Why do women micro-entrepreneurs adopt Islamic digital financing? Perspectives from UTAUT, trust and Sharia compliance

Purpose This study aims to estimate the adoption of Islamic digital financing among women Islamic micro-entrepreneurs through the integrative role of unified theory of acceptance and use of technology (UTAUT), trust and Sharia compliance. Design/methodology/approach This study investigated 256 women micro-entrepreneurs who actively used Islamic digital bank financing. In evaluating the relationship between UTAUT, trust and Sharia compliance with the adoption of Islamic digital financing, this study used the SEM-PLS (partial least square) method. Findings This study reveals that in the UTAUT system, performance expectancy and effort expectancy play an active role in influencing Islamic digital financing adoption. Meanwhile, trust can generate Islamic digital financing adoption directly, and Sharia compliance generates the adoption indirectly. Practical implications Practically, this study highlights the urgency for Islamic digital banking managers to create easy financing platforms to support the productivity of women micro-entrepreneurs. In addition, the managers need to establish a solid business ecosystem between entrepreneurs and the public so that they benefit each other and mutually optimize business potential. Originality/value This study presents a new perspective on the adoption of Islamic digital financing based on the experiences of women micro-entrepreneurs.