The mediating effect of service provider expertise on the relationship between institutional trust, dispositional trust and trust intakafulservices

Abstract

PurposeThis study aims to investigate the relationship between institutional trust, dispositional trust and trust intakafulproducts with the mediating effect of service-provider expertise.Design/methodology/approachThe data for this study were collected from 385takafulpolicyholders from Lahore and Islamabad, Pakistan. The relationship is estimated with PLS-SEM using the bias-corrected bootstrapping method.FindingsFor paths 1 and 2, the results suggest a significant positive relationship between institutional trust, dispositional trust, service provider expertise and trust intakafulproducts. Results for the bias-corrected bootstrapping model revealed that service provider expertise mediates the relationship between intuitional trust, dispositional trust and trust intakafulproducts.Research limitations/implicationsData were collected from provincial and federal capital cities of Pakistan where institutional setting is much much as compared to other citiesPractical implicationsFrom the managerial perspective, the dispositional trust would help them in choosing appropriate marketing strategy, segmentation, new product development, targeting and positioning to increase penetration. At the same time,takafulcompanies need to improve their expertise, knowledge and information-sharing mechanism for fostering overall consumer perception of trust intakafulproducts.Social implicationsInsurance, conventional or Islamic, is meant to transfer risk to the third party. Regulators need to improve overall institutional factors because improvement will strengthen the trust level of the general public. Stringent institutional settings act as a sense of strong structural assurance and situational normality. A rise in trust level would induce people to purchase more policies and carry on risky investments that would ultimately result in higher economic growth.Originality/valueTo the best of the authors’ knowledge, no empirical study has been conducted to examine the impact of institutional and dispositional trust on trust intakafulproducts with the mediating effect of service provider expertise