Malaysia Ahasanul Haque* and Faruk Ahmed · University, Subang Jaya, Malaysia. ... In a study,...

134 Int. J. Islamic Marketing and Branding, Vol. 2, No. 2, 2017

Copyright © 2017 Inderscience Enterprises Ltd.

Measuring the impact of marketing capability and market control beliefs on marketing strategy intention: a study on travel and tour agents in Malaysia

Ahasanul Haque* and Faruk Ahmed Department of Business Administration, International Islamic University Malaysia, Box No. 10, 50728, Kuala Lumpur, Malaysia Email: [email protected] Email: [email protected] *Corresponding author

Abdullah Mamun Al-Sarwar Faculty of Management, Multimedia University, 63100 Cyberjaya, Malaysia Email: [email protected]

Ali Shafiq Department of Business Administration, Taylor’s University, No. 1 Jalan Taylor’s 47500, Subang Jaya, Malaysia Email: [email protected]

Abstract: The aim of this paper is to measure the effect of marketing capability and market control beliefs on marketing strategy intention in strategising Islamic travel and tour packages of travel and tour agents from the perspective of Malaysia. The research revealed that innovativeness, communication, collaboration and cooperation, and control beliefs significantly affect marketing strategy intention through the mediators of marketing capability attitude and market control capability. As a quantitative research approach, from a sampling frame of 420 travel and tour enterprises around Malaysia, 107 respondents were successfully surveyed through a self-administered questionnaire. The result would be useful for practitioners in terms of understanding the effects and magnitude of those variables in developing Islamic travel and tour package in the Islamic tourism industry of the Islamic countries. The effort was employed, for the first time, in this type of perspective. So perhaps, this would have a new horizon of theoretical understanding of the strategic Islamic tourism conceptualisation under the theory of planned behaviour.

Keywords: Islamic tourism; Islamic travel and tour package; travel and tour agents; marketing strategy intention; partial least square; PLS; Malaysia.

Measuring the impact of marketing capability and market control 135

Reference to this paper should be made as follows: Haque, A., Ahmed, F., Al-Sarwar, A.M. and Shafiq, A. (2017) ‘Measuring the impact of marketing capability and market control beliefs on marketing strategy intention: a study on travel and tour agents in Malaysia’, Int. J. Islamic Marketing and Branding, Vol. 2, No. 2, pp.134–155.

Biographical notes: Ahasanul Haque is a Professor of Marketing International Islamic University Malaysia. At this stage, he published several text books, book chapters. Moreover, published more than 150 research articles in referred journals, including ISI, Scopus, Emerald, Inderscience and ABDC’s indexed. He is an editorial board member in several international journals. He received few awards, including Emerald Literati Award. He is involved in many international professional organization including American Marketing Association (AMA), Academy of World Business and Marketing Management, World Business Institute (WBI), Asian Academy of Management. His research interest covers Islamic Tourism, Islamic Marketing, consumer behaviour and international marketing.

Faruk Ahmed is an Assistant Professor of Marketing in the Department of Business Administration at Dhaka International University, Dhaka, Bangladesh. He teaches consumer behavior, operations research, marketing research, strategic marketing, marketing management, and research methods. His few articles have been published in this university journal, and his research interests encompass brand personality, brand marketing, tourism marketing, and retail marketing. He is currently doing PhD in Marketing in the Department of Business Administration at International Islamic University Malaysia.

Abdullah Mamun Al-Sarwar is currently a Lecturer of Marketing in the Faculty of Management at Multimedia University (MMU), Cyberjaya, Malaysia. He was educated at the University Tun Abdul Razzak, Kuala Lumpur, Malaysia and graduated with a Master’s degree in Business Administration before serving five years in Bangladesh Army as a commissioned officer. Following his departure from active service, he then attended International Islamic University Malaysia, gaining his PhD degree before embarking on an academic career, which has both embraced teaching undergraduate and postgraduate students and research. He has published more than 40 academic journal articles in various international journals in the field of marketing and management. Recently, he has been award with the “Emerald Literati Network Awards for Excellence” in the category of highly commended paper 2016. His research interest covers medical tourism, Islamic Marketing, consumer behaviour and international marketing.

Ali Shafiq is a Lecturer in the Department of Business Administration, Taylor’s University, Subang Jaya, Malaysia. Recently, he received his PhD under the Department of Business Administration, International Islamic University Malaysia. He published a number of articles in ISI, Scopus and international indexed journals. His research interest in Islamic Marketing such as Islamic Advertising, Islamic Tourism.

136 A. Haque et al.

1 Introduction

It is the duty of an Islamic nation to promote Islamic tourism to other Muslim nations. In this regard research was conducted on Islamic tourism in several countries like Malaysia, Palestine, Iran, and Saudi Arabia (Henderson, 2010; Zamani-Farahani and Henderson, 2010). In terms of research, some of the researchers looked into quality in Islamic tourism services (Sumaedi and Yarmen, 2015), value of Islamic tourism (Duman, 2011), marketing roles of Islamic tourism (Chon et al., 1997; Duman and Kozak, 2010; Duman, 2011; Haq and Wong, 2010; Hashim and Murphy, 2007; Henderson, 2003; Henderson et al., 2003), and perceived risk and its impact in connection of a specific Islamic country (Jalilvand and Samiei, 2012). In the same line, Muslim shoppers qualify as a homogenous billion-consumer group (Alserhan and Alserhan, 2012). The tourism industry is a huge worldwide industry with great potential for development globally, and having great impact on sociological, behavioural, economic, political, cultural, environmental and educational dimensions (Khan et al., 2013). Tourism has a bright future ahead owing to its all-encompassing perspective, heroic historical conquer, and archeological resources (Das and Chakraborty, 2012).

