Structure analysis of Islamic microfinancing, social capital and ICT usage towards on women micro-entrepreneurs’ performance in Malaysia

• Main Authors: Hamdan, Nur Hazirah, Kassim, Salina, Mustapha, Nur Diyana, Seman, Shahri Abu
• Format: Book Chapter
• Language: English; English
• Published: Springer Science and Business Media Deutschland GmbH 2023
• Subjects: HF5475.I74 Halal business, entrepreneur, marketing, management, and administration; HG Finance; HG3368 Islamic Banking and Finance; T Technology (General)
• Online Access: http://irep.iium.edu.my/110220/7/110220_Structure%20Analysis%20for%20Microfinancing_Social%20Capital%20amd%20ICT%20Usage.pdf; http://irep.iium.edu.my/110220/13/110220_Structure%20Analysis%20of%20Islamic%20Microfinancing%2C%20Social%20Capital%20and%20ICT%20Usage%20Towards%20on%20Women_Scopus.pdf; http://irep.iium.edu.my/110220/; https://link.springer.com/book/10.1007/978-3-031-28314-7; https://doi.org/10.1007/978-3-031-28314-7_15
• Institution: Universiti Islam Antarabangsa Malaysia

The purpose of this study is to examine the effects of Islamic microfinancing, social capital, and Information Communication and Technology (ICT) usage on the performance of women micro-entrepreneurs in Islamic microfinance institution (IMFI) in Malaysia. The study employed a quantitative approach and conducted a cross-sectional survey on 115 women micro-entrepreneurs under Amanah Ikhtiar Malaysia (AIM). Through the partial least square-structural equation model (PLS-SEM), it was found that Islamic microfinancing, social capital, and ICT usage had significant influences on performance of women micro-entrepreneurs who were financed by AIM. There are some limitations of this study including the scope of the study and sample size. However, the results of this study extended and enhanced the entrepreneurship theory of resource-based view (RBV), emphasizing the critical nature of comprehending a firm’s competitive advantage in terms of performance and growth achieved via its resources and capabilities. This study would assist IMFIs and governments in improving infrastructures, devising comprehensive business strategies and educating women micro entrepreneurs on the benefits of the digital economy towards business sustainability and growth.