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Islamic financial decision-making among SMEs in the Sultanate of Oman: An adaption of the theory of planned behaviour

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  • Balushi, Yasmeen Al
  • Locke, Stuart
  • Boulanouar, Zakaria

Abstract

Adapting the theory of planned behaviour to the area of Islamic financial decisions among SMEs, we argue that nonfinancial factors such as SME owner-manager attitudes, subjective norms, perceived behavioural control and behavioural intentions largely affect the financial decisions of SMEs. A hierarchical multiple regression with a sample size of 385 SMEs supports this study’s behavioural approach to understanding financing decisions. While the factors mentioned above acted as stimuli for SME decision-making, religiosity was shown to negatively affect behavioural intention to adopt Islamic financial instruments (IFI). Implications of financial decisions, specifically around Islamic finance and ideas for future research, are discussed.

Suggested Citation

  • Balushi, Yasmeen Al & Locke, Stuart & Boulanouar, Zakaria, 2018. "Islamic financial decision-making among SMEs in the Sultanate of Oman: An adaption of the theory of planned behaviour," Journal of Behavioral and Experimental Finance, Elsevier, vol. 20(C), pages 30-38.
    • Handle: RePEc:eee:beexfi:v:20:y:2018:i:c:p:30-38
    DOI: 10.1016/j.jbef.2018.06.001
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    Cited by:

    1. Shahid, Ahmad Usman & Patel, Chris & Pan, Peipei, 2022. "Corporate social responsibility, intrinsic religiosity, and investment decisions," Journal of Behavioral and Experimental Finance, Elsevier, vol. 34(C).
    2. Kumar, Satish & Rao, Sandeep & Goyal, Kirti & Goyal, Nisha, 2022. "Journal of Behavioral and Experimental Finance: A bibliometric overview," Journal of Behavioral and Experimental Finance, Elsevier, vol. 34(C).
    3. Rakshit, Sandip & Islam, Nazrul & Mondal, Sandeep & Paul, Tripti, 2021. "Mobile apps for SME business sustainability during COVID-19 and onwards," Journal of Business Research, Elsevier, vol. 135(C), pages 28-39.
    4. Miah, Mohammad Dulal & Kabir, Md. Nurul & Safiullah, Md, 2020. "Switching costs in Islamic banking: The impact on market power and financial stability," Journal of Behavioral and Experimental Finance, Elsevier, vol. 28(C).
    5. Kijkasiwat, Ploypailin, 2021. "The influence of behavioral factors on SMES’ owners intention to adopt private finance," Journal of Behavioral and Experimental Finance, Elsevier, vol. 30(C).

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