Motivations Aspect for the Adoption of Islamic Financing Among Halal Entrepreneurs in Malaysia

Halal and Islamic finance are in accordance with Islamic law and have been established in the context of halal economic development. The purpose of this study was to investigate the factors in the adoption of Islamic financings by Halal Entrepreneur. This study was employed qualitative approach using interview with halal food entrepreneurs. The results indicated that the knowledge, religious obligation, cost benefit and government support of non-users and users of Islamic financing product are mainly elements to support the adoption and continues adoption of Islamic financing among Halal entrepreneurs. This study implies that Islamic banking industry should focus on the people’s level of awareness, cost benefit charged by the Islamic bank, the roles of Islamic banking to educate the customers towards Sharia practising in the operations and government support that would have an impact on customer decision to patronize Islamic financing products. This study’s finding is limited to producers of Halal Food Entrepreneur. Future works should extend beyond the current scope to Halal Pharmaceutical, Halal logistics or Halal Cosmetic to investigate the research model in the different context.