Predicting customers’ acceptance towards Islamic home financing using DTPB theory

Abstract

PurposeThe purpose of this paper is to determine the factors that may influence customers’ acceptance of Islamic home financing and identify the possible moderator, which may be relevant using the decomposed theory of planned behaviour (DTPB) in the context of Malaysia and Pakistan.Design/methodology/approachLiterature on Islamic mortgage and DTPB is reviewed in a bid to identify the determinants that may contribute to customers’ desire to participate in Islamic home financing.FindingsThe review indicates that customers’ acceptance of Islamic home financing is not only determined by the subjective norm, attitude, perceived behavioural control but also by the added construct of awareness and decomposed variables, namely, perceived compatibility, perceived relative advantage, peers influence and self-efficacy. In the context of the current study, the country is proposed as a moderator variable that may influence the relationship for customers’ acceptance of Islamic mortgages.Research limitations/implicationsIn terms of conceptualising the model, only two countries are considered, which is Malaysia and Pakistan as categorical variables or moderators incorporated in DTPB.Originality/valueExisting literature on Islamic mortgages makes it evident that DTPB is yet to be applied in the context of studying Islamic home financing. This study extends the application of DTPB in the context of customers’ acceptance of Islamic mortgages in two countries, Malaysia and Pakistan. This paper will be a helpful resource for future researchers, academicians and managers of Islamic banks at large.