Developing a sharia compliance e-commerce trust framework
Over the years, e-commerce has transformed the conduct of business processes, marketplaces, and relationships among its various stakeholders. The growth of ecommerce has been rapid and stimulated by its numerous benefits which attract businesses and consumers to adopt. However, there are serious...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
2019
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/90324/1/FSKTM%202020%202%20ir.pdf |
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| Summary: | Over the years, e-commerce has transformed the conduct of business processes,
marketplaces, and relationships among its various stakeholders. The growth of ecommerce
has been rapid and stimulated by its numerous benefits which attract
businesses and consumers to adopt. However, there are serious concerns among many
Muslims over the non-Sharia compliance of the prevailing e-commerce systems which
results in reluctance and abstinence to patronise, largely due to lack of trust. Yet, the
factors that influence Muslim consumer perception of Sharia compliance e-commerce
(SCE-C) trust have not been adequately studied. Furthermore, comprehensive and
clearly specified Sharia compliance requirements for e-commerce systems are lacking,
and a constraint to determine the SCE-C quality factors that can foster SCE-C trust.
Therefore, this study is carried out to develop an SCE-C trust framework that consists
of factors that have a positive influence on the Muslim consumer perception of SCEC
trust. This process involves developing a Sharia compliance requirements
framework that will provide a clear guideline for e-commerce systems. Consequently,
to determine the SCE-C Quality factors and finally, the SCE-C trust framework.
A mixed research method involving qualitative and quantitative approaches was
adopted in this study. It involved an exploratory sequential design that structured the
study into three successive phases. The first phase was to find the SCE-C requirements
through semi-structured interviews with eight Sharia compliance experts in Malaysia.
Therefore, the data were analysed using content analysis technique with the aid of
Nvivo11. Consequently, SCE-C quality factors and an SCE-C trust framework was
successively developed and validated through a quantitative and confirmatory
approach. The study collected 451 valid responses from Muslim participants using
self-administered questionnaires within four university campuses in Malaysia. The
data were subjected to exploratory and confirmatory factor analysis, and structural
equation modelling with the aid of IBM SPSS 23 and Amos 23 respectively. Therefore, the factor structure, model fitness, convergent and discriminant validity,
construct reliability, and hypothesized paths of the SCE-C quality and the SCE-C trust
models were tested.
Fundamentally, the proposed SCE-C trust framework was found to be supported. The
SCE-C trust factors revealed are SCE-C quality, Islamic commitment, and trust
propensity which has a direct, positive, and significant influence on the Muslim
consumer perception of SCE-C trust. Although, SCE-C quality was found to be the
most significant factor that influences Muslim consumer perception of SCE-C trust.
Therefore, SCE-C trust framework provides e-commerce stakeholders with an insight
on the factors that influence Muslim consumer perception of SCE-C trust. The SCEC
quality factors (phase 2) consists of information accuracy, information
completeness, devoid of haram, usability, customization, security, and service quality.
Whereas, the SCE-C requirements (phase 1) stipulates that, e-commerce systems must
adhere to the maqasid Sharia essentials of enhancing maslaha (welfare) of society and
the Islamic law of contract. Primarily, Islam permits and indeed encourage Muslims
to partake in e-commerce as long as it is Sharia compliant. |
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