scholarly journals Factors influencing Bumiputera contractors' acceptance of the contractor's all risk takāful product

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohd Azizi Ibrahim ◽  
Alias Mat Nor ◽  
Raja Rizal Iskandar Raja Hisham
Keyword(s):  
Structural Equation ◽  
Islamic Law ◽  
Reasoned Action ◽  
Peninsular Malaysia ◽  
Sem Analysis ◽  
Content Type ◽  
Sales And Marketing ◽  
Rules And Principles ◽  
Islamic Insurance ◽  
Sabah And Sarawak

PurposeThis research aims to investigate the factors that can influence Bumiputera contractors' acceptance of the Contractor's All Risks (CAR) takaful (Islamic insurance) product using the theory of reasoned action (TRA).Design/methodology/approachUsing the method of quantitative surveys, 414 questionnaires were collected from targeted Bumiputera contractors in Malaysia (grade G1 to grade G7), except in Sabah and Sarawak, that are registered with the Construction Industry Development Board (CIDB) and are also members of Persatuan Kontraktor Melayu Malaysia (PKMM). The data was analysed using the partial least squares structural equation modelling (PLS-SEM) technique.FindingsThe findings from the PLS-SEM analysis show that attitude, subjective norm, religiosity and awareness have a positive relationship with Bumiputera contractors' acceptance of the CAR takaful product. Religiosity appeared to be the most significant factor influencing Bumiputera contractors' acceptance of the CAR takaful product.Research limitations/implicationsThe respondents in this study only comprised Bumiputera contractors in Peninsular Malaysia, excluding those from Sabah and Sarawak. Therefore, it is not possible to generalise the findings to a broader population.Practical implicationsTakaful operators and their sales and marketing departments need to act proactively in promoting the benefits of investing in CAR takaful that follows Sharīʾah (Islamic law) rules and principles. They should create mechanisms to market CAR takaful better, thus accelerating its acceptance rate among contractors.Originality/valueThe paper uses the proposed extended TRA model, which includes the variables of religiosity and awareness in the TRA model. These variables were successfully integrated in the model, and the findings show that they have significantly contributed to the acceptance of the CAR takaful product among Bumiputera contractors.

scholarly journals Developing a Sharīʿah-compliant equity-based crowdfunding framework for entrepreneurship development in Malaysia

2020 ◽  
Vol 12 (2) ◽  
pp. 239-252
Author(s):  
Maya Puspa Rahman ◽  
Mohamed Asmy Mohd Thas Thaker ◽  
Jarita Duasa
Keyword(s):  
Technology Acceptance ◽  
Structural Equation ◽  
Islamic Law ◽  
Reasoned Action ◽  
Sem Analysis ◽  
Ease Of Use ◽  
Equation Modeling ◽  
Content Type ◽  
Entrepreneurship Development ◽  
Acceptance Model

Purpose Crowdfunding has become one of the preferred mechanisms to raise funds by startups and small entrepreneurs. As such, this paper aims to develop an appropriate framework for Sharīʿah-compliant equity-based crowdfunding (SEC) for entrepreneurship development in Malaysia. Design/methodology/approach The research begins by analyzing the intention of 200 entrepreneurs in Kuala Lumpur and Selangor regarding the use of crowdfunding to raise capital. The analysis is based on the theory of reasoned action (TRA), which is also associated with the technology acceptance model (TAM) and is effected by using structural equation modeling (SEM). Findings The entrepreneurs agree on the ease of use of crowdfunding in raising capital, although it appeared that they are quite reluctant to share their business ideas online. Subsequently, an SEC framework is proposed, to further enhance entrepreneurship development in Malaysia particularly in meeting the need for raising funds in line with Sharīʿah (Islamic law) principles. Practical implications This paper aims to contribute more to the development of a blueprint for an SEC platform for market players and regulators in Malaysia. Social implications This paper also aims to highlight the growing needs of entrepreneurs, particularly in Malaysia to have a Sharīʿah-compliant alternative to raise funds via crowdfunding. Originality/value This paper makes two main contributions. First, it provides evidence on Malaysian entrepreneurs’ intention to use crowdfunding for fundraising through TAM and SEM analysis. Second, it proposes an SEC framework for the development of entrepreneurs in Malaysia.

