An aspirational hope of a Sharīʿah-based microfinance model to alleviate extreme poverty

Mohammad Khalequzzaman, Asmak Ab Rahman and Amirrudin Kamsin

International Journal of Islamic and Middle Eastern Finance and Management, 2023, vol. 16, issue 6, 1181-1200

Abstract: Purpose - This study aims to propose a Sharīʿah-based and information and communication technology-driven microfinance model (SIMM) to reduce extreme poverty in rural areas. Existing microfinance models run by microfinance institutions exclude severely poor individuals from their activities. Design/methodology/approach - This study uses an exploratory sequential mixed-method design structured as Studies 1 and 2. Study 1 uses the grounded theory methodology to develop the emergent SIMM through interviews and focus group discussions with the participants (12 rich, 6 rural elites and 18 poor) of the target village. Study 2 uses a survey of 421 household members in the target village to evaluate their attitudes (ATT), subjective norms (SN) and perceived behavioural control (PBC) related to SIMM. Partial least squares-based structural equation modelling is used to evaluate relationships between constructs. Findings - Study 1 identifies seven themes, in which aspirational hope is recognised as a core theme. Study 2 indicates significant relationships between ATT and PBC and between SN and PBC. Thus, the SIMM can alleviate poverty in rural communities. Practical implications - The application of the SIMM in the pilot study provides aspirational hope for eradicating extreme poverty. Social implications - Other rural communities should be encouraged to apply the SIMM to alleviate extreme poverty in their villages. Originality/value - This study contributes to the development of an innovative microfinance model (SIMM) to eradicate extreme poverty in rural areas.

Keywords: Microfinance; Sharīʿah; Microfinance model; Poverty alleviation; Mixed-method (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:imefmp:imefm-03-2022-0116

DOI: 10.1108/IMEFM-03-2022-0116

Access Statistics for this article

International Journal of Islamic and Middle Eastern Finance and Management is currently edited by Prof M. Kabir Hassan

More articles in International Journal of Islamic and Middle Eastern Finance and Management from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().