Shahid Rizwan, Husam-Aldin Al-Malkawi, Kamisan Gadar, Ilham Sentosa and Naziruddin Abdullah
Although 76% of the population of the United Arab Emirates (UAE) is Muslim, takāful (Islamic insurance) has a much smaller share of business in the UAE than conventional insurance…
Abstract
Purpose
Although 76% of the population of the United Arab Emirates (UAE) is Muslim, takāful (Islamic insurance) has a much smaller share of business in the UAE than conventional insurance does. The purpose of this study is to highlight the importance of brand equity (BE), which is known as the incremental value that provides reason to buy a brand. This study provides useful insights that can help the health takāful industry to gain a feasible market share in the UAE.
Design/methodology/approach
This is a quantitative study in which stratified random sampling was adopted for data collection from 300 respondents through a self-administered questionnaire from August to November 2018. Underpinning the study is the theory of planned behavior (TPB) and the structural equation modeling (SEM) technique has been used to examine the impact of BE on purchase intentions (PI) through the moderating role of demographic factors such as age, income, education and religion. Three dimensions of BE, i.e. brand awareness (BAW), brand association (BAS) and perceived quality (PQ), are evaluated in terms of their significance as dimensions of BE.
Findings
The major findings of this study confirm that BE has a strong positive influence on the PIs of health takāful customers in the UAE and that all three dimensions of BE make significant contributions to the overall BE. The results show that education does moderate the relationship between BE and PI while age, income and religion do not. A new finding of this study is the nonsignificant moderating role of religion, whereby it was found that takāful products in the UAE are not limited to Muslim customers but can include potential customers who are followers of other religions.
Originality/value
To the best of our knowledge, the present study is the first of its kind to examine the impact of BE on the PI of health takāful customers in the UAE. The findings of the study give academia, researchers and marketers a better understanding of the importance of BE and of its vital role in promoting takāful products in the Gulf Cooperation Council (GCC) countries such as the UAE.
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Naziruddin Abdullah, Alias Mat Derus and Husam-Aldin Nizar Al-Malkawi
The purpose of this paper is to examine the role of zakat (the Islamic tax) in alleviating poverty and inequality in Pakistan using a newly developed index, namely, the Basic…
Abstract
Purpose
The purpose of this paper is to examine the role of zakat (the Islamic tax) in alleviating poverty and inequality in Pakistan using a newly developed index, namely, the Basic Needs Deficiency Index (BNDI).
Design/methodology/approach
The study formulates an index (BNDI) to measure the deficiency and effectiveness of zakat as one of the different items of government expenditure/spending to alleviate poverty. In this paper, Pakistan is chosen as a case study for two reasons: the availability and accessibility of data required for computing BNDI; and, in the past, no index such as this had been used to measure poverty in Pakistan.
Findings
The results obtained from the computation of the BNDI have been able to explain the effectiveness of zakat in alleviating poverty and inequality in Pakistan.
Practical implications
The findings of the study can be used by policymakers to measure and improve the effectiveness of zakat in reducing poverty and inequality.
Social implications
As the ultimate beneficiaries of zakat are the poor people, the outcome of this study may help improve their quality of life.
Originality/value
The paper develops a new methodology to measure poverty alleviation in Pakistan, focusing on the poor households’ consumption/expenditure on basic needs, government spending in terms of zakat and the number of zakat recipients as the three main determinants. The index developed in the present study can be applied to measure the performance of all Muslim countries whose provision of zakat is embedded in the national agenda to alleviate poverty.
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Bilqis Ololade Ahmed, Fuadah Johari and Kalsom Abdul Wahab
The purpose of this paper is to identify the hardcore poor, moderately poor and just poor among zakat recipients in southwest Nigeria. It seeks to explain the criteria and basis…
Abstract
Purpose
The purpose of this paper is to identify the hardcore poor, moderately poor and just poor among zakat recipients in southwest Nigeria. It seeks to explain the criteria and basis used in determining the most deprived among zakat recipients considering the multi-dimensional nature of poverty and modern-day situations.
Design/methodology/approach
Out of 200 questionnaires that were randomly distributed among the recipients of zakat from Al-Hayat Relief Foundation and Zakat and Sadaqat Foundation in southwest Nigeria, only 150 were completed. Headcount poverty index, poverty gap index, multi-dimensional index on standard of living, income ranges and monthly per-capita household expenditures using the national workers’ minimum wage as poverty threshold were adopted for analyzing the data collected.
Findings
On the basis of the income range of the recipients, 128 out of 150 recipients were found to be poor, whereas on using the MMPCHE 93 out of 150 recipients were found to be poor. Both results were further classified into hardcore poor, moderately poor and just poor recipients. The multi-dimensional index on standard of living was also used to capture poverty in terms of deprivation in standard of living, such as non-availability of electricity, drinking water, cooking fuel, sanitation, flooring and assets.
