PERCEPTIONS AND ACCEPTANCE OF ISLAMIC

BANKING IN PAKISTAN
Huma Nawaz (Corresponding author), Prof.Dr.Barjoyai Bardai
Al-Madinah International University(MEDIU), Malaysia
9/E, Seksyen 9, 40100 Shah Alam, Selangor, Malaysia
Abstract
Using data from the Pakistani university academicians and students, a survey questionnaire was administered to discover the
behavior of individuals respondents towards Islamic banking. Demographic characteristics together with the perceived attributes
and behavioral intention of Islamic banks versus commercial banks were determined and statistical analysis were conducted. The
findings suggest that culture and services quality factors stand out as being the most significant variables compared to other
factors related to personal beliefs. The evidence from the study did not find any important difference between specific income
group in the utilization of services provided by the Islamic bank. However, individual market requirement, beliefs and knowledge
extent on Islamic banks plays important role in selecting Islamic banks as preferred institutions. The study also explores the
implications of the regulatory services performance of Pakistani banks specifically when observed for conventional banks and
Islamic banks. The result also showed that there is a high degree of awareness on the part of respondents on the advantage of the
best regulatory services and role of the Islamic banking system in social and economic growth of Pakistan. The study also shows
that respondent orientation is a significant predictor of institutional role in the banking industry. In addition, focus on practices
associated with marketing management (market characteristics) are critical in improving business growth. However, Future
research should replicate this finding with a larger sample size. The paper adds to the body of knowledge on the behavioral study
by the geographical context in Pakistan.

Keywords: Islamic banking; Motives and Perception; Multivariate Analysis; Banking of Pakistan; Islamic Banking
awareness

INT R ODUC T IO N

Islamic banking has emerged as an ethical financial system for enhancing institutional effectiveness and
competitiveness. Several empirical studies by Katherine Johnson, (2013);M. Mansoor Khan and M. Ishaq Bhatti,
(2008);Sam Hakim, Manochehr Rashidian, (2002) and SMH et.al. (2014) suggest that banks achieve higher levels
of profitability and growth through successful implementation of Islamic financing principles. International
economic order (NIEO) continued to be irrelevant and resurgence of Islamic banking and finance were needed at
both long term and short run. See for example Irfan Ahmed, (2009); MehdiSadeghi, (2008); Noor Latiffah Adam
and Nordin Abu Bakar, (2014) and Hamzah Adesola Dawood, (2014). Due to the differences in terms of market;
shariah supervisory board, tax rate and research methodology study in Islamic banking has produced mixed results.
For example, Mohsin S. Khan and AbasMirakhor, (1989) and Aderi Adnan, (2011) conceded from their studies that
Islamic finance appears to grow rapidly in Iran while Islamic financial system performance actually deteriorated in
Pakistan.

However, there are other determinants of Islamic banking development that have a significant effect on showing
mixed results. Authors have utilized different approaches including empirical and theoretical studies to understand
the effect of market on Islamic banking performance. Izah Mohd Tahir,Nor Mazlina Abu Bakar, (2010) in their
research have examine the key issues relating to the level of understanding, delivery and internal evaluation of
service quality from the perspective of Islamic bank management. Studies by M. A. Hamid, (2008), had employed a
comparative assessment of the performance of the Islamic banking programs.
However, there are not many studies on the selection of particular geographical characteristics as the research
context. Numerous research such as Norafifah Ahmad & Sudin Haron, (2002) and Bijan Bidabad and Mahmoud
Allahyarifard, (2008). Fouzia Ali et al., (2011) have focused on the Islamic banking customers. Their findings have
shown that there were positive relationship between growth and customer satisfaction in Islamic banking. Studies
by Muhammad Akram, et al., (2001) and Muhammad Aqib Ali, (2015) investigated the growth and development
phases as well as prospects of Islamic banking.
Differences in research framework and respondents characteristics as well as differences in market background
have resulted in inconsistent findings on determining motives and growth evaluation of Islamic banking.
Mohammed El Qorchi, (2008) suggested that differences in money markets and hurdles in regulating and
supervising Islamic finance resulted in progressive liquidity management issues.

Mohammad Akbar Noor

Mohammad Noor, (2012) asserted that country-specific studies help us to better understand the factors of financial
system performance.

