The Relevance of Relative Advantage and Complexity Customers’ Usage of Islamic Banking Products in Nigeria

Abstract

This study provides an assessment of the relevance of relative advantage and complexity on the usage of Islamic banking product s and services in Nigeria. The sample of 394 respondents was surveyed using a structured questionnaire. Partial Least Square-Structural Equation Modelling (PLS-SEM) was used for the analysis where the smart-PLS software version 3.0 was employed. The result shows that with the effect size of 0.13, relative advantage has a positive and significant relevance on customer’s usage of the products and services of Islamic bank in Nigeria. The path coefficient indicates the explanatory power of relative advantage on the adoption of IBPS with 0.34% variance of the adoption with -0.05% variance explained, this indicates that complexity has no significant relevance on the usage of the products and services of Islamic bank in Nigeria.