After 1987, the study on 504 articles from reputed journals explored Muslim consumers around the globe. Such qualitative research showed lack of empirical research on the same consumers and concluded that this market needs to be studied more for all those businesses who are interested in this market (Alserhan and Alserhan, 2012). Some pull or internal factors and some push or external factors of travel, tour, and hospitality are found to relate with and impact one’s fulfillment that in some way influences faithfulness. More clearly, the push factors are those motives that stem from the customer or tourist (demand side), and pull factors are those in tourism service processes that influence entrepreneurs to make strategic decision. All relations were discovered essentially positive (Battour et al., 2012). On the other hand, there are drawbacks too, for example, the Malaysian Islamic tourism is fundamentally an image and marketing issue that thwart its expected developments (Bhuiyan et al., 2011). In a study, spiritual brand improvement viewpoints were separated on investigating spiritual tourists (Haq and Wong, 2010). After the policy development of drawing in tourist’s destinations in Malaysia, economic and physical advancement of some destinations were taken up (Henderson, 2015).

Strategic marketing dominantly changes every business activity of an organisation because it comes from studying consumers’ needs and wants and organisational capabilities of meeting their wants. Strategic Islamic tourism marketing is appropriate for facing two types of business challenges: application and maintenance of Islamic guidelines, and continuing competition among Islamic tourism firms and contemporary tourism firms. However, there are very few theories developed in Islamic marketing which are not sufficient for providing clear insights of strategic marketing intention and behaviour in Islamic marketing. Product, place, price and promotion should be equally considered in this type of marketing. Studies on Halal (Battour et al., 2010), Middle East tourism market (Ariffin and Hasim, 2009), domestic package tours in Malaysia (Josmani and Sandrawati, 2007) and on destination preferences and brand perceptions (Kim et al., 2015) provide general comprehension of bits of knowledge about strategic tourism marketing in Malaysia. But, Islamic tourism marketing can even be more extensively strategic than the contemporary tourism marketing. Furthermore, Islamic marketing practices were nowhere found perfectly in this country, where a research revealed that the


respondents thought, that only a few or some enterprises are promoting their products based on Islamic teaching requirements and that the majority of them are avoiding the Islamic principles in promotion, especially in using celebrities (Abdullah and Ismail Ahmad, 2010).

It is a typical conviction that Muslims can also consume what contemporary marketers offer for everyone; yet the same Muslims, especially those high on religiosity, might not feel those offers as needs and wants. Muslims believe in Allah as their creator and sustainer and have to fulfil their obligations towards him through carrying out the daily activities the way he likes. According to Islam, Muslim tourists need to stay in a tourism areas that are free from alcohol, pork, gambling, or on-call sexual relationships services. The aim of this study is to explore and test the relationships among variables to gauge the intentions of marketers towards strategic Islamic tourism marketing within Islamic nations. Both Muslim and non-Muslim tourism environment commonly appear so complex; so it is only possible for tourism marketers to provide Shari’ah compliant tourism if there are a few influencing factors. Concentrating on factors affecting marketers’ strategic marketing goal of Shariah-compliant tourism in Islamic nations has high significance for the marketers as well as the nations which tend to apply Islamic tourism.

2 Literature review

2.1 Islamic tourism and strategic Islamic tourism

As indicated in The Holy Quran, Muslims ought to travel in order to completely appreciate the beauty of Allah’s creations and to visit their companions and relatives. They also have an obligation to give accommodation to visitors who, under Islamic law, enjoy their own religious rights (Okhovat, 2010). Khan et al. (2013) conducted an empirical study on Malaysian Islamic tourist destination and explained that there remains little gap in identifying the factors that influence Muslim tourists’ choice for Islamic tourism, where the conceptual development of Islamic tourism by concentrating on testing the relationship between destination image, religious motivation and service quality as independent variables and tourists’ satisfaction as the dependent variable was initial. Laderlah et al. (2011) attempted to define ‘Islamic’ as an Islamic way of life, and not simply as a religion. Islam is viewed from three dimensions: Islam, Iman, and Ihsan’. They also defined Islamic tourism as a flexible way of tourism in light of the fact that it is all-size-fit-all. Islam permits numerous reasons of travelling, such as shopping, medical, sports, visit and religions. Strategic Islamic tourism can be defined as a focus or niche segment of tourism market, which is greatly different and unique from other segments and from conventional tourism. However, Halal is a list of deeds in the Quran that are permissible to perform for human being.

