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Article
Publication date: 18 November 2024

Nurul Huda, Budi Trianto, Masrizal and Nihayatul Maskuroh

The Indonesian Waqf Board and United Nation Development Program are developing green waqf in Indonesia. Development of green waqf in Indonesia as a response to save the earth from…

Abstract

Purpose

The Indonesian Waqf Board and United Nation Development Program are developing green waqf in Indonesia. Development of green waqf in Indonesia as a response to save the earth from environmental damage and other social impacts. This paper aims to measure public perceptions about willingness to participate in making donations to the green waqf program in Indonesia.

Design/methodology/approach

Modifying the Theory of Reasoned Action framework, questionnaire data were collected from 311 Muslims in Indonesia. Data were analyzed using the partial least squares structural equation modeling method.

Findings

The findings show that attitude, subjective norm, product knowledge and trust influence the Muslims in Indonesia to donate to green waqf. In contrast, Islamic religiosity harms the intention to donate in green waqf but is insignificant.

Research limitations/implications

This research was conducted using a quantitative approach with a limited sample of several communities, so the results cannot be generalized. Further investigation needs to be carried out by involving a more diverse sample to get better results. However, the results of this study can be used as an illustration of how Muslims behave in donating green waqf.

Practical implications

These results imply that to develop green waqf in Indonesia, especially in attracting waqf candidates willing to make donations, waqf institutions must carry out engineering to shape the attitude of prospective donors through various activities such as socialization and education of the green waqf program. Waqf institutions must also build public trust by involving public figures to campaign for the green waqf program. This will likely increase prospective donors’ active participation in donating their money to develop green waqf in Indonesia.

Originality/value

Waqf is a severe concern for the Indonesian Government, including waqf for the environment. To the bets of the authors’ knowledge, this paper is the first attempt to look at the behavior of the green waqf model in Indonesia. Thus, the acceleration of waqf development can be realized and is expected to impact the community significantly.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 28 August 2024

Masrizal, Raditya Sukmana, Bayu Arie Fianto and M. Shabri Abd. Majid

This paper aims to examine the profitability of Islamic banks benefits from economic freedom and its subcomponents.

Abstract

Purpose

This paper aims to examine the profitability of Islamic banks benefits from economic freedom and its subcomponents.

Design/methodology/approach

This study uses a sample of 41 Islamic banks from the Organization of Islamic Cooperation (OIC) Countries selected from 2010–2020. It conducts an empirical approach based on the System Generalized Method of Moments (SGMM).

Findings

Overall, economic freedom has a substantial impact on the profitability of Islamic banks. We then investigate the relationship between the subcomponents of economic freedom and the profitability of Islamic banks. The study’s breakdown components suggest that financial and investment freedoms are favorable indicators, while business and monetary freedoms have a negative effect.

Practical implications

This research can serve as a guideline for Islamic bank management in terms of maintaining performance. The results of this study provide policy implications for the government to offer friendly regulations for economic actors to engage in financial transactions by looking at the economic freedom sub-component.

Originality/value

To the best of the authors' knowledge, the study of the role of economic freedom in Islamic banking performance is limited, particularly in the context of OIC Countries.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 24 September 2024

Masrizal, Raditya Sukmana and Budi Trianto

Recently, financial inclusion promoters have observed that financial literacy is a vital tool for financial inclusion growth, especially among the poor who are considered…

Abstract

Purpose

Recently, financial inclusion promoters have observed that financial literacy is a vital tool for financial inclusion growth, especially among the poor who are considered financially illiterate. The purpose of this paper is to look at the role of Islamic financial literacy (IFL) and inclusion in improving the performance of micro, small and medium enterprises (MSMEs) in Indonesia.

Design/methodology/approach

This study uses questionnaire data collected as many as 197 MSMEs. This study was analyzed using structural equation modeling approach to test the hypothesis.

Findings

The results show that IFL is an important variable to increase Islamic financial inclusion. The results also show that both have a significant influence in developing the MSME sector business.

Research limitations/implications

This research is not without limitations. This study only adopted a sample in one Province in Indonesia with focus on creative economy sector and some others sectors located in the province of Riau, therefore ignoring suburban and urban areas in Indonesia. Therefore, future studies using a cross-sectional research design are feasible. In addition, this study only uses quantitative data, so that qualitative research with key informant interviews can be considered for further research.

