IDEAS home Printed from https://ideas.repec.org/a/ids/ijbglo/v31y2022i1p113-130.html
   My bibliography  Save this article

Impact of demand side factors on adoption of Islamic finance by SMEs: a way forward for sustainable financial markets

Author

Listed:
  • Rabia Rasheed
  • Sulaman Hafeez Siddiqui

Abstract

This research paper explains the behavioural factors affecting SMEs owner-managers' intentions to adopt Islamic financial products from a consumer behaviour perspective. The research model of this study is based on theory of planned behaviour postulates that SME owner-manager intentions are determined by financial knowledge, perceived risk, attitude, religious beliefs, subjective norms, self-efficacy and perceived behavioural control. The study uses quantitative (survey and factor analysis) methods. The results revealed that SMEs intention to adopt Islamic financial product is low which shows negative attitude of owner-managers towards Islamic finance in Pakistan. Moreover, study highlights that financial knowledge has strong impact on owner-managers' attitude towards intention to adopt Islamic finance. The results imply that achieving sustainable/inclusive finance for SMEs sector requires financial institutions and policy makers in the area of Islamic finance to focus on SME owner-managers' financial awareness and literacy in order to motivate them to adopt Islamic financial products.

Suggested Citation

  • Rabia Rasheed & Sulaman Hafeez Siddiqui, 2022. "Impact of demand side factors on adoption of Islamic finance by SMEs: a way forward for sustainable financial markets," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 31(1), pages 113-130.
    • Handle: RePEc:ids:ijbglo:v:31:y:2022:i:1:p:113-130
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=124526
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbglo:v:31:y:2022:i:1:p:113-130. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=245 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.