EXPLORING THE DRIVERS OF ENTREPRENEURIAL INTENTIONS TO ADOPT ISLAMIC FINANCE IN UZBEKISTAN

Abstract

Islamic finance in Uzbekistan has expanded through Islamic windows and leasing companies, yet accessibility remains limited. This study examines the key determinants shaping entrepreneurs' intentions to adopt Islamic finance, employing Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze data from an online survey conducted between February and April 2024. The results reveal that business support, perceived behavioral control, awareness and knowledge, and religious obligation all significantly influence Islamic finance adoption. Among these, business support and perceived behavioral control emerge as the strongest predictors, underscoring the importance of institutional backing and financial self-efficacy. These findings highlight the need for targeted financial literacy initiatives, regulatory reforms, and tailored Shari’ah-compliant financial solutions to facilitate broader adoption. The study provides valuable insights for policymakers, financial institutions, and regulators, emphasizing the role of business incentives and financial education in promoting Islamic finance among entrepreneurs.

Keywords

• Islamic Financial Adoption
• PLS-SEM; Entrepreneurial Intentions
• Business Support
• Perceived Behavioral Control
• Financial Literacy
• Regulatory Framework
• Shari’ah Compliance

GİRİŞİMCİLERİN İSLAMİ FİNANSMANI BENİMSEME NİYETLERİNİN BELİRLEYİCİLERİ: ÖZBEKİSTAN'DAN KANITLAR

Abstract

Özbekistan'da İslami finans, İslami pencereler ve leasing şirketleri aracılığıyla genişlemiş olsa da erişilebilirliği sınırlı kalmaktadır. Bu çalışma, girişimcilerin İslami finansı benimseme niyetini şekillendiren temel belirleyicileri incelemekte ve Şubat-Nisan 2024 tarihleri arasında çevrimiçi bir anketle toplanan verileri analiz etmek için Kısmi En Küçük Kareler Yapısal Eşitlik Modellemesi (PLS-SEM) yöntemini kullanmaktadır. Bulgular, işletme desteği, algılanan davranışsal kontrol, farkındalık ve bilgi düzeyi ile dini yükümlülüğün İslami finansın benimsenmesi üzerinde önemli bir etkisi olduğunu göstermektedir. Bunlar arasında işletme desteği ve algılanan davranışsal kontrol en güçlü belirleyiciler olarak öne çıkmakta ve kurumsal destek ile finansal öz-yeterliliğin önemini vurgulamaktadır. Bu sonuçlar, hedefe yönelik finansal okuryazarlık girişimleri, düzenleyici reformlar ve özelleştirilmiş Şeriat uyumlu finansal çözümlere olan ihtiyacı ortaya koymaktadır. Çalışma, işletme teşvikleri ve finansal eğitimin girişimciler arasında İslami finansın yaygınlaştırılmasındaki rolüne dikkat çekerek politika yapıcılar, finans kurumları ve düzenleyiciler için değerli bilgiler sunmaktadır.

Keywords

• İslami Finansal Kabul
• PLS-SEM
• Girişimci Niyetleri
• İş Desteği
• Algılanan Davranış Kontrolü
• Finansal Okuryazarlık
• Düzenleyici Çerçeve
• Şer’i Uyumluluk

References

1. Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T
2. Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting social behavior (Pbk. ed). Prentice-Hall.
3. Aziz, S., & Afaq, Z. (2018). Adoption of Islamic banking in Pakistan an empirical investigation. Cogent Business & Management, 5(1), 1548050. https://doi.org/10.1080/23311975.2018.1548050
4. Bananuka, J., Kasera, M., Najjemba, G. M., Musimenta, D., Ssekiziyivu, B., & Kimuli, S. N. L. (2019). Attitude: Mediator of subjective norm, religiosity and intention to adopt Islamic banking. Journal of Islamic Marketing, 11(1), 81–96. https://doi.org/10.1108/JIMA-02-2018-0025
5. Boubker, O., Douayri, K., & Ouajdouni, A. (2021). Factors affecting intention to adopt Islamic financing: Evidence from Morocco. MethodsX, 8, 101523. https://doi.org/10.1016/j.mex.2021.101523
6. Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences. Routledge & CRC Press. https://www.routledge.com/Statistical-Power-Analysis-for-the-Behavioral-Sciences/Cohen/p/book/9780805802832
7. Fornell, C., & Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. Journal of Marketing Research, 18(3), 382–388. https://doi.org/10.2307/3150980
8. Hair, J. F., Ringle, C. M., & Sarstedt, M. (2013). Partial Least Squares Structural Equation Modeling: Rigorous Applications, Better Results and Higher Acceptance. Long Range Planning, 46(1–2), 1–12. https://doi.org/10.1016/j.lrp.2013.01.001

9. Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
10. ICD & LSEG. (2023). Navigating Uncertainty (No. IFDI2023; Islamic Finance Development Report 2023).
11. Jaffar, M. A., & Musa, R. (2016). Determinants of Attitude and Intention towards Islamic Financing Adoption among Non-Users. Procedia Economics and Finance, 37, 227–233. https://doi.org/10.1016/S2212-5671(16)30118-6
12. Mahdzan, N. S., Zainudin, R., & Au, S. F. (2017). The adoption of Islamic banking services in Malaysia. Journal of Islamic Marketing, 8(3), 496–512. https://doi.org/10.1108/JIMA-08-2015-0064
13. Maryam, S. Z., Ahmad, A., Aslam, N., & Farooq, S. (2021). Reputation and cost benefits for attitude and adoption intention among potential customers using theory of planned behavior: An empirical evidence from Pakistan. Journal of Islamic Marketing, 13(10), 2090–2107. https://doi.org/10.1108/JIMA-03-2021-0059
14. Mirziyoyev, S. (2020, December 29). President Shavkat Mirziyoyev’s Address to the Oliy Majlis. https://president.uz/en/lists/view/4057
15. Saygılı, M., Durmuşkaya, S., Sütütemiz, N., & Ersoy, A. Y. (2022). Determining intention to choose Islamic financial products using the attitude–social influence–self-efficacy (ASE) model: The case of Turkey. International Journal of Islamic and Middle Eastern Finance and Management, 15(6), 1109–1126. https://doi.org/10.1108/IMEFM-11-2020-0569
16. Shah, N., Bhatti, M. K., Anwar, S., & Soomro, B. A. (2023). Intention to adopt Islamic finance through the mediation of attitudes towards Islamic finance. Journal of Islamic Accounting and Business Research, 14(6), 931–951. https://doi.org/10.1108/JIABR-08-2022-0205
17. Tenenhaus, M., Vinzi, V. E., Chatelin, Y.-M., & Lauro, C. (2005). PLS path modeling. Computational Statistics & Data Analysis, 48(1), 159–205. https://doi.org/10.1016/j.csda.2004.03.005
18. Wetzels, Odekerken-Schröder, & Van Oppen. (2009). Using PLS Path Modeling for Assessing Hierarchical Construct Models: Guidelines and Empirical Illustration. MIS Quarterly, 33(1), 177. https://doi.org/10.2307/20650284