Zaimah Abdullah, Mohd Hisham Mohd Sharif, Ram Al Jaffri Saad, Arifatul Husna Mohd Ariff, Md Hairi Md Hussain and Mohd Herry Mohd Nasir
This paper aims to explore the factors of social media adoption by zakat institutions.
Abstract
Purpose
This paper aims to explore the factors of social media adoption by zakat institutions.
Design/methodology/approach
This study uses qualitative data as the main source of evidence. Data were collected using semi-structured face-to-face interviews. Ten respondents from eight zakat institutions across Malaysia were interviewed. Judgement sampling and snowballing techniques were used to select respondents. Data analysis was done in three phases, namely, data reduction, data display and conclusion confirmation.
Findings
The findings of this study found perceived benefits, ease of use, accessibility, formalization, training, management push and indirect public push to be the determinant factors that contribute to the adoption of a social media application in zakat institutions. They are discussed and organized into a few groups under four categories, namely, technological, organizational and environmental contexts based on the TOE framework.
Research limitations/implications
This study contributes to the existing body of knowledge in technology adoption understanding with the engagement of a range of Technology Organization Environment (TOE) framework. However, for future research, quantitative data involving the zakat payers should be anticipated to further understand the issue.
Practical implications
Output from this study may be useful to the adoption champions within zakat institutions, such as decision-makers and marketing officers. These people can help to provide guidelines and steer managers to focus on the identified factors in this study when adopting social media.
Social implications
The finding from this study may help to increase the efficiency of two-way communication between zakat institutions and the community. It was found that the adoption of social media improved communication activities with the public and better handling of negative perceptions towards zakat institutions. The findings proved that using social media applications in zakat institutions can help create a better organizational image for the public by publishing instant and continuous news feeds on activities that specifically cater to the need of the asnaf. This can alleviate negative perceptions that zakat institutions are only good in collecting money, but not effective in helping the poor.
Originality/value
Previous zakat literature has focussed on different issues such as the determinants of zakat compliance behaviors, zakat fund management, distribution of funds, zakat information system and digital marketing; however, little is known about how and why zakat institutions adopt social media applications as a communication tool with the public. Thus, this research makes a difference by focussing on a new aspect of study in the zakat environment, which aims to explore the factors of social media adoption by zakat institutions. This study also proposes the new appropriate TOE framework to understand the adoption behaviour by the zakat institution towards social media application.
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Mohd Hanafi Azman Ong, Norazlina Mohd Yasin and Nur Syafikah Ibrahim
The purpose of this paper is to investigate a distinct set of characteristics that influence Muslim customers’ intentions to purchase Ar-Rahnu Islamic financing contract in…
Abstract
Purpose
The purpose of this paper is to investigate a distinct set of characteristics that influence Muslim customers’ intentions to purchase Ar-Rahnu Islamic financing contract in Malaysia.
Design/methodology/approach
The study studied the impact of perceived value, perceived quality, perceived financial advantages, religious commitment and product knowledge on the purchase intention Ar-Rahnu Islamic financing contract using a quantitative research approach. A Google Form-based online survey was created and distributed through Twitter, Facebook and Instagram, among others. The survey data were analysed using structural equation modelling with a partial-least-square estimation property (PLS-SEM).
Findings
The study results suggested that Muslim customers in Malaysia had a greater propensity to buy Ar-Rahnu Islamic financing contract. Analysis of the data revealed that perceived value, perceived quality, perceived financial benefits and religious commitment had direct effects on the desire to buy Ar-Rahnu Islamic financing contract in Malaysia. In addition, the results reveal that religious commitment, perceived quality and perceived financial benefit are the top three important factors in explaining Ar-Rahnu Islamic financing contract buying intentions in this country.
Practical implications
Muslim customers may use Ar-Rahnu Islamic financing contract as a short-term credit alternative to enhance their financial standing. Ar-Rahnu Islamic financing contract generates a substantial quantity of credit demand and supply, which not only allows Muslim customers to adhere to Islamic standards but also contributes to the expansion of the economy. The result would aid and advise Ar-Rahnu finance resources and legislators in measuring the efficacy of the program in Malaysia, especially among Muslim customers.
Originality/value
Ar-Rahnu Islamic financing contract as a financing alternative has been explored extensively, but this study takes a whole new approach to the subject by looking at dimensions of perceived value, perceived quality and perceived financial benefit along with individual product knowledge and religious commitment. Consequently, this study will contribute to the understanding of how Muslim customers will respond to the Ar-Rahnu Islamic financing contract and will assist financial institutions in increasing the possibility that Muslim consumers would acquire Ar-Rahnu Islamic financing contract.
