Stagnant Islamic banking market share in dual-banking system: insights from cognitive psychology study of representativeness and anchoring-adjustment heuristics Abdul Hamid Habbe, Hermita Arif, Rizky Utami, Sanusi Fattah, Elvita Bellani, Ahmad Hanafi, Faisal Abdullah, Andi Sri Wahyuni Journal of Islamic Marketing, 2025 Purpose This study aims to investigate the behavioral aspects of Indonesian Muslims that hinder them from switching from conventional to Islamic banks, leading to a low market share of the Islamic banking industry in Indonesia. Design/methodology/approach This study used a quasi-experimental design with a full factorial 2 × 2 between-subjects setup with three scenario-based treatments (operational, income and legal perception) to test the robustness of heuristic decision-making patterns. A total of 320 participants from Islamic and conventional bank customers in Indonesia took part in the experiment. Data analyzed using a one-sample t-test and descriptive statistical comparison to examine heuristic-based behavioral differences across treatments. Findings The empirical results reveal that Indonesian Muslims consistently rely on heuristic reasoning when evaluating banking options. Initial beliefs strongly shape responses to new information, leading to overreaction to belief-consistent information and underreaction to contradictory information. Although switching behavior toward Islamic banks is evident, many consumers continue to maintain accounts in conventional banks due to religious norms, emotional aversion to riba, limited Islamic financial literacy, and institutional constraints such as payroll systems, resulting in a stagnant Islamic banking market share. Sensitivity testing further shows that respondents reacted most strongly when the statement “trade is the same as usury” was framed in legal or Sharia terms, highlighting the dominant influence of the religious status of riba. Practical implications This study implies that Islamic banks should adopt communication strategies that address belief misperceptions of “trade equals riba” by applying cognitive framing, segment marketing based on consumers’ heuristic responses and collaborate with institutions to reduce structural dependence on conventional banks. Originality/value This study is the first to investigate the behavioral aspect that explains the stagnancy of the Islamic banking industry in Indonesia using a theory-driven conceptual framework. In addition, this study simultaneously applies the heuristic theory of representativeness and anchoring adjustment.
The influence of human capital on the performance of regional government employees in South Sulawesi Province Journal of Legal Ethical and Regulatory Issues, 2021
Measuring internal auditor’s intention to blow the whistle (A Quasi-experiment of internal auditors in the local government) Abdul Hamid Habbe, Syarifuddin Rasyid, Hermita Arif, Iskandar Muda Business Theory and Practice, 2019 This study measures the cognitive moral development and tests its interaction with antecedent variables of prosocial behaviour such as fraud level, the status of person committing fraud and cohesiveness in affecting the willingness of internal auditors of local government (APIPs) to be a whistleblower. Quasi-experiment between subject design using pattern of 3×2×2×2 and 2×2 full factorial was employed in this research. The participants involved were internal auditors of 24 local governments in South Sulawesi which were divided into 18 groups. The data were analysed using ANOVA and t-test. The results of this study showed that based on the Cognitive Moral Development (CMD), majority of the internal auditors were categorised as pragmatic, the least number were autonomous, while accommodation was in between of both. Moreover, the intention of APIP to whistleblow was found high though insignificantly different among the three categories of CMD. Similarly, the different was insignificant among the variance of fraud level, the status of person committing fraud, and cohesiveness. The interaction between CMD and treatment variables resulted insignificant figure, except for the interaction between CMD and the fraud level which indicated significant result. Generally, it can be concluded that APIPs have a high intention to blow, but the intention will differ when their CMD interact with the fraud level and cohesiveness.
