Abstract

This study aims to examine the effect of Service Quality on the satisfaction of the SMEs owners on the Islamic Microfinance Products. Due to the increasing importance of Islamic banking and financing system, the concern is to what extent this system can satisfy the consumers and contributes to the overall economic development. The model of this study was developed to examine the effectiveness of Islamic banking and financing system. To test the hypothesized model, the data were collected from the SMEs owners in Yemen through a self-administered questionnaire. Out of 250 distributed questionnaires, 151 were returned and were used for data analysis. The results of this study shown the significant effect of Service Quality on the SMEs owners’ satisfaction and the perceived benefits obtained through their dealing with Islamic Microfinance system. In addition, the results of this study confirmed that the perceived benefit partially mediates the relationship between Service Quality and SMEs owners’ satisfaction. However, the moderating effect of perceived benefits on the relationship between service quality and satisfaction was not confirmed.

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