Evaluating Sukuk Investment Intentions from A Social Cognitive Perspective: The case of Pakistan

Article Information

Title: Evaluating Sukuk Investment Intentions from A Social Cognitive Perspective: The case of Pakistan

Authors: Husnain Ahmed, Shazia Afzal

Journal: Journal of Banking and Social Equity (JBSE)

HEC Recognition History

Category	From	To
Y	2024-10-01	2025-12-31
Y	2023-07-01	2024-09-30

Publisher: Islamia University, Bahawalpur

Country: Pakistan

Year: 2023

Volume: 2

Issue: 1

Language: English

DOI: 10.52461/jbse.v2i1.2025

Keywords: SukukSocial Cognitive PerspectiveReligious perspective

Abstract

This research study was conducted to understand the influence of compatibility, internal influence, external influence, extrinsic motivation, and intrinsic motivation in the determination of intention to invest in Sukuk with the moderating role of religious aspect in the case of Pakistan. This research study is based on a quantitative approach with the collection of primary responses as data set for the current research. Using the quantitative approach, the study selected the explanatory process to understand the impact of compatibility, internal influence, external influence, extrinsic motivation, and intrinsic motivation in the determination of intention to invest in Sukuk for Pakistan with the moderating role of the religious factor. The population targeted under the current investigation belongs to the Islamic banking profession having job experience with Islamic banks in Pakistan. The study was selected with a convenience sampling technique and estimated with a sample size of 300 for response collection at a 95 percent Confidence interval. This study adopted a survey method to collect the required number of responses and used a questionnaire as a data collection instrument. Structural equation modeling using smart PLS was selected as a statistical technique for investigation purposes. Results revealed that compatibility, internal influence, external influence, and extrinsic motivation are essential variables in the determination of intention to invest in Sukuk. The study's originality stems from the fact that Sukuk is a relatively new area of research in Pakistan and has yet to be extensively studied through the social cognitive perspective earlier.
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Research Objective

To investigate the impact of compatibility, internal influence, external influence, extrinsic motivation, and intrinsic motivation in the determination of intention to invest in Sukuk, with the moderating role of religious aspects in Pakistan.

Methodology

Quantitative approach using primary data collected through a survey method with a questionnaire. Explanatory research process. Population targeted: Islamic banking professionals in Pakistan. Convenience sampling technique with a sample size of 132. Statistical techniques used: descriptive statistics, correlation, multivariate regression, and Structural Equation Modeling (SEM) using Smart PLS.

Methodology Flowchart

                        graph TD;
    A["Define Research Objectives and Hypotheses"] --> B["Literature Review"];
    B --> C["Quantitative Approach Selection"];
    C --> D["Primary Data Collection via Survey"];
    D --> E["Sample Selection Convenience Sampling"];
    E --> F["Data Analysis using Smart PLS SEM"];
    F --> G["Hypothesis Testing"];
    G --> H["Results Interpretation"];
    H --> I["Discussion and Conclusion"];

Discussion

Compatibility is a significant positive predictor of Sukuk investment intention, aligning with lifestyle and investor perceptions. The lack of significant impact from religious aspects suggests a need for greater knowledge and confidence-building in Pakistan's Islamic finance sector. Internal influence's negative impact may be due to a lack of awareness among respondents.

Key Findings

Compatibility, external influence, and extrinsic motivation have a significant positive impact on the intention to invest in Sukuk. Internal influence has a significant negative impact on the intention to invest in Sukuk. The moderating role of religious aspects was found to be insignificant for all tested relationships.

Conclusion

Compatibility, external influence, and extrinsic motivation positively influence the intention to invest in Sukuk in Pakistan, while internal influence negatively impacts it. The religious aspect does not significantly moderate these relationships. The study highlights the importance of compatibility and external factors in driving Sukuk investment intentions.

Fact Check

* The study targeted a sample size of 132 respondents.
* Compatibility, external influence, and extrinsic motivation were found to have a significant positive impact on the intention to invest in Sukuk.
* Internal influence was found to have a significant negative impact on the intention to invest in Sukuk.

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