scholarly journals Muḍārabah and mushārakah as micro-equity finance: perception of Selangor’s disadvantaged women entrepreneurs

2020 ◽  
Vol 12 (2) ◽  
pp. 217-237
Author(s):  
Reazul Islam ◽  
Rubi Ahmad
Keyword(s):  
Women Entrepreneurs ◽  
Structural Equation ◽  
Islamic Law ◽  
Profit Sharing ◽  
Equity Financing ◽  
Content Type ◽  
Disadvantaged Women ◽  
Poor Women ◽  
Microfinance Institution ◽  
Equity Finance

Purpose This study aims to gain the perception of Selangor’s disadvantaged women on the Sharīʿah (Islamic law) rules on two micro-equity financing instruments, namely, muḍārabah (profit sharing) and mushārakah (profit-and-loss sharing) (M&M). Design/methodology/approach A survey was carried out in the rural area of Selangor district in Malaysia by administering a self-generated structured questionnaire. A total of 330 completed questionnaires were retrieved from the members of an Islamic microfinance institution (IsMFI), namely, Amanah Ikhtiar Malaysia (AIM). The data were analysed by using structural equation modelling. Findings The female borrowers of AIM perceive the Sharīʿah rules of M&M requiring high moral and ethical values and diligent repayment performance. They are aware of some other underlying provisions such as business liquidation, share transfer, information discloser and business termination. The overall findings of this study suggest that the perceived Sharīʿah rules are akin to those that are commonly used in general partnership businesses between Muslims. It also indicates that disadvantaged entrepreneurs would accept the rules that are easy to comprehend as well as favourable to their interests. It further suggests that respondents’ experiences of microfinance and business operation do not have a significant influence on their perception of M&M instruments. Research limitations/implications This study was limited to Selangor. So, the perception of Muslim women surveyed may not represent the views of all women in Malaysia. However, it can offer a primary understanding of the said issue. Practical implications The findings of this study can help IsMIFs take initiatives to offer M&M as micro-equity finance to poor women entrepreneurs. Originality/value So far, limited studies have been carried out on M&M-based microfinancing. This paper offers new insights presenting disadvantaged women entrepreneurs’ perception of these financing instruments.

Generation “X” and “Y” knowledge sharing behaviour

2017 ◽  
Vol 9 (2) ◽  
pp. 325-342 ◽  
Author(s):  
Muhammad Sabbir Rahman ◽  
Nuraihan Mat Daud ◽  
Hasliza Hassan
Keyword(s):  
Knowledge Sharing ◽  
Generational Differences ◽  
Structural Equation ◽  
Academic Staff ◽  
Peninsular Malaysia ◽  
Higher Learning ◽  
Cross Sectional ◽  
Content Type ◽  
Learning Institutions ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between employee motivation and intention for knowledge sharing behaviour. Inter-generational differences (generations X and Y only) were assumed to moderate in the relationship between intention and knowledge sharing behaviour of non-academic staff of higher learning institutions. This research also aims to test the role of behavioural intention as mediation between motivation and knowledge sharing behaviour. Design/methodology/approach This research tested a conceptual framework derived from widely accepted theories. This study was carried out on non-academic staff working at the different higher learning institutions in Malaysia. Respondents from private and public higher learning institutions in Peninsular Malaysia were asked to complete a self-administered questionnaire. This research also applied confirmatory factor analysis and structural equation modelling to examine the proposed hypothesis of this inquiry. Findings Results indicate that non-academic staff knowledge sharing behaviour was significantly mediated by intention between motivation and knowledge sharing behaviour relationship. More specifically, inter-generational differences (generations X and Y) play a significant moderation role between intention and knowledge sharing behaviour. Research limitations/implications The generalizability of this cross-sectional study can be strengthened by adopting a longitudinal approach in the next phase of the study. Practical implications The results of this research highlighted that the higher learning institutions need to institutionalize knowledge sharing behaviour among their non-academic staff (executive and non-executive) by facilitating knowledge sharing-oriented work environment. Originality/value This paper has attempted to furnish a comprehensive understanding of knowledge sharing behaviour among the non-academic staff of higher learning institutions.

