Religious capital and information technology investment

Abstract

This empirical study aimed to examine the relationships between religious capital and information technology (IT) investment. We utilised a survey research design to collect data from small and medium enterprise (SME) owners in India. In addition, this study also utilised the ordinary least square model to test the hypotheses and a two-stage least square model to reduce endogeneity problems. The empirical analysis shows that religious capital increases internal financing sources (IFS) and IT investment in SMEs in India. IFS, in turn, increases IT investment. Notably, religious capital increases the chances of IT investment by 34.40% and increases the chances of having higher IFS by 10.80%. Empirical results contribute to the literature on the relationships between religious capital and IT investment.