Understanding Islamic Banking Adoption through the Lens of Perceived Behavioural Control: A Tanzanian Perspective

Abstract

Despite operating within a dual banking framework, the adoption of Islamic banking in Tanzania remains limited. Guided by the Theory of Planned Behaviour and integrated with Cho and Lee’s (2014) four-step framework, this study examined how perceived behavioural control influences adoption decisions. A convergent mixed-methods design was employed to capture both measurable patterns and contextual depth, allowing quantitative precision to be complemented by qualitative insight. Data were collected concurrently through semi-structured questionnaires combining closed-ended Likert-scale items with open-ended questions to capture both statistical trends and lived experiences. Quantitative data were analysed using factor analysis and hierarchical logistic regression, while qualitative data underwent thematic content analysis for triangulation. The results revealed a paradoxical effect whereby higher perceived control reduced the likelihood of adoption, suggesting that awareness of institutional, infrastructural, and regulatory barriers fosters skepticism rather than empowerment. Qualitative findings reinforced this view, highlighting limited product design, weak Shariah governance, and doubts about authenticity as key inhibitors. The study concludes that, in this context, perceived control reflects recognition of systemic obstacles rather than actual capability, underscoring the need for clearer regulation, a broader product base, stronger governance, and enhanced financial education to transform awareness into genuine adoption potential.