Artikel

Micro, small and medium enterprises' competitiveness and micro-takāful adoption

Purpose: This paper aims to attempt to first examine the competitiveness of micro, small and medium-sized enterprises (MSMEs) in the logistics industry; second, to identify the MSMEs' perception towards takāful (Islamic insurance); third, to recognise the challenges in the adoption of takāful; and fourth, to suggest strategies to enhance the micro-takāful penetration rate. Design/methodology/approach The SWOT (strengths, weaknesses, opportunities and threats) analysis was used to measure the MSMEs' competitiveness. Interview sessions were conducted with 13 owners of MSMEs in the logistics industry from the period November 2018 until January 2019 in Selangor, Malaysia. Findings The SWOT analysis identified several strengths (e.g. advanced infrastructure, rising number of new entrants and contribution to the local economy), weaknesses (e.g. lack of digital culture and training and a dearth of expertise), opportunities (e.g. supportive government initiatives and evolution of the mobile internet) and threats (e.g. changing customer expectations and limited financing facilities). The MSMEs' perception towards micro-takāful and challenges in the adoption of takāful were also identified. Research limitations/implications This paper provides an understanding of the MSMEs' perception towards micro- takāful products, sheds light on the challenges faced by MSME owners in protecting their businesses from risk exposures and offers strategies to enhance the micro- takāful penetration rate. This study, however, is limited to Malaysia's experience. Practical implications The identification of MSMEs' SWOT will be useful for these businesses as it provides solid information that can be used to improve business performance while also seeking takāful protection. This paper, other than serving as a guideline for stakeholders in the logistics industry to have a better understanding of their business environment, may also provide useful insights to practitioners and policymakers. Originality/value This paper integrates the SWOT analysis into a study on business risk exposure and takāful protection from the MSMEs' perspective. Hence, the findings could broaden available knowledge on MSMEs, especially for businesses in the logistics industry. The knowledge may also facilitate matters for takāful operators interested in tapping into the market.

Language
Englisch

Bibliographic citation
Journal: ISRA International Journal of Islamic Finance ; ISSN: 2289-4365 ; Volume: 12 ; Year: 2020 ; Issue: 3 ; Pages: 367-380 ; Bingley: Emerald

Classification
Wirtschaft
Subject
Competitiveness
Logistic
Malaysia
Micro
Micro- takāful
Small and medium-size enterprises (MSMEs)
SWOT

Event
Geistige Schöpfung
(who)
Maizaitulaidawati Md Husin
Bin Haron, Razali
Event
Veröffentlichung
(who)
Emerald
(where)
Bingley
(when)
2020

DOI
doi:10.1108/IJIF-03-2019-0038
Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Maizaitulaidawati Md Husin
  • Bin Haron, Razali
  • Emerald

Time of origin

  • 2020

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