FACTORS INFLUENCING THE INTENTION TO INVEST IN ISLAMIC SRI: SUSTAINABILITY AS MEDIATOR

Abstract

The growth of Islamic SRI has demonstrated remarkable progress over the past three decades, indicating considerable opportunities for further development within the Islamic finance sector. Islamic SRI is not only a financial instrument but also a form of investment that contributes positively to environmental care and societal well-being. In Malaysia, the Securities Commission introduced the SRI Guidelines in 2017 to promote and support the development of SRI funds. The 2022 revision of the guidelines aimed to enhance transparency, reinforce reporting obligations, minimize the risk of greenwashing, and promote greater alignment with sustainability goals. These developments highlight the increasing importance of Islamic SRI in supporting sustainable growth and addressing environmental and social challenges. Against this background, the purpose of this conceptual paper is to examine the determinants affecting the intention to invest in Islamic SRI, with a particular focus on the mediating role of sustainability. The proposed framework is grounded in the Theory of Planned Behaviour (TPB), which is widely applied in understanding investment decision-making. This study extends the theory by incorporating environmental concern and societal concern as additional determinants, alongside attitude, subjective norm, and perceived behavioural control. By integrating sustainability as a mediator, the framework seeks to provide a more holistic understanding of the behavioural intention to invest in Islamic SRI.