A HIERARCHICAL MODEL OF SERVICE QUALITY CHALLENGES AND SUCCESS FACTORS IN BANGLADESH’S ISLAMIC BANKING SECTOR
DOI:
https://doi.org/10.22452/Keywords:
: Islamic Banks in Bangladesh, Challenges, Critical Success Factors, Service Quality, Analytic Hierarchy ProcessAbstract
This study develops a hierarchical model to identify and rank the challenges Bangladesh’s Islamic banking industry faces in delivering service quality, along with the critical success factors (CSFs) needed to address them. The study adopted an exploratory sequential mixed-methods approach, involving semi-structured interviews with 15 participants and a questionnaire survey of 120 respondents. The Analytic Hierarchy Process (AHP) was applied to prioritize the identified challenges and CSFs. The findings revealed five major challenges: lack of good governance, lack of capital market and financial investment, liquidity crisis, lack of Islamic products and services, and insufficient employee knowledge of Islamic banking. The AHP results identified lack of capital market and financial investment as the highest-priority challenge (0.246), followed by governance (0.224), liquidity crisis (0.181), employee knowledge (0.177), and Islamic products and services (0.172). The hierarchical model developed in this study provides practical guidance for improving service quality, performance, and competitiveness in Bangladesh’s Islamic banking industry. It may also support broader economic development by strengthening financial services and fostering trust within the Islamic banking sector.
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