Is Takāful industry fulfilling Maqāṣid al-Shar ī’ ah? The proposition of a new evaluation model using analytic hierarchy process

IF 2.5 Q2 BUSINESS, FINANCE Journal of Islamic Accounting and Business Research Pub Date : 2024-02-05 DOI:10.1108/jiabr-11-2022-0321

Rafikul Islam, Kazi Md. Tarique, Siti Salwani Razali

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Abstract

Purpose

The Takāful (Islamic insurance) industry operates on the principles of Maqāṣid al-Sharī’ah, and of late, the industry has witnessed significant market growth. The purpose of this study is to develop a performance measurement model based on Maqāṣid al-Sharī’ah to evaluate the performance of Takāful firms.

Design/methodology/approach

A mixed-method research approach was adopted to conduct the present study. Priorities were assigned to various dimensions of the Maqāṣid model using analytic hierarchy process and by taking inputs from 18 Takāful experts. On the contrary, six experts were involved in identifying the elements and measures for the operationalization of the Maqāṣid dimensions.

Findings

Maṣlaḥa (0.359) was found to possess the highest priority, followed by Justice (0.345) and Educating Individuals (0.295). Furthermore, under Necessity, protection of religion (0.398) and protection of life (0.388) are assigned almost similar priorities. These two are followed by the protection of progeny (0.107), protection of wealth (0.058) and protection of intellect (0.047). The final outcome of this study is a hierarchical model for the evaluation of performance of Takāful firms.

Practical implications

The application of the performance evaluation model will provide information to the management of Takāful firms on where they stand in terms of fulfilling Maqāṣid al-Sharī’ah principles. If any firms are found to have a deficiency in a certain part of Maqāṣid components, then proper and adequate measures can be taken to ameliorate the situation.

Originality/value

It is necessary to have a performance evaluation model based upon Maqāṣid al-Sharī’ah to evaluate the performance of Takāful firms as these firms operate on the principles of Maqāṣid al-Sharī’ah. Because there does not exist any such model, this study fills up this gap. Details of the measures that can be used to evaluate the performance of Takāful firms are also provided.

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慈善行业是否履行了 Maqāṣid al-Shar ī'ah？利用层次分析法提出新的评估模型

目的高额保险（伊斯兰保险）行业根据 "Maqāṣid al-Sharī'ah "的原则运作，近来，该行业见证了市场的显著增长。本研究的目的是在 Maqāṣid al-Sharī'ah 的基础上开发一个绩效衡量模型，以评估德教公司的绩效。采用层次分析法并听取 18 位德化专家的意见，为 Maqāṣid 模型的各个维度分配了优先次序。结果发现，Maṣlaḥa（0.359）的优先级最高，其次是 Justice（0.345）和 Educating Individuals（0.295）。此外，在 "必要性 "项下，"保护宗教"（0.398）和 "保护生命"（0.388）的优先级几乎相近。其次是保护后代（0.107）、保护财富（0.058）和保护智力（0.047）。本研究的最终成果是一个用于评估德教企业绩效的分层模型。实际意义绩效评估模型的应用将为德教企业管理层提供信息，使其了解企业在履行 "Maqāṣid al-Sharī'ah "原则方面的情况。如果发现任何公司在Maqāṣid组成部分的某一部分存在不足，则可以采取适当和充分的措施来改善这种情况。独创性/价值有必要建立一个基于Maqāṣid al-Sharī'ah的绩效评估模型，以评估德教公司的绩效，因为这些公司是按照Maqāṣid al-Sharī'ah的原则运营的。由于不存在这样的模型，本研究填补了这一空白。本研究还提供了可用于评估 "德教 "公司业绩的措施详情。

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来源期刊

Journal of Islamic Accounting and Business Research BUSINESS, FINANCE-

CiteScore

4.80

自引率

22.70%

发文量

期刊介绍： The journal provides a dynamic forum for the advancement of accounting and business knowledge based on Shari’ah and Islamic activities that have an impact on the welfare of society. JIABR publishes articles on the interplay between Islamic business ethics, accounting, auditing and governance, in promoting accountability, socio-economic justice (adl) and everlasting success (al-falah). It seeks to inform, among others, current theoretical and empirical research and practice in Islamic accounting, auditing and corporate governance, management of Islamic organizations, accounting regulation and policy for Islamic institutions, Shari’ah auditing and corporate governance, financial and non-financial performance measurement and disclosure in Islamic institutions and organizations. All styles of research, theoretical and empirical, case studies, practice-based papers and research notes that are well written and falling within the journal''s scope, are generally welcomed by the journal. Scope/Coverage Development of accounting, auditing and corporate governance concepts based on Shari’ah Socio-political influence on accounting and auditing regulation and policy making for Islamic financial institutions and organizations Historical perspectives on Islamic accounting, auditing and financial management Critical analysis on issues and challenges on accounting disclosure and measurement, Shari’ah audit and corporate governance Controls and risks in Islamic organizations Financial and non-financial performance measurement and disclosure.