Determinants of Intention to Adopt Islamic Banking in Tanzania: Empirical Evidence from Dar Es Salaam City.

Abasi, Hassan (2025) Determinants of Intention to Adopt Islamic Banking in Tanzania: Empirical Evidence from Dar Es Salaam City. Masters thesis, The Open University of Tanzania.

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Abstract

The main objective of this study was to assess the determinants influencing the intention to adopt Islamic banking in Dar es Salaam, Tanzania. It specifically investigated the effects of attitude, subjective norms, perceived behavioral control, and religiosity on this intention. The study employed explanatory research design with a quantitative approach, whereby sample random sampling procedure was adopted to generate a sample of 200 participants. Data analysis was performed using IBM SPSS Statistics for data coding, entry and analysis, yielding both descriptive and inferential results. The findings revealed that religiosity and perceived behavioral control were significant predictors of consumer intentions to adopt Islamic banking products and services, with coefficients of 0.228 (p < 0.001) for religiosity and 0.643 (p < 0.001) for perceived behavioral control, both at a 95% confidence interval. However, attitude and subjective norms did not emerge as significant predictors, as indicated by P-values of 0.761 and 0.400, respectively. The regression analysis confirms that perceived behavioral control and religiosity significantly influence the intention to adopt Islamic banking, while attitude and subjective norms do not. It is concluded that financial institutions offering Islamic banking windows should prioritize consumer; perceived behavioral control and religious commitments as key predictors of their intention to adopt Islamic banking in this context. It is recommended to enhance perceived behavioural control and religiosity through targeted interventions, such as skills training and resource provision. Additionally, initiating community programs that integrate religious values with behavioral control strategies is advised to foster positive outcomes.

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