DETERMINANTS OF TAKAFUL ADOPTIONS MEDIATING PERCEIVED TRUST IN CASE OF SOMALIA

Abstract

Purpose – The aims of this paper is to determine intentions to adopt takaful mediating perceived trust in case of Somalia.

Design/methodology/approach – This study utilizes relative advantage, compatibility and complexity constructs as an original factors of diffusion innovation theory (DOI). Moreover, the three external constructs of awareness, culture, and trust are added into the DOI constructs. The authors distributed 419 questionnaires to the contributors of the study. The survey was conducted using convenience sampling technique in Somalia and our respondents were potential takaful product users. The DOI theoretical model was put to the test through structural equation modeling (SEM).

Findings – The findings show that relative advantage, compatibility, culture has positively and significantly influence on adoption of takaful with mediating perceived trust. On the other hand, perceived complexity and awareness is positively related to adoption of takaful but there is no mediation with perceived trust.

Originality/value – This research is an original attempt for investigating the factors that determines the adoption of takaful products regarding customers with mediating trust in Somalia by changing the DOI theory. Therefore, it presents a unique contribution to the takaful field in context of Somalia.