Antecedents of university graduates’ intention towards the adoption of Islamic banking in an emerging economy

Purpose This study aims to investigate antecedents of the intention to adopt the Islamic banking system in an emerging economy. Design/methodology/approach Here, the theory of the planned behavior model was extended with some additional constructs. Primary data were collected from a sample of 313 respondents with a structured questionnaire and analyzed with structural equation modeling using SMART PLS 3 software. Findings Results indicate that awareness, bank image, complexity, religiosity and Sharia compliance significantly affect attitude, while attitude, perceived behavioral control and subjective norms affect intention, which is consistent with theory of planned behavior models. In addition, awareness, bank image, complexity, religiosity and Sharia compliance can influence the intention only when they are mediated by attitude. Research limitations/implications The study is cross-sectional in design and cannot account for changes in customers’ intentions over time, and it did not consider any moderating effect of any variable. Practical implications This study contributes significantly to the field of Islamic banking by describing context-specific constructs and relationships and explaining the consumer’s attitude and behavioral intention toward adopting an Islamic banking system. Social implications The study highlights the significance of the factors that influence attitude and intention, which may guide in developing customer insight. Originality/value To the best of the authors’ knowledge, this is the first study empirical effort in Bangladesh to explore the variables influencing attitudes and intentions for the adoption of Islamic banking.