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This paper aims to propose a framework for information and communication technology (ICT)-based collaborative zakat management to improve zakat management in Indonesia, especially in collection, distribution and empowerment.

This paper used a constructive method that used the 3 C (communication, coordination and cooperation) model to develop a framework. This included initial assessment of the current usage of ICT in zakat management and the expectation of collaborative zakat management through in-depth interviews and questionnaires. A focus group discussion was conducted to validate the model.

ICT is currently used for the administration of zakat management, providing zakat online services and reporting zakat to the public; ICT is not used for collaboration. The proposed collaboration using the 3 C model consists of communication, coordination and cooperation. The focus group discussion validates the proposed ICT-based collaboration framework as an effective strategy for increasing zakat management.

The results highlight strengthening institutional capacity and decreasing overlaps in zakat collection, distribution and empowerment. Zakat institutions need to restructure and reconstruct business processes based on ICT collaboration, and government must provide regulations and ICT infrastructure.

The results increase equity and capacity in zakat distribution and empowerment, therefore it can improve poverty alleviation.

The potential and usage of ICT for collaboration among zakat management organisations have not been thoroughly explored. This paper proposes a conceptual framework for collaboration among zakat institutions using ICT to enhance the efficiency and effectiveness of zakat management.

This study aims to analyse the role of corporate governance in moderating the effects of murabahah, mudharabah and musyarakah financing on the financing risk and financial performance of Islamic banks.

The population for this study covered Islamic banks in Indonesia. Purposive sampling was performed, and statistical analysis was conducted using moderating regression analysis by selecting among the common, fixed and random effects models.

The results showed that murabahah financing has a positive effect on financing risk; conversely, mudharabah financing has a negative effect on financing risk. By contrast, musyarakah financing has no effect on financing risk. However, corporate governance weakens the influence of murabahah financing on financing risk and increases that of mudharabah financing on financing risk. Further, corporate governance cannot weaken the effect of musyarakah financing on financing risk. Additionally, financing risk reduces financial performance.

This research focusses only on Indonesian Islamic banks; future research should be extended to Islamic insurance and Islamic micro finance.

The results serve as input for government regulations on corporate governance in Islamic bank financing and encourage Islamic banks to diversify their financing proportionally.

This research can be used for optimising Islamic bank financing to empower the realty sector and reduce poverty.

Research on the role of corporate governance as a moderating variable in reducing financing risk in Islamic banks remains limited.

This study aims to explore the risk management practices of Islamic microfinance institutions (IMFIs) to increase their financial performance and sustainability.

This research used a qualitative approach to increase financial performance and sustainability. The study population comprised the Baitut Tamwil Muhammadiyah (BTM) in Central Java Province, Indonesia. The data collection techniques included questionnaires and an in-depth interview, and the framework was validated by the main participants.

This study showed that BTMs have implemented risk management using different standards. However, such risk management is carried out partially while prioritising certain risks and using different methods. The risk of Sharia compliance is the most recognised risk, while financing and operational risks are the most anticipated, because these two risk types directly impact financial performance and sustainability. In general, a risk management model can improve financial performance and sustainability. Nevertheless, there are obstacles in implementing risk management at BTMs, which include weak human resources, the employee selection process, human resource development and a good control system.

This research explored best practices for risk management in IMFIs and may contribute to the development of risk management in such institutions to maintain the financial performance and sustainability of their services.

The purpose of this paper is to analyze the effect of the relationship between stakeholder demand, resources, knowledge and product uniqueness on green marketing and its implication on sustainability performance.

This study used a quantitative research approach that explains the phenomenon by collecting numerical data analyzed using mathematically based methods. The research location was Batik Lawean Center of Surakarta, which is the centers of Batik industry and heritage. These locations were chosen because Laweyan and Kedung Baruk have a vision as the center of Batik industry and environment-friendly heritage through sustainable development.

Stakeholder demand, resource, knowledge and the uniqueness of the product have a significant effect on the application of green management, and the green management has a significant effect on the sustainability performance. It means that the stakeholder demand, resources, knowledge and product uniqueness have a significant effect on green management, and green management simultaneously shows a significant effect on sustainability performance. The application of green management will also improve sustainability performance.

The originality of this study is on the testing of simultaneous relationships between the factors making up the application of green marketing, namely stakeholder demand, resources, knowledge and product uniqueness, as well as the impact of green marketing implementation on sustainability performance. This study focuses on the application of green management by involving the measurement of environmental performance and financial performance, as has been investigated by Karagiorgos (2010) and Earnhart and Lizal (2006). On the other hand, this study attempts to review the application of green management in the form of environmental performance as studied by Filbeck and Gorman (2004) and Sarah and Peter (2000), which reveal several determinants of environmental performance, as suggested by Mutamimah and Handoko (2011). However, this study focuses on the qualitative determinants that have been found by researchers (Raharjo, 2016) that the low or high level of green management application is determined by the demand of stakeholders, resources, knowledge, and product uniqueness considering the object of research is the Batik industry, which is certainly different from other industries, such as those that have been investigated by Karagiorgos (2010), Earnhart and Lizal (2006), Mutamimah and Handoko (2011), Filbeck and Gorman (2004), and Sarah and Peter (2000). This study also combines the measurement of financial performance and non-financial performance in the form of sustainability performance variables.

