The users (demand-side) of Malaysian Islamic banking uphold their behavioural intention toward their awareness of the need to comply with Riba-free banking, especially for entrepreneurs demanding venture capital strategies. Because of high risks, Musharakah contracts are deemed less preferred in Islamic banking. This study needs to examine the factors influencing the intention to apply venture capital strategies in the Musharakah contract. The data were collected through a survey of 286 respondents and were analyzed using the Structural Equation Modelling (SEM) AMOS. The results showed that subjective norms positively affect venture capital strategies and mediate intention via subjective norms. While the other factors are not significant, the findings contribute to the literature on venture capital strategies by demonstrating the drivers of behavioural intention and testing the mediating role of venture capital strategies and the integrated Theory of Reasoned Action (TRA) in the context of Islamic banking by introducing venture capital strategies as a potential driver of intention and as a mediator effect. Islamic banks in Malaysia have great potential to offer the Musharakah contract and mitigate risk by adopting venture capital strategies. The results of this study are vital in proposing the channelling of Islamic Corporate Social Responsibility (i-CSR) funds for the Musharakah contract as an initial step in applying venture capital strategies. Also, regulatory bodies and Islamic banks may benefit from the outcome, which provides insight into the factors they should consider to promote venture capital strategies in the Musharakah contract.
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