Shifa Mohd Nor, Mariani Abdul-Majid and Siti Nabihah Esrati
This study aims to explore the perceptions of zakah institutions and the intention of society towards the application of blockchain technology in zakah management.
Abstract
Purpose
This study aims to explore the perceptions of zakah institutions and the intention of society towards the application of blockchain technology in zakah management.
Design/methodology/approach
The nature of this study is qualitative, attempting to indulge into the contribution of Fintech in Islamic social finance. This study uses a mixed-method to gauge the perception of stakeholders. For the quantitative approach, a survey was carried out focussing on zakah receiver and zakah payer. The data then was analysed based on the technology acceptance model. While interview survey with multiple stakeholders (zakah institutions, JAWHAR and university) was conducted to gauge the perception of zakah institutions in using blockchain technology.
Findings
The findings of this study provide a positive view for zakah institutions to embrace the usage of blockchain in its management, however, there are several concern that needs to be addressed.
Practical implications
This study provides new insights to the body of knowledge especially in the zakah management system and Fintech. Besides, from a managerial aspect, this study contributes to the new practices that could be implemented in zakah institutions.
Social implications
Many people lose jobs and income due to the economic turmoil and COVID-19 pandemic, which makes zakah an important Islamic social finance tool to assist in socio-economic development. It is high time for zakah institutions to implement blockchain especially during this pandemic crisis that requires a more contactless approach to ensure health and safety.
Originality/value
This study is important to encourage Islamic social finance institutions to embrace blockchain technology in providing an efficient service to the development of social and economic.
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Aisyah Abdul Rahman, Shifa Mohd Nor and Mohd Fadzli Salmat
This paper aims to explore the strategies used by venture capital (VC) firms in assisting entrepreneurs who have business potential but lack capital. The study also aims to…
Abstract
Purpose
This paper aims to explore the strategies used by venture capital (VC) firms in assisting entrepreneurs who have business potential but lack capital. The study also aims to investigate whether the VC strategy can be adopted by Islamic banks through musharakah financing.
Design/methodology/approach
Apart from content analysis, primary data were gathered from several interview sessions with the management of three VC firms and two Islamic banks.
Findings
Islamic banks in Malaysia have great potential to offer musharakah financing and mitigate risk by adopting the following five VC strategies: method of selection, channelling of funds, monitoring, non-capital assistance and period of investment. We propose the channelling of corporate social responsibility funds for musharakah financing as an initial step in applying VC strategy.
Research limitations/implications
Given the limited number of willing and eligible respondents in Malaysia, the scope of this study can be widened to a cross-country analysis where musharakah financing is widely adopted.
Practical implications
This study motivates regulatory bodies and Islamic banks to consider musharakah financing using the risk monitoring strategy adopted from the VC industry.
Originality/value
This study is the first to empirically explore the strategy adopted by VC companies and evaluate whether such a strategy is suitable for the concept of musharakah financing.
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Zakariya Mustapha, Sherin Binti Kunhibava and Aishath Muneeza
The purpose of this paper is to review the literature on Islamic finance vis-à-vis legal and Sharīʿah non-compliance risks in its transactions and judicial dispute resolution in…
Abstract
Purpose
The purpose of this paper is to review the literature on Islamic finance vis-à-vis legal and Sharīʿah non-compliance risks in its transactions and judicial dispute resolution in Nigeria. This is with a view to putting forward direction for future studies on the duo of legal and Sharīʿah non-compliance risks and their impact in Islamic finance.
Design/methodology/approach
This review is designed as an exploratory study and qualitative methodology is used in examining relevant literature comprising of primary and secondary data while identifying legal risk and Sharīʿah non-compliance risks of Nigeria’s Islamic finance industry. Using the doctrinal approach together with content analysis, relevant Nigerian laws and judicial precedents applicable to Islamic finance practice and related publications were examined in determining the identified risks.
