Baitul Maal wat-Tamwil Services for SMEs: Evidence From Indonesia

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Author(s): Muhamad Abduh (Universiti Brunei Darussalam, Brunei)and Nur Jamaludin (Sekolah Tinggi Ekonomi Syariah Islamic Village, Indonesia)
Copyright: 2020
Pages: 18
Source title: Handbook of Research on Theory and Practice of Global Islamic Finance
Source Author(s)/Editor(s): Abdul Rafay (University of Management and Technology, Pakistan)
DOI: 10.4018/978-1-7998-0218-1.ch014

Keywords: Accounting & Finance / Accounting and Finance / Business & Management / Business Science Reference

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Abstract

This chapter investigates the relationship between service quality of Baitul Maal wat-Tamwil (BMT) and the satisfaction of small and micro-enterprises in Indonesia with perceived benefits as the mediating variable. Primary data is collected from 454 small and micro-enterprises located in the western part of Jawa Island of Indonesia and the CARTER model is adopted to test the satisfaction of small and micro-enterprises upon the services provided by their patronized BMT as Islamic microfinance institutions. By using the structural equation model, the finding confirms that perceived benefits fully mediate the relationship between service quality of BMT and small and micro-enterprises' satisfaction.

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Baitul Maal wat-Tamwil Services for SMEs: Evidence From Indonesia

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