Consumer behaviour towards willingness to pay for Halal products

2019 ◽  
Vol 121 (2) ◽  
pp. 492-504 ◽  
Author(s):  
Waqar Ahmed ◽  
Arsalan Najmi ◽  
Hafiz Muhammad Faizan ◽  
Shaharyar Ahmed
Keyword(s):  
Willingness To Pay ◽  
Structural Equation ◽  
Quantitative Research ◽  
Reasoned Action ◽  
Raw Material ◽  
Equation Modeling ◽  
Muslim Country ◽  
Policy Makers ◽  
Content Type ◽  
Factors Affecting

PurposeThe purpose of this paper is to empirically analyze the factors affecting Muslim consumers’ willingness to pay (WTP) for Halal food, products and operations by employing theory of reasoned action.Design/methodology/approachThis study has used quantitative research methodology and collected data from 350 questionnaires from a densely populated city of Pakistan. Partial least squares-structural equation modeling was used to analyze the data.FindingsThe results show that the concerns about Halal, religiosity, perception of usefulness of Halal and product ingredients have a significant impact on WTP for Halal foods, while attitude has an insignificant impact on WTP. Moreover, the extent of demand for Halal certification is significantly affected by WTP.Originality/valueThe study highlighted the concerns of the Muslim consumers with respect to Halalness of the products and operations despite living in a Muslim country. It is recommended that the policy makers, food authorities and health institutions should conduct regular inspections of foods, products and producers’/manufacturers’ operations to ensure that all the procedures from manufacturing of the raw material till the finished goods follow Islamic principles to make them completely Halal.

What makes up intentions to purchase the pioneer? A theory of reasoned action approach in India and the USA

2018 ◽  
Vol 13 (5) ◽  
pp. 734-757 ◽  
Author(s):  
Tarek Mady
Keyword(s):  
Social Norms ◽  
Purchase Intention ◽  
Structural Equation ◽  
Theory Of Reasoned Action ◽  
Reasoned Action ◽  
Dominant Role ◽  
Emerging Market ◽  
Equation Modeling ◽  
Content Type ◽  
The Usa

Purpose The purpose of this paper is to extend the research paradigm focusing on behaviorally-based first-mover advantages (FMA) by applying the widely-accepted Theory of Reasoned Action (TRA) and offers insights into differences between a mature market (USA) and an emerging market (EM) (India) regarding how intentions to purchase the pioneer are formed. Design/methodology/approach Utilizing samples of 208 USA and 194 Indian consumers, hypotheses examining the underlying beliefs, attitudes, social norms and purchasing intentions regarding pioneer brands are developed and tested using structural equation modeling. Findings Insights from the study suggest the TRA provides a means for assessing behaviorally-based FMAs across cultures, even as manifestations of purchase intentions differ significantly. According to the TRA and findings of this study, intentions are a function of overall attitudes and social norms. In the USA, individual attitudes were found to play a more significant role than social norms in formulating purchase intention. In India, social norms played a more dominant role in intention formation. Originality/value The study represents one of the first empirical attempts to shed light on the extent of behaviorally-based FMAs in an EM and how manifestations of intention to purchase the pioneer differ from mature markets. The study expands the behavioral paradigm of analysis to include one of the most sought-after EMs today (India) and provides one of the first empirical studies to utilize the TRA in addressing behaviorally-based FMAs.

Analysing the AAOIFI Sharīʿah standard on zakat

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Khurram Parvez Raja
Keyword(s):  
Financial Institutions ◽  
Islamic Law ◽  
Financial Statements ◽  
Insurance Companies ◽  
Single Individual ◽  
Content Type ◽  
Long Run ◽  
Islamic Financial Institutions ◽  
The Law ◽  
Islamic Insurance

