Effect of Ar-Rahnu Relationship Value on Long-Term Relationship between Customer and Institutions

Rafidah Mohd Azli, Mohd Rizal Palil, Shifa Mohd Nor

Abstract


ABSTRACT

Ar-Rahnu is a concept of Islamic debt with pledged item. In Malaysia, Ar-Rahnu concept is applied by Islamic pawn broking industry. Thus, the practitioners called Islamic Pawn broking product as “Ar-Rahnu”. There are no studies that conceptualize relationship value of Ar-Rahnu and its dimensions as the decisive factor in Ar-Rahnu development in Malaysia. Study of long-term relationship between customer and institutions can be an indicator of Ar-Rahnu development. The long-term relationship study proves and verifies the transparency of business. However, the study about the decisive factors of long-term relationship in Ar-Rahnu industry is lacked. The aim of this paper is to prove the effect of Ar-Rahnu relationship value and its dimensions towards the long-term relationship between customer and institutions. This research is conducted among Ar-Rahnu customers within seven Ar-Rahnu institutions which are situated in Central Zone of Malaysia. Two hundred and six respondents were selected to answer a set of adapted questionnaires. The conceptual model of this paper has been validated by the confirmatory factor analysis (CFA). The analysis of Structural Equation Modeling (SEM) shows that all the dimensions of Ar-Rahnu ‘benefits’ produce a significant effect on long-term relationship but the ‘sacrifices’ give insignificant effect. The finding can improve the shariah justification on Islamic pawn broking. The value of this study lies in its effort to propose to practitioners the enhancement of marketing system regarding the most preferences and matter of concern by customers about Ar-Rahnu product.

Keywords: Ar-Rahnu; relationship value; long-term relationship; structural equation modeling

ABSTRAK

Ar-Rahnu adalah satu konsep pinjaman yang berteraskan Islam berserta barang gadaian sebagai cagaran. Di Malaysia, Konsep Ar-Rahnu telah diaplikasikan di dalam industri Pajak Gadai Islam. Oleh yang demikian, para pengamal menamakan produk Pajak Gadai Islam sebagai Ar-Rahnu. Masih belum ada kajian yang berkonsepkan Nilai hubungan Ar-Rahnu dan dimensi- dimensinya sebagai faktor penentu kepada pembangunannya di Malaysia. Kajian tentang hubungan jangka panjang di antara pelanggan dan institusi dapat menjadi salah satu indikator kepada pembangunan industri Ar-Rahnu di Malaysia. Kajian hubungan jangka panjang di antara kedua-dua belah pihak adalah sangat penting bagi mengesahkan ketelusan transaksi. Kajian tentang faktor penentu kepada hubungan jangka panjang di antara pelanggan dan Ar-Rahnu masih kurang. Tujuan penulisan kertas ini adalah untuk membuktikan bahawa Nilai hubungan Ar-Rahnu dan dimensi-dimensinya telah memberi kesan positif terhadap hubungan jangka panjang di antara pelanggan dan institusi. Kajian ini dijalankan terhadap pelanggan Ar-Rahnu kepada 7 buah institusi Ar-Rahnu di Zon Tengah Malaysia. Seramai 206 responden dipilih bagi menjawab satu set soalan kaji selidik yang telah diadaptasi. Model konsep yang dibina telah disahkan oleh Kaedah Analisis Faktor. Kaedah analisis SEM telah digunakan di dalam kajian ini bagi menunjukkan dimensi ‘manfaat’ telah memberi pengaruh yang signifikan terhadap hubungan jangka panjang di antara pelanggan dengan institusi Ar-Rahnu. Manakala dimensi ‘pengorbanan’ tidak memberi kesan yang signifikan. Hasil dapatan kajian ini dapat menambah baik justifikasi shariah terhadap pajak gadai Islam. Nilai kajian ini meliputi cadangan kepada pengamalnya tentang penambahbaikan dari sudut pemasaran. Ianya berkaitan dengan perkara yang paling diambil perhatian oleh pelanggan.

Kata kunci: Ar-Rahnu; hubungan jangka panjang; manfaat; structural equation model


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