Abdulmajeed Muhammad Raji Aderemi and Muhammad Shahrul Ifwat Ishak
This paper aims to explore the viability of applying Qard Hasan as an Islamic crowdfunding financial instrument to finance micro-enterprises in Malaysia.
Abstract
Purpose
This paper aims to explore the viability of applying Qard Hasan as an Islamic crowdfunding financial instrument to finance micro-enterprises in Malaysia.
Design/methodology/approach
This is a qualitative study in which semi-structured interviews were conducted with several crowdfunding professionals concerning the application of Qard Hasan in Islamic crowdfunding. To realise the purpose of this study, the data is subjected to thematic analysis.
Findings
The finding reveals that though it is often argued that Qard Hasan is basically not a business-oriented instrument, a closer look at the framework reveals the uniqueness and flexibility of this instrument to be adopted as a viable financial instrument for crowdfunding in financing micro-enterprises in Malaysia. Although it is associated with various risks including default risk and the risk of attracting big funds. However, these risks can be managed and overcome by using FinTech mechanisms such as blockchain to carry out due diligence, monitor the project and ensure the repayment in installment.
Research limitations/implications
The findings of this study may not be suitable for generalisation to all crowdfunding practices as the semi-structured interview is concentrated predominantly in Malaysia. However, it still provides valuable contributions to the Islamic crowdfunding sector in Malaysia between theory and practice.
Practical implications
The Qard Hasan crowdfunding framework in this study can potentially be applied to help micro-entrepreneurs reach out to financial services within their means. This framework provides means to grow the micro-enterprise sector.
Social implications
Qard Hasan crowdfunding will effectively alleviate poverty by creating an avenue of opportunities for business enterprises and close the gap between the wealthy and the poor classes in society, which will eventually bring about more cooperation, more collaboration and cultivate a generous society.
Originality/value
In spite of the fact that Islamic crowdfunding is not a new topic in research, it lacks empirical studies, particularly qualitative analysis. As this study engages with experts in Shari’ah and crowdfunding regarding the potential application of Qard Hasan, it highlights a fresh discussion both in theory and practice.
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Imran Mehboob Shaikh, Hanudin Amin and Nurul Ashiqin
The purpose of this paper is to look into millennials’ acceptance of Qard al-hasan using the Islamic theory of consumer behaviour (iTCB) in Malaysia.
Abstract
Purpose
The purpose of this paper is to look into millennials’ acceptance of Qard al-hasan using the Islamic theory of consumer behaviour (iTCB) in Malaysia.
Design/methodology/approach
For this study, convenience sampling was used and 203 usable questionnaires were received from the respondents who are millennials and university students. The questionnaire link was distributed via social media platforms to the millennials.
Findings
The findings of this study reveal that there exists a strong and positive relationship between the role of iman and Maqasid consumer index in determining the millennial acceptance of Qard al-hasan. On the contrary, Islamic altruism does not turn out to be the factor of Qard al-hasan acceptance. Resultantly, these results suggest that millennials in Malaysia accept Qard al-hasan and based on those educational institutions may consider offering zero-interest benevolent loans to alleviate the financial burden of unprivileged students.
Research limitations/implications
Although this study provides positive results, a minimum of two research constraints may direct future efforts in this area. This study initially focuses on a specific ecosystem of Islamic financial products in Malaysia, with a particular emphasis on Qard al-hasan. As a result, subsequent research ought to strive to encompass a larger perspective on Qard al-hasan. Secondly, this research uses a theory that is still in the applicability phase, which has led to some productive discussions for further improvements.
Originality/value
To the best of the authors’ knowledge, this work is one of the few studies conducted on an empirical basis using the iTCB in the milieu of Qard al-hasan in Malaysia.
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Salih Ülev, Fatih Savaşan and Mücahit Özdemir
This paper aims to investigate the effect of Islamic microfinance on poor households through the case of the IKSAR Qard al-Hasan Program in Turkey. To achieve this aim, it…
Abstract
Purpose
This paper aims to investigate the effect of Islamic microfinance on poor households through the case of the IKSAR Qard al-Hasan Program in Turkey. To achieve this aim, it examined the changes in the socio-economic status of beneficiaries before and after the program.
