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Article
Publication date: 15 June 2023

Abi Huraira Rifas, Asmak Ab Rahman, Ahmad Hidayat Buang and Muzalwana Abdul Talib

Takaful is a social security approach that guarantees business risks in light of shari’ah, thus playing a crucial role in human life and the economy. The purpose of this study is…

Abstract

Purpose

Takaful is a social security approach that guarantees business risks in light of shari’ah, thus playing a crucial role in human life and the economy. The purpose of this study is to examine the factors that influence the behavioural intention of micro, small and medium-sized enterprises (MSMEs) entrepreneurs to participate in takaful in Sri Lanka.

Design/methodology/approach

This study is designed quantitatively with deductive approach using the theory of planned behaviour. A total of 432 MSMEs in Sri Lanka were surveyed using convenience sampling to measure the intention to participate in takaful as a risk mitigation. The collected data were analysed through partial least square-structural equational modelling.

Findings

Attitude, subjective norm and perceived behavioural control variables positively influenced the intention, with t-values of 3.216, 3.813 and 3.859, respectively. The influence of these variables exhibits not much difference.

Research limitations/implications

This study only focuses on MSMEs and a general takaful scheme. Future researchers may consider family takaful involvement among Sri Lankan business entrepreneurs.

Practical implications

Takaful practitioners should gain from the entrepreneurs’ intention to participate in takaful. Findings from this study could help marketing managers to revamp their strategies to further attract the entrepreneurs and make them to understand risk they are facing and, subsequently, participate in the takaful scheme.

Originality/value

This paper focuses on the context of Muslim minority among pluralism, where there is no regulation for Islamic financial products and services, and under the Islamic financial market crisis. This unleashes how business owners feel about takaful system on different dimensions.

Details

Journal of Islamic Accounting and Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 5 December 2016

Maizaitulaidawati Md Husin and Asmak Ab Rahman

The purpose of this paper is to examine the factors that influence an individual’s intention to participate in the family takaful scheme based on decomposed theory of planned…

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Abstract

Purpose

The purpose of this paper is to examine the factors that influence an individual’s intention to participate in the family takaful scheme based on decomposed theory of planned behaviour (DTPB). The central hypotheses for this study are that individual’s intentions to participate in family takaful scheme are a result of attitudes towards participation in family takaful scheme, subjective norms, and perceived behavioural control (PBC). Awareness and knowledge, as well as exposure and religiosity, are integrated into the model.

Design/methodology/approach

Using primary data collection method, 384 questionnaires were distributed to target respondents comprising of Muslims in Klang Valley, Malaysia. The data were analysed using Statistical Package for the Social Sciences and SmartPLS.

Findings

The DTPB model is effective in predicting individual’s intention to participate in family takaful scheme. Out of 15 hypotheses, 12 were found to be significant. Attitudes towards participation in family takaful scheme, PBC, knowledge, and exposure have significant influences on purchase intention. However, this study found the path from religiosity, awareness, and subjective norm to intention was insignificant.

Practical implications

The results of this study highlight the applicability of DTPB into takaful research and suggest marketing strategies for family takaful operators.

Originality/value

The value of this paper lies in its presentation of a model for factors that affect individual’s intention to participate in family takaful scheme.

Details

International Journal of Social Economics, vol. 43 no. 12
Type: Research Article
ISSN: 0306-8293

Keywords

Content available
Article
Publication date: 8 May 2017

Asmak Binti Ab Rahman and Joni Tamkin Borhan

322

Abstract

Details

Humanomics, vol. 33 no. 2
Type: Research Article
ISSN: 0828-8666

Article
Publication date: 3 February 2023

Abi Huraira Rifas, Asmak Ab Rahman, Ahmad Hidayat Buang and Muzalwana Abdul Talib

This study aims to investigate the factors affecting micro, small and medium entrepreneurs’ (MSMEs) behavioural intention to participate in takaful schemes in Sri Lanka.

Abstract

Purpose

This study aims to investigate the factors affecting micro, small and medium entrepreneurs’ (MSMEs) behavioural intention to participate in takaful schemes in Sri Lanka.

Design/methodology/approach

This research adopted a quantitative approach using primary data from a questionnaire. Out of 470 questionnaires, 432 were collected (91.91%) from MSMEs in Kalmunai business region in Sri Lanka. The data obtained were analysed using partial least square-structural equation modelling.