2.2 Travel agency and tour operation

Travel and tourism are different – travel can be defined as moving from one place to another, while tour can be referred to as sightseeing or visiting. In tourism there are travel agents and tour operators delivering travel and tour services that they are good at. Travel agent is an intermediary, such as in an airline service or hotel service, integrated with tour

138 A. Haque et al.

operators. This implies that all travel agents as organisations are integrated with tour operators as independent organisations. In essence, tour operators plan the total package of tourism, while travel agents provide a certain part of the entire tour process. UNWTO (2004) defined tour package as more than one service such as transportation, accommodation, food, sightseeing, entertainment, and other goods and services. A tour package is an offer to public by a tour operator (Semer-Purzycki, 2000). In the same line, Islamic tour package is designed for and distributed to Muslims with special demand and requirements or with Halal products and services (Zamani-Farahani and Henderson, 2010).

2.3 Strategy and intention towards Islamic tourism

Strategy can be approached in four ways: classic, evolutionary, process, and systematic (Whittington, 2001). Wheelen and Hunger (2006) developed corporate, business, and functional strategies. Marketing-mix strategy model aids marketers to develop marketing strategies based on an appropriate mix of product, price, place, and promotion (McCarthy, 1960). Generic business strategies are cost-leadership, differentiation, and focus or niche marketing (Porter, 1980). Islamic tourism tour operators have strategic marketing options to develop strategy in light of corporate and business strategy. Strategy intention is linked with some antecedents that should have strong correlation with it. Here intention literature demonstrates how to differ antecedents of intention in different behaviours of different stakeholders of a productive system. Intention is one of the strong predictors of strategic behaviour. The theory of reasoned action (TRA) predicts intention as a function of attitude towards behaviour and subjective norms (Fishbein and Ajzen, 1975), which was developed mainly based on the link between human beliefs, attitude, intention and behaviour, and on the link between social norms, subjective norms, intention and behaviour. Perceived risks (Davila, 2005; Limthongchai and Speece, 2003; Tan and Teo, 2000) are also correlated with intention. Again, perceived behavioural control has a direct and indirect correlation with intention and behaviour (Ajzen, 1985), which later was included with TRA and emerged with a new label ‘theory of planned behaviour (TPB)’. Intention has also been elaborately presented as the function of attitude towards behaviour and subjective norms while attitude towards behaviour is analysed as a function of perceived ease of use and perceived usefulness (Davis, 1986).

2.4 Innovativeness in products and services

Innovation means creation of new ideas, process, products, or services (Hjalager, 2010). Product or service innovation is resource-based strategy for long-term benefits of companies in the service and manufacturing industries (Matear et al., 2004; Miles, 2005; Tidd and Hull, 2003). Evaluating service innovation is more complex than product innovation (Kemp et al., 2003). Studies on product and service innovation were a dominant field of study over the past two decades (Gupta and Wilemon, 1990; Schoonhoven et al., 1990; Smith and Reinertsen, 1997). Different types of businesses involve different types of innovative positions and situations. Individuals are variously classified according to their receptivity and adoption of an innovation. Rogers (1995) sorted five different types of adopters according to the time taken for adoption; these are innovators, early adopters, early majority, late majority and laggards. Innovators are adopters who are innovative in nature and who are prepared to bear the risks associated


with the early adoption of an innovation. Managerial issues regarding performance, process, and benefits of product innovation are driving the strategies in tourism business. Prior studies have shown that the innovativeness of the CEO or owner of an SME significantly affects the adoption (Thong and Yap, 1995; Thong, 1999).

H1 The more the owner has innovativeness the more he has positive attitude towards strategic marketing intention.

2.5 Communication

Strategy intention towards communication channel and distribution networks can boost the value of products and services. Promotion influences purchasing pattern of consumers and choice of products (D’Astous and Landreville, 2003). Integrated marketing communication (IMC) is also an appropriate communication or promotion strategy that stimulates tourism marketers’ strategic thinking. Essential features of integrated communication are strategic business process, extensive brand communication, evaluation and measurement, external and internal stakeholder groups, and long-term brand value focus (Schultz, 1997). Scholars say that whenever building a brand it is not only conceivable, but highly important to use appropriate message through IMC (Dewhirst and Davis, 2005; Luxton et al., 2015; Madhavaram et al., 2005; MDinnie et al., 2010; Ratnatunga and Ewing, 2005). Advertising, sales promotion, publicity, salesmanship, social media, internet, etc., all fall under IMC. Product communication should be ethical (Arham, 2010). Promotion and communication must be informative and educational for the sake of companies’ reputation (Asutay et al., 2007).

H2 The more the owner has communicative capacity the more he has positive feeling towards strategic marketing intention.

2.6 Cooperation and collaboration

Cooperation in tourism industry is currently under much exploration in most articles in this field (Pesämaa et al., 2009). In tourism industry, cooperation with other organisations to target a particular tourist is an effective strategy for tourism marketers (Bramwell and Lane, 2003; Cooper, 1999; Jackson and Murphy, 2006; Jamal and Getz, 1995; Selin, 1999). Leiper et al. (2011) mentioned two types of cooperation: intra-industry and inter-industry. Leiper (2004) also identified few cooperative activities between travel agents and principals or tour operators. Aziz, Asutay, and Burki indicated two important elements in Islam: cooperation and collaboration, and also specified that Islam does not object to the best use of resources unless there is a harm to the society.

