Determination of MSMEs in Adopting Sharia Crowdfunding: Factors and Opportunities

Abstract

Introduction: One of the cutting-edge financing options that is becoming more and more important for MSMEs is sharia crowdfunding, particularly when sharia principles are being used.

Objectives: This study focuses on the importance of knowledge, social media use, trust, perceived utility (PU), and perceived ease of use (PEOU) in influencing MSMEs' propensity to embrace the sharia crowdfunding model.

Methods: This study tests the direct, indirect, and moderating interactions between variables using a quantitative approach and a data analysis methodology based on structural equation modeling (SEM).

Results: The association between independent factors and MSMEs' intention is strengthened by the moderators PU and PEOU, with PU making a larger contribution. The association between social media use and intention, however, is not substantially mediated by trust, suggesting that a calculated strategy is required to boost social media's legitimacy as a communication instrument. By emphasizing the significance of perceived advantages, simplicity of use, and trust, this study adds to the body of knowledge on the adoption of sharia-based financial technology.

Conclusions: The study's findings show that MSMEs' inclination to utilize Islamic crowdfunding is highly influenced by trust, social media use, and clear and pertinent information.