Findings

This study revealed that the extension model of the theory of planned behaviour (TPB) can be effectively applied to behavioural intentions towards a takaful scheme by MSMEs. Out of eight hypotheses, seven were significant, including: attitude towards behavioural intention; subjective norm; perceived behavioural control; knowledge; religiosity; income; trust in takaful as a significant influence. However, awareness of intention was not found to be significant.

Practical implications

This study suggests advantages for takaful providers in Sri Lanka, especially marketing departments, for enhancing sale of products, refurbishing marketing strategies and understanding the purchasing motivation of business entrepreneurs. This study guides takaful companies as to where they should concentrate to enhance market penetration.

Originality/value

Previous studies have concentrated on only three factors which comprise TPB. This paper’s main contribution is on the uniqueness of the Muslim minority context in a pluralistic context, providing a marketing model for takaful operators based on the different relevant dimensions.

Details

Journal of Islamic Marketing, vol. 14 no. 11
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 16 November 2020

Muhammad Usman and Asmak Ab Rahman

This paper aims to study waqf practice in Pakistan with regard to its utilisation in funding for higher educational institutions (HEIs) and investigates waqf raising, waqf

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Abstract

Purpose

This paper aims to study waqf practice in Pakistan with regard to its utilisation in funding for higher educational institutions (HEIs) and investigates waqf raising, waqf management and waqf income utilisation.

Design/methodology/approach

The paper is based on the views of 11 participants who are actively involved in the waqf, its raising, management and income utilisation, and is divided into three subcategories: personnel of higher educational waqf institution, personnel of waqf regulatory bodies and Shari’ah and legal experts as well as archival records, documents and library sources.

Findings

In Pakistan, both public and private awqaf are existing, but the role of private awqaf is greater in higher education funding. However, due to lack of legal supervision private awqaf is considered as a part of the not-for-profit sector and legitimately registered as a society, foundation, trust or a private limited company. Waqf in Pakistan is more focusing on internal financial sources and waqf income. In terms of waqf management, they have firm guidelines for investing in real estate, the Islamic financial sector and various halal businesses. Waqf uses the income for developmental and operational expenditure, and supports academic activities for students and staff. Waqfs are also supporting some other HEIs and research agencies. Thus, it can be revealed that a waqf can cater a sufficient amount for funding higher educational institutions.

Research limitations/implications

In Pakistan, both public and private awqaf are equally serving society in different sectors, but the role of private awqaf is much greater in funding higher education. Nevertheless, the government treats private awqaf as a part of not-for-profit sector in the absence of a specific legal framework and registers such organisations as society, foundation, trust or private limited company. The waqf in Pakistan mostly relies on internal financial resources and income from waqf assets. As the waqf managers have over the time evolved firm guidelines for investment in real estate, Islamic financial sector and various other halal businesses, and utilisation of waqf income on developmental and operational expenditures, academic activities of students and educational staff, other HEIs and research agencies, it can be proved that the waqf can potentially generate sufficient amount for funding HEIs.

Practical implications

The study presents the waqf as a social finance institution and the best alternative fiscal instrument for funding works of public good, including higher education, with the help of three selected waqf cases. Hence, the paper’s findings offer some generalisations, both for the ummah at large and Pakistan.

Social implications

The paper makes several policy recommendations for policymakers, legislators and academicians, especially the government. As an Islamic social finance institution, the waqf can help finance higher education anywhere around the world in view of the fact that most countries grapple with huge fiscal deficits and are hence financially constrained to meet growing needs of HEIs.

Originality/value

The study confirms that the waqf can be an alternative source for funding higher education institutions whether it is managed by the government or is privately controlled.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 14 no. 2
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 2 January 2018

Ibrahim Abiodun Oladapo and Asmak Ab Rahman

One area of concern for Islamic economics is the challenges and discrimination experienced in Muslim societies and the lower human development indices compared to the Western…

Abstract

Purpose

One area of concern for Islamic economics is the challenges and discrimination experienced in Muslim societies and the lower human development indices compared to the Western counterparts. It is possible that the application of the theory of Maqāsid al Sharī’ah (TMS) could provide some insight on the problems and probably offer some support to the policymaker on the direction to take. The purpose of this paper is to apply TMS to validate the factors of human development.