The purpose of this paper is to engage in a systematic examination of previous scholarship on the relationship between Sharia governance (SG), which is represented by the Sharia Supervisory Board (SSB), and the Internal Sharia Review (ISR), to determine whether the ISR can minimize financing risk in Islamic banking.

The literature search consisted of two steps: a randomized and systematic literature review. The methodology adopted in this article is a systematic literature review.

To reduce the risk of financing in Islamic banking, SG must be implemented optimally by making rules regarding the role of the SSB in supervising customer financing. In addition, it is a necessary to establish an entity that assists the SSB in the implementation of SG, namely, the ISR section, but there is still very little research on the role of the SSB and ISR in minimizing financing risk.

Establishing an ISR to assist the SSB in carrying out its duties has direct practical implications for Islamic banking: minimizing financing risks and compliance with Islamic Sharia principles. In addition, new rules regarding the role of SSBs and the ISR in reducing credit risk include monitoring customers to ensure that they fulfill their financing commitments on time. This new form of regulation and review can be used as a reference by the Otoritas Jasa Keuangan or Finance Service Authority to create new policies or regulations regarding SG, especially in Indonesia.

Subsequent research may introduce other more relevant variables, such as empirically testing the competence, independence or integrity of SSB and the ISR team as it attempts to minimize the risk of financing in Islamic banks. In addition, further research is expected to examine whether the SSB or the ISR team has a positive or negative influence on the risk of financing Islamic banks with secondary data.

In the verge of assessing Muslims’ participation in stock market, present study delved into evaluating the influence of Islamic religiosity (IR) on Muslim investor’s financial engagement factors with respect to stock market (i.e. financial literacy [FL], Islamic financial literacy [IFL], behavioural factors [BF], Shariah compliance [SC], technology adoption [TA] and institutional support [IS]), stock market participation (SMP) and financial well-being (FWB). Further, this study aims to examine the mediating role of IFL, TA and SMP and moderating role of IS.

Using a mixed-methods approach, a structured survey questionnaire was administered and responses have been collected from 319 Muslim investors from South India using stratified random sampling. Further, data was analysed using SPSS 20.0 and AMOS 20.0 by implementing one-way ANOVA, measurement model and structural equation model to assess the differences, mediating and moderating roles.

In this study, it is discovered that IR significantly impacts Muslim investor’s financial engagement factors, SMP and FWB. Further, it is explored that IFL accelerates the impact of FL and SC on SMP. The results also demonstrated the intervening role of TA in enhancing SMP through BF and the mediating role of SMP among Muslim investors with strong IR to attain and enjoy FWB. Interestingly, our study also argued that when the IS is more, the effect of IR on SMP is high.

Geographical boundaries are restricted to India, where the study proposes future studies in Islamic countries to better understand the religious belief system of the investors, as SC may vary in different countries.

In accordance with the results, it is recommended that the regulatory bodies and institutions intervene, support and incorporate IFL and also provide user-friendly Tec platforms to monitor and filter stocks and financial products for SC.

The present study intends to tackle the misconception of Islamic values with respect to participating in the stock market and recommends to undertake policy and regulatory framework to ensure the inclusive development of this community.

To the best of the authors’ knowledge, no studies so far have pondered on the mediating role of SMP in enhancing the effectiveness of IR on their FWB. Further, this study collectively examines the influence of IR on various financial engagement factors affecting SMP leading to FWB.

Shari'ah governance is a vital aspect that ensures internal shari'ah compliance function in Islamic financial industry, including the takaful industry. Shari'ah audit is a component of shari'ah governance in any Islamic institution as it independently attests the state of shari'ah compliance. Besides, it contributes towards shari'ah non-compliance risk management and enhances the quality of internal shari'ah audit function. The main aim for this chapter is to discuss the scopes and processes of shari'ah audit function in takaful operation. In addition, a discussion on applicable key controls in takaful operation is also provided. This chapter provides an insight into shari'ah audit implementation in a takaful operator, based on the information solicited from an interview session with its shari'ah auditor. This chapter provides fundamental aspects of shari'ah audit exercise in takaful operation and raises takaful operator's views on the challenges and adequacy of guidelines on shari'ah audit for its effective implementation.

