This study aims to investigate the determinants of customers’ perceptions of Takaful
purchase intentions by expanding the Diffusion of Innovation Theory (DOI) in the
context of Somalia. This study employed five original elements of the diffusion of
innovation theory (relative advantage, compatibility, complexity, observability, and
trialability) with four external constructs–nationals’ culture, consumer awareness,
religious beliefs, and consumer trust. A survey was conducted utilizing a convenience
sampling approach comprising existing and prospective Takaful product users in
Somalia. Subsequently, 414 questionnaires were distributed to respondents and
returned for analysis. The DOI theoretical model was assessed using structural equation
modelling (SEM), and an analysis was conducted using SPSS and SMARTPLS4 Software.
The study found that relative advantage, perceived compatibility, observability,
trialability, consumer awareness, nationals’ culture, religiosity, and trust were positively
associated with takaful adoption. In contrast, perceived complexity did not influence
takaful product adoption. Originally, this study investigates the elements that determine
the adoption of takaful products in Somalia through an extension of the DOI theory.
Thus, it remarkably contributes to existing literature on financial institutions by focusing
on the Takaful field in the Somalia context.