Nizami, N. S. (2010) concluded that Islamic banking grow and establish its deep roots among the Muslims society
in Pakistan, but still do not achieve the expected level considering that there were 97% Muslim population in
Pakistan currently. Is it purportedly because of the lower knowledge and awareness about the governing issues of
Islamic products and services or because of the concern for profit or for other reasons. The basic hypothesis is that
the effects of Islamic banking system are moderated by the degree of banking awareness and by the degree of
demographic variation.

More specifically this research seeks two objectives. First, to validate the impact of demographic profile associated
with market on operational and business performance of Islamic banking. Second, to investigate Pakistani residents'
perceptions towards the Islamic banking system to determine the critical success factors that affect the perception
and motive for preference in the financial system.

This study should add to the literature in Islamic banking in the global context, specifically in South Asia.
Knowledge of the demographic and behavioral practice of financial system in Pakistan will enhances our
understanding of the practice of financial processes in the international context. It will add to the body of knowledge
on market characteristics of Islamic banking in developing institutions, such as the financial institutions.

LITE R ATUR E R EV IEW

The effect of Islamic finance on Muslim world is well documented. Products and services offered by Islamic banks
are distinctly different from the ones of conventional banks (Chapra, 2000). The Development of Islamic finance in
global market have been very encouraging to meet the ethical and religious principles (N. Bukhari, Huma, Imam, &
Qadri, 2014). The premises of growth in Islamic banking depend on religious beliefs and many economic
determinants. From the Islamic banking perspective, many authors attached concept of justice with Islamic banks
and emphasis on two fundamental factors of Islamic finance: namely the religion factor and the profitability factor
(Haron, 1996). Islamic Banks and other Islamic finance institutions are business organizations that offer multitude of
products and service for profit (S. M. H. Bukhari, Nawaz, & Sair, 2014).
A Manzoor et al. (2010) study revealed that the religion is the main factor for growth in Islamic banking in Pakistan
as Islamic banking is based on Islamic laws and principles and most Pakistani Islamic banking customers have
adopted both banking system - with about 67% of the customers have accounts in conventional banking system
(Khattak,2010). This shows that IBS is lacking many of the feature and the requirement that customer wants.
Muslim wants their money security and growth without Riba (Rashid, Hassan, & Ahmad, 2009). Erol and El-Bdour

(1989) study was considered to be a premier study of individual consumers attitudes on Islamic banking (Erol & ElBdour, 1989). Bank customers attitudes, behavior and patronage factors were ascertain by a self-administered
questionnaire (both Islamic and conventional) in a study in Jordan (Naser, Jamal, & Al-Khatib, 1999).

Many authors including Haron et al., (Haron, Ahmad, & Planisek, 1994), Metawa and Almossawi (Metawa &
Almossawi, 1998), Metwally (1996) and Ahmed and Haron (2002) have conducted studies that focused on the
perceptions and attitude of customer towards Islamic banking. A majority of respondents survey reflected
importance of religion, Islamic finance operations confidentiality of the bank and economic determinants. Haron , et
al.(1996), Metawa and Almossawi (1998) and Gerrard and Cunningham (1997) reported economics of Islamic
finance by study based on Muslim and non-Muslim customers of Malaysia, Singapore and Bahrain respectively.
They found that 53 percent of non-Muslim respondents perceived Islamic banking as substantive according to
understanding of its operations. Kaynak et al. (1991) reported many determinant of Islamic finance growth in
Turkey based on bank selection criteria according to gender, age and educational background of bank customers
(Kaynak, Kkemiroglu, & Odabasi, 1991).
It is stated that the first attempt to establish Islamic finance institutions was in Pakistan in the late 1950s (Zainol,
Shaari, & Ali, 2008), with the establishment of a local bank in a rural area, although this did not have a lasting
impact (Wilson, 1983). The substantial growth in the Islamic finance industry indicate that a greater interpretation
of the factors that influence different choices can only benefit the growth and development of appropriate strategies
to address the growing appetite for products and services (Bley & Kuehn, 2004).
Previous studies indicated that perceived understanding of Islamic banking operations was the most significant
factor affecting its practices. The implication of these studies is that perceived understanding of Islamic banking is a
root cause for system development. Target market should be made aware of the importance of Islamic financial
system and how to sustain its growth. From an experts viewpoint, the conclusion of these researchers were that
countries planning to adopt Islamic financial system or developing new financial system in other countries should
obtain the commitment and involvement of citizens and pay greater attention to its perceived understanding,
perceived impact and information analysis.
In light of the previous studies reviewed above, the following hypotheses were proposed for this study:
H1. Gender differences affected the Acceptance of Islamic banking significantly .
H2. Income differences affected the Acceptance of Islamic banking significantly.

