The role of Ar-Rahnu's benefits - Sacrifices exchange towards relationships between customers and islamic financial institutions

Rafidah Mohd Azli, Mohd Rizal Palil, Shifa Mohd Nor, Mohamad Abdul Hamid, Zainudin Awang

Research output: Contribution to journalArticle

Abstract

The first Ar-Rahnu (Islamic pawn broking) shop was established in Terengganu, Malaysia in 1992. However, the role of exchange between benefits and sacrifices in Ar-Rahnu transaction as a determination of its development has not been given much emphasis in Malaysia. Therefore, this paper explores a new perspective of Ar-Rahnu especially focusing on its benefits and sacrifices. Several studies have highlighted the benefits-sacrifices exchange (BSX) to be the determinant of customer demand. The BSX in Ar- Rahnu transaction proposes a new conceptual framework to investigate the effects of its usage. This paper provides a new insight into these constructs by introducing the Social Exchange Theory (SET). Two hundred and six respondents were selected to answer a set of questionnaires. The Factor Analysis found that the dimension of benefits and sacrifices in Ar-Rahnu is fit to be analysed using SEM using Amos. This paper suggests that BSX in Ar-Rahnu transaction produce a significant effect on the Ar-Rahnu customer-pawnbroker trust and long-Term relationship.

Original languageEnglish
Pages (from-to)127-139
Number of pages13
JournalPertanika Journal of Social Sciences and Humanities
Volume25
Issue numberDecember
Publication statusPublished - 1 Dec 2017

Fingerprint

transaction
customer
Malaysia
exchange theory
factor analysis
determinants
questionnaire
demand
Islamic financial institutions
Customer relationship

Keywords

  • Ar-rahnu
  • Benefits
  • Islamic pawn broking
  • Sacrifices
  • Social exchange theory

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Arts and Humanities(all)
  • Social Sciences(all)
  • Economics, Econometrics and Finance(all)

Cite this

The role of Ar-Rahnu's benefits - Sacrifices exchange towards relationships between customers and islamic financial institutions. / Mohd Azli, Rafidah; Palil, Mohd Rizal; Mohd Nor, Shifa; Hamid, Mohamad Abdul; Awang, Zainudin.

In: Pertanika Journal of Social Sciences and Humanities, Vol. 25, No. December, 01.12.2017, p. 127-139.

Research output: Contribution to journalArticle

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