Practical implications

The findings of this study enlighten policymakers, managers of financial institutions and advocates of financial literacy and inclusion about the importance of improving the performance of MSMEs. As a policy recommendation, this study suggests that Islamic policy makers and financial institutions should play a proactive role in increasing service outreach and providing the regulatory environment needed for MSMEs given the important role MSMEs play in the Indonesian economy.

Originality/value

This study combines functional components (behaviors and attitudes) and nonfunctional measures (knowledge and skills) of financial literacy and financial inclusion in explaining the performance of MSMEs. Thus, this research is an initial effort to explain financial literacy and inclusion on the performance of MSMEs.

Details

Journal of Islamic Marketing, vol. 16 no. 1
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 11 December 2024

La Ode Alimusa, Raditya Sukmana, Ririn Tri Ratnasari, Syafrina Machfud and Sahraman D. Hadji Latif

This study aims to determine the intention of online cash waqf donations among Indonesian Muslim youth for micro enterprises (MEs) financing. Therefore, the contribution of Muslim…

Abstract

Purpose

This study aims to determine the intention of online cash waqf donations among Indonesian Muslim youth for micro enterprises (MEs) financing. Therefore, the contribution of Muslim youth in supporting MEs can be accelerated to solve some interrelated social and economic issues.

Design/methodology/approach

This study integrates the theory of planned behaviour (TPB) and the technology acceptance model (TAM) partially relevant to research characteristics. A questionnaire survey is used as a data collection approach to acquire responses from 180 Indonesian Muslim youth. The data obtained are analysed using smart partial least squares-structural equation modelling to answer the research hypothesis and obtain conclusions.

Findings

Religiosity, awareness and perceived behavioural control are significant factors determining the intention to donate online cash waqf for MEs financing. Religiosity plays an important role in building attitudes and perceived awareness of Muslim youth’s behaviour and intention to donate online cash waqf for MEs financing.

Research limitations/implications

The analysed factors could be used as guidelines for better planning and implementing digital-based cash waqf marketing strategies for Nazir (waqf institutions). Regulators (Government and National Waqf Board) must provide better regulations for digital waqf platforms and policies for cash waqf financing for MEs. Researchers could investigate the other theory and cash waqf financing model in low-risk MEs’ empowerment. This study will also broaden cash waqf literacy for MEs financing.

Originality/value

To the best of the authors’ knowledge, no previous study addressed the intention of Muslim youth in Indonesia towards online cash waqf to empower MEs. This study develops models by combining TPB and TAM with additional constructs to determine the intention to donate online cash waqf for MEs financing that have been experiencing difficulties accessing banking financing.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 6 August 2024

Tika Widiastuti, Imron Mawardi, Al-Shami Samer Ali, Nikmatul Atiya, Lina Nugraha Rani, Anidah Binti Robani and Muhammad Ubaidillah Al Mustofa

This study aims to examine the factors influencing the intention of Muslim Millennial Generation in Indonesia to donate cash waqf digitally.

Abstract

Purpose

This study aims to examine the factors influencing the intention of Muslim Millennial Generation in Indonesia to donate cash waqf digitally.

Design/methodology/approach

A quantitative approach was employed, surveying 284 Muslim Millennial Generation in Indonesia. The study integrated the Decomposed Theory of Planned Behavior (DTPB) and Technology Acceptance Model (TAM) to investigate the key factors driving the intention to contribute to cash waqf digitally. The researcher analyzed data using Partial Least Squares Structural Equation Modeling (PLS-SEM).

Findings

The findings of this study indicate that all hypotheses related to the variables are supported, including both direct and indirect correlations, except for perceived religiosity. This study confirms that the decision of millennials to donate cash waqf online is influenced by various factors, including their attitudes, the environment they are in, their ability to control their behavior, their perception of the ease and usefulness of technology and the availability of suitable facilities. Knowledge of technology is also a decisive component. Nevertheless, this study yielded intriguing findings that the perceived level of religious devotion does not impact the millennials’ willingness to make online cash waqf donations.

Practical implications

This study’s findings offer valuable insights for waqf institutions, providing a better understanding of Muslim millennials’ characteristics and preferences regarding spending, donations and waqf activities. This understanding can be instrumental in enhancing innovative digital platforms for cash waqf in the digital economy era.