H3 The more the owner has cooperation and collaboration capacity the more he has positive attitude towards strategic marketing intention.

2.7 Beliefs in competitiveness

An essential factor that impacts competitiveness is providing high-quality specialist service (Hitchens et al., 1996). Small firms are facing a significant and growing challenge

140 A. Haque et al.

of globalisation, and hence need governmental and institutional back-up. A three-pronged approach can help build and strengthen competitiveness: closer business-government partnership; effective networking of national agencies, and optimal utilisation of new technologies (Badrinath, 2004). The competitive performance of business service companies in Scotland was proportionately lower than that of the South East of England (Hitchens et al., 1996). Firstly, destination environmental competitiveness can be intensified by appropriate managerial efforts related to environmental impact (EI), and environmental quality (EQ) management. Secondly, destination competitiveness can be heightened through certain environmental marketing activities (Mihalič, 2000).

H4 Beliefs in competition significantly affects control over competition towards strategic marketing intention.

2.8 Cognitive evaluation

A person’s beliefs, evaluations, intentions, and actual behaviours are the components of TRA. An overall affective evaluation from one’s beliefs (cognitive) towards performing a behaviour profoundly influences his intention of performing that behaviour (Fishbein and Ajzen, 1975). The evaluation means feeling positive or negative towards a subject, however cognitive evaluation of the consequences of the behaviour is made based on one’s judgement whether the behaviour is good or bad (Ajzen and Fishbein, 1980; Sheppard et al., 1988). The consequences can be immediate, direct, and tangible, and even psychological. The consequences can also be internal, personal, and abstract in nature. These cognitive and affective evaluations form one’s attitude towards performing a behaviour and have been widely researched in the consumer and marketing literature (Fishbein and Ajzen, 1975; Schifter and Ajzen, 1985). Studies have also revealed the substantial influence of attitude or cognitive evaluation on intention (Davis, 1989; Gopi and Ramayah, 2007; Rhodes and Courneya, 2003; Shih and Fang, 2004; Taylor and Todd, 1995; Zahra and George, 2002).

H5 Cognitive evaluation has significant positive effect on strategy intention.

H6 Cognitive evaluation cause mediating effect on the relationship between

a innovativeness and strategic marketing intention

b communication and strategic marketing intention

c cooperation and collaboration, and strategic marketing intention.

2.9 Control over competition

As a perception, controlling capacity has been verified and established as a mediator between social norms and behavioural intention (Ajzen, 1985). Entrepreneurs are usually enticed to respond in competition if they have sufficient resources and capabilities. To respond to competition in conventional tourism market, Islamic tourism marketers can hold and apply Shari’ah concepts, which are workable under some theories to formulate marketing strategy, if they want to keep or revive market growth of international tourism of a country. Control beliefs cause perceived control-intention-behaviour effect under the


TPB (Ajzen and Driver, 1991). Decomposition and cross-over effects on consumer adoption process in TPB (Taylor and Todd, 1995). In this regard, intention was observed as a product of perceived control and control beliefs in health centre (Schifter and Ajzen, 1985). Forest owners’ choice of reforestation intention exists under an application of the TPB (Karppinen, 2005). An application of the TPB to green hotel choice is affected by the environmental friendly activities (Han et al., 2010). The influence of perceived behavioural control upon exercising behaviour is existential under the application of Ajzen’s TPB (Godin et al., 1993). Perceived control has an impact on internet purchasing intention as well (George, 2004). Entrepreneurial intentions are also explained by the effect of perceived control by using TPB (Gelderen et al., 2008).

H7 Control over competition has significant positive effect on strategy intention.

H8 Control over competition causes mediating effect on the relationship between control beliefs in competitiveness and strategic marketing intention.

Figure 1 Conceptual model

Cognitive evaluation

Strategic marketing intention towards Islamic

tourism

Cooperation and collaboration about strategic

business

Owner innovativeness about strategic business

Communicativeness about strategic business

Beliefs in competitiveness Control over competition

3 Research methods

Research paradigm is positivism. Simple random sampling technique was used to collect data as supported by a sampling frame of a list of travel and tour agents in Malaysia. From a list of 420 travel and tour agents (http://www.tourism.gov.my) as a population, 250 of them were called over phone for an appointment to visit their firms for data collection. 132 of them were visited and 107 questionnaires were considered as successful completion of the study questionnaire. Firms which allowed the surveyor to visit were considered to be surveyed there.

In addition, to ensure an unbiased environment, self-administered questionnaire based on five-point Likert scale was used to obtain data. Attitude scale is developed on five points, but point 1 and point 2 are indicated as negatives, 3 for neutral (0) and 4 and 5 for positive attitudes because five points scale has the capacity to be negative, or neutral, or positive regression coefficient value to express attitude. Seven constructs and 35 items were carefully constructed to seek support of TPB in the perspective of Malaysian strategic Islamic tourism marketing, as shown in Table 1. Relevant items were

142 A. Haque et al.

constructed based on Islamic marketing concepts and TPB model as found in some scholarly works in some areas of business field.