H3.Religious difference affected the Acceptance of Islamic banking significantly.

H4.Benefits difference affected the Acceptance of Islamic banking significantly.
H5.Culture difference affected the Acceptance of Islamic banking significantly.
H6.Service quality affected the Acceptance of Islamic banking significantly.
H7.Usage of banks services affected the Acceptance of Islamic banking significantly.
H8.Market requirement affected the Acceptance of Islamic banking significantly.
The premises of growth in Islamic banking depend on religious beliefs and many economic determinants. From the
Islamic banking perspective, many authors such as Haron (1996) attached concept of justice with Islamic banks and
emphasis on two fundamental factors of Islamic finance: the religious factor and the profitability factor. Islamic
Banks as Islamic finance providers are one of the business organizations that offer multitude of products and service
for profit.
Research on Islamic banking and performance addresses two major questions:
(1) Do perceptional issues affect performance of financial system?
(2) If so, how does persons perception affect financial system performance?
These previous researches were investigated in the context of the behavioral study towards Islamic banking.
TABLE 1: PREVIOUS RESEARCH SUMMARY
Research
How do the background, knowledge and

Research Findings
The authors find that all independent variables, except

understanding of the individual consumers

confidence in bank, have significant positive effect on

influence the acceptance level towards Islamic

perception and preferences. (Chung foo lianget.al, (2013)).

banking?
Are the demographic factors (age, religions,

Perception about Islamic banking is also being influenced

education, occupation, income) influences the

significantly by religious perspective (Haque et al., (2009)).

awareness of Islamic Banking products and

services among non-Muslims in Malaysia?
To examine the relationship

Perception or reasons behind dealing with Islamic banking

between demographics, awareness and usage

varied among the different income groups in the society and

there were significant differences between the selected
demographics (i.e. age, marital status, gender, occupation,

To identify the motives and criteria for bank

race, education and income level) (Amin ,(2007))

Religious belief may or may not play significant role in the

selection.
To determine the relationship between the

selection of Islamic bank (Al Ajmi, (2009)).

Perception is positively associated with a Muslim account

perception levels of Nigerians account holders

holders decision to patronize Islamic banking products

and their decision to patronize an Islamic

(Kabiru, Jinjiri Ringim,(2013))

banking product
Does Investing with Islamic banking conflict

Most attractive factor that draws Muslims is Religion while the

with religious beliefs?

most attractive factor for non-Muslims is Product and Services.

100% of Muslim respondents agrees that Islamic banking does
not conflict with their religious belief (Mark Looet al., (2010)).
Demographic factors such as religion & knowledge are playing

What socio-cultural factors influence the choice

a significant role in selecting a bank and socio-cultural

of Islamic banking or financial services in

inclinations influence Islamic banking (Saidaaliaden, (2014)).

Kenya?
Students have better understanding about Islamic banking. Old
To check the influence of different factors on

people, females, and students prefer Islamic banking (Nasir

the behavior of individuals towards Islamic

Imtiaz et al. (2013)).

banking in Pakistan.
Examining the Perception level of people about

The respondents are varying among each as the level of

the Islamic banking operations, products and

understanding of the people is at the moderate level (Umair

services on their purchase intention in Pakistan.

To understand the perception level of post-

Ejaz,(2014))
Islamic finance is gaining popularity with the passage of time

graduate students towards Islamic

and has a great opportunity in to grow and

banking in Pakistan

prosper in Pakistan. (Shumaila Bhutto et al.,(2013))

Muhammad Asif and Muhammad Asif Anjum, (2011) contended that the acceptance level of the Islamic banking
represents the attitudes and the mindset of the people and the general public on Islamic banking. For the purpose of
this research, the 8 constructs build to serve as a framework for behavioral study as proposed by Spencer et al.,
Gholami, (2011); R., et al, (2010). The personal factors address adoption process in the context of multiple
adoptions including services sector of targeted market.

The measuring instrument in this research consists of 8 constructs of behavioral study. It has been suggested that
new constructs have been added for implementation, verification, and empirical analysis of the original instrument
(Rao et al., 1999).