Originality/value

This study uniquely explores the determinants of digital cash waqf donations among Muslim Millennial Generation in Indonesia. Contributions include integrating the DTPB and the TAM for a comprehensive analysis. Cross-disciplinary perspectives from behavioral economics and digital marketing enrich the research. Comparative studies and potential longitudinal analysis enhance depth, providing nuanced insights into the dynamic factors shaping digital donation behavior among Muslim millennials.

Details

Journal of Islamic Marketing, vol. 16 no. 1
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 3 January 2025

Pantri Heriyati, Krisna Nugraha, Neeraj Yadav and Aryo Bismo

Use of digital Islamic banking services is not increasing in Indonesia, despite the country’s sizable Islamic population. This non-adoption might have resulted from consumer…

Abstract

Purpose

Use of digital Islamic banking services is not increasing in Indonesia, despite the country’s sizable Islamic population. This non-adoption might have resulted from consumer resistance brought on by attempts to divert them, or it might have been a direct consequence of the diverting effect. This study aims to examine the direct relationship between the diverting effects and the decision to not adopt digital Islamic banking, as well as the mediating role of consumer resistance.

Design/methodology/approach

The partial least squares-based structural equation modelling (PLS-SEM) technique is used to analyse relationships among diverting effects, consumer resistance and non-adoption decisions. A total of 517 middle- and upper-class Indonesian consumers were involved as a sample, with several criteria such as being a conventional bank customer for at least 5 years and using digital services with a minimum of 5 transactions per month but not yet being an Islamic bank customer.

Findings

It is found that the direct relationship between the diverting effects and the non-adoption decisions is not statistically significant (β = 0.045, p = 0.15). However, it is found that the diverting effects trigger consumer resistance in a statistically significant manner (β = 0.192, p < 0.1). This consumer resistance is found to be influencing non-adoption decisions directly (β = 0.694, p < 0.1), as well as a mediating factor between diverting effects and the non-adoption decisions (β = 0.133, p < 0.1).

Originality/value

The paper deals with an emerging industry and offers actionable insights for its growth. In practice, this study suggests several possible strategies for the Islamic banking industry to grow under circumstances where digital banking is considered sine-qua-non of modern banking. Several related theories are also evaluated in this study.

Article
Publication date: 16 April 2024

Nurhafihz Noor

The continued relevance of technologies in halal industries requires managers to understand the factors contributing to such technologies’ acceptance. The technology acceptance…

Abstract

Purpose

The continued relevance of technologies in halal industries requires managers to understand the factors contributing to such technologies’ acceptance. The technology acceptance model (TAM) is dominant in the literature that predicts user acceptance and behaviour towards technology. Despite the model’s significance, there has yet to be a systematic review of studies featuring halal sectors that use TAM. The purpose of this study is to systematically review the existing literature on TAM in halal industries to understand the research trends as well as TAM modifications and research opportunities in halal industries.

Design/methodology/approach

Guided by the preferred reporting items for systematic review and meta-analysis protocol, a framework-based review using the theories, contexts, characteristics and methods (TCCM) framework was conducted. The Scopus and Web of Science databases were used to retrieve English journal articles that investigated TAM in the context of halal markets. In total, 44 eligible articles were reviewed in terms of the developments and extensions of TAM in their studies across the halal industries.

Findings

The first study related to the use of TAM in the context of halal industries was published in 2014. The most prominent halal industry in the review, which used TAM, was Islamic finance. Indonesia was the leading economy in halal studies using TAM. Perceived usefulness was found to be a more significant factor than perceived ease of use for technology acceptance in TAM studies on halal industries. The significance of religiosity on TAM was inconsistent. Most research was done using quantitative surveys with consumers as the target sample.

Research limitations/implications

The studies in this review are based on the Scopus and Web of Science databases, which may be perceived as a study limitation. This study also only considered English journal articles and research in which the focus was on the use of TAM in halal industries rather than general industries with Muslim consumers.

Practical implications

Halal industries will continue to rely on technology for the provision of goods and services. With the rise of emerging technological innovations, this review will provide managers with an appreciation of technology acceptance across different contexts. Researchers can use the results of this review to guide future studies and contribute toward the development of this research area.

Originality/value

This review contributes to the Islamic marketing literature by being the first to comprehensively review the TAM model in the context of halal industries using the TCCM framework-based review approach. A research agenda is proposed to advance research on technology acceptance and TAM in halal industries.

Details

Journal of Islamic Marketing, vol. 15 no. 11
Type: Research Article
ISSN: 1759-0833

Keywords

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