An aspirational hope of a Sharīʿah-based microfinance model to alleviate extreme poverty
International Journal of Islamic and Middle Eastern Finance and Management
ISSN: 1753-8394
Article publication date: 11 July 2023
Issue publication date: 30 October 2023
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
Acknowledgements
The authors express the authors’ appreciation to the Web development team for developing the prototype Web application for conducting Studies 1 and 2. The authors would also like to thank Editage (www.editage.com) for the English language editing. The authors thank two anonymous referees for important comments and suggestions.
Funding: The authors received no specific grant from any funding agency in either the public or private sector.
Conflict of interest: The authors do not have any conflict of interest to declare.
Citation
Khalequzzaman, M., Ab Rahman, A. and Kamsin, A. (2023), "An aspirational hope of a Sharīʿah-based microfinance model to alleviate extreme poverty", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 16 No. 6, pp. 1181-1200. https://doi.org/10.1108/IMEFM-03-2022-0116
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited