Consumer acceptance toward takaful in Pakistan: An application of diffusion of innovation theory

Muhammad Ali (Department of Business Administration, Iqra University, Karachi, Pakistan)
Syed Ali Raza (Department of Management Sciences, Iqra University, Karachi, Pakistan)
Chin Hong Puah (Universiti Malaysia Sarawak, Kota Samarahan, Malaysia)
Hanudin Amin (Labuan Faculty of International Finance, Universiti Malaysia Sabah, Labuan, Malaysia)

International Journal of Emerging Markets

ISSN: 1746-8809

Publication date: 14 October 2019



The purpose of this paper is to determine the factors influencing customer adoption toward takaful products in Pakistan.


The study used five attributes of diffusion innovation theory (DOI), namely, relative advantage, compatibility, trialability, observability and complexity. Furthermore, the authors introduced two additional constructs, namely, consumer awareness and religiosity to analyze the adoption behavior of customers. A total of 365 questionnaires were distributed among the participants of the study. The survey was conducted in the Karachi city where the respondents were the existing and potential users of takaful products. The theoretical model of DOI theory was tested using structural equation modeling.


The findings report that complexity has a negative impact on the adoption of takaful, whereas relative advantage, compatibility, trialability, observability, religiosity and consumer awareness shows a positive and significant influence.


It is a noteworthy point that past literature is quite limited to investigate the determinants of consumer intentions to adopt takaful products. Based on this argument, the authors build the study to provide a scope and coverage in the field of Islamic insurance. The authors also expect that the research will encourage and provide a venue for forthcoming studies to help policy makers and academicians in this emerging business.



Ali, M., Raza, S.A., Puah, C.H. and Amin, H. (2019), "Consumer acceptance toward takaful in Pakistan: An application of diffusion of innovation theory", International Journal of Emerging Markets, Vol. 14 No. 4, pp. 620-638.



Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

To read the full version of this content please select one of the options below

You may be able to access this content by logging in via Shibboleth, Open Athens or with your Emerald account.
To rent this content from Deepdyve, please click the button.
If you think you should have access to this content, click the button to contact our support team.