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

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.