Human Capital Development for Takaful Sector in Malaysia: Addressing the New Challenges
DOI:
https://doi.org/10.58932/MULD0059Keywords:
Human Capital, Social Capital, Performance, Takaful, MalaysiaAbstract
A tremendous growth has been witnessed by the Islamic Finance industry worldwide over the last decade, however, Takaful sector still requires attention for increasing its market share and for strengthening its position in the industry over its conventional counterparts. The human capital pool quality is crucial for Takaful sector performance. This study investigates the human capital role in the organizational performance of the Takaful sector of Malaysia through the mediating role of social capital under the theoretical foundation of resource-based theory and equity theory. The primary data is collected through a structured questionnaire from the 350 employees working in the Takaful sector in Malaysia using a judgement sampling technique. Structural Equation Modelling (SEM) is applied using Smart PLS software. The study finds that human capital factors has a statistically significant impact on the Takaful companies' performance. Furthermore, the study confirms that social capital as a mediator only mediates the relationship between skills and knowledge and Takaful companies' performance. The proposed framework provides a major contribution towards present practices and challenges in the human and social capital field which leads to the Takaful companies’ performance in Malaysia. This study is helpful to policy maker, practitioner and researcher as it will be useful for revamping human capital development strategies in promoting the market.
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