The Influence Of Sharia Product Epistemology On Customer Sharia Compliance

Abstract

This study aims to analyze the influence of Sharia product epistemology on customer Sharia compliance in Islamic financial institutions. Sharia product epistemology is understood as the level of knowledge, conceptual understanding, and normative awareness of customers regarding the basic principles of Sharia that underlie the structure of contracts and mechanisms of financial products. This study uses a quantitative approach with a survey method involving a certain number of respondents (e.g., 120–300 customers) as the research sample. The Sharia product epistemology variable is measured through indicators of contract knowledge, understanding of Sharia risks, and understanding of basic Sharia law; while customer Sharia compliance is measured through indicators of transaction compliance, behavioral consistency, and religious orientation in financial activities. The results show that Sharia product epistemology has a positive and significant effect on customer compliance with a strong influence coefficient (e.g., β = 0.51; p < 0.05), which means that the higher the customer's epistemological understanding, the higher their level of compliance with Sharia principles. This study recommends enhancing sharia literacy programs, contract transparency, and product education as strategies to strengthen sharia compliance in Islamic financial institutions.