Design/methodology/approach
This paper adopts the convergent parallel mixed method design. It conducted two surveys to micro-entrepreneurs: the first is when they received the loan and the second is when they finished their installments. In addition to the longitudinal data obtained from these two surveys, qualitative data were collected by participant observation and interview technique with visiting these people periodically throughout the interest-free loan (qard al-hasan).
Findings
According to the results obtained from the analysis of the pre- and post-surveys, a statistically significant increase of 35% was experienced in the monthly household income after receiving the qard al-hasan loan compared to before. Similarly, a statistically significant increase was found in the monthly expenditures of 23 out of 30 households after receiving the qard al-hasan.
Originality/value
There are two originalities of this study. To the best of the authors’ knowledge, it is the first research that examines the only Islamic microfinance program in Turkey. Second, it uses longitudinal data while examining the impact of Islamic microfinance on the welfare of the poor. In the relevant literature, no study has been identified that uses longitudinal data in Islamic microfinance. Similarly, a limited number of longitudinal studies examine the impact of conventional microfinance institutions on the poor.
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Naqibullah Haqbin and Mohamed Asmy Bin Mohd Thas Thaker
This study proposes the integrated Qardhul Hasan and equity-based microenterprise development (IQEMD) model, a financial model for microenterprises in Muslim nation such as…
Abstract
Purpose
This study proposes the integrated Qardhul Hasan and equity-based microenterprise development (IQEMD) model, a financial model for microenterprises in Muslim nation such as Afghanistan. This study aims to overcome the significant challenges these businesses face in securing financial resources, offering a tailored, sustainable solution to enhance their operations.
Design/methodology/approach
This study collected primary data via a survey from 466 microentrepreneurs in Kandahar, Afghanistan. Data analysis was performed using partial least squares with SmartPLS 4 software. The study’s validation of the proposed financial model among microenterprises was grounded in the theory of reasoned action, ensuring a solid theoretical basis for its findings.
Findings
The findings of this research revealed that the attitudes and subjective norms of Afghan microentrepreneurs positively influence their intention to use IQEMD Model. These findings provide important guidance for financing ventures and policymakers, highlighting the IQEMD model’s potential to improve financial strategies and practices for microenterprises in Afghanistan.
Research limitations/implications
This study focuses solely on microenterprise development in Afghanistan, with its sample size and study area being clear constraints. Therefore, caution is advised when interpreting the results, which may not be broadly applicable. The reliance on current factors may also restrict the exploration of other important determinants affecting microenterprises’ behavioral intentions toward using the IQEMD model. Future research should consider incorporating new factors to optimize the IQEMD model and include interviews with more stakeholders to increase its validity.
Practical implications
The findings of this paper offer microenterprises an alternative source of financing to start or expand their businesses. This study holds implications for government and policymakers. By incorporating a nonprofit organization as suggested in this model, it assists the government in reducing expenditures associated with the development of microenterprises.
Originality/value
This study is a pioneering effort in merging Qardhul Hasan and equity-based financing for microenterprise development. It significantly contributes to existing research by underscoring the effectiveness and impact of such financing as a viable source for these enterprises. These strategies could notably boost productivity, employment and gross domestic product growth. The study enhances understanding of alternative financing models in the microenterprise sector.
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M. Nusrate Aziz and Osman Bin Mohamad
The purpose of this paper is to identify some well-set instruments in Islam that can efficiently alleviate poverty, solve social problems and reduce social inequality through a…
Abstract
Purpose
The purpose of this paper is to identify some well-set instruments in Islam that can efficiently alleviate poverty, solve social problems and reduce social inequality through a new operational framework called “Islamic social business (ISB)”.
Design/methodology/approach
This is a conceptual research that is based on Al-Quranic principles as well as contemporary social welfare philosophies, such as, augmented stakeholder theory, social enterprise and social business. Al-Quran, Al-Hadith and existing traditional and Islamic literature are consulted for this study.
