The Relevance of Relative Advantage and Complexity on Customers’ Usage of Islamic Banking Products in Nigeria
This study provides an assessment of the relevance of relative advantage and complexity on the usage of Islamic
banking products and services in Nigeria. The sample of 394 respondents was surveyed using a structured questionnaire.
Partial Least Square-Structural Equation Modeling (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 customers’ 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 been
explained by the relative advantage. Complexity on the other hand was found to be insignificant in explaining the adoption
with -0.05% variance explained, this indicate that complexity has no significant relevance on the usage of the products and
services of Islamic bank in Nigeria.
Keywords - Relative advantage, Complexity, Products and Services, Islamic Banking