Factors Influencing Career Choice in Islamic Multilevel Marketing: The Mediating Role of Company Credibility

Abstract

Research in Islamic Multilevel Marketing (MLM) is relatively underrepresented, partly because such business model combined with Islamic appeal is a relatively new phenomenon and the novelty of MLM business is disputable in Islamic point of view. This research aimed to explore factors influencing the preference for Islamic MLM as a career choice among Moslems in Indonesia. This research gathered 227 Moslem respondents who are active members of Islamic MLM. We employed ADANCO-PLS to test the hypotheses presented in this research. Based on the results, we found that 1) reward scheme has a positive and significant effect towards company credibility 2) company credibility has positive and significant effect towards career choice in Islamic MLM and 3) the effect of reward scheme towards career choice in Islamic MLM is significant and mediated by company credibility. This research is significant, especially for Islamic MLM recruitment.