Findings
The study proposes an efficient system of Islamic wealth sourcing and management to make the process of poverty alleviation sustainable. Other social problems for disadvantaged people, such as, health-, shelter-, literacy- and environmental-related issues are also addressed in the proposed system. The study identifies the inefficiency in the current practices and makes some propositions that are in conformance with Islamic principles and implementable by Islamic institutions all over the world. The authors propose a theoretical framework and operational propositions for ISB.
Practical implications
In following this study, social policymakers, Islamic financial institutions, Islamic social enterprises and Islamic charity organizations will find organized guidelines to initiate “new entities” or “reshape existing entities”.
Social implications
The study will be effective in solving social problems, alleviating poverty and reducing social inequality.
Originality/value
This is the first study that identifies all the potential Islamic sources of funding and the efficient management thereof through ISB. The study also proposes an ISB model and makes several propositions for different types of ISB.
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Mohammad Selim and M. Kabir Hassan
This paper aims to examine how a central bank (CB) can act as a lender of last resort (LOLR) for both Islamic and conventional interest-based banks by pursuing a Qard-al-Hasan…
Abstract
Purpose
This paper aims to examine how a central bank (CB) can act as a lender of last resort (LOLR) for both Islamic and conventional interest-based banks by pursuing a Qard-al-Hasan (QH)-based monetary policy (MP).
Design/methodology/approach
The role of the CB as LOLR under QH-based MP and its effects on major macroeconomic variables, including deposits, loan creation and aggregate expenditures, are examined on theoretical grounds by using the aggregate output and aggregate expenditure model under the framework of Islamic MP.
Findings
When the CB acts as LOLR by pursuing QH-based MP, it automatically empowers Islamic banks (IBs) by providing access to borrowing funds from the CB on a QH basis. As a result, IBs will not be required to hold billions of dollars as liquid assets against liquidity risks. Thus, the lending capacity of IBs will increase and deposit expansion, loan creation and aggregate expenditures in the economy will all expand. This will in turn increase real GDP and employment while reducing the unemployment rate.
Originality/value
This is the first paper to analyze CBs acting as LOLR for both IBs and conventional interest-based banks by pursuing a QH-based MP, thus providing equal opportunities and equal access to borrowing facilities from the CB, along with equal partnership and fair competition for all and absolutely no discrimination to anyone. The LOLR service to all banks under QH-based MP will unveil a new horizon of opportunities where all financial institutions are expected to thrive. IBs will escape the constraints of the constant fear of liquidity risks and find a level-playing field.
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Barry J. Fraser and Abeer A. Hasan
In this study in the United Arab Emirates (UAE), we investigated college students’ perceptions of their past experience of receiving one-to-one tutoring support in mathematics…
Abstract
In this study in the United Arab Emirates (UAE), we investigated college students’ perceptions of their past experience of receiving one-to-one tutoring support in mathematics when they were in secondary school. In addition, we also explored students’ reasons for taking one-to-one tutoring in mathematics, the perceived impact of one-to-one tutoring in overcoming shortcomings of school mathematics teaching and on their mathematics achievement, and whether the learning environment at school influenced decisions about having one-to-one tutoring. Eight case-study students were involved in recalling how beneficial one-to-one tutoring was through semi-structured interviews. Because of the small sample size, the research involved only qualitative data based on the recollections of college students who were attending a one-year course in the General Education department of Abu Dhabi Men’s College. The research provided valuable insights into how some students considered having a one-to-one tutor beneficial for their achievement when they were in secondary school. Educators must consider students’ learning environment as being one of the main reasons for deciding whether or not to undertake one-to-one tutoring to raise their achievement in mathematics.
