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A review of literature suggests that limited access and low adoption of technology is one of the reasons resulting in a lack of financial inclusion among poor. Realizing this, many microfinance institutions (MFIs) have taken initiatives by strategizing to improve their financial services through the adoption of Digital Financial Services (DFS), particularly among the micro-entrepreneurs. Technology adoption in the provision of financial services benefits the various stakeholders in terms of saving cost and time, addressing space constraint and enhancing decision-making quality by the MFIs. Apart from the efforts taken by the MFIs, it is also equally important for the micro-entrepreneurs to be willing to accept and adopt technology advancement in their operations. Differences in knowledge background of low-income groups as compared to common IT users have been identified as one of the reasons for differences in the level of technology acceptance. Amid the backdrop of these issues, this paper intends to propose a refined conceptual analysis of the factors affecting micro-entrepreneur’s acceptance towards DFS provided by the MFIs particularly Islamic MFIs in Malaysia. This study adopts the technology acceptance model (TAM) with the additional modification of constructs in order to provide better goodness of fix result of the model.
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In-Text Citation: (Hamdan & Kassim, 2020)
To Cite this Article: Hamdan, N. H. B., & Kassim, S. B. H. (2020). Critical Factors Affecting Micro-Entrepreneur’s Adoption of Digital Financial Services Offered by Islamic Microfinance Institution. International Journal of Academic Research in Business and Social Sciences, 10(6), 1084–1097.
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