Factors influencing consumers’ intention to adopt Takaful products in Somalia: extension of diffusion of innovation theory

This study aims to investigate the determinants of customers' perceptions of Takaful purchase intentions by expanding the Diffusion of Innovation Theory (DOI) in the context of Somalia. This study employed five original elements of the diffusion of innovation theory (relative advantage, compatibility, complexity, observability, and trialability) with four external constructs–nationals' culture, consumer awareness, religious beliefs, and consumer trust. A survey was conducted utilizing a convenience sampling approach comprising existing and prospective Takaful product users in Somalia. Subsequently, 414 questionnaires were distributed to respondents and returned for analysis. The DOI theoretical model was assessed using structural equation modelling (SEM), and an analysis was conducted using SPSS and SMARTPLS4 Software. The study found that relative advantage, perceived compatibility, observability, trialability, consumer awareness, nationals' culture, religiosity, and trust were positively associated with takaful adoption. In contrast, perceived complexity did not influence takaful product adoption. Originally, this study investigates the elements that determine the adoption of takaful products in Somalia through an extension of the DOI theory. Thus, it remarkably contributes to existing literature on financial institutions by focusing on the Takaful field in the Somalia context.