CONCEPTUAL FRAMEWORK FOR THE ADOPTION OF GENERAL TAKAFUL AMONG MSME OWNER-MANAGERS IN NORTH-WEST NIGERIA: THE ROLE OF RELIGIOSITY OF MSME OWNER-MANAGER

Safeza Mohd Sapian; Nurudeen Abdulkadir; Norhazlina Ibrahim; Syadiyah Abdul Syukor

doi:10.33102/qg6yey89

Authors

Safeza Mohd Sapian Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Bandar Baru Nilai, Negeri Sembilan, Malaysia Author
Nurudeen Abdulkadir Central Bank of Nigeria, Abuja, Nigeria Author
Norhazlina Ibrahim Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Bandar Baru Nilai, Negeri Sembilan, Malaysia Author
Syadiyah Abdul Syukor Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Bandar Baru Nilai, Negeri Sembilan, Malaysia Author

DOI:

https://doi.org/10.33102/qg6yey89

Keywords:

Adoption, General Takaful, MSMEs, Diffusion of Innovation Theory, Unified Theory of Acceptance and Use of Technology, Religiosity

Abstract

This paper proposes a conceptual framework to examine the adoption of general Takaful among Micro, Small, and Medium-sized Enterprise (MSME) owner-managers in North-West Nigeria. Recognizing the critical role of MSMEs in the Nigerian economy and their vulnerability to diverse risks, this research seeks to address the low adoption of insurance, particularly Takaful, in this sector. By integrating the Diffusion of Innovation (DOI) and Unified Theory of Acceptance and Use of Technology (UTAUT) models, the framework provides a comprehensive understanding of the behavioral factors driving Takaful adoption. Crucially, the model also incorporates religiosity as a moderator, acknowledging its potential influence in a Muslim-majority context. The validated framework will offer actionable recommendations for stakeholders seeking to improve Takaful adoption rates among Nigerian MSMEs.

Downloads

Download data is not yet available.

References

Abbas, S. K., Hassan, H. A., Asif, J., Ahmed, B., & Haider, S. S. (2018). Integration of TTF, UTAUT, and ITM for mobile banking adoption. International Journal of Advanced Engineering, Management and Science, 4(5), 375-379.

Adamu, I. Y. (2018). Acceptance and patronage of insurance services in Northern Nigeria. IOSR Journal of Humanities and Social Science (IOSR-JHSS, 23 (4), 32–43. https://doi. org/10.9790/0837-2304013243.

Al-Rahmi, W. M., Yahaya, N., Aldraiweesh, A. A., Alamri, M. M., Aljarboa, N. A., Alturki, U., & Aljeraiwi, A. A. (2019). Integrating technology acceptance model with innovation diffusion theory: An empirical investigation on students’ intention to use E-learning systems. Ieee Access, 7, 26797-26809.

Al-Somali, S.A., Gholami, R., and Clegg, B. (2009). An investigation into the acceptance of online banking in Saudi Arabia. Technovation, 29(2), 130-141.

Al-Zoubi, M. I. (2013). Predicting e-business adoption through integrating the constructs of the Rogers's Diffusion of Innovation Theory combined with Technology-Organization-Environment Model. International Journal of Advanced Computer Research, 3(4), 63

Amin, H., Rahim Abdul Rahman, A., Laison Sondoh Jr, S., & Magdalene Chooi Hwa, A. (2011). Determinants of customers' intention to use Islamic personal financing: the case of Malaysian Islamic banks. Journal of Islamic Accounting and Business Research, 2(1), 22-42.

Amin, H., Rahman, A. R. A., & Razak, D. A. (2014). Consumer acceptance of Islamic home financing. International Journal of Housing Markets and Analysis, 7(3), 307-332.

Ayanwale, M. A., & Ndlovu, M. (2024). Investigating factors of students' behavioral intentions to adopt chatbot technologies in higher education: Perspective from expanded diffusion theory of innovation. Computers in Human Behavior Reports, 14, 100396.

Ayinde, L. O., & Echchabi, A. (2012). Perception and adoption of Islamic insurance in Malaysia: An empirical study. World Applied Sciences Journal, 20(3), 407-415.

Aziz, S., Husin, M. M., Hussin, N., & Afaq, Z. (2019). Factors that influence individuals’ intentions to purchase family takaful mediating role of perceived trust. Asia Pacific Journal of Marketing and Logistics.

Blankson, C., Ming-Sung Cheng, J., & Spears, N. (2007). Determinants of banks selection in USA, Taiwan and Ghana. International Journal of Bank Marketing, 25(7), 469-489.

Bodibe, S., Chiliya, N., & Chikandiwa, C. T. (2016). The factors affecting customers’ decisions to adopt Islamic banking. Banks and Bank Systems, 11(4), 144-151.

Budhathoki, T., Zirar, A., Njoya, E. T., & Timsina, A. (2024). ChatGPT adoption and anxiety: a cross-country analysis utilising the unified theory of acceptance and use of technology (UTAUT). Studies in Higher Education, 1-16.

