THE ROLE OF ISLAMIC MICRO-FINANCE IN ENHANCING THE WELLBEING OF THE CLIENTS: EXPLORATORY FACTOR ANALYSIS

Abstract

This pilot study seek to explore the structural characteristics of Islamic Micro-finance and statistically group them in to Products (Independent), Empowerment (Mediator) and Clients’ wellbeing (dependent) constructs. This is to conceptualize an Islamic Micro-finance model towards the Clients wellbeing. Empirical data was collected from the staff of eight (8) branches of Amanah Ikhtiar Malaysia (AIM) in the Johor state, Malaysia. The data collected was analyzed by means of an Exploratory Factor Analysis using IBM SPSS Statistics 21, which resulted to the extraction of five (5) factors which upon grouping, defined the variables for this study. The results indicated an acceptable factor loadings and effective grouping according to the conceptualized framework. The Cronbach’s alpha of ≥0.7 is an indication of acceptable internal consistency and reliability of the five Islamic Micro-finance constructs. This study is part of on-going Ph.D. to proof the capacity of Islamic Micro-finance towards Clients’ wellbeing.