ﻓﻲ ھذه اﻟد را ﺳﺔ ﻓﻲ دوﻟ ﺔ ا ﻹﻣﺎ را ت اﻟ ﻌرﺑﯾﺔ اﻟ ﻣﺗ ﺣدة، د رﺳﻧﺎ ﺗ ﺻورا ت طﻼب اﻟ ﺟﺎ ﻣﻌﺎ ت ﻋن ﺗ ﺟرﺑﺗﮭم اﻟ ﺳﺎﺑﻘﺔ ﻓﻲ ﺗﻘدﯾم د ﻋم ﺗﻌﻠﯾﻣ ﻲ ﻓ رد ي ﻓﻲ اﻟ رﯾﺎ ﺿﯾﺎ ت ﻋﻧدﻣﺎ ﻛﺎﻧ وا ﻓﻲ اﻟ ﻣد رﺳﺔ اﻟﺛﺎﻧ وﯾﺔ. ﺑﺎ ﻹ ﺿﺎﻓﺔ إ ﻟ ﻰ ذ ﻟ ك ، ا ﺳ ﺗ ﻛ ﺷ ﻔ ﻧ ﺎ أ ﯾ ﺿً ﺎ أ ﺳ ﺑ ﺎ ب ا ﻟ ط ﻼ ب ﻹ ﺟ ر ا ء د ر و س ﻓ ر د ﯾ ﺔ ﻓ ﻲ اﻟر ﯾﺎ ﺿ ﯾﺎ ت ، وا ﻟﺗﺄﺛﯾ ر اﻟ ﻣﻠ ﺣو ظ ﻟﻠ د رو س اﻟﻔ ردﯾ ﺔ ﻋﻠ ﻰ ﺗ ﺣ ﺻ ﯾﻠ ﮭم ﻓ ﻲ اﻟر ﯾﺎ ﺿ ﯾﺎ ت ، وﻣ ﺎ إذا ﻛﺎﻧ ت ﺑﯾﺋﺔ اﻟﺗ ﻌﻠم ﻓ ﻲ اﻟ ﻣد رﺳﺔ ﻗد أﺛ ر ت ﻋﻠ ﻰ اﻟﻘ را را ت اﻟ ﻣﺗ ﻌﻠﻘﺔ ﺑﺎ ﻟ ﺣ ﺻ ول ﻋ ﻠ ﻰ ﺗد ر ﯾ ب ﻓ ر د ي . د ر س وا ﺣ د. ﺷ ﺎ ر ك ﺛ ﻣﺎﻧ ﯾ ﺔ ﻣ ن ط ﻼ ب د ر ا ﺳ ﺔ اﻟﺣ ﺎﻟ ﺔ ﻓ ﻲ اﻟﺗذﻛﯾ ر ﺑ ﻣد ى ﻓﺎﺋدة اﻟﺗد رﯾ س اﻟﻔ رد ي ﻣ ن ﺧﻼل ﻣ ﻘ ﺎ ﺑ ﻼ ت ﺷ ﺑ ﮫ ﻣ ﻧ ظ ﻣ ﺔ . ﻧ ظ رً ا ﻟ ﺻ ﻐ ر ﺣ ﺟ م ا ﻟ ﻌ ﯾ ﻧ ﺔ ، ﺗ ﺿ ﻣ ن ا ﻟ ﺑ ﺣ ث ﻓ ﻘ ط ﺑ ﯾ ﺎ ﻧ ﺎ ت ﻧ و ﻋ ﯾ ﺔ ا ﺳ ﺗ ﻧ ﺎ دًا إ ﻟ ﻰ ذ ﻛ ر ﯾ ﺎ ت ط ﻼ ب ا ﻟ ﺟ ﺎ ﻣ ﻌ ﺎ ت ا ﻟ ذ ﯾ ن ﺣ ﺿ ر و ا دو رة ﻣدﺗ ﮭﺎ ﻋﺎم وا ﺣد ﻓ ﻲ ﻗ ﺳم اﻟﺗ ﻌﻠﯾم اﻟ ﻌﺎم ﻓ ﻲ ﻛﻠﯾﺔ أﺑو ظ ﺑ ﻲ ﻟ ﻠ ط ﻼ ب . ﻗ د م ا ﻟ ﺑ ﺣ ث ر ؤ ى ﻗ ﯾّﻣ ﺔ ﺣ و ل ﻛﯾ ﻔﯾ ﺔ ﻧ ظر ﺑ ﻌ ض اﻟ طﻼب ﻓ ﻲ وﺟود ﻣد ر س وا ﺣد ﻣﻔﯾد ﻟﺗ ﺣﻘﯾﻘ ﮭم ﻋﻧدﻣ ﺎ ﻛﺎﻧ وا ﻓ ﻲ اﻟ ﻣد رﺳﺔ اﻟﺛﺎﻧ وﯾ ﺔ. ﯾ ﺟ ب ﻋﻠ ﻰ اﻟ ﻣﻌﻠ ﻣﯾ ن ا ﻋﺗﺑﺎ ر ﺑﯾﺋ ﺔ ﺗ ﻌﻠم اﻟ طﻼب وا ﺣدة ﻣ ن ا ﻷﺳﺑﺎ ب اﻟ رﺋﯾ ﺳﯾ ﺔ ﻟﺗ ﻘ ر ﯾ ر ﻣﺎ إ ذا ﻛﺎ ن ﯾ ﺟ ب ﻋ ﻠﯾﮭم إ ﺟ ر ا ء د ر و س ﻓ ر دﯾ ﺔ أ م ﻻ ﻟ ر ﻓ ﻊ ﻣ ﺳ ﺗ و ى ﺗ ﺣ ﺻ ﯾﻠﮭم ﻓ ﻲ اﻟ ر ﯾﺎ ﺿ ﯾﺎ ت .
Abdulla Al-Towfiq Hasan, Md. Masudur Rahman and Mohammad Osman Gani
This study aims to explore factors that influence tourists’ visiting behaviors towards smart tourism destinations (STDs) by extending the theory of planned behavior.
Abstract
Purpose
This study aims to explore factors that influence tourists’ visiting behaviors towards smart tourism destinations (STDs) by extending the theory of planned behavior.
Design/methodology/approach
Partial least squares structural equation modeling (PLS-SEM) technique is used to test the proposed hypotheses by analyzing 413 usable responses that are collected through personal interviews. Moreover, data are collected using structured interviews and analyzed by SmartPLS, 3.3.3.
Findings
This study results reveal that STD visit intentions significantly influence STD visiting behaviors among international and domestic tourists in Bangladesh. Moreover, the results show that e-attitude, resource efficiency norms and perceived environmental sustainability have significant impacts on STD visit intentions.
Practical implications
The study findings indicate that destinations’ electronic flowcharts of places, usage of low impact and biodegradable materials and history and culture presented in the forms of games and stories increase travelers’ motivation to visit STDs.
Originality/value
The study provides empirical evidence to support the importance of factors enhancing travelers’ STD visiting behaviors by integrating e-attitude, resource efficiency norms, perceived environmental sustainability and STD visit intentions.
研究目的
研究人員藉著把計劃行為理論伸延開去,去探索是哪些因素影響著到訪智慧旅遊目的地的旅遊行為。
研究設計/方法/理念
研究人員以偏最小平方法的結構方程模型 (PLS-SEM) 技術去測試其提出之假設,方法是透過分析取自個人訪談413個可用的回應。這些數據均以結構化訪談方式收集,繼而以 SmartPLS 3.3.3 來進行分析。
研究結果
研究結果顯示,就於孟加拉的國際和國內旅客而言,到訪智慧旅遊目的地的目的,顯著地影響著智慧旅遊目的地的旅遊行為。研究結果亦顯示,到訪智慧旅遊目的地的目的和意願,會顯著地受電子態度、資源效率規範和感知環境可持續性所影響。
實務方面的啟示
研究結果表明了目的地的處所電子流程圖、低影響和能進行生物降解材料的使用,以及以遊戲和故事形式展示的歷史和文化,均會提昇旅客到訪智慧旅遊目的地的動機。
研究的原創性/價值
研究人員透過結合電子態度、資源效率規範、感知環境可持續性和到訪智慧旅遊目的地的目的,給我們提供了經驗性證據,以確認增強及完善影響著旅客到訪智慧旅遊目的地的旅遊行為的因素至為重要。
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The purpose of this paper is to report that the social business model has emerged to mitigate the failure of free-market capitalism driven by self-interest in creating social…
Abstract
Purpose
The purpose of this paper is to report that the social business model has emerged to mitigate the failure of free-market capitalism driven by self-interest in creating social value. It shows how social business contradicts with free-market capitalism while being compatible with Islamic moral economy due to the axiomatic differences between the two economic systems.
Design/methodology/approach
The paper follows conceptual, axiomatic and theoretical approach to show how the social business model contradicts with free-market capitalism, but is compatible with Islamic moral economy. The paper provides a theoretical framework for Islamic social business based on an Islamic human and social development perspective. The paper first discusses the failure of free-market capitalism and the emergence of social business in the capitalist system. It then defines Islamic social business and lays out its axiomatic foundation based on the Islamic worldview. It also presents Islamic financial instruments and funds for social business. Finally, it makes a case for sustainable socioeconomic development and subjective well-being within the Islamic development paradigm.
Findings
The paper shows that a cosmetic change to capitalism is not sufficient for enabling the social business model to take the main stage in the free-market system. There is a need for a new paradigm of reality, truth, telos and human nature to support social business. Tawhidi paradigm can be such alternative. The paper makes a strong case for social business from an Islamic worldview. Particularly, certain economic axioms within the Tawhidi anthropology, teleology and axiology provide intrinsic causes for pursuing such business model. The multi-dimensional nature of humans from the Tawhidi anthropology sets the intrinsic foundation for social business. Indeed, although the social business model is new to the West, it has been practiced in certain forms in the Muslim world throughout history. Zakat, sadaqah, and qard hasan can be used to support social business in addition to some Islamic banking instruments. The paper suggests that Muslim countries should embrace the social business model for sustainable development and greater subjective well-being.
Research limitations/implications
The paper is purely theoretical. Future studies might shed light on the issue through empirical evidence.
Practical implications
The paper is likely to enhance the interest in social business in the Muslim world.
Social implications
The paper has potential to lead the creation of social value through dissemination of the social business model.
Originality/value
The paper contributes the Islamic moral economy doctrine by making a strong case for Islamic social business.
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Azniza Hartini Azrai Azaimi Ambrose and Fadhilah Abdullah Asuhaimi
The purpose of this paper is to comprehensively discuss the issue of risk vis-à-vis the perpetuity restriction principle inherent in waqf (Islamic endowment). Specifically, it…
Abstract
Purpose
The purpose of this paper is to comprehensively discuss the issue of risk vis-à-vis the perpetuity restriction principle inherent in waqf (Islamic endowment). Specifically, it attempts to consolidate the axioms in both conventional and Islamic finance, such as the risk-return trade-off and al-ghunm bi al-ghurm (liability accompanies gain), with the perpetual nature of waqf. Overall, this paper attempts to find a resolution to the dilemma of perpetuity restriction inherent in cash waqf against the natural occurrence of the risk.
Design/methodology/approach
This paper is based on the secondary research methodology; past literature encompassing journal articles, books, relevant financial axioms, fatwas (Islamic rulings) and state enactments is critically reviewed to present its case. In regard to state enactments, only Malaysian state enactments have been used, thus restricting the study to the Malaysian case only.
Findings
This study contends that the dilemma of the perpetuity restriction and the natural occurrence of risk can be resolved through the integration of waqf risk management, especially concerning cash waqf, with the Islamic spiritual approach. By implementing standard operating procedures that inculcate awareness on waqf risk management and Islamic spirituality in waqf stakeholders (wāqif (donor), trustee and beneficiaries), the stakeholders may accept the reality of risk that is inevitable even after all efforts have been exhausted. In other words, the violation of perpetuity is exonerated given that mental faculties aligned with revealed texts have been exhaustively used beforehand.
Practical implications
Findings from this study may broaden the choice of investment avenues for waqf trustees while adhering to the perpetual restriction of waqf. More importantly, waqf trustees will not be forced to invest in interest-bearing securities or be involved in any usurious transactions just to obtain guaranteed returns and preserve the corpus of waqf.
Originality/value
This study offers a unique perspective on cash waqf risk management by re-analyzing the axioms and concepts of finance and waqf while observing the welfare of the beneficiaries.