA.

fidlizan@fpe.upsi.edu.my

Department of Economics, Faculty of Management and
Economics
Universiti Pendidikan Sultan Idris
35900 Tanjung Malim, Perak, MALAYSIA.

yahya@fpe.upsi.edu.my

Department of Business Management& Entrepreneurship,
Faculty of Management and Economics
Universiti Pendidikan Sultan Idris
35900 Tanjung Malim, Perak, MALAYSIA.

zuraidah@fpe.upsi.edu.my

Department of Economics, Faculty of Management and
Economics
Universiti Pendidikan Sultan Idris
35900 Tanjung Malim, Perak, MALAYSIA.

fatimahsalwa@fpe.upsi.edu.my

Abstract

This study examines the relationship between financial inclusion and the adoption of ar-rahn financing in enhancing the well-being of its customers throughout Malaysia. Data distributed via questionnaire to 239 respondents were analyzed using descriptive and structural equation modeling. The results indicate that there is a positive relationship between financial inclusion and ar-rahn’s financing adoption. In addition, the adoption of ar-rahn among customers improves the well-being of individuals and society. This paper contributes to the existing literatures and provide new insights on how financial inclusion could increase the adoption of ar-rahn financing and consequently the individual and societal well-being.

Keywords

ar-rahn adoption; Financial inclusion; individual well-being; societal well-being
https://doi.org/10.17576/pengurusan-2017-50-09

Citation

Abdul Razak, A. A., Muhammad, F. M., Mohd Hussin, M. Y., Zainol, Z. Z., & Abd. Hadi, F. S. (2017). The Role of Ar-Rahn in Enhancing Financial Inclusion: A Structural Equation Modeling Approach. Jurnal Pengurusan, 50, 97–109. https://doi.org/10.17576/pengurusan-2017-50-09

@article{abdulrazak2017ar-rahn,
  title={The Role of Ar-Rahn in Enhancing Financial Inclusion: A Structural Equation Modeling Approach},
  author={Abdul Razak, Azila and Muhammad, Fidlizan and Mohd Hussin, Mohd Yahya and Zainol, Zuraidah and Abd. Hadi, Fatimah Salwa},
  journal={Jurnal Pengurusan},
 

volume={50},
  number={},
  pages={97—109},
  year={2017},
  doi={https://doi.org/10.17576/pengurusan-2017-50-09},
  publisher={Penerbit UKM},
}

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50 (2017) 97 – 109

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