Partial least square (PLS) method for structural equation modelling (SEM) was preferred because of small sample size. In PLS-based SEM to assess the reliability and validity, and to measure the effects, two types of models emerged. Factor analysis, reliability, convergent validity, and divergent validity are considered as outer model, and structural model is known as inner model by which hypothesised relationships were measured to see whether antecedents for Shariah-compliant strategic marketing have significant effects on intention towards strategic Islamic tourism marketing.

4 Results

4.1 PLS-based model analysis

T-values calculated were observed in two important scholarly articles by following bootstrapping procedure (Chatelin et al., 2002; Chin, 1998). They found that the results from 100 cases and 100 samples in SmartPLS are the same as those from 1,208 cases and 500 samples. In this tool small or large sample provide stable results. PLS-based SEM can offer sufficient value for prediction-based investigation in empirical research of the communication and behavioural fields to test or verify behaviour and communication-related theories (Lowry and Gaskin, 2014). SEM model in PLS from small sample yields valid prediction results to test hypotheses (Chin and Newsted, 1999).

4.2 Assessment of outer model

Higher factor loadings were the conditions to fulfil whether an item of a construct could be proceeded with or not. Threshold value of factor loading is usually different based on sample size, type of scale, or status of scale (new or old). This study adopted an established scale thus all items had far higher value than 0.30. The minimum value was 0.52, and almost all item-loadings were 0.80 and hence, all items were retained. Cronbach’s alpha threshold value of 0.70 was also surpassed satisfactorily. As all values appeared larger than cut-off value, analysis was directed to convergent validity or composite reliability (CR) and average variance extraction (AVE) where both CR values and AVE values did not violate the lower limit of 0.50 and 0.60, respectively; convergent validity achieved with reliability as values exhibited in Table 1.

To analyse the discriminant or divergent validity, the Fornell and Larcker (1981) criterion was utilised, where the square root of each construct’s AVE is compared to its bi-variate correlations among all constructs (Hulland, 1999). The result disclosed that the square root of AVE was greater than the variance shared among all latent variables. Thus we can postulate discriminant validity among constructs. In another observation, bi-variate correlations among constructs did not exceed the threshold level 0.85 that are shown in Table 2.


Table 1 Reliability and convergent validity

Con

stru

ct

Indi

cato

r D

escr

iptio

n FL

AV

E C

R C

A

.7

1 .9

3 .9

0 IV

1 Y

ou fi

nd m

arke

ting

stra

tegy

for p

ract

icin

g Is

lam

ic to

uris

m m

arke

ting

.79

IV

2 Y

ou c

an m

ake

stra

tegi

c m

arke

ting

plan

ning

of I

slam

ic to

uris

m

.86

IV

3 Y

ou c

an d

iffer

entia

te y

our o

ffer

from

com

petit

ors

.88

IV

4 Y

ou c

an a

pply

nic

he st

rate

gy in

Isla

mic

tour

ism

mar

ketin

g .8

7

Inno

vativ

enes

s

IV5

You

can

kee

p co

st o

f Isl

amic

tour

ism

low

er th

an c

onve

ntio

nal t

ouris

m

.83

.68

.91

.88

CV

1 Y

ou c

an c

omm

unic

ate

targ

et m

arke

t of I

slam

ic to

uris

ts

.81

C

V2

You

can

find

com

mun

icat

ion

med

ia fo

r Isl

amic

tour

ism

pro

mot

ion

.82

C

V3

You

can

dev

elop

app

ropr

iate

mes

sage

for I

slam

ic to

uris

m p

acka

ge

.83

C

V4

You

r cus

tom

er c

an e

asily

und

erst

and

your

Isla

mic

tour

ism

mes

sage

.8

4

Com

mun

icat

iven

ess

CV

5 Y

ou fa

ce n

o pr

omot

iona

l bud

get f

or Is

lam

ic to

uris

m p

rom

otio

n .8

1

.8

1 .9

6 .9

4 C

C1

You

can

col

labo

rate

with

you

r Isla

mic

tour

ism

age

nts

.88

C

C2

You

can

col

labo

rate

you

r adv

ertis

ing

agen

ts

.90

C

C3

You

can

col

labo

rate

with

uni

vers

ity a

cade

mic

exp

erts

.8

9

CC

4 Y

ou g

et c

oope

ratio

n fro

m lo

cal a

dmin

istra

tion

.92

Col

labo

ratio

n an

d co

oper

atio

n

CC

5 Y

ou g

et c

oope

ratio

n fro

m Is

lam

ic to

uris

ts

.91

144 A. Haque et al.

Table 1 Reliability and convergent validity (continued)