Acceptance(A):

The level of acceptance - will measure the prior knowledge and mind set of the people toward Islamic banking
(Muhammad Asif et al., 2012;Fada, KodunAbiah, 2012)

Gender differences(G)

Gender differences - will measure the awareness of financial products and services among different age groups in
the society (Khattak and Rehman, 2010)

Income differences(I)

Income differences will measure the different income group people perception or reasons for dealing with Islamic
banking. (Amin, 2007; Khattak and Rehman, 2010)

Culture(C)

Culture will measure the understanding of the general term of Islamic bank in research studies for the
respondents (Gerrard and Cunningham, 1997; Hamid and Nordin, 2001)

Services Quality(Q)

Services quality - will measure the perception of service quality can add users expectation dimensions (Bettman,
1997).

Usage(U)

Usage will measure respondents awareness of banking services and products in shaping behavior (Mohammad
Saif Noman Khan et.al.2008; Chung and Cheris, 2005).

Religion (RE)

Religious belief will measure the awareness, understanding and Perceptions for making investment decision
(AKM Haque, 2010).

Requirement(R)

Requirement will measure the Want and need of a targeted market for economic gain (Kamal Naser, 1997).

METHODO LO GY

Quantitative method using close-structured questionnaire was used to gather information on behavioral intensions.
The psychometric approach which is one of the most useful methods (Likert, 1932) was based on the Liker items
and semantic differential. This research instrument was selected after careful review of the existing body of
knowledge. The survey solicits unique information from the respondents about their perceptions of national banking
services. A five-point Liker scale coding was used to interpret the results. The scale ranged from 1 to 5, indicating
five choices. Statistical software (SPSS) was used in the analysis and validation. This instrument can help to develop
arguments based on quantifiable data using statistical methods and is most popular program, offering a powerful,
fast and reliable statistical analysis (Sarantakos, 2007). In a pragmatic way, differences in interpretation of
individual words affect responses (Suessbricket al.2000) so the questionnaire has been carefully chosen and
evaluated to minimize each individual ambiguity, lack of interest and comparable pre dispositions.
Pakistan was selected as a representative country in South Asia because of the major role it plays in the Islamic
financial system development in the national and international context. Pakistan stands at number three because of
excellent performance of Islamic banks after Malaysia and the UAE according to Humayon Dar, October, Express
tribune (2015),) and has 2nd largest Muslim population in a country according to Pew Research Center, (2011).
A list of universities in the Public & Private sector of the Higher education Commission was solicited through
contact with the Ministry of higher education institutions. A total number of 114 respondents were identified.
Because of the research focus on students and academicians from the Punjab higher education sector as respondents,
it was important to identify universities that are offering graduates courses. The list of students and academicians
was obtained by visiting, Universities official LinkedIn and Facebook groups as the world largest professional/social
website that are considered as major medium for social interaction based on Keenan & Shiri, (2009). A total number
of 220 respondents were randomly identified, indicating response rates of 93%. The respondents provided adequate
representative participants of all major universities in Punjab. All 220 questionnaires were analyzed. Garvin, (1988)
emphasized that by focusing on a single province, the behavioral and socio demographic characteristics can be
precisely identified for better understanding.
Non-respondents error and missing data could be a concern in research data. They may indicate a bias among the
population sample frame away from those hypothesized. D. K. Bird, (2009) conceded that on-line respondents may
characteristically different from survey research responders. De Vaus (2002) recommended that by obtaining
information about the non-respondents, using available observational data, researchers can neutralize the effect of

non-response bias during the analysis. Researcher had done several attempts to minimize this issue in this study. To
minimize Non-respondents error, bias and missing data; researcher explored known characteristics of the population.

DATA ANALYSIS
A data analysis begun after the data had been collected, edited and coded. Missing Value Analysis to explore
patterns of missing values in data used to determine whether multiple imputation is necessary. Few missing values,
(very roughly, less than 5% of the total number of cases) method of list wise deletion used and missing does not
depend upon other values (IBM, 2013). Table 2 provides a socio demographic profile of the participants who
participated in this research study. In the sample, 37.2% of the participants were female and 59.3% of the
respondents were males. All respondents have been in the universities for academic purposes. The lowest
educational level of the participants was a Bachelors degree program. Approximately 36% of the respondents
reported a monthly household income between Rs.0-Rs.24, 999
TABLE 2: A SOCIO-DEMOGRAPHIC PROFILE OF RESPONDENTS

Determinants
Gender
Male

134

59.3

Female
Total
Religion
Muslim
Non-Muslim
Total
Monthly Average Family Income (Rs.)
0-24,999
25,000-49,999
50,000-74,999
75,000-99,999
Above 100,000

84
220

37.2
97.3

215
3
220

95.1
1.3
97.3

81
76
32
9
17

35.8
33.6
14.2
4.0
7.5

Total
Because of missing responses, the total %does not add to 100%.