Purpose The Sharīʿah Standard No. (35) issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) aims to identify the zakāt base for institutions (including Islamic insurance companies) as well as the subsidiary and the mother company of the institution (the company). By zakāt base, the standard means the items of financial statements that should or should not be included in the calculation of the zakāt base, and the liabilities or allocations that should or should not be deducted from zakatable assets. The standard also covers payable zakāt rates, disbursement of zakāt funds on the eight categories of zakāt recipients and the rulings pertaining to disbursement. The focus then is on companies or corporations. There is no indication in the aims as to who owns the wealth of the corporation, that is, whether it is the company itself or it is the shareholders and whether it is treated as a joint wealth of the shareholders or of a single individual in the form of the company. The author will rely on this issue as one factor on the basis of which the standard is to be judged. Design/methodology/approach Quran and hadith. Works of earlier jurists. Findings In this study, the author has summarized the provisions of zakāt according to the traditional law, but only those that are relevant for the financial institutions and the standard issued by the AAOIFI. After that, the author mentioned the major points that have been addressed by the standard. In the last section, the author has shown that the rulings of the Islamic Fiqh Academy and the AAOIFI on zakāt are totally confusing and merely a reproduction of the rulings of traditional law. The main reason for this confusion is that the nature and entity of a corporation have not been addressed and have been treated like a partnership, thus, jumbling up the entire issue of zakāt through banks. Originality/value The main purpose in undertaking this original work is to examine the AAOIFI Sharīʿah Standards from the perspective of traditional Islamic law, that is, the law of the senior schools as laid down in their authentic manuals. If there is an extensive deviation from this law, then this must be pointed out in the hope that it will be corrected by the concerned institution and the banks that adopt these standards. Neglecting such a corrective action for long will result in damage not only to these institutions in the long run but also to the law of Islam that has been so carefully crafted over centuries. The purpose is to show how far this standard deviates from traditional Islamic law and claims to be called the authentic view on a particular subject. Nevertheless, it is not the purpose of this work to explain and elaborate on the meaning and utility of these standards.

How logistics capabilities offered by retailers influence millennials’ online purchasing attitudes and intentions

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jason M. Riley ◽  
Richard Klein
Keyword(s):  
Structural Equation ◽  
Online Shopping ◽  
Reasoned Action ◽  
Explanatory Power ◽  
Online Reviews ◽  
Shopping Behavior ◽  
Equation Modeling ◽  
Content Type ◽  
Online Purchase ◽  
Online Shopping Behavior

Purpose The purpose of this study is to understand consumers’ use of online retail channels. This study examines how tracking capabilities, delivery speed, trust, logistics carriers’ reputation, people important to the consumer and online reviews influence Millennials’ online purchasing attitudes and intentions. Design/methodology/approach A survey was administered to 321 Millennials. Subsequently, it was used to test both direct and indirect hypotheses using structural equation modeling techniques. Findings The study determined that tracking capabilities, trust, people important to the consumer and online reviews directly influence online purchase attitude and by extension intention formation. The results also revealed that logistics carrier reputation moderates the trust to online purchase attitude linkage. Research limitations/implications This work improves the explanatory power of the theory of reasoned action by linking logistics factors to online shopping behavior. Further, it provides insight into the moderating influence of logistics carriers’ reputation. Practical implications For retailers, the results provide information on how to better develop ecommerce service offerings. By providing information about logistics services and capabilities during the ecommerce transaction, retailers can improve the chance that consumers will complete online purchases. Originality/value This research fills a gap in the literature regarding how to influence millennial consumers. Moreover, findings strengthen the understanding of online-purchasing attitudes and intentions formation, important to retailers developing new online shopping platforms and technologies.

The application of the theory of reasoned action on services of Islamic rural banks in Indonesia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ihsan Effendi ◽  
Miftahuddin Murad ◽  
Ahmad Rafiki ◽  
Mitra Musika Lubis
Keyword(s):  
Structural Equation ◽  
Theory Of Reasoned Action ◽  
Reasoned Action ◽  
Public Awareness ◽  
Sampling Technique ◽  
Equation Model ◽  
Subjective Norms ◽  
Product Knowledge ◽  
Content Type ◽  
Use Of Services