Con

stru

ct

Indi

cato

r D

escr

iptio

n FL

AV

E C

R C

A

.7

4 .9

4 .9

1 B

C1

You

thin

k yo

u ca

n ea

sily

acc

ept c

ompe

titio

n .8

5

BC

2 Y

ou h

ave

abili

ty to

face

com

petit

ion

in to

uris

m in

dust

ry

.85

B

C3

Mee

ting

com

petit

ion

give

s you

muc

h be

nefit

s for

you

r firm

.8

8

BC

4 C

ompe

titiv

e en

viro

nmen

t is e

thic

al

.86

Bel

iefs

in c

ompe

titio

n

BC

5 To

be

defe

ated

in c

ompe

titio

n sh

ows t

he w

ay o

f fut

ure

win

ner

.87

.74

.93

.91

CO

C1

You

can

redu

ce p

rice

over

com

petit

ion

.86

C

OC

2 Y

ou c

an g

ive

Isla

mic

tour

ists

mor

e th

an y

ou p

rom

ise

.86

C

OC

3 Y

ou c

an o

ffer I

slam

ic to

uris

ts m

ore

thin

gs th

an c

ompe

titor

s .8

6

CO

C4

You

can

pro

vide

add

ition

al in

form

atio

n to

Isla

mic

tour

ists

ove

r com

petit

ion

.85

Con

trol o

ver c

ompe

titio

n

CO

C5

You

can

mak

e Is

lam

ic to

uris

ts u

nder

stoo

d cl

early

abo

ut H

alal

.8

7

.6

6 .9

0 .8

7 C

E1

You

hav

e go

od fe

elin

g ab

out I

slam

ic to

uris

m se

rvic

e in

nova

tion

.80

C

E2

You

hav

e go

od fe

elin

g ab

out I

slam

ic to

uris

m st

rate

gy d

evel

opm

ent

.82

C

E3

You

hav

e go

od fe

elin

g ab

out I

slam

ic to

uris

m st

rate

gy im

plem

enta

tion

.83

C

E4

You

like

to c

omm

unic

ate

with

Isla

mic

tour

ists

thro

ugh

diffe

rent

cha

nnel

s .8

4

Cog

nitiv

e ev

alua

tion

CE5

Y

ou li

ke to

col

labo

rate

and

coo

pera

te w

ith d

iffer

ent s

take

hold

ers

.76

.63

.89

.84

SMI1

Y

ou in

tend

to u

se m

y ta

lent

to fo

rmul

ate

Isla

mic

mar

ketin

g st

rate

gy o

n se

rvic

e w

hen

nece

ssar

y .9

0

SMI2

Y

ou in

tend

to fo

rmul

ate

Isla

mic

mar

ketin

g st

rate

gy o

n se

rvic

e an

d pr

ice

whe

n ne

cess

ary

.85

SM

I3

You

inte

nd to

form

ulat

e Is

lam

ic m

arke

ting

stra

tegy

on

colla

bora

tion

whe

n ne

cess

ary

.81

Stra

tegi

c m

arke

ting

inte

ntio

n

SMI4

Y

ou in

tend

to fo

rmul

ate

Isla

mic

mar

ketin

g st

rate

gy o

n co

mm

unic

atio

n w

hen

nece

ssar

y .8

2


Table 2 Divergent validity

BC CE CC CV IV SMI COC BC .86 CE .53*** .81 CC .43** .54*** .90 CV .37* .51*** .53*** .83 IV .43** .60*** .44*** .46*** .84 SMI .43** .61*** .51*** .47*** .49*** .79 COC .53*** .63*** .54*** .58*** .53*** .62*** .86

Notes: Significance level: *= 0.05, **=0.01, ***= 0.001. Values below the diagonal are correlation coefficients among constructs and diagonal elements are square root of AVE according to Fornell-Larcker Criterion (Fornell and Larcker, 1981).

Figure 2 Structural model 3

146 A. Haque et al.

Table 3 Regression coefficients and hypotheses testing results

Path

coe

ffici

ents

Mod

el 1

M

odel

2

Mod

el 3

Pa

ths

Indi

rect

D

irec

t D

irec

t + in

dire

ct e

ffect

s

Path

effe

cts

T va

lue

P va

lue

Resu

lts

H1:

IV >

CE

0.37

***

-

- 7.

157

0.00

0 Su

ppor

ted

H2:

CV

> C

E 0.

29**

*

- -

3.39

8 0.

000

Supp

orte

d H

3: C

C >

CE

0.15

***

-

- 4.

545

0.00

9 Su

ppor

ted

H4:

BC

> C

OC

0.

28**

*

- -

9.88

3 0.

000

Supp

orte

d H

7: C

OC

> S

MI

0.24

***

-

- 5.

775

0.01

0 Su

ppor

ted

H5:

CE

> SM

I 0.

48**

*

- -

5.62

5 0.

000

Supp

orte

d H

6a:IV

> S

MI +

/ IV

> C

E >

SMI

- .1

6**

–0

.01

+ 0.

15

.14

- 0.

010

> 0.

873

Supp

orte

d (f

ull

med

iatio

n)

H6b

:CV

> S

MI +

/ CV

> C

E >

SMI

- .2

7***

0.

15+

0.12

.2

7 -

0.00

0 >

0.02

4 Su

ppor

ted

(par

tial

med

iatio

n)

H6c

: CC

> S

MI +

/ C

C >

CE

> SM

I -

.13*

0.

01 +

0.0

6 .0

7 -

0.03

3 >

0.88

0 Su

ppor

ted

(ful

l m

edia

tion)

H8:

BC

> S

MI +

/ BC

> C

OC

> S

MI

Tota

l eff

ect

- .1

5**

0.02

+0.