RECENT SCHOLAR PUBLICATIONS
Pengaruh Pembelajaran Sistem Informasi Akuntansi terhadap Peningkatan Keterampilan Mahasiswa: Peran Motivasi Belajar sebagai Variabel Moderasi MA Kalolu, GT Pontoh, H Arif Jurnal Pendidikan dan Pembelajaran Indonesia (JPPI) 6 (2), 1765-1778 , 2026 2026.0
Stagnant Islamic banking market share in dual-banking system: insights from cognitive psychology study of representativeness and anchoring-adjustment heuristics AH Habbe, H Arif, R Utami, S Fattah, E Bellani, A Hanafi, F Abdullah, ... Journal of Islamic Marketing, 1-29 , 2026 2026.0
PENINGKATAN KAPABILITAS PENGELOLA DANA BANTUAN OPERASIONAL SEKOLAH (BOS) LINGKUP KABUPATEN PINRANG RHS Rahma, A Bandang, H Arif Panrita Abdi-Jurnal Pengabdian pada Masyarakat 9 (4), 930-937 , 2025 2025.0
Analisis Kepatuhan Syariah Pelaporan Keuangan Baitul Mal Wat Tamwil (BMT) Insan Mandiri MPZ Dompet Dhuafa Moncongloe Maros E Sari, H Arif, MA Ibrahim Journal of Fiqh in Contemporary Financial Transactions 3 (1), 1-21 , 2025 2025.0 Citations: 2
Islamic sharecropping practices: evidence from indonesian local communities H Arif, AJ Purisamya, MM Ali Riset: Jurnal Aplikasi Ekonomi Akuntansi dan Bisnis 7 (1), 045-060 , 2025 2025.0 Citations: 4
Pengaruh Return on Equity, Debt to Equity Ratio, Price to Earning Ratio dan Price to Book Value terhadap Return Saham D Yudistirha, GT Pontoh, H Arif AKADEMIK: Jurnal Mahasiswa Ekonomi & Bisnis 5 (1), 39-49 , 2025 2025.0 Citations: 3
The Influence Of Accounting Benefits, Individual Benefits, Enterprise Resource Planning (Erp) System Quality And Management Commitment On User Satisfaction AH Safitra, GT Pontoh, H Arif SIMAK 22 (02), 117-129 , 2024 2024.0 Citations: 1
Pengelolaan Keuangan UMKM Berbasis Digital di Kelurahan Biringere Kecamatan Sinjai Utara AIA Alam, MT Dharsana, RRH Thaha, MIU Idris, AMIP Natsir, H Arif Celebes Journal of Community Services 3 (1), 69-78 , 2024 2024.0
Switching Behavior of Banks' Customers: Does It Exist? R Utami, H Arif, AH Habbe, F Abdullah Hasanuddin Economics and Business Review, 146-161 , 2024 2024.0 Citations: 2
PERANAN EXPERIENTIAL LEARNING DALAM MENDORONG ACTIVE LEARNING: STUDI PADA PENDIDIKAN AKUNTANSI A Kusumawati, H Arif, A Madein, AIP Natsir Jurnal Pendidikan Akuntansi Indonesia 21 (1), 41-53 , 2023 2023.0
Minat investasi syariah generasi Z: TPB, perilaku keuangan, dan religiusitas H Hermita, D Dikawati, N Azikin Jurnal Ilmiah Ekonomi Islam 9 (1), 15-29 , 2023 2023.0 Citations: 53
Investigasi Praktik Riba pada Pembiayaan kepada Nelayan: Studi Kasus pada Kabupaten Takalar H Arif, M Ashari Jurnal Ekonomi Syariah Teori dan Terapan 8 (1), 108-115 , 2021 2021.0 Citations: 2
Corporates' Collapse: Role of Internal Auditor H Arif Journal of Advanced Research in Dynamical & Control Systems 12 (1), 359-368 , 2020 2020.0
Measuring internal auditor’s intention to blow the whistle (a Quasi-experiment of internal auditors in the local government) AH Habbe, S Rasyid, H Arif, I Muda Business: Theory and Practice 20, 224-233 , 2019 2019.0 Citations: 36
Board Structure and Earnings Management: Evidence of South East Asia Countries Categorised By Agency Cost Level AM Putra, H Arif Hasanuddin Economics and Business Review, 142-160 , 2017 2017.0 Citations: 1
KEPATUHAN PAJAK UMKM: PERAN TAX MORALE DAN LITERASI KEUANGAN C Rachmadani, A Kusumawati, H Arif Target 2, 50 , 0 Citations: 1
