To read this content please select one of the options below:

Understanding farmers’ decision-making to use Islamic finance through the lens of theory of planned behavior

Ali Abid (Department of Agricultural Economics and Management, College of Economics and Management, Northeast Forestry University, Harbin, China)
Shang Jie (Department of Agricultural Economics and Management, College of Economics and Management, Northeast Forestry University, Harbin, China)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 16 February 2022

Issue publication date: 10 March 2023

672

Abstract

Purpose

This study aims to determine the non-economic factors that probably influence the Pakistani farmers to use Islamic finance for agricultural production. This paper analyzes the other religiosity and familial leadership constructs in the standard theory of planned behavior (TPB) model from the Islamic banking perspective.

Design/methodology/approach

Data were collected from 233 farmers using snowball sampling techniques and partial least square structural equation modeling used for data analysis. An additional qualitative analysis was conducted of seven respondents through semi-structured interviews to deepen into knowledge about Islamic banking.

Findings

The findings demonstrate that attitude, subjective norms, religiosity and familial leadership to use Islamic banking among the farmers play a primary motivating role in manipulating their behavioral intentions to use it. However, PBC negatively affected the behavior of farmers to use Islamic banking.

Practical implications

This study highlights the importance of emotional attachment between the farmers and Islamic financial products according to Shariah law. Therefore, Islamic banks need effective strategies for the development of innovative products in the agricultural sector according to the Shariah principle.

Originality/value

The research contributes to the area of Islamic banking, demonstrating that “familial leadership” significantly influences an individual’s behavior toward decision-making to use Islamic finance.

Keywords

Acknowledgements

Funding: The author(s) received no specific funding for this work.

Conflict of interest: The authors of this research declare no conflict of interest.

Citation

Abid, A. and Jie, S. (2023), "Understanding farmers’ decision-making to use Islamic finance through the lens of theory of planned behavior", Journal of Islamic Marketing, Vol. 14 No. 4, pp. 1084-1106. https://doi.org/10.1108/JIMA-10-2020-0324

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

Related articles