Chen, G., Fan, J., & Azam, M. (2024). Exploring artificial intelligence (Ai) Chatbots adoption among research scholars using unified theory of acceptance and use of technology (Utaut). Journal of Librarianship and Information Science, 09610006241269189.

Coolen-Maturi, T. (2013). Islamic insurance (Takaful): demand and supply in the UK. International journal of Islamic and Middle Eastern finance and management., 6(2), 87-104.

Dandago, A. A., Muhammad, M. A., & Sabiu, T. T. (2020). Determinants of Takaful Patronage Among Entrepreneurs in Sabon Gari Market, Kano State, Nigeria. Journal of Accounting Research, Organization and Economics, 3(3), 238-253.

Dwivedi, Y. K., Rana, N. P., Jeyaraj, A., Clement, M., & Williams, M. D. (2019). Re-examining the unified theory of acceptance and use of technology (UTAUT): Towards a revised theoretical model. Information Systems Frontiers, 21(3), 719-734.

Echchabi, A., & Ayedh, A. M. (2015). Factors influencing the Yemeni customers' intention to adopt takaful products. Gadjah Mada International Journal of Business, 17(1), 25-45.

Gerrard, P., & Cunningham, J. B. (2003). The diffusion of internet banking among Singapore consumers. International Journal of Bank Marketing, 21(1), 16-28.

Haider, M. J., Changchun, G., Akram, T., & Hussain, S. T. (2018). Exploring gender effects in intention to Islamic mobile banking adoption: an empirical study. Arab Economic and Business Journal, 13(1), 25-38.

Hassan, H. A., & Abbas, S. K. (2019). Factors influencing the investors’ intention to adopt Takaful (Islamic insurance) products. Journal of Islamic Marketing, 11(1), 1-13.

Htay, S. N. N., & Salman, S. A. (2013). Viability of Islamic insurance (Takaful) in India: SWOT analysis approach. Rev. Eur. Stud., 5, 145.

Husin, M. M., & Ab Rahman, A. (2013). What drives consumers to participate into family takaful schemes? A literature review. Journal of Islamic Marketing.

Husin, M. M., & Ab Rahman, A. (2016). Predicting intention to participate in family takaful scheme using decomposed theory of planned behaviour. International Journal of Social Economics.

Husin, M. M., & Haron, R. (2020). Micro, small and medium enterprises’ competitiveness and micro-takāful adoption. ISRA International Journal of Islamic Finance.

Innocenti, S., Clark, G. L., McGill, S., & Cuñado, J. (2019). The effect of past health events on intentions to purchase insurance: Evidence from 11 countries. Journal of Economic Psychology, 74, 102204.

Iqbal, U. P., Jose, S. M., & Tahir, M. (2022). Integrating trust with extended UTAUT model: a study on Islamic banking customers’m-banking adoption in the Maldives. Journal of Islamic Marketing, (ahead-of-print).

Jamshidi, D., & Hussin, N. (2016). Islamic credit card adoption understanding when innovation diffusion theory meets satisfaction and social influence. Journal of Promotion Management, 22(6), 897-917.

Jamshidi, D., & Hussin, N. (2018). An integrated adoption model for Islamic credit card: PLS-SEM based approach. Journal of Islamic Accounting and Business Research, 9(3), 308-335.

Kazaure, M. A. (2019). Extending the theory of planned behavior to explain the role of awareness in accepting Islamic health insurance (takaful) by microenterprises in northwestern Nigeria. Journal of Islamic Accounting and Business Research, 10(4), 607-620.

Kholid, M. N. (2019). Determinants of intention to use Islamic mobile banking: Evidence from millennial generation. Jurnal Ekonomi & Keuangan Islam, 5(2), 53-62.

Kirfi, M. M., Abubakar, A. M., Audu, I., & Baba, M. (2019, June). Determinants of Clients’ intention to adopt Takaful services in Gombe state. In Proceedings of the 5th International Academic Conference of the Institute of Chartered Accountants of Nigeria (pp. 67-80).

Kotler, P., & Armstrong, G. (2001). Principles of Marketing (9th ed.). Upper Saddle River, NJ: Prentice Hall.

Lajuni, N., Wong, W. P. M., Yacob, Y., Ting, H., & Jausin, A. (2017). Intention to use Islamic banking products and its determinants. International Journal of Economics and Financial Issues, 7(1), 329-333.

Latip, M., Yahya, M. H., & Junaina, M. (2017). Factors Influencing customer’s acceptance of Islamic banking products and services. IKONOMIKA, 2(1), 1-18.

Lippert, S. K., & Govindarajulu, C. (2006). Technological, organizational, and environmental antecedents to web services adoption. Communications of the IIMA, 6(1), 14.

Mahdzan, N. S., Zainudin, R., & Au, S. F. (2017). The adoption of Islamic banking services in Malaysia. Journal of Islamic Marketing, 8(3), 496-512.