Design/methodology/approach

The primary data were collected using a questionnaire. The target respondents were Muslims from Nigeria. Both stratified and purposeful random sampling techniques were used to collect the data, and the analyses were done by SPSS and AMOS statistical software.

Findings

In validating factors that contribute to human development, TMS framework is used, and the model integrates five factors which are considered most likely to have influence on human development. The model proposes that individual factors such social justice and human rights have effects on the factors of human development.

Originality value

This study provides understanding on the contributing factors to the persistent challenges of human development in predominantly Muslim settings. Previous research which has applied TMS focused more on its financial relevance and has not attempted to understand the situation and proffer solution.

Details

Journal of Islamic Accounting and Business Research, vol. 9 no. 1
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 15 October 2021

Fahmi Medias, Asmak Ab Rahman, Akhmad Akbar Susamto and Zulfikar Bagus Pambuko

This paper aims to analyze the role of waqf in the socio-economic development of the organization of the Islamic Cooperation (OIC) countries. Various projects currently use waqf

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Abstract

Purpose

This paper aims to analyze the role of waqf in the socio-economic development of the organization of the Islamic Cooperation (OIC) countries. Various projects currently use waqf as an instrument for socio-economic development, as reported in the scholarly literature. This study will investigate this literature to explore trends in waqf studies and the role of this Islamic form of endowment in the socio-economic development of OIC countries.

Design/methodology/approach

This systematic literature review focuses on peer-reviewed journals and data obtained from the Mendeley database using specific criteria to analyze the socio-economic developmental role of waqf in OIC countries from 2011‐2020.

Findings

The socio-economic developmental role of waqf in OIC countries has been widely studied. In total, 68 academic articles were found that are relevant to themes of poverty alleviation, social welfare, entrepreneurship, education, health services and religious facilities. They reveal that the role of waqf in social welfare was the most discussed topic in the research. In addition, the majority of studies used an interview method to study waqf institutions in nine OIC countries. Furthermore, the number of publications on the theme has increased significantly every year, although the largest proportion occurred in unindexed journals.

Practical implications

This study provides an overview of research trends in the socio-economic developmental role of waqf. Its results can provide practical input for waqf institutions as they encourage its practice in OIC countries, and for policymakers in formulating their management strategies to promote the role of waqf in the social and economic aspects of society.

Originality/value

This paper reviews the current development of the socio-economic role of waqf in OIC countries. It will help researchers improve their understanding of this role. It will also provide waqf managers in OIC countries with adequate information on waqf projects which they can implement to achieve socio-economic development in their countries.

Details

Journal of Islamic Accounting and Business Research, vol. 13 no. 1
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 11 July 2023

Mohammad Khalequzzaman, Asmak Ab Rahman and Amirrudin Kamsin

This study aims to propose a Sharīʿah-based and information and communication technology-driven microfinance model (SIMM) to reduce extreme poverty in rural areas. Existing…

Abstract

Purpose

This study aims to propose a Sharīʿah-based and information and communication technology-driven microfinance model (SIMM) to reduce extreme poverty in rural areas. Existing microfinance models run by microfinance institutions exclude severely poor individuals from their activities.

Design/methodology/approach

This study uses an exploratory sequential mixed-method design structured as Studies 1 and 2. Study 1 uses the grounded theory methodology to develop the emergent SIMM through interviews and focus group discussions with the participants (12 rich, 6 rural elites and 18 poor) of the target village. Study 2 uses a survey of 421 household members in the target village to evaluate their attitudes (ATT), subjective norms (SN) and perceived behavioural control (PBC) related to SIMM. Partial least squares-based structural equation modelling is used to evaluate relationships between constructs.

Findings

Study 1 identifies seven themes, in which aspirational hope is recognised as a core theme. Study 2 indicates significant relationships between ATT and PBC and between SN and PBC. Thus, the SIMM can alleviate poverty in rural communities.

Practical implications

The application of the SIMM in the pilot study provides aspirational hope for eradicating extreme poverty.

Social implications

Other rural communities should be encouraged to apply the SIMM to alleviate extreme poverty in their villages.