Given the growing emphasis among scholars, practitioners and policymakers on financial sustainability, this study aims to explore the applicability of machine learning techniques in predicting the financial performance of microfinance institutions (MFIs).

This study gathered 9,059 firm-year observations spanning from 2003 to 2018 from the World Bank's Mix Market database. To predict the financial performance of MFIs, the authors applied a range of machine learning regression approaches to both training and testing data sets. These included linear regression, partial least squares, linear regression with stepwise selection, elastic net, random forest, quantile random forest, Bayesian ridge regression, K-Nearest Neighbors and support vector regression. All models were implemented using Python.

The findings revealed the random forest model as the most suitable choice, outperforming the other models considered. The effectiveness of the random forest model varied depending on specific scenarios, particularly the balance between training and testing data set proportions. More importantly, the results identified operational self-sufficiency as the most critical factor influencing the financial performance of MFIs.

This study leveraged machine learning on a well-defined data set to identify the factors predicting the financial performance of MFIs. These insights offer valuable guidance for MFIs aiming to predict their long-term financial sustainability. Investors and donors can also use these findings to make informed decisions when selecting their potential recipients. Furthermore, practitioners and policymakers can use these findings to identify potential financial performance vulnerabilities.

This study stands out by using a global data set to investigate the best model for predicting the financial performance of MFIs, a relatively scarce subject in the existing microfinance literature. Moreover, it uses advanced machine learning techniques to gain a deeper understanding of the factors affecting the financial performance of MFIs.

Islamic financial technology (fintech), primarily peer-to-peer (P2P) lending, plays a substantial role in funding the unbanked population and small and medium enterprises (SMEs) by offering streamlined financial services through online digital technology. In addition, Islamic fintech lending offers a promising return rate for individual and institutional investors, and therefore, it is considered a worthy investment alternative for diversification. This study aims to examine the determinants of project returns of SMEs on Islamic fintech lending platforms, taking the case study of one Islamic fintech lending platform registered at the Financial Service Authority in Indonesia.

Project return information and other information, such as the name of the SME raising fund, project duration, location, contract (aqad) and value (amount of money) to be raised, were extracted from the Islamic fintech lending platform. Furthermore, a regression analysis was performed using the completed projects as sample data (n = 122) on the platform.

The results show that the rate of return is significantly affected by project duration and type of Sharia-compliant contract. Location and project value are, however, found to be statistically insignificant. This study’s overall results align with the Signaling theory, indicating the importance of information for decision-making.

Due to limited access to the data, our study uses data from one of seven Islamic fintech lending platforms; thus, the study results may not be generalized to the general population.

The results suggest that investors aspiring to invest their funds in SME projects on Islamic fintech lending platforms should consider the project duration and contractual agreement since these factors significantly influence the return. Additionally, society may consider the Islamic fintech lending platform a viable investment instrument since its return rate follows the risk-return principle in classical and established finance theories. That is why Islamic fintech lending platforms are competitive compared to the more established ones, such as the Islamic stock market.

To the best of the authors’ knowledge, this study is the first study using an empirical approach to reveal the project return determinants of SMEs on Islamic fintech lending platform.

This study aims to examine how muzakki (zakat donator) and mustahik (zakat recipients) collaborated to strengthen the fundraising capability in Islamic social finance institutions (ISFIs) during the COVID-19.

This study uses a descriptive qualitative method in conjunction with interview techniques. Interviews with muzakki of various professions were conducted, as well as data from field documentation, to develop a collaborative model of muzakki and mustahik in strengthening the fundraising capacity of ISFIs.

The findings indicate that muzakki employed as civil servants, BUMN (state-owned enterprises) employees and entrepreneurs continue to pay zakat through ISFIs and support mustahik, whereas muzakki affected by the COVID-19 pandemic reduce their zakat spending. Consequently, with the collaboration of mustahik and muzakki, a framework can be developed to strengthen the strategy for raising funds for ISFIs. By empowering mustahik with businesses, ISFIs can increase the collection of zakat funds.

The collaboration model would strengthen ISFI's ability to raise Islamic philanthropic funds and optimize their management. The basis for the regulation is contained in Law No. 23 of 2011 which allows collaboration between institutions and other stakeholders. In addition, the role of ISFIs does not end with the collection and distribution of funds, they also maintain the muzakki and mustahik's cooperation, so a significant role is required in involving muzakki and mustahik for them to collaborate and synergize, as well as improving the quality of human resource from Amil (zakat collector) to implement the strategy.

Few studies have been conducted in collaboration with Muzakki and Mustahik to develop models or frameworks for strengthening fundraising capabilities in ISFIs. Most of these studies are illustrative. Through collaboration between Muzakki and Mustahik, this research establishes a new model for enhancing the strategy of Islamic social finance fund raising to establish a sustainable system for ISFIs.