Determinants of customer's acceptance towards online dispute resolution in the Islamic banking industry

This study focuses on the determinants of customer acceptance towards Online Dispute Resolution (ODR) in Islamic banking. ODR is defined as a platform utilizing electronic networks (such as the Internet) for dispute resolution via negotiation, mediation, conciliation, or arbitration.1 The urgency of this study is highlighted by data from the Financial Mediation Bureau (FMB) 2017 Annual Report, which noted that 35% of the 1,327 cases handled were related to banking disputes, including those in Islamic banking. The research investigates the factors influencing acceptance using the Theory of Acceptance and Use of Technology (UTAUT), focusing on three key constructs: performance expectancy, effort expectancy, and social influence.2 Three additional variables—trust in bank, trust in technology, and behavioural intention—were also examined. Primary data was collected through a survey of users in the Islamic banking industry at Wisma Persekutuan, Melaka, yielding 108 usable responses from 150 distributed questionnaires. Data analysis was conducted using the SPSS 22 package, employing descriptive analysis, normality and reliability tests, factor analysis, correlation, and regression. The findings revealed that performance expectancy, social influence, and behavioural intention have a significant effect on customer acceptance. Conversely, effort expectancy, trust in technology, and trust in bank did not produce significant effects.