06

.08

.056

-

0.01

0 >

0.80

1 Su

ppor

ted

(ful

l m

edia

tion)

Not

es: R

2 (CE)

= .4

8, R

2 (CO

C) =

.28,

and

R2 (S

MI)

= .4

6 Si

gnifi

canc

e le

vel:

* =

0.05

, **

= 0.

01, *

** =

0.0

01. M

edia

tion

effe

ct:

1 D

irect

cau

sal p

ath

mod

el p

rovi

des s

igni

fican

t or i

nsig

nific

ant r

elat

ions

hip

2 D

irect

and

Indi

rect

cau

sal p

ath

mod

el p

rovi

des i

nsig

nific

ant r

elat

ions

hip

betw

een

dire

ct p

aths

and

sign

ifica

nt c

ausa

l pat

h re

latio

nshi

p.


4.3 Assessment of inner model

Strategic marketing intention towards Shari’ah-compliant or Islamic tourism marketing essentially develop from certain factors under internal and external marketing or business environment among which owner’s innovativeness regarding products and services, communication for spreading message of marketing offer, collaboration and cooperation from tourism environment around and across Malaysia, and beliefs in competition were assumed to be the causes for the intention through two mediating factors. From Figure 2 and Table 3, it was found that innovativeness, communication, and cooperation and collaboration have significant effects on cognitive evaluation with regression coefficients of 0 .372, 0.289 and 0.147, t-vales of 7.157, 3.398 and 4.545, and significance values of 0.000, 0.000 and 0.009 respectively; cognitive evaluation has also significant mediation effect while it belongs to significant regression coefficient of 0.409 as a product for strategic intention.

Beliefs in control yielding 0.286, and control over competition with 0.218 affected the strategic intention towards Islamic tourism marketing. Full mediation existed for innovativeness, cooperation and collaboration, and beliefs in competition, whereas partial mediation effect was found in communication. R2 for cognitive evaluation, control over competition, and strategic marketing intention were 0.356, 0.080, and 0.334 respectively, i.e., 36%, 8%, and 34% data are very close to the fitted regression line in which it is assessed that regression model is moderately fitted to predict those three variables.

To make the mediation effect appear, three structural models were developed: direct model, indirect model and direct plus indirect model – in case of significance in direct model and insignificance of direct paths in direct plus indirect model, full mediation was considered upon that criterion, and partial mediation vise-versa – and indirect path model coefficients were set as baseline for testing hypotheses of Islamic tourism with the TPB theory. Indirect effects were larger for IV > CE > SMI and CV > CE > SMI with values of 0.15 and 0.12 respectively, and smaller for CC > CE > CMI and BC > COC > SMI with value of 0.06 each among which coefficients of each indirect paths were multiplied to find indirect effect; total effects were evaluated as smaller according to the ratio of indirect effects. All regression coefficients supported all hypotheses with significance but with nearly moderate and poor values.

5 Discussion

In spite of the fact that TPB stands only on three dimensions: normative beliefs, social norms and control normative beliefs and control, were adaptable in both the Islamic tourism concepts and in the context of Malaysia. Inadaptability of social norms with strategic marketing intention of owners and different level managers has been dropped from this conceptual model. Basically, it is presumed that strategic intention is not influenced by social norms where competitors do not play social roles, rather they want to play economic roles by making profits, and finally strategy is taken to capture, or grow market, not influenced by social norms of competitive society. Innovativeness, certainly a normative belief, creates a positive attitude towards strategic marketing intention because it is a valuable intellectual resource that can help to provide a great marketing offer for existing and future customers by a formulation of an effective marketing strategy. Innovativeness can be compliant to Shari’ah, and more value for Islamic tourists. Tour

148 A. Haque et al.

and travel agents have many options to make an offering from considering diverse facilities of hotels, airs, buses, spots, restaurants and foods, and numerous others on the basis of Islamic concepts, or Shari’ah rules, or Haram-Halal issues. Communication is an environment that supports firms, in a certain degree, promoting their products or services: internal and external environment; internal environment is budget size and promotional strategy, and external environment is channel availability and cost. It also influences owners of those firms to be strategic marketers in competitive tourism if a positive attitude is formed within them towards communication of new strategic offering, as conveniently as possible, for Islamic tourists. Cooperation and collaboration has been found as an influencer for strategic marketing intention if attitude towards cooperation and collaboration is positive in owners’ feelings: sufficient cooperation and collaboration mark a positive attitude towards them. The said three antecedents are jointly normative beliefs under which many behavioural researches, especially in business and social science, have been conducted where almost all results are consistent with original conceptual work of TPB that is a foundation of developing such an important behavioural theory. Results of this dimension were very close to and consistent with those of the scholarly studies under the theory (Armitage et al., 1999; Bagozzi et al., 2014; Bang and Ellinger, 2000; Bright et al., 1993; Karppinen, 2005; Kashima, 1993; Ramayah et al., 2009; Shepherd and Towler, 1992).

