Badaj, Fairouz and Radi, Bouchra,(2018), Empirical investigation of SMEs’perceptions towards PLS financing in Morocco. , International Journal of Islamic and Middle Eastern Finance and Management, UNSPECIFIED
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Abstract
Purpose – The main purpose of the study is to examine the willingness of Moroccan small- and mediumsized
enterprises (SMEs) to adopt profit and loss sharing (PLS) method of finance and the factors that may
influence their decision.
Design/methodology/approach – The research model is based on the decomposed theory of planned
behaviour (DTPB). A total of 340 questionnaires were randomly distributed to SMEs’ owner-managers, out of
which 177 were collected and only 153 were valid for analysis. Factor analysis and partial least squares
regression were subsequently applied.
Findings – The results showed that cost, loss of control, constrained access to conventional debt, financial
suitability, stage of development as well as religious beliefs have a significant impact on the SMEs’ attitude
towards PLS modes. Likewise, normative belief was also found to have a significant influence on subjective
norm, by particular reference to the family, financial external consultants and internal managers, as the main
referent groups. In addition, finally, attitude and perceived behavioural control were found to have a
significant impact on the intention to adopt PLS financing by Moroccan SMEs.
Research limitations/implications – The sample is not representative; hence, the findings cannot be
generalized to all Moroccan SMEs. Furthermore, the variables and dimensions used are not exhaustive. With
regard to implications, the study confirms the applicability of the DTPB to SME financing questions.
Moreover, this study provides great indications to the practitioners, investors, policy makers and regulators
on the perception of the Moroccan entrepreneurs, which should be taken into consideration to establish the
necessary strategies to attract them.
Originality/value – This paper verifies the applicability of the DTPB in another area, that is, adoption of
PLS instruments and contributes to explain the entrepreneurs’ perceptions towards theses modes of
financing.
Keywords : | Decomposed theory of planned behaviour, Profit and loss sharing, SME financing, UNSPECIFIED |
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Journal or Publication Title: | International Journal of Islamic and Middle Eastern Finance and Management |
Volume: | 11 |
Number: | 2 |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Users 15 not found. |
Date Deposited: | 13 Dec 2019 08:18 |
Last Modified: | 13 Dec 2019 08:18 |
URI: | https://repofeb.undip.ac.id/id/eprint/90 |