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Nik Hadiyan Nik Azman, Salina Kassim and Adewalee Abideen Adeyemi
This study aims to offer a new area of discourse by investigating the factors determining the usage of the Islamic non-bank financing product ar-rahnu (Islamic pawnbroking) among…
Abstract
Purpose
This study aims to offer a new area of discourse by investigating the factors determining the usage of the Islamic non-bank financing product ar-rahnu (Islamic pawnbroking) among women micro-entrepreneurs in Malaysia within the framework of the informal credit market theory.
Design/methodology/approach
The study is based on primary data obtained by using self-administered questionnaires distributed in three states in Malaysia: Kedah, Kelantan and Terengganu. The questionnaires were distributed to a total of 750 participants, with each state contributing 250 respondents. Total number of respondents valid for data analysis was however 600.
Findings
Based on descriptive and inferential statistics by using the IBM statistical package for the social sciences and structural equation modelling analysis of moment structures, the results show that the main factor influencing women micro-entrepreneurs to use ar-rahnu is the service charge.
Research limitations/implications
This study only covers three states in Malaysia and is limited to examining the use of ar-rahnu by women micro-entrepreneurs in those states.
Practical implications
As micro-entrepreneur s often face constraints to obtaining financial access in the formal credit market, ar-rahnu provides an alternative mode of obtaining business financing to female micro-entrepreneurs, so they can sustain their operations and even expand their businesses. The significance of such factors like service fee, as revealed in this study, indicates that managers should focus on this element when offering Islamic financial products, especially to women micro-entrepreneurs.
Originality/value
The informal credit market theory is frequently used in conventional studies. This paper adds Sharīʿah compliance in the context of this theory as a new area to be considered when discussing Islamic financial products.
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Syed Alamdar Ali Shah, Bayu Arie Fianto, Batool Imtiaz, Raditya Sukmana and Rafiatul Adlin Hj Mohd Ruslan
The purpose of this paper is to perform Shariah review of Brownian motion that is used for prediction of Islamic stock prices and their volatility.
Abstract
Purpose
The purpose of this paper is to perform Shariah review of Brownian motion that is used for prediction of Islamic stock prices and their volatility.
Design/methodology/approach
It uses the Shariah compliant development model guidelines to review the Brownian motion and its applications.
Findings
The model of Brownian motion does not involve any variable that renders it non-Shariah compliant; neither all applications of Brownian motion are Shariah compliant. Because the model is based on stochastic properties that involve randomness, therefore the issue of gharar takes the utmost important to handle in the applications of the model. The results need to be analyzed strictly in accordance with the Shariah whether they create any element of gharar or uncertainty in case of expected price and volatility estimates.
Research limitations/implications
The research suffers from the limitation that it analyses only one model of physics, i.e. Brownian motion model from Shariah perspective.
Practical implications
The research opens an area for Shariah analysis of results generated from the application of advanced models of physics on matters related to Islamic financial markets.
Originality/value
The originality of this study stems from the fact that to the best of the authors’ knowledge, it is the first study that extends Shariah guidelines into Financial physics for making the foundations of Islamic econophysics.
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Balkis Kasmon, Siti Sara Ibrahim, Dalila Daud, Raja Rizal Iskandar Raja Hisham and Ririn Tri Ratnasari
This paper aims to explore the impact of digitalisation on waqf activities, focussing on blockchain, crowdfunding and artificial intelligence to predict future trends in…
Abstract
Purpose
This paper aims to explore the impact of digitalisation on waqf activities, focussing on blockchain, crowdfunding and artificial intelligence to predict future trends in digitalisation within waqf activities.
Design/methodology/approach
The study used a quantitative approach to combine the Unified Theory of Acceptance and Use of Technology (UTAUT) and Diffusion of Innovation Theory (DIT) to comprehensively analyze the elements that affect the adoption of digital technology. SmartPLS software conducted the data analysis after collecting the data using SPSS. In this study, 310 respondents comprising Muslims who contribute to waqf were collected.
Findings
This research provides important insights into the elements influencing future behavior and can help policymakers promote and facilitate the digitalisation of waqf activities, not only in Malaysia but also in similar situations worldwide.
Research limitations/implications
Analysis indicated that four hypotheses were validated, implying that effort expectancy, compatibility, observability and trialability are significant determinants affecting intention. The findings suggest significant potential for further research. This paper delineates numerous methodological challenges and concerns while proposing recommendations for further research. Future research could use additional search phrases and engines not incorporated in this study to provide a more comprehensive overview. This study primarily concentrates on the applications of waqf development, digitalisation, blockchain, crowdfunding and artificial intelligence.
Practical implications
The four hypotheses regarding facilitating condition, performance expectation, relative advantage and social influence were not supported as they were found to have no significant impact on intention. For practitioners, based on the findings, it can give some insight into digitalisation’s influence on the intention of contributing to waqf in society. As for the researchers, there could be some ideas to study other than the factors mentioned in this study, as well as the supporting literature for their studies.
