Exploring technology adoption in the Islamic capital market: how neo-brokers shape investment behavior?

Purpose This study aims to explore investment behavior in the Islamic capital market by examining the adoption of neo-broker technology. It combines the innovation diffusion theory (IDT) and the technology acceptance model (TAM) to analyze how neo-broker technology supports investment in the Islamic capital market. Design/methodology/approach This study analyzed data from 208 neo-broker users investing in the Islamic capital market using partial least squares structural equation modeling, encompassing model specification, data analysis, estimation and result evaluation. Findings The findings indicate that constructs from the IDT, specifically result demonstrability and compatibility, significantly contribute to enhancing perceived usefulness and perceived ease of use. Conversely, relative advantage is observed to influence only perceived ease of use. Furthermore, within the TAM, perceived usefulness is found to be the primary determinant of investment intention in the Islamic capital market. This construct also functions as an intermediary, linking perceived ease of use to investment behavior. Practical implications This study provides practical guidance for technology developers and neo-broker service providers in the Islamic capital market. Enhancing perceived usefulness requires user-friendly interfaces, real-time data, optimized performance and Shariah-compliant instruments. Demonstrability and compatibility are ensured through transparent reporting, case studies and adherence to Shariah principles. Overall, these measures can strengthen neo-broker competitiveness and effectively shape investment behavior in the Islamic capital market. Originality/value This study makes a novel contribution by investigating investment intentions in the Islamic capital market through the adoption of neo-broker technology, an area that remains underexplored. Furthermore, it adopts an innovative approach by integrating constructs from the IDT-TAM to provide a comprehensive understanding of individual behavior in the adoption of neo-brokers.