The Mediating Impact of Institutional Trust on Family Takaful Participation Behavioural Intentions

Abstrak

Research originality: This study fills a gap in Islamic finance research by examining how institutional trust mediates the relationship between TPB constructs and the intention to participate in family takaful products. While TPB is widely used, few studies have tested the role of institutional trust as a mediator in the family takaful context. Research objectives: The study investigates how institutional trust mediates the effects of attitude, subjective norms, and perceived behavioural control on consumers’ intentions to participate in family takaful. Research methods: A cross-sectional survey was conducted among 272 academicians from private Islamic universities in Malaysia, with hypotheses tested using partial least squares structural equation modelling (PLS-SEM). Empirical result: The results reveal that all TPB predictors, attitude, subjective norm, and perceived behavioural control, have significant direct effects on the intention to participate in family takaful products. Additionally, institutional trust demonstrates a partial mediating effect on the relationships between these endogenous and exogenous variables, underscoring its role in strengthening consumer behavioural intention. Implications: The study offers practical insights, emphasising institutional trust as a vital marketing and strategic component for takaful operators seeking to enhance consumer confidence and expand participation. JEL Classification: G22, G40, G41, G52