Originality/value
This paper provides useful insights on how emerging technology can potentially disrupt the traditional waqf landscape. It emphasizes the unique contributions of digitalization in improving transparency and accessibility, blockchain in ensuring security and trust, crowdfunding in mobilizing resources and artificial intelligence in optimizing decision-making processes.
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This paper aims to fill the noticeably fragmented zakat literature repertoire by empirically exploring stakeholders’ views toward zakat management performance issues based on a…
Abstract
Purpose
This paper aims to fill the noticeably fragmented zakat literature repertoire by empirically exploring stakeholders’ views toward zakat management performance issues based on a selected zakat institution (ZI) operating on a corporatized platform with corporate administrative style.
Design/methodology/approach
A quantitative approach using a questionnaire survey distributed to Muslims in the State which ZI is operating was adopted. A total of 448 usable responses are used in the analysis covering descriptive and mean difference.
Findings
The results indicate that managerial reform configuration in terms of corporatization has been viewed positively by stakeholders, translated into a comforting agreement score toward ZI’s improved management performance (collection, disbursement and reporting). Such perceptions are, however, observably sensitive to demographic factors of gender and employment type. The survey also document evidence that the corporatization exercise itself had improved respondents’ confidence toward ZI being the zakat administrator in the State.
Originality/value
The research contributes to the public policy debate with respect to corporatized ZI’s management performance from the stakeholders’ perspective. The results are arguably informative at various levels, forming a basis for reality check and policy inputs for various stakeholders, including (but not limited to) the ZI itself, zakat payers and asnafs, particularly in designing relevant and necessary administrative strategies and relevant policy formulation in addressing the performance and accountability issues in ZIs.
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Rita Rahayu, Syahril Ali, Raudhatul Hidayah and Amalda Aulia
This study aims to investigate the determinant factors of Islamic financial literacy (IFL) of the Z generation in Indonesia. As the role of family and social influence play an…
Abstract
Purpose
This study aims to investigate the determinant factors of Islamic financial literacy (IFL) of the Z generation in Indonesia. As the role of family and social influence play an important role in shaping a person’s character, behavior and understanding, especially for the young generation in Indonesia, so this study proposed communication pattern in the family, financial socialization in family and social influence along with religiosity and sociodemographic factors as determinant factors of the IFL in Indonesia.
Design/methodology/approach
This study applied survey method with online questionnaire. There are 978 respondents from various provinces in Indonesia who were participated in this study. Then, data were analyzed by using Structural Equation Model.
Findings
Based on data analysis, this study found that communication pattern in the family, social influence, religiosity and sociodemographic factors have a significant influence on the IFL. Meanwhile, financial socialization in the family has no significant influence on IFL.
Practical implications
The results can be useful for Indonesian government especially in making decision and policy to encourage the increase in IFL in Indonesia.
Originality/value
This study has a theoretical contribution in providing comprehensive framework regarding the relationship between IFL and its underlying factors such as individual factors, family and social factors. In addition, this study also focused on the IFL of generation Z − an aspect that has been overlooked in previous studies.
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Aysha Batool, Rizwan Shabbir, Muhammad Abrar and Ahmad Raza Bilal
This research aims to investigate the impact of fear and perceived knowledge (PK) of Covid-19 on the sustainable consumption behaviour (SCB) of Muslim consumers and to test the…
Abstract
Purpose
This research aims to investigate the impact of fear and perceived knowledge (PK) of Covid-19 on the sustainable consumption behaviour (SCB) of Muslim consumers and to test the mediating role of (intrinsic) religiosity.
Design/methodology/approach
A total of 417 responses were collected during Covid-19 lockdown through an online structured survey using the snowball technique. A two-step research approach was adopted. In Study 1, an exploratory factor analysis was performed on the SCB measurement scale through SPSS. In Study 2, hypothesised associations were analysed using SmartPLS-SEM.
Findings
PK of Covid-19 pandemic directly motivates SCB in Muslim consumers, whereas fear has no direct effect on any factor of SCB. Religiosity is found to be a significant driver of SCB. Indirect effects also depict that religiosity positively mediates the association between fear and SCB as well as PK and SCB.
Practical implications
The study may guide policymakers and marketers in using the current pandemic as a tool to inspire sustainable consumption. Religious values, teachings and knowledge about the pandemics can be publicised to create awareness and induce desired behaviour to cope with adverse events and adopt sustainable consumption patterns and lifestyles among Muslim consumers.
