Factors Determining Micro, Small And Medium-Sized Enterprises’ (MSMEs) General Takaful Adoption In Nigeria: The Moderating Role Of Religiosity
Risk management allows businesses to prepare for the unexpected by minimizing risks and unexpected losses in the future. The ability to manage risk is particularly important to Micro, Small and Medium-sized Enterprises (MSMEs) which constitute more than 95% of all businesses in Nigeria. One of the m...
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Universiti Sains Islam Malaysia |
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en_US |
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Risk management -- Nigeria Takaful (Islamic Insurance) |
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Risk management -- Nigeria Takaful (Islamic Insurance) Nurudeen Abdulkadir Factors Determining Micro, Small And Medium-Sized Enterprises’ (MSMEs) General Takaful Adoption In Nigeria: The Moderating Role Of Religiosity |
| description |
Risk management allows businesses to prepare for the unexpected by minimizing risks and unexpected losses in the future. The ability to manage risk is particularly important to Micro, Small and Medium-sized Enterprises (MSMEs) which constitute more than 95% of all businesses in Nigeria. One of the mitigating techniques in minimizing risk is through insurance and Nigeria being a Muslim-majority country, takaful should be a better alternative than conventional insurance. However, despite their fragile nature and their exposure to various threats, MSMEs are the least segment utilizing insurance cover. Recent reports show that most of these businesses do not participate in any insurance scheme. Furthermore, there are fewer studies that examined takaful adoption by MSMEs, especially in Nigeria. These past studies also are inconclusive on the significant factors influencing adoption, especially from the behavioural perspective. Therefore, this study fills the existing gap by conducting an empirical study that investigates the noneconomic factors influencing the adoption of general takaful among MSMEs owner-managers in North-West Nigeria (Kano and Kaduna). Besides, the study examines the moderating role of religiosity on the relationship between the predictor variables in the study (relative advantage, compatibility, complexity, uncertainty, awareness, social influence, government support, and prior loss experience) and general takaful adoption. A quantitative survey study of 295 randomly selected MSMEs in Kano and Kaduna was undertaken. Partial least Square Structural Equation Modelling (PLS-SEM) technique was applied to test the hypotheses advanced. The findings showed that relative advantage, compatibility, awareness, social influence, religiosity and prior loss experience have a direct and significant influence on MSMEs owner-managers’ behavioural intention to adopt general takaful. Conversely, the study found that complexity, uncertainty and government support were not significant in explaining general takaful adoption. Furthermore, as hypothesized, religiosity moderates the influence of relative advantage, complexity, government support, and prior loss experience on general takaful adoption. However, the hypothesized moderating effect of religiosity on compatibility, uncertainty, awareness, and social influence were not supported in this study. The study findings contribute to the scant literature on general takaful adoption. Moreover, the findings underscore the significance of religiosity in influencing takaful adoption. Furthermore, the findings provide significant practical implications and insights to takaful operators, takaful regulators, and policymakers in Nigeria in terms of devising appropriate strategies that will increase the adoption rate of general takaful scheme among MSMEs |
| format |
Thesis |
| author |
Nurudeen Abdulkadir |
| author_facet |
Nurudeen Abdulkadir |
| author_sort |
Nurudeen Abdulkadir |
| title |
Factors Determining Micro, Small And Medium-Sized Enterprises’ (MSMEs) General Takaful Adoption In Nigeria: The Moderating Role Of Religiosity |
| title_short |
Factors Determining Micro, Small And Medium-Sized Enterprises’ (MSMEs) General Takaful Adoption In Nigeria: The Moderating Role Of Religiosity |
| title_full |
Factors Determining Micro, Small And Medium-Sized Enterprises’ (MSMEs) General Takaful Adoption In Nigeria: The Moderating Role Of Religiosity |
| title_fullStr |
Factors Determining Micro, Small And Medium-Sized Enterprises’ (MSMEs) General Takaful Adoption In Nigeria: The Moderating Role Of Religiosity |
| title_full_unstemmed |
Factors Determining Micro, Small And Medium-Sized Enterprises’ (MSMEs) General Takaful Adoption In Nigeria: The Moderating Role Of Religiosity |
| title_sort |
factors determining micro, small and medium-sized enterprises’ (msmes) general takaful adoption in nigeria: the moderating role of religiosity |
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Universiti Sains Islam Malaysia |