Originality/value

This study contributes to the development of an innovative microfinance model (SIMM) to eradicate extreme poverty in rural areas.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 16 no. 6
Type: Research Article
ISSN: 1753-8394

Keywords

Book part
Publication date: 19 November 2018

Mirwanee Ha, Asmak Ab Rahman and Azizi Che Seman

Purpose – The objective of this study is to assess the level of understanding of family takaful among the Muslim community of southern Thailand.Methodology/approach – This study…

Abstract

Purpose – The objective of this study is to assess the level of understanding of family takaful among the Muslim community of southern Thailand.

Methodology/approach – This study used a questionnaire as the data collection tool. It sampled 400 respondents who were selected in a simple way, regardless of whether they owned protection policies or not. The methods used to analyse the data are descriptive statistics and means, and independent samples T-testing.

Findings – The study found that the Muslim community in southern Thailand had a generally low level of understanding of family takaful. However, the differences in the level of understanding between those who participated in family takaful and those who did not were examined. The research findings were then found to indicate that there was a distinction between the two groups: those who participated in family takaful had a clear and positive understanding of it, while those who did not had no clear understanding of it. These are significant differences which signify that participation in family takaful by Muslims in southern Thailand was influenced by their understanding of it.

Research limitations/implications – This study was conducted in the Muslim community in and around Muang District, Narathiwat Province, in southern Thailand.

Practical implications – This study clearly indicates, especially to those involved directly or indirectly in the takaful industry, that there are still many in the community who do not participate in family takaful because they lack understanding and have negative perceptions of it. Those who are involved must make the effort to communicate more in-depth insights to target communities, which could effectively enhance the uptake of family takaful.

Originality/value – This is the first empirical study of takaful in Thailand. It was conducted to determine the level of understanding of family takaful in the Muslim communities of southern Thailand and to compare the levels of understanding of family takaful between those who have participated in it and those who have not.

Details

New Developments in Islamic Economics
Type: Book
ISBN: 978-1-78756-283-7

Keywords

Article
Publication date: 12 April 2022

Muhammad Usman and Asmak Ab Rahman

This paper aims to highlight the importance of waqf in financing higher educational institutions (HEIs) and its potential as an alternative source of generating additional funds…

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Abstract

Purpose

This paper aims to highlight the importance of waqf in financing higher educational institutions (HEIs) and its potential as an alternative source of generating additional funds for the HEIs, and discourses on waqf practice, fundraising, waqf management and utilisation of waqf income for the development of higher education in Malaysia.

Design/methodology/approach

This paper is based on the information gathered through interviews with 12 participants who are actively engaged in waqf in different capacities. The participants can easily be classified into three expert groups; personnel of waqf-based universities, personnel of the respective State Islamic Religious Councils (SIRCs) and waqf practitioners. In addition, archival records, relevant documents and library sources have been used in the research.

Findings

The study learnt that waqf in Malaysia is centralised and exclusively controlled by the SIRCs, which are, as a rule, sole trustees of all categories of awqaf in the respective states; hence, any form of private trusteeship is considered illegal. It is a prerequisite for the establishment of a waqf fund to obtain permission from the respective SIRCs, and bring it under the purview of the council prior to setting up a waqf. The ministry of higher education has taken some initiatives to encourage HEIs to use waqf as an alternative source of generating funds. Subsequently, numerous public universities have set up waqf funds and developed a comprehensive mechanism for raising the fund through traditional and modern methods and technologies. A major chunk of the waqf funds is collected in the form of cash, but the amount falls short of reaching critical mass to enable the waqf to become self-sustaining. The study found that the universities also involved themselves in various social welfare programmes, especially in health care, and some income-generating projects besides seeking support from the waqf fund for their academic and educational activities.

Practical implications

The paper brings out the fact that waqf offers the best features as an alternative fiscal instrument to finance projects of public good, including higher education at three selected waqf-based universities in Malaysia.

Social implications

The study’s findings will be helpful to the ummah in general and Malaysia in particular. It can help policymakers, legislators and academicians in formulating new strategies for the common good and sensitize the countries facing a huge fiscal deficit and lack of development to the viability and potential of waqf as a catalyst for progress and economic activity.

Originality/value

The paper shares the experience of Malaysia’s waqf-based universities, waqf fundraising, management and income utilisation. It accentuates the fact that waqf can help finance academic activities at universities and sheds light on some useful examples of waqf-based universities founded in earlier periods of Islamic civilisation.

Details

International Journal of Ethics and Systems, vol. 39 no. 1
Type: Research Article
ISSN: 2514-9369

Keywords

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