Saddling effect of underlying contracts on sales performance: a multi-group analysis in the takaful industry
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This study aims to examine the impact of information overload (referred to as the saddling effect in this study) of underlying contracts on the sales performance of the salesforce at takaful institutions with special reference to addressing the heterogeneous effect among distribution channels. A total of 311 samples were collected from the sales professionals of the takaful industry in Malaysia using a purposive sampling technique and the empirical analysis was conducted with the measures of model fit and bootstrapping technique using partial least square structural equation modeling and multi-group analysis. Empirical results indicate that the saddling effect of the underlying contracts is evident among salesforce and the magnitude of the impact was found to be heterogeneous between the groups of salesforces in different distribution channels. Findings recommend respective authorities of takaful institutions to intensify capacity building for their salesforce, particularly in the area of shariah knowledge and nature of underlying Islamic contracts used in the takaful products. A significant heterogeneous effect between distribution channels suggests that the actions and policy formulations should be diverse between the salesforce at different distribution channels and higher attention should be catered for the salesforce at the direct selling channel.
Saddling effect , Underlying contracts , Takaful industry , Sales performance , Multi-group analysis
Shamsudheen, S.V., Mahomed, Z., & Muneeza, A. (2023). Saddling effect of underlying contracts on sales performance: a multi-group analysis in the takaful industry. Journal of Islamic Marketing, 14(6), 1621-1642. https://doi.org/10.1108/JIMA-07-2021-0235
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