An aspirational hope of a ShariMODIFIER LETTER LEFT HALF RINGah-based microfinance model to alleviate extreme poverty

Document Type

Article

Publication Date

10-1-2023

Abstract

PurposeThis study aims to propose a ShariMODIFIER LETTER LEFT HALF RINGah-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/approachThis 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. FindingsStudy 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 implicationsThe application of the SIMM in the pilot study provides aspirational hope for eradicating extreme poverty. Social implicationsOther rural communities should be encouraged to apply the SIMM to alleviate extreme poverty in their villages. Originality/valueThis study contributes to the development of an innovative microfinance model (SIMM) to eradicate extreme poverty in rural areas.

Keywords

Microfinance, Sharah, Microfinance model, Poverty alleviation, Mixed-method

Divisions

DeptofSyariahEconomics,Computer

Publication Title

International Journal of Islamic and Middle Eastern Finance and Management

Volume

16

Issue

6

Publisher

Emerald

Publisher Location

Floor 5, Northspring 21-23 Wellington Street, Leeds, W YORKSHIRE, ENGLAND

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