Security, Risk and Trust Issues among Muslim Users for Online Businesses

The study attempts to investigate the robust factors that influence Muslim users’ behavioural intention to use e-commerce transactions by empirically examining the causal link between perceived security and privacy, perceived risks and perceived trust with behavioral intention to use e-commerce. Sample is drawn using stratified random sampling taken from all over Malaysia. Using Technology Acceptance Model (TAM), this research tries to look at different perspective, whereby the respondents are among Muslims who are obliged to follow the Shariah principles. The four major forbidden elements in buying & selling which are Riba’, Gharar, Maysir and Zulm are believed to be their fundamental judgment in dealing with e-commerce transactions. Results of Structural Equation Modelling (SEM) demonstrate that perceived security and privacy as well as perceived risks have a significant relationship with behavioral intention, while perceived trust shows contrary result. The research findings would be useful for companies that engage in e-commerce to design business strategies to cater Muslim users who form one of the largest populations in e-commerce.