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my-usim-ddms-131672024-05-29T19:51:48Z Factors Determining Micro, Small And Medium-Sized Enterprises’ (MSMEs) General Takaful Adoption In Nigeria: The Moderating Role Of Religiosity Nurudeen Abdulkadir Risk management allows businesses to prepare for the unexpected by minimizing risks and unexpected losses in the future. The ability to manage risk is particularly important to Micro, Small and Medium-sized Enterprises (MSMEs) which constitute more than 95% of all businesses in Nigeria. One of the mitigating techniques in minimizing risk is through insurance and Nigeria being a Muslim-majority country, takaful should be a better alternative than conventional insurance. However, despite their fragile nature and their exposure to various threats, MSMEs are the least segment utilizing insurance cover. Recent reports show that most of these businesses do not participate in any insurance scheme. Furthermore, there are fewer studies that examined takaful adoption by MSMEs, especially in Nigeria. These past studies also are inconclusive on the significant factors influencing adoption, especially from the behavioural perspective. Therefore, this study fills the existing gap by conducting an empirical study that investigates the noneconomic factors influencing the adoption of general takaful among MSMEs owner-managers in North-West Nigeria (Kano and Kaduna). Besides, the study examines the moderating role of religiosity on the relationship between the predictor variables in the study (relative advantage, compatibility, complexity, uncertainty, awareness, social influence, government support, and prior loss experience) and general takaful adoption. A quantitative survey study of 295 randomly selected MSMEs in Kano and Kaduna was undertaken. Partial least Square Structural Equation Modelling (PLS-SEM) technique was applied to test the hypotheses advanced. The findings showed that relative advantage, compatibility, awareness, social influence, religiosity and prior loss experience have a direct and significant influence on MSMEs owner-managers’ behavioural intention to adopt general takaful. Conversely, the study found that complexity, uncertainty and government support were not significant in explaining general takaful adoption. Furthermore, as hypothesized, religiosity moderates the influence of relative advantage, complexity, government support, and prior loss experience on general takaful adoption. However, the hypothesized moderating effect of religiosity on compatibility, uncertainty, awareness, and social influence were not supported in this study. The study findings contribute to the scant literature on general takaful adoption. Moreover, the findings underscore the significance of religiosity in influencing takaful adoption. Furthermore, the findings provide significant practical implications and insights to takaful operators, takaful regulators, and policymakers in Nigeria in terms of devising appropriate strategies that will increase the adoption rate of general takaful scheme among MSMEs Universiti Sains Islam Malaysia 2022-11 Thesis en_US https://oarep.usim.edu.my/handle/123456789/13167 https://oarep.usim.edu.my/bitstreams/aee4344b-afd9-4893-a7cf-0d7691b9ae95/download 8a4605be74aa9ea9d79846c1fba20a33 https://oarep.usim.edu.my/bitstreams/7508d3e2-65a0-4dfb-b5ae-712f639310fb/download ffec9235296477fd3e836ad9aa231f90 https://oarep.usim.edu.my/bitstreams/6a831787-69ec-4dfe-a43b-4bce3ea939f7/download c5c4c2c17a0d59da08ddf8a3b9f022f7 https://oarep.usim.edu.my/bitstreams/94588d4c-8f11-44fe-9668-e7b7fe663476/download 5cdeaa07eb9f9fc82cf9b2d1abbbd8a9 https://oarep.usim.edu.my/bitstreams/3800f2cc-5b39-4b23-aad5-444981be2f02/download 7fca3f8ba1a6d08ad536e6c7591a47db https://oarep.usim.edu.my/bitstreams/d3c11581-2878-41e6-a370-27eef3ed19c4/download 18730057489ea74fb10e428508ba60d2 https://oarep.usim.edu.my/bitstreams/74125e18-beb4-4a58-8470-5e63c5b4f4f1/download da9adad81ca06f7e77b3ad20db90f7f9 https://oarep.usim.edu.my/bitstreams/cb674b60-1fb8-4751-b3e8-1f04750be2de/download 567c9dd7ca7438fcae5002dce634c228 https://oarep.usim.edu.my/bitstreams/0ad8f6b0-3bf0-4f1f-8d43-2af3496b0d13/download c8ea45aa2043355cc8fdc9ee63416cc4 https://oarep.usim.edu.my/bitstreams/b29a1f58-8788-4298-8f1b-376f7737498b/download 8e0cdb5aeaca967a8d55c78af39e1d2a https://oarep.usim.edu.my/bitstreams/1dea7a34-8ab1-484a-b3ee-fd4907ad96a8/download b4086664b51fcfce196de2474c13cd45 https://oarep.usim.edu.my/bitstreams/9449f7cf-f61b-46d6-a7bf-bda6c7cac9ab/download 2e9b31642ba62b8be5a71c715232a5ce https://oarep.usim.edu.my/bitstreams/bee7121e-b68f-4c4d-8c35-b08888af1227/download b35f663e83ea99cb787d2e05e337930b https://oarep.usim.edu.my/bitstreams/1ba5c903-bb72-4844-8d70-4a09c578ed90/download c97f9c0d087b0fa87a404f54bc957e36 https://oarep.usim.edu.my/bitstreams/88a7881d-c2f7-4d23-a32e-5dec84d06357/download 82e3af39dddbd8ff97b84d25146273e8 https://oarep.usim.edu.my/bitstreams/a0d8c1c3-28ea-456a-b6d6-9a7184ee4987/download f79ea6fdd38a8b452ba81966e1dfd076 https://oarep.usim.edu.my/bitstreams/414e41ad-d776-49cd-8c74-0215717b6c30/download 19ffa90bf8a678dfe6e73c1d9dabbdeb https://oarep.usim.edu.my/bitstreams/93dbde74-4dc1-4b75-8061-266a2d156de7/download 414bd0febd4a5122977d9dd98c76e651 https://oarep.usim.edu.my/bitstreams/1222c96c-2536-47a2-b08c-aa3d57aa9d26/download 2eaa69cdb55930073fc972d11b4358c1 https://oarep.usim.edu.my/bitstreams/0414bade-67bb-4b30-9190-376a8d34e0a6/download 513f9d97eb3b122d974155442948e0b3 https://oarep.usim.edu.my/bitstreams/e76c68d2-4640-4bd8-a2d5-ea5da7a65848/download 7b57deb815d1f9d816229940cdea1a09 Risk management -- Nigeria Takaful (Islamic Insurance) |