An Empirical Investigation of Islamic Banking Adoption in Brunei

Abstract

The present study aims to evaluate the level of understanding of various Islamic banking (IB) concepts and categorises the factors that influence the adoption of Islamic banking services (IBS) in Brunei. The impact ofthe level of understanding, relative advantage, compatibility, complexity, observability, uncertainty, and service quality was examined through Rogers (2003) Diffusion of Innovation (DOI). Data was collected from 245 Bruneian bank customers through a self-administered survey questionnaire. The findings revealed that the level of understanding of various IB concepts was below average among the customers. The multiple regression analysis revealed that the level of understanding, perceived attributes of innovation, and service quality positively impact the adoption of IBS.