Findings
Undeveloped laws, the uncertainty of Sharīʿah governance and enforceability issues are identified as legal gaps for Islamic finance under the Nigerian legal system. The gaps are inimical to and undermine investor confidence in Nigeria’s Islamic finance industry. The review reveals the necessity of tailor-made Sharīʿah-based regulations in addition to corresponding governance and oversight for a legally safe and Sharīʿah-compliant Islamic finance practice. It brings to light the imperative for mitigating the legal and Sharīʿah non-compliance risks associated with Islamic finance operations as crucial for Islamic finance businesses, Islamic finance institutions and their sustainable development.
Research limitations/implications
Based on content analysis, the review is wholly doctrinal and does not involve empirical data. Legal safety and Sharīʿah compliance are not to be compromised in Islamic finance operations. The review would assist relevant regulators and investors in Islamic financial enterprises to understand and determine the impact and potential ramifications of legal safety and Sharīʿah non-compliance on Islamic Finance Institutions.
Practical implications
This study provides an insight into the dimensions and ramifications of legal and Sharīʿah non-compliance risks of Nigeria’s Islamic finance industry. This study is premised on the imperative for research studies whose outcome would inform regulations that strike a balance between establishing Islamic financial institution/business and ensuring legal certainty and Sharīʿah compliance of their operations. This study paves way for this kind of research studies.
Originality/value
The findings and discussions provide a guide for regulators and researchers on the identification and mitigation of legal and Sharīʿah non-compliance risks in Islamic finance via a literature review. This study, the first of its kind in Nigeria, advances the idea that research into legal and Sharīʿah non-compliance risks of Islamic financial entities is key to mitigating the risks and fostering the entities and their businesses.
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Azlin Alisa Ahmad, Mohd Hafiz Mohd Dasar and Nik Abdul Rahim Nik Abdul Ghani
This study aims to analyse the Shariah issues in the implementation of tawarruq contract in the Islamic profit rate swap (IPRS) instrument in Malaysia.
Abstract
Purpose
This study aims to analyse the Shariah issues in the implementation of tawarruq contract in the Islamic profit rate swap (IPRS) instrument in Malaysia.
Design/methodology/approach
This is a qualitative study in applying data analysis and semi-structured interview approaches. Data was collected from various documents including journals, articles and past studies conducted by scholars. To achieve the purpose of this study, the data is analysed based on thematic analysis.
Findings
The study found several Shariah issues regarding the implementation of tawarruq contract in the IPRS instruments, which have remained a dispute amongst the Islamic financial scholars such as its profit-making purpose, encouragement of debt, impediment of shared risk concept, disputed underlying assets, a deception towards allowing riba and dual agency.
Research limitations/implications
This study recommends several improvements such as the establishment of a neutral agency that does not represent any banking institution to manage the tawarruq contract commodity purchase from Bursa Suq al-Sila’ (BSAS). In addition, a neutral agency can provide aid in terms of transaction facility or at least consultation service for clients to enable them to conduct the commodity transactions independently.
Practical implications
Moreover, guidelines should be established on the separation of the deadline to sign the agreement of appointment of a bank as the commodity purchase agent and the agreement of appointment of the bank as the commodity sale agent on behalf of clients. All transactions related to tawarruq contract commodity must be done through BSAS. The regulators and industry experts may create a guideline for the IPRS based on the issues and recommendations that have been discussed in this study.
Originality/value
On the basis of the analysis of the criticisms and issues in the implementation of tawarruq contract in the IPRS instrument, the current study found that an intermediating institution is allowed to gain profits from transactions conducted so long as they are based on Shariah principles of contract in Islam. As there is no parameter specifically for IPRS, thus the suggested parameter can be used by policymakers such as the Central Bank of Malaysia to ensure the industry complies with Shariah principles.
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Meguellati Achour, Shahidra Binti Abdul Khalil, Bahiyah Binti Ahmad, Mohd Roslan Mohd Nor and Mohd Yakub Zulkifli Bin Mohd Yusoff
This study aims to examine the relationship of work–family demands with employees’ well-being, and the role of management/supervisory support in this relationship. The following…
Abstract
Purpose
This study