MOST CITED SCHOLAR PUBLICATIONS
Minat investasi syariah generasi Z: TPB, perilaku keuangan, dan religiusitas H Hermita, D Dikawati, N Azikin Jurnal Ilmiah Ekonomi Islam 9 (1), 15-29 , 2023 2023.0 Citations: 53
Measuring internal auditor’s intention to blow the whistle (a Quasi-experiment of internal auditors in the local government) AH Habbe, S Rasyid, H Arif, I Muda Business: Theory and Practice 20, 224-233 , 2019 2019.0 Citations: 36
Islamic sharecropping practices: evidence from indonesian local communities H Arif, AJ Purisamya, MM Ali Riset: Jurnal Aplikasi Ekonomi Akuntansi dan Bisnis 7 (1), 045-060 , 2025 2025.0 Citations: 4
Pengaruh Return on Equity, Debt to Equity Ratio, Price to Earning Ratio dan Price to Book Value terhadap Return Saham D Yudistirha, GT Pontoh, H Arif AKADEMIK: Jurnal Mahasiswa Ekonomi & Bisnis 5 (1), 39-49 , 2025 2025.0 Citations: 3
Analisis Kepatuhan Syariah Pelaporan Keuangan Baitul Mal Wat Tamwil (BMT) Insan Mandiri MPZ Dompet Dhuafa Moncongloe Maros E Sari, H Arif, MA Ibrahim Journal of Fiqh in Contemporary Financial Transactions 3 (1), 1-21 , 2025 2025.0 Citations: 2
Switching Behavior of Banks' Customers: Does It Exist? R Utami, H Arif, AH Habbe, F Abdullah Hasanuddin Economics and Business Review, 146-161 , 2024 2024.0 Citations: 2
Investigasi Praktik Riba pada Pembiayaan kepada Nelayan: Studi Kasus pada Kabupaten Takalar H Arif, M Ashari Jurnal Ekonomi Syariah Teori dan Terapan 8 (1), 108-115 , 2021 2021.0 Citations: 2
The Influence Of Accounting Benefits, Individual Benefits, Enterprise Resource Planning (Erp) System Quality And Management Commitment On User Satisfaction AH Safitra, GT Pontoh, H Arif SIMAK 22 (02), 117-129 , 2024 2024.0 Citations: 1
Board Structure and Earnings Management: Evidence of South East Asia Countries Categorised By Agency Cost Level AM Putra, H Arif Hasanuddin Economics and Business Review, 142-160 , 2017 2017.0 Citations: 1
KEPATUHAN PAJAK UMKM: PERAN TAX MORALE DAN LITERASI KEUANGAN C Rachmadani, A Kusumawati, H Arif Target 2, 50 , 0 Citations: 1
Pengaruh Pembelajaran Sistem Informasi Akuntansi terhadap Peningkatan Keterampilan Mahasiswa: Peran Motivasi Belajar sebagai Variabel Moderasi MA Kalolu, GT Pontoh, H Arif Jurnal Pendidikan dan Pembelajaran Indonesia (JPPI) 6 (2), 1765-1778 , 2026 2026.0
Stagnant Islamic banking market share in dual-banking system: insights from cognitive psychology study of representativeness and anchoring-adjustment heuristics AH Habbe, H Arif, R Utami, S Fattah, E Bellani, A Hanafi, F Abdullah, ... Journal of Islamic Marketing, 1-29 , 2026 2026.0
PENINGKATAN KAPABILITAS PENGELOLA DANA BANTUAN OPERASIONAL SEKOLAH (BOS) LINGKUP KABUPATEN PINRANG RHS Rahma, A Bandang, H Arif Panrita Abdi-Jurnal Pengabdian pada Masyarakat 9 (4), 930-937 , 2025 2025.0
Pengelolaan Keuangan UMKM Berbasis Digital di Kelurahan Biringere Kecamatan Sinjai Utara AIA Alam, MT Dharsana, RRH Thaha, MIU Idris, AMIP Natsir, H Arif Celebes Journal of Community Services 3 (1), 69-78 , 2024 2024.0
PERANAN EXPERIENTIAL LEARNING DALAM MENDORONG ACTIVE LEARNING: STUDI PADA PENDIDIKAN AKUNTANSI A Kusumawati, H Arif, A Madein, AIP Natsir Jurnal Pendidikan Akuntansi Indonesia 21 (1), 41-53 , 2023 2023.0
Corporates' Collapse: Role of Internal Auditor H Arif Journal of Advanced Research in Dynamical & Control Systems 12 (1), 359-368 , 2020 2020.0
