Determinants of Corporate Customers’ Intention to adopt Islamic Wealth Accumulation Products in Pakistan

Abstract

The Islamic finance industry achieves tremendous growth over time and becomes an integral part of the global financial landscape. The growth in Islamic finance seems to have a broader scope, with relatively more principles used to govern activities under Islamic perspectives; such activities include participation, ownership, and equity. The concept of Islamic wealth accumulation products for corporate customers remains a challenging task for Islamic finance due to the lucrative offers made by conventional wealth accumulation products. The adoption of Islamic wealth accumulation products has remained low among corporate customers in Pakistan. This study aims to assess the factors that influence the adoption of Islamic wealth accumulation products by corporate customers in Pakistan. The review of literature identified that Islamic financial literacy, attitude, subjective norms, and perceived behavioural control significantly influence the decision to adopt Islamic wealth accumulation products. It has been also noted that very few studies have considered the cost and benefit of adopting such products, especially in the context of corporate customers. This study proposed a theoretical framework by using moderating role of cost and benefit on the relationship between Islamic financial literacy, attitude, subjective norms, and perceived behavioural control and intention to adopt Islamic wealth accumulation products. Current research contains justifications for the moderating effect of cost and benefit and provides recommendations for future research.