201

97.3

TABLE 3: DESCRIPTIVE STATISTICS:

Gender
Income
Acceptance
Culture
Quality
Usage
Requirement
Religion

Mean
Statistic
1.3727
2.0455
1.9409
1.8955
2.6909
2.6009
2.1545
1.0045

Std. Deviation
Statistic
.50312
1.21171
1.02977
1.00818
1.40609
1.54544
1.16012
.15103

Skewness
Statistic
.312
1.031
.651
.913
.235
.387
.580
1.246

Kurtosis
Statistic
-1.379
.524
-.385
.480
-1.217
-1.315
-.512
41.899

The reliability of the study variables was assessed by determining the consistency of the data. Reliability
coefficients of the data under 0.6 were viewed as poor, 0.7 were worthy, and those more noteworthy than 0.8 were
viewed as great, as recommended by Sekaran, (2000).
In this study, Cronbachs alpha was used to check the reliability of the variables. Cronbach's alpha is 0.669, which
indicates an adequate level of internal consistency for scale with this study sample. Table 4 shows the reliability
coefficients of the data collected for each variable of study. However, three constructs has a relatively low reliability
(>.6). In total, constructs have a higher coefficient (<.6), which is an acceptable value for survey research. Indicating
a high level of internal consistency.

Hypothesis testing
You need the correlation analysis here. The correlation table is needed here.

The findings from Table 6 suggests that acceptance is significantly correlated with gender differences results (r
=.175, p =009) and income results (r =.160, p=.018). Therefore, hypothesis, H1 and H2 are supported. Acceptance
appear to be highly significantly correlated with culture, quality and requirement results (r=.658, p=.000, and r
=.552, p =.000, r=.371, p=.000, respectively). Therefore, hypothesis H3, H4 and H6 are supported. Acceptance
appears to be significantly correlated with banking services usage and religion of population sample (r =.214, p
=.001, r=.149, p=.028). Therefore, hypothesis, H5 and H7 are supported.

A hypothesis testing table summary is needed here showing in columns :

-

The actual hypothesis

The beta value

The significant test value

The result of the hypothesis tests

Table 4; Reliability Statistics

Cronbach's Alpha if Item Deleted
Income
Culture
Requirement
Usage
Acceptance
Quality
Gender
Religion

.680
.588
.622
.696
.574
.566
.666
.680

A multiple regression analysis was conducted on the data to determine the main research result.

TABLE 5: MODEL SUMMARY

Model
1

R Square
a

.744

Durbin-Watson
.554

1.969

TABLE 5A: REGRESSION ANALYSIS AND THE MODEL SUMMARY

Model
1

Standardized Coefficients
Beta
(Constant)
Gender
Income
Culture
Quality
Requirement
Religion
Usage

.021
-.020
.524
.242
.114
.033
.040

Sig.
-.277
.435
-.416
9.594
4.239
2.231
.709
.823

.782
.664
.678
.000
.000
.027
.479
.412

A practical acceptable approach that significantly helps in identifying underline variables is regression analysis.

The hypothesized relationship among variables may be written as:

A=+1G+2I+3C+4Q+5U+6RE+7R+
A=+0.021G-0.02I+0.524C+0.242Q+0.04U+0.114RE+0.033R+
- constant value
A Islamic banks Acceptance G - Gender I - Income C Culture Q - Services Quality U - Usage R Requirement
RE Religion
Multiple regressions (MR) are appropriate for both experimental and no experimental research and can easily
incorporate multiple independent variables (TZ Keith 2014). The Table III shows the results of a MR analysis on
acceptance results. After running a regression analysis by SPSS, culture and Services Quality emerged as the two
significant variables. Table 5 presents the R2 value for the regression on acceptance results. Moreover, it shows that
the model is a significant predictor of acceptance results.
From Table 5A, the p-value for variables Gender, Income, Religion and Usage is .664, .678, .479 and .412
respectively. Since the p-value calculated is greater than alpha 0.05, the samples provide sufficient evidence that
there is no significant relationship between acceptance and gender differences, Income differences, Religion and
Usage of Islamic product and services. Next, the p-value for culture, quality and requirement is 0.000, 0.000. 0.027
respectively. This indicates that there is a significant relationship between acceptance of Islamic financial system
and culture results along with quality results as well. The samples provide sufficient evidence that there is a
significant relationship between acceptance of Islamic banking product and services and respondents perception
toward its market requirement. These results are consistent with studies of Gerrard and Cunningham (1997),
Metawa and Almossawi (1998) Haron et al. (1994) and Hamid and Nordin (2001).