Purpose The Islamic rural banks have the potential to grow in Indonesia. It is important to learn and study the consumer behaviors toward the Islamic rural banks’ services to plan for future strategies. The purpose of this paper is to test the applicability of the theory of reasoned action in predicting the customers’ decision to use the Islamic rural banks’ services. Design/methodology/approach The descriptive and structural equation model analyses were used to analyze the data. A random sampling technique is adopted with a sample size of 180 consumers of the Islamic rural banks. There are variables to be tested such as Sharia system compliance, product knowledge on Sharia, promotion, services, attitude, subjective norms, intention and customer decisions to use the Islamic rural banks’ services. Findings The results found that the Sharia system compliance, promotion, services, attitude, subjective norms and intention variables have a significant effect on the use of services at Islamic rural banks. Only product knowledge on Sharia variable has been found to be insignificant. Originality/value The model can be used to prepare better strategies to attract more customers as well as increase public awareness toward Islamic rural banks’ products and services. The results are useful as a benchmark for policymakers to improve the establishment of Islamic rural banks particularly in Indonesia.

scholarly journals Moderating role of religiosity on Zakat compliance behavior in Nigeria

2018 ◽  
Vol 11 (3) ◽  
pp. 357-373 ◽  
Author(s):  
Abubakar U. Farouk ◽  
Kamil Md Idris ◽  
Ram Al Jaffri Bin Saad
Keyword(s):  
Behavioral Intention ◽  
Structural Equation ◽  
Structural Model ◽  
Reasoned Action ◽  
Theory And Practice ◽  
The Other ◽  
Equation Modeling ◽  
Predictive Capacity ◽  
Statistical Tool ◽  
Content Type

Purpose This paper examines the moderating effect of religiosity in the theory of reasoned action (TRA) on intention to comply with the Zakat on employment income (ZEI). Design/methodology/approach A survey of civil servants in Kano State, Nigeria was carried out and 474 valid observations were retrieved from the 700 distributed questionnaires. Partial least squares structural equation modeling (PLS-SEM) was used to validate the instrument that measures the variables, examined the structural model and the predictive relevance of the study’s model. Findings The results revealed the suitability of both the TRA and the PLS-SEM in the study of ZEI behavioral intention in a developing country. All the hypothesized direct relationships were supported on the one hand. On the other hand, one of the two indirect relationships, subjective norm and behavioral intention moderated by religiosity was supported, but the other tests for moderating effects of religiosity on the relationship between attitude and behavioral intention was not. Practical implications Public and private Zakat institutions in Muslim majority societies in Nigeria and in other Muslim countries may use the findings to focus their attention on the formulation of policies based on the findings of the study to strengthen eligible Zakat payers’ intention to comply to further boost their Zakat collections. Originality/value This study extends the TRA in the context of ZEI by proposing religiosity as a moderator in the predictive capacity of TRA on ZEI. Moreover, the suitability for the use of PLS-SEM as a statistical tool in investigating the extended TRA with religiosity as a moderating variable as well as its implications for theory and practice were also discussed.

An integrated model of corporate brand experience and customer value co-creation behaviour

2016 ◽  
Vol 44 (2) ◽  
pp. 139-158 ◽  
Author(s):  
Amjad Shamim ◽  
Zulkipli Ghazali ◽  
Pia A. Albinsson
Keyword(s):  
Customer Value ◽  
Structural Equation ◽  
Reasoned Action ◽  
Positive Influence ◽  
Integrated Model ◽  
Future Research ◽  
Brand Experience ◽  
Corporate Brand ◽  
Content Type ◽  
Customer Attitude

Purpose – The purpose of this paper is to investigate the influence of corporate brand experience (CBE) on customer value co-creation attitude and behaviour (CVCCA and CVCCB). By integrating congruity theory with the theory of reasoned action, the study proposes an integrated model for developing CVCCB in a retailing context. Design/methodology/approach – Structural Equation Modelling, using AMOS software was conducted using a sample of 711 respondents from four hypermarkets located in five Malaysian states. Findings – The research findings indicate that CBE plays a significant role for developing customer attitude and behaviour of value co-creation activities. Results show that CBE has a strong positive influence on CVCCA and subjective norms (SN) which further lead to CVCCB. SN were found to be a partial mediator between CBE and CVCCA. CVCCA was found to be a partial mediator between SN and CVCCB. Full mediation of CVCCA and SN between CBE and CVCCB is confirmed. Originality/value – The research contributes to value co-creation literature by proposing an integrated model for developing CVCCB in retailing. This research opens avenues for future research to consider the importance of brand experiences in value co-creation practices.

Sign in / Sign up

Export Citation Format

Share Document