Multi-level analysis of success factors in islamic banking with a structural-interpretive and recursive approach

Subject Areas : Islamic finance

Jalal Yousefi ¹ , Parviz Saeedi ^{2
*} , Maryam Bokharaeian Khorasani ³ , Jamadoordi Gorganli Davaji ⁴

1 - Department of Finance and Accounting, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran.
2 - Department of Finance and Accounting, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran.
3 - Department of Finance, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran.
4 - Department of Finance, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran.

Received: 2023-08-16 Accepted : 2024-06-04 Published : 2024-06-04

Keywords: Islamic banking, Recursive model, Structural-interpretive model,

Abstract :

Purpose: The main objective of this study is to present a multi-level analysis of success factors in Islamic banking using a structural-interpretive and recursive approach. This research is considered an applied study in terms of its purpose. Methodology: This study employs a mixed-method research approach. Data collection tools include expert questionnaires, with the statistical population comprising banking domain experts. Purposive sampling was used to select sample individuals, and Excel software was utilized for data analysis. Subsequently, the Islamic banking model was categorized using structural-interpretive modeling. In this study, factors were classified into six levels. Finally, the structural-interpretive model was tested in the form of a quantitative recursive model. Findings: Based on the research findings, the relationships between variables showed positive path coefficients. The t-statistics of the relationships were reported to be statistically significant at the 95% confidence level. Examination of the path coefficients of the interrelationships between variables at horizontal levels indicated that the interrelationships were reported in a matrix form and were statistically significant. To test the equilibrium hypothesis in recursive models, the stability index results were presented. The stability index value was reported to be 0.412, which is less than 1. Therefore, the equilibrium hypothesis is confirmed. The model's chi-square ratio to degrees of freedom is equal to 2.373, which is appropriate. The fit indices are all above 90% and suitable. The RMSEA index is equal to 0.034, which is appropriate. The parsimonious indices PRATIO, PCFI, and PNFI are also suitable. In conclusion, it can be stated that the model achieved a good fit. Originality/Value: The results of this research can be effective in reviewing and modifying the guidelines and frameworks of conventional (interest-based) banking. Additionally, it can improve the quality of implementing Islamic banking methods and techniques, resulting in more reliable information, and ultimately better addressing the perspectives of stakeholders and users.

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