Control belief, a reason for behaviour intention, is a strength or a capability of a person by which he or she feels strained to behave in a particular way: when one sees oneself that he needs control over something – control capacity usually volumes the intention; more capacity more intention; but Ajzen (1985) shows that perceived behavioural control or control capacity has also direct relationship with behaviour, though behaviour has been dropped in this study owing to simplicity of the conceptual model – then he tries to find out what capacity does he have to control that, and feels tense to do a particular work, for example, If a Muslim tourist knows that no one can successfully force a particular conventional tourist firm to maintain Haram-Halal issues, he may probably see an alternative tourist firm: conventional or Islamic or Shari’ah-compliant. Furthermore, it is not only a dimension for behaviour intention, and has a poor significant relationship with behaviour intention, that has been revealed in the present study, commensurable with some important scholarly studies on the TPB (Ajzen and Driver, 1991; Armitage, 2005; Bamberg et al., 2003; Cheung et al., 1999; Conner and Abraham, 2001; Conner et al., 2002; Conner and Sparks, 1996; Davis and Ajzen, 2002; Doll and Ajzen, 1992; George, 2004; Han et al., 2010; Montano and Kasprzyk, 2008; Orbeil et al., 1997; Oreg and Katz-Gerro, 2006; Pavlou and Chai, 2002; Schifter and Ajzen, 1985; Taylor and Todd, 1995).

6 Managerial implications

Tour and travel agents are only service provider, because they develop tour package by integrating different parts of tourism services, such as air, hotels, transportation and so on. Owners and managers mostly spend time with their package on basis of heuristic philosophy, where western philosophy’s main property is information and knowledge; so how they need to be strategic is that they should have sufficient information over innovativeness, communication, cooperation and collaboration; it is equally important even for a small size firm. They can unearth the needs and wants of Islamic tourists over


which they would think how it is possible to develop a Shari’ah-compliant tourism package that can satisfy customers.

Internet can be robust for promoting the package by enhancing trust through the writing and some evidence on that, because trust is often an issue in internet communication; information about Shari’ah-compliance and travel brochure could be provided elaborately and easily. Islamic theme works in Islamic tourists’ minds in Shari’ah-compliant tourism; so theme should be developed and published with materials through internet and other promotional channels of communications. Target country travel agents can play an unprecedented role to provide more authentic information and knowledge about competition and requirements of Islamic tourists. Tour operators could participate in different tourism conferences and deliver speech to raise the voice of cooperation and collaboration from governments, mass media, hotels, transport organisation and travel agents. To be strategic in Islamic tourism, or in entire tourism is very challenging – especially to be strategic in Islamic tourism where all competitors will use the Islamic concepts – and normally over-complexity and tough challenges may thwart the effects of intention antecedents; so government supports and facilities should be proceeded continuously, such as infrastructure development, Islamic and conventional spot development, making clear Shariah-compliant policies for Islamic tourism, keep continuing encouraging speech. Moreover, managers could collect information about government developments and budget over tourism and communicate with some Islamic tourism experts to research the sect with more advanced issues. Therefore, managers, or owners could not be intense towards marketing strategy if they do not take research initiative for generating specific information which effective marketing strategy depends on. However, finally, application of theory will not be wide and effective if the Islamic tourism environment is hazy; so, the effects of interrupting variables must be minimised any way, such as unethical policy and marketing strategy practices in competitive environment, absent-mindedness of cooperators and collaborators, thus initiation should be started first by the owners and managers of the tour and travel operators and agents to minimise these effects to a great extent.

7 Limitations and future research

Small sample size is the main problem in which the whole efforts might be not be completely fruitful, though PLS was applied to make up the limitation as much as possible. Items and constructs have been limited in number: they should have been larger for more understanding, but lack of logistic supports shrunk extensive investigation pace. As a population, travel and tour agents are spread across Malaysia; accordingly data was not collected as systematic or stratified sampling techniques. There is not very much understanding about the context through the conceptual framework because the owners’ behaviours depend on many variables. Post-positivism research can be conducted to uncover the detail and deep nature of process of how a travel and tour owner can be intense into behaviour in formulating Shari’ah-compliant strategy of tourism marketing by applying grounded theory. In positivistic paradigm there might be some variables that cause innovativeness, communication skills, cooperative and collaborative capabilities and control capabilities.

150 A. Haque et al.

8 Conclusions

In an Islamic country, it is easier for travel and tour agents and operators to be enticed to strategising Shariah compliant or Islamic tourism marketing. What Islamic tourism marketers think and do is that they will definitely be strategic either from conventional, or Islamic perspectives. TPB supports the study concept of strategic Islamic tourism marketing capability and intention. In other Islamic country perspective, this concept can be verified under TPB. Generalisation of the result is much because intention towards religion-based business practice is mostly identical, particularly towards a particular Islamic behaviour of the travel and tour agents, and the tour operators in tourism industry. Government’s tourism organisations can take different training initiation for them so that they can easily understand strategic marketing process from Islamic perspective because perspective knowledge is more complex in nature, where training is very much suitable for such learning.

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Malaysia Ahasanul Haque* and Faruk Ahmed · University, Subang Jaya, Malaysia. ... In a study,...

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