Multiple regression analysis was used to determine the significant variables on acceptance results. It has been
argued that culture, quality service offered by each banks and market requirement always regarded consumers
preferences towards the products and services of Islamic banks (Dusuki and Abdullah, 2007; Khatib, 1999)
This study validates the role of specific territory culture as important components of Islamic banking acceptance.
Multiple regressions have been used to find the significant variables on acceptance results. Overall, it can be

concluded that culture, Services Quality, and market requirement contribute significantly to financial system
development.

C ONC LUS ION

The results from the correlation matrix reveal that acceptance of Islamic banking system is significantly correlated
with culture, quality and requirement results. This shows that acceptance plays a critical role in promoting and
motivating investment in the Islamic financial system. Similar results have been reported on the role of acceptance
in conventional financial system (e.g. conventional banking). K.M. Alqasa (2015) study showed that student's trust
had statistically moderated the relationship between cultural belief and intention. The Pakistani Islamic financial
system is structured, and banks should provide services according to the policies and practices set by the local
shariah scholars supervisory boards. Successful implementation of Islamic financial contract depends on the culture,
quality and requirement of corporate governance adopted by each Islamic bank adopts (AA Ibrahim, 2006). The
result of this study confirmed the role of educated citizens acceptance in promoting financial system in a countries
regulatory environment.

The correlation between system acceptance and socio demographic characteristics was not found to be statistically
significant. This is rather surprising, since the demographic factor such as race, gender and education have
significantly influence the overall consumer preferences of Islamic banking product and services, as proven by
Barathy Doraisamy et al., (2011). Acceptance results were not significantly correlated with banks facilities usage. It
would be interesting to investigate why acceptance is not significantly correlated with usage of banking services.
While previous empirical research such as by Yvonne Saini et al. (2011) provide argument that rate of use is low, as
Muslim customers regard efficiency, lower bank charges, the availability of automatic teller machines and an
extensive branch network as important factors when it comes to choosing a bank, rather than religious motivations
for compliance with Islamic conventions
The above findings imply that to improve Islamic financial system promotion, managers in the Islamic banks should
focus on the three following factors:
(1) Culture;
(2) Governance/Services Quality; and
(3) Local Market requirements
The practical implication for the Islamic financial system is that development of financial services is achieved when
there is improvement in cultural priorities, service quality and specific market needs and wants. Another

consideration is that of socio demographic and financial services usage impact factors that had not been well
perceived by the regulatory and supervisory of Islamic banks. A demographic characteristic with usage rate was not
significantly correlated with acceptance results. This shows that culture, market requirement and services quality are
still regarded as an important factor.
Some limitation might be related to collecting and interpreting results. A first limitation might be the lack of study
on the respondents perception on a longitudinal approach as questionnaire distributed were on a one-time. Another
limitation is small sample size and common method bias as only one single questionnaire were used to construct
measurement variables. A large sample size would have allowed more authenticated results.
Small sample size prevents from us performing rigid analysis on the sample frame. It is required to use more
advanced application of statistics, such as structural equation modeling or AMOS. Another limitation in this research
has a rather the low reliability (<.6) which could be caused by some missing substantial variables. These results
might lead to a large number of explanations. Probably, Such a relatively low reliability results (<.6) was caused by
the respondents different background - more specifically personal beliefs thats differentiate one individual to
another one. These construct could be re-evaluated and validated, especially with respect to socio-demographic
profile for future research. Accordingly, more study is required to specifically generalize the results of this research
to judge impact of operational process of the Islamic banks, such as management style, human resource management
and operational hierarchical process on the banks acceptance.
Moreover, it is suggested that perception of customer orientation of Islamic banks be conducted with National
culture of the country. Bridgett Rahim-Williams (2013) argued that the potential mechanisms believed to affect
ethnic group differences. This study is restricted to Punjabis. However, in Pakistan different ethnic groups with
variety of cultural mix do present including Pashto, Punjabi, Sindi and Balochi.

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