Mandari, H., & Chong, Y. L. (2018). The Moderating Effects of Awareness on Antecedents of Behavioral Intention to adopt Mobile Government Services: The Moderating Effects of Awareness. International Journal of E-Adoption (IJEA), 10(2), 50-69.

Mas'ud, A. (2017). Risk vulnerability and Takaful acceptance: Evidence from a frontier market. International Journal of Economics, Management and Accounting, 25(2), 411-431.

Mokhtar, H. S. A., Aziz, I. A., & Hilal, N. M. (2017). Corporate demand for general takāful in Malaysia. ISRA International Journal of Islamic Finance, 9(2), 164-184.

Moore, G. C., & Benbasat, I. (1991). Development of an instrument to measure the perceptions of adopting an information technology innovation. Information systems research, 2(3), 192-222.

Moore, G. C., & Benbasat, I. (1996). Integrating diffusion of innovations and theory of reasoned action models to predict utilization of information technology by end-users. In K. Kautz & J. Pries-Heje, Diffusion and adoption of information technology (pp. 132-146). Boston, MA: Springer.

Norris, F. H., Smith, T., & Kaniasty, K. (1999). Revisiting the experience–behavior hypothesis: The effects of Hurricane Hugo on hazard preparedness and other self-protective acts. Basic and Applied Social Psychology, 21(1), 37-47.

Patnaik, P., & Bakkar, M. (2024). Exploring determinants influencing artificial intelligence adoption, reference to diffusion of innovation theory. Technology in Society, 79, 102750.

Raza, S. A., Ahmed, R., Ali, M., & Qureshi, M. A. (2019). Influential factors of Islamic insurance adoption: an extension of theory of planned behavior. Journal of Islamic Marketing.

Rogers, E.M. (2003). Diffusion of innovations (5th ed.). New York, NY: Free Press.

Salman, S. A., & Hassan, R. (2020). Motivating factors for consumers to participate in takāful: a survey by Indian insurance policyholders. Journal of Islamic Accounting and Business Research.

Shaikh, I.M., Bin Noordin, K., Arijo, S., Shaikh, F. & Alsharief, A. (2019), "Predicting customers’ adoption towards family takaful scheme in Pakistan using diffusion theory of innovation", Journal of Islamic Marketing, Vol. 11 No. 6, pp. 1761-1776. https://doi.org/10.1108/JIMA-02-2018-0037

Sherif, M., & Shaairi, N. A. (2013). Determinants of demand on family Takaful in Malaysia. Journal of Islamic Accounting and Business Research, Vol. 4 No. 1, pp. 26-50. https://doi.org/10.1108/17590811311314276.

Teo, T. S., & Pok, S. H. (2003). Adoption of the internet and WAP-enabled phones in Singapore. Behaviour & Information Technology, 22(4), 281-289.

Thaker, H. M. T., Thaker, M. A. M. T., Khaliq, A., Pitchay, A. A., & Hussain, H. I. (2019). Continuous adoption of internet banking: evidence from Islamic banks in Malaysia. Paper presented at the 10th Foundation of Islamic Finance Conference, Sunway University, Malaysia.

Thambiah, S., Ismail, H., & Malarvizhi, C. (2011). Islamic retail banking adoption: a conceptual framework. Australian Journal of Basic & Applied Sciences, 5(12), 649-657.

Thambiah, S., Ismail, H., Ahmed, E.M., & Khin, A.A. (2013). Islamic retail banking adoption in Malaysia: the moderating effect of religion and region. International Journal of Applied Economics & Finance, 7(1), 37-48.

Thistlethwaite, J., Henstra, D., Brown, C., & Scott, D. (2018). How flood experience and risk perception influences protective actions and behaviours among Canadian homeowners. Environmental management, 61(2), 197-208.

Turner, G., Said, F., & Afzal, U. (2014). Microinsurance demand after a rare flood event: evidence from a field experiment in Pakistan. The Geneva Papers on Risk and Insurance-Issues and Practice, 39(2), 201-223

Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS quarterly, 425-478.

Weinstein, n. d. (1989). effects of personal experience on self-protective behavior. psychological bulletin, 105(1), 31.

Worthington Jr, E. L., Wade, N. G., Hight, T. L., Ripley, J. S., McCullough, M. E., Berry, J. W., ... & O'Connor, L. (2003). The Religious Commitment Inventory--10: Development, refinement, and validation of a brief scale for research and counseling. Journal of Counseling Psychology, 50(1), 84-96.

Yahaya, S., Hamid, I. A., Idris, A. F. B., & Haji-Othman, Y. (2016). The impact of compatibility and perceived risk on customers’ acceptance of Islamic banking in Nigeria. International Journal of Business Marketing and Management, 1(4), 15-23.

Yahaya, S., Yusoff, W. S. B. W., Idris, A. F. B., & Haji-Othman, Y. (2014). Conceptual framework for adoption of Islamic banking in Nigeria: the role of customer involvement. European Journal of Business and Management, 6(30), 11-24.