Abstract
Purpose - This study aims to evaluate cognitive, personal and environmental factors affecting investors' behavioral intentions (BI) to invest in sukuk (Islamic investment certificates) in Pakistan.
Design/methodology/approach - Data from 462 participants were collected through surveyquestionnaires by using the convenient sampling technique. Hypothesized proposed relationships among the constructs were examined by applying the structural equation modeling (SEM) technique through smart partial least squares.
Findings - Compatibility, internal influence, external influence and intrinsic motivation were found to be significant predictors of investors' BI to invest in sukuk. In addition, it was found that the religious aspect not only affects investors' BI positively but also works as a moderator in the relationships between BI and both internal and external influence.
Practical implications - The results are quite helpful for sukuk issuers and regulators to consider cognitive, personal and environmental factors that might enhance the adoption of sukuk, especially among Musliminvestors.
Originality/value - This study is among the few research studies that shed light on investors' BI to invest in sukuk. Using social cognitive theory, the study investigates the cognitive, personal and environmental factors influencing sukuk adoption, which were previously unexplored. In addition, this is the first study that unveils the influential factors of sukuk adoption in Pakistan, a Muslim-majority country.