Research limitations/implications
A limited number of recipients were evaluated in this study, and hence it would be difficult to generalize. Also, some recipients had difficulty in answering the survey questionnaire used in this study, which reduced the amount of information derived. Thus, an in-depth interview method coupled with a survey can be used in future studies.
Practical implications
The implication of this result is either that the threshold and measures adopted are not capturing the poor and the needy or that the zakat institutions are not reaching out enough to the poor and the needy eligible to receive zakat. This paper suggests the introduction of a more uniform and comprehensive zakat-based poverty threshold for the poor and the needy that will continuously be examined by Shariah scholars and researchers to best engage with the modern-day situation.
Social implications
This paper examines the measures of poverty and concludes on the introduction of a well-comprehensive threshold that is Shariah compliant and based on the plight of the modern-day poor and needy, which can go a long way in achieving the objectives of zakat.
Originality/value
This study recommends a more comprehensive zakat-based poverty threshold that will capture the multi-dimensional nature of poverty in the present day for better outreach to the most deprived needy and poor.
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Hamim S. Ahmad Mokhtar, Naziruddin Abdullah and Syed M. Alhabshi
In an attempt to enrich the literature of the efficiency of Islamic banks, this study aims to empirically investigate the efficiency of the fully fledged Islamic banks as well as…
Abstract
Purpose
In an attempt to enrich the literature of the efficiency of Islamic banks, this study aims to empirically investigate the efficiency of the fully fledged Islamic banks as well as Islamic windows in Malaysia.
Design/methodology/approach
This study measures the technical and cost‐efficiencies of these banks using the non‐parametric frontier method, data envelopment analysis (DEA).
Findings
The findings show that, on average, the efficiency of the overall Islamic banking industry has increased during the period of study. The study also revealed that, although the fully fledged Islamic banks were more efficient than the Islamic windows, they were still less efficient than the conventional banks. Finally, Islamic windows of the foreign banks were found to be more efficient than Islamic windows of the domestic banks.
Originality/value
The findings of this study will provide some empirical insights as to how these two modes of Islamic banks had fared in the competitive environment from 1997 to 2003.
Khoutem Ben Jedidia and Khouloud Guerbouj
This study aims to examine the impact of zakat on the economic growth for a sample of Muslim countries. As a matter of fact, Zakat is a religious tax on wealth paid annually to…
Abstract
Purpose
This study aims to examine the impact of zakat on the economic growth for a sample of Muslim countries. As a matter of fact, Zakat is a religious tax on wealth paid annually to specified recipients. As it leads to income redistribution and increases the aggregate demand, zakat can be a growth factor in the Islamic framework.
Design/methodology/approach
This paper is based on a dynamic panel data model for the purpose of investigating the role of zakat in the economic growth for a sample of eight Muslim countries during the period ranging from 2004 to 2017. The general method of moments is applied.
Findings
The findings provide evidence that zakat stimulates the country’s growth. Indeed, as zakat funds are directed to increase consumption, investment or government expenditure, they spur on the economic growth. Moreover, the authors come to the conclusion that more trade openness allows an increase in the real gross domestic product (GDP) per capita. However, the broad money to GDP and population growth rate seem insignificantly associated with the economic growth for the sample considered.
Practical implications
The findings have substantial implications for the economic policy in Muslim countries. Authorities may further rely on zakat to boost the economic growth. First, it is essential to improve the muzakki’s knowledge on zakat to increase their intention, and so their ability and willingness to pay zakat. Second, the government intervention in both zakat collect and distribution becomes mandatory. Therefore, the contribution of zakat to the economic growth will be higher. This requires better-quality services of zakat institutions.
Originality/value
A few studies have empirically looked into the impact of zakat on the economic growth, especially for panel data. Hence, the present study tries to enrich the literature on this topic. It creates significant evidence regarding the relevance of zakat in Muslim countries. The findings provide empirical support that zakat is an additional growth factor in the Islamic framework.
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Noor Ul Hadi and Sadia Aftab Sheikh
To paint a more comprehensive picture of organizational ambidexterity in the hotel industry, the purpose of this study is to investigate how and when to develop a dual operating…
Abstract
Purpose
To paint a more comprehensive picture of organizational ambidexterity in the hotel industry, the purpose of this study is to investigate how and when to develop a dual operating system following a theoretical rationale supported by the three-stage model of creativity and organization support theory.
Design/methodology/approach
Survey-based research strategy and questionnaire-based data collection techniques have been used in the current study. data was randomly collected from human resource managers of 16 four-star and five-star hotels. The 200 questionnaires were distributed, out of which 182 usable questionnaires were analyzed using “PROCESS macro”.
Findings
The findings show that the integrative moderated-mediation model fits the data well. Hence, the three-stage model of creativity and organization support theory is useful, and the numerical evidence verified its applicability in the hospitality industry. To conclude, the results of this study, when applied to the hotel industry, can do marvels by being more innovative with their services.
Originality/value
More recently, it has been found that long-term success is only achievable and can be sustained if exploitative and explorative innovations are balanced. So far, however, little is known about how to achieve organizational ambidexterity in the hospitality industry.