Micro Small and Medium Enterprise Demand for General Takaful: Proposed Theoretical Framework and Hypotheses Development
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2018, Vol 8, Issue 12
Abstract
To guarantee an enterprise’s survival and its development, the demand for insurance exists. This will possibly result to an individual resorting to risky actions for the sake of his/her organization. In fact, the rate of insurance penetration is still low although entrepreneurs’ businesses are growing rapidly. This paper aims to identify specific elements in an organization which give impacts on the general demand for Takaful product. Furthermore, readings of literature are studied in detail to create organization’s characteristics for insurance demand. This literature reading is also done in order to describe the existing models of general Takaful demand. As a result, it is found that the characteristics of organization for general insurance demand comprise of geographical concentration, line of business, size, and regulation. In this study, the predicted utility theory of the organization’s owner is assimilated for the creation of a suitable model and framework for the research regarding the demand for general Takaful. In previous studies, the aspect of the impact of the risk-taking propensity, depending on the level of risk, as a key mediating variable were not focused on. Additionally, this paper also aims to provide future suggestions circulating around this matter. This matter holds a relatively high significance where thorough examination and documentation is conducted. Another reason for its significance is the scarce amount of research on this area in Malaysia. Besides, the number of empirical research performed on Takaful is still scarce although the investigation into Takaful demand, specifically regarding the methods of enhancing market penetration, has been conducted for almost 30 years in Malaysia.
Authors and Affiliations
Fauzilah Salleh, Mohamed Dahlan Ibrahim, Ahmad Shukri Yazid, Zainudin Awang, Norfadzilah Rashid, Puspa Liza Ghazali
Keywords
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- EP ID EP574587
- DOI 10.6007/IJARBSS/v8-i12/5058
- Views 97
- Downloads 0
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