http://www.iaeme.com/IJM/index.asp 505 editor@iaeme.com
International Journal of Management (IJM)
Volume 12, Issue 2, February 2021, pp.505-524, Article ID: IJM_12_02_049
Available online at http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=12&IType=2
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.12.2.2021.049
© IAEME Publication Scopus Indexed
COUNTRY OF ORIGIN EFFECTS IN
FINANCIAL SERVICE EVALUATION: THE
PAKISTANI CONSUMERS' PERCEPTION
TOWARDS FOREIGN ISLAMIC BANKS
Chaudhry Kashif Mahmood*
Lecturer, Deanship of Academic Development, Imam Abdulrahman Bin Faisal University,
P.O. Box 10674, Dammam 31443, Eastern Province, Saudi Arabia
Rohaizat Baharun
Professor, Azman Hashim International Business School, Universiti Teknologi Malaysia,
Malaysia
Tayyiba Khalil
Lecturer, College of Business Administration, Imam Abdulrahman Bin Faisal University,
P.O. Box 10674, Dammam 31443, Eastern Province, Saudi Arabia
*Corresponding author
ABSTRACT
This study aimed to measure the country of origin's effect on consumer purchase
decisions with the moderating role of consumer knowledge in Islamic banking services.
Most of the research has been directed to measure country of origin's impact on
products' tangible nature while its effect on consumer decisions in financial services
has not been answered satisfactorily. The present study gauges this gap and proposes a
comprehensive model for Islamic banking financial services. The current study
population was Islamic banking customers from Pakistan who have adequate
information about Islamic banking services. A multistage cluster sampling technique
was utilized. Punjab and Sindh, two leading states, were selected to collect the data.
415 useful samples were collected and analyzed using PLS-SEM to test the hypothesis
and validate the study model. The study results confirmed that country-of-origin and
consumer knowledge significantly influence consumer purchase decisions while
acquiring Islamic financial services. The findings of the current study have some
important implications for the Islamic banking sector in Pakistan to revamp competitive
strategies for national and foreign banking investment by creating the awareness and
benefits of Islamic banking services. Managers must try to develop a positive attitude
by enhancing service delivery to potential and existing customers. This research paper