Theory of Islamic planned behavior: applying to investors’ Sukuk purchase intention

Purpose - The main purpose of this study is to propose an Islamic model of human behavioral analysis that can explain the determinants such as Islamic moral values, internal factors (e.g. self-efficacy or reasons for and against), external factors (e.g. perceived social support or others from external sources) and empathy (EMP) (humane attitude) to predictniyyah(worshipful intention) toward actual behavior (a’mal) in question. Design/methodology/approach - With this end in mind, this research uses the theory of Islamic entrepreneurship and behavioral reasoning theory as their theoretical foundations. To validate the model, the study uses empirical data on investors’ intention towardsukuk(Islamic bonds or Shari’ah-compliant bonds) purchase in the context of Bangladesh, where very recently thesukukwere introduced by the Central Bank. Findings - Findings of the study indicate that Islamic values and internal factors have the highest effects on external factors and EMP, respectively. Internal factors and Islamic values have moderate and almost similar impacts on EMP. Besides, external factors and EMP have somewhat equally moderate effects onniyyah. Islamic moral values and internal factors have the least influence on internal factors andniyyah, respectively. The external factor is also found to be insignificant to influence EMP. The findings also indicate that EMP, internal control factors and external control factors have mediating effects onniyyahtowardsukukpurchase. Research limitations/implications - These results imply that the present research model successfully predicts and explains the determinants of Islamic worshipful intention toward the actual purchase ofsukuk. Practical implications - Sukukhas been an important Islamic financial instrument that has been growing much rapidly in recent times. So, this paper will help to comprehend that pattern empirically. Social implications - Islamic finance has emerged as a dominant financial tool nowadays. This paper contributes to advance that initiative one step further in terms of social and economic development. Originality/value - This is a conceptual paper written in the area of Islamic Finance. This model has been validated by collating primary data collected from the selected respondents residing in Bangladesh.