Originality/value
The article is the pioneer of its kind to present survey research about Covid-19 fear and PK’s impact on SCB through religiosity. It adds to the Islamic marketing literature about religiosity, coping theory, PK and fear of pandemics and their role in transitioning Muslim consumers towards SCB. Moreover, the use of partial least squares structural equation modelling in the context of Covid-19 research was extended.
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Norhayati Zakaria, Wan-Nurisma Ayu Wan-Ismail and Asmat-Nizam Abdul-Talib
The purpose of this research is to understand the importance of value orientation on conspicuous consumption in the youth market segment in Southeast Asia. In particular, the…
Abstract
Purpose
The purpose of this research is to understand the importance of value orientation on conspicuous consumption in the youth market segment in Southeast Asia. In particular, the focus is to understand three different types of value orientation (specifically cultural values, material values and religious values) and its effects on conspicuous consumption behaviour.
Design/methodology/approach
An integrative theoretical model is proposed based on Hofstede's cultural dimension, the materialism value scale and religious commitments to predict the relationship for the value orientations of Generation Y's (Gen Y's) conspicuous consumption behaviour. The data was collected from undergraduate students enrolled in general education courses in three universities in Malaysia. Using cross-sectional data, 262 sets of valid questionnaires were used to perform the statistical analysis for the measurement and structural model using partial least squares equation modelling (PLS-SEM) path modelling.
Findings
We position our study by raising the pertinent question of “Seriously, Conspicuous Consumption?” to establish a clear understanding of whether Malaysian Gen Y individuals are conspicuous consumers and, if they are, which of the three values matter the most. In order to answer the question of whether Malaysian Gen Y engages in conspicuous consumption, we arrive at an understanding that, given multi-value orientations, conspicuous behaviour can be motivated and impacted by one value orientation and constrained by others. Hence, value orientation offers an insightful explanation of one specific type of consumer behaviour in the context of Asia as an emerging global market. Thus, our study provides two key theoretically significant findings. In general, our findings provide insights into how the multi-value orientations (i.e. cultural, material and religious orientations) contribute to several bodies of literature—namely, conspicuous consumption, international marketing and transcultural marketing. The results revealed that collectivism and materialism were positively and significantly related to conspicuous consumption. Uncertainty avoidance, although significant, had a negative relationship with conspicuous consumption. The other values (masculinity, power distance and religious values) were not significantly related to conspicuous consumption.
Research limitations/implications
Purchasing luxury goods is becoming an emergent phenomenon in Asia, particularly among young consumers. This paper provides marketing managers, particularly brand owners, with practical and realisable examples of how to plan and execute their marketing plans. A more profound understanding of this relationship may also serve to aid marketing managers in devising more focused marketing strategies and thus allocate marketing resources more efficiently. Hence, marketers could develop an effective communication strategy so that the target consumers will be aware of their goods because the purchase of luxury goods is likely to be motivated by social, cultural and personal factors.
Originality/value
This article examines the impact of value orientations on conspicuous consumption behaviour in Malaysian Gen Y consumers. The model proposed in this study is useful in predicting conspicuous consumption among Gen Y. By identifying the factors influencing this emergent type of consumer behaviour, global retailers will be informed about this particular market segmentation in terms of its preferences and desires. The article discusses the research findings and concludes with managerial implications and limitations.
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Abi Huraira Rifas, Asmak Ab Rahman, Ahmad Hidayat Buang and Muzalwana Abdul Talib
This study aims to investigate the factors affecting micro, small and medium entrepreneurs’ (MSMEs) behavioural intention to participate in takaful schemes in Sri Lanka.
Abstract
Purpose
This study aims to investigate the factors affecting micro, small and medium entrepreneurs’ (MSMEs) behavioural intention to participate in takaful schemes in Sri Lanka.
Design/methodology/approach
This research adopted a quantitative approach using primary data from a questionnaire. Out of 470 questionnaires, 432 were collected (91.91%) from MSMEs in Kalmunai business region in Sri Lanka. The data obtained were analysed using partial least square-structural equation modelling.
Findings
This study revealed that the extension model of the theory of planned behaviour (TPB) can be effectively applied to behavioural intentions towards a takaful scheme by MSMEs. Out of eight hypotheses, seven were significant, including: attitude towards behavioural intention; subjective norm; perceived behavioural control; knowledge; religiosity; income; trust in takaful as a significant influence. However, awareness of intention was not found to be significant.
Practical implications
This study suggests advantages for takaful providers in Sri Lanka, especially marketing departments, for enhancing sale of products, refurbishing marketing strategies and understanding the purchasing motivation of business entrepreneurs. This study guides takaful companies as to where they should concentrate to enhance market penetration.
Originality/value
Previous studies have concentrated on only three factors which comprise TPB. This paper’s main contribution is on the uniqueness of the Muslim minority context in a pluralistic context, providing a marketing model for takaful operators based on the different relevant dimensions.