Corporate Social Responsibility and Market Orientation: An Integrated Approach towards Organizational Performance

Muhamad Azrin Nazri, Nor Asiah Omar, Azreen Jihan Mohd Hashim

Abstract


ABSTRACT

Takaful operators in countries dominated by Muslim are still experiencing low penetration rate. New emerging customer segments have higher expectation where Takaful operators need more innovative approaches in acquiring and retaining customers. Moreover, Takaful companies need to apply marketing, societal and entrepreneurial concept to make the industry more competitive. Although many Islamic banking and Takaful studies have been conducted, empirical Takaful research is still limited. Therefore, the primary focus of this study is to empirically investigate the influence of market orientation and corporate social responsibility (CSR) towards Takaful agencies’ organizational performance in Malaysia. The first phase of the study involved refinement of CSR measurement items by performing exploratory factor analysis (EFA), where a new dimension was identified. The second phase of study was to test the hypotheses by employing all items adopted from past studies including the refined CSR measures. PLS-SEM analysis involving a two-step approach on 211 valid data shows co-adoption of CSR and market orientation influences organizational performance.

Keywords: CSR; market orientation; organizational performance; Takaful; Malaysia.

ABSTRAK

Pengendali Takaful di negara yang majoriti penduduknya beragama Islam masih mengalami kadar penembusan Takaful yang rendah. Dengan kemunculan segmen pelanggan baru, pengendali Takaful memerlukan pendekatan yang lebih inovatif dalam memperolehi dan mengekalkan pelanggan. Pengendali Takaful juga perlu menerapkan konsep pemasaran, sosial dan keusahawanan untuk menjadikan industri ini lebih kompetitif. Walaupun telah banyak kajian perbankan Islam dan Takaful dijalankan, namun penyelidikan Takaful secara empirikal masih terbatas. Oleh itu, objektif utama penyelidikan ini adalah untuk mengkaji pengaruh orientasi pemasaran dan tanggungjawab sosial korporat (CSR) terhadap prestasi agensi Takaful di Malaysia. Fasa pertama kajian telah berjaya mengenal pasti dimensi baru CSR. Fasa kedua kajian telah menguji hipotesis dengan melibatkan analisis PLS-SEM ke atas 211 data. Hasil kajian mendapati CSR dan orientasi pemasaran secara bersama mempengaruhi prestasi organisasi.

Kata kunci: CSR; orientasi pemasaran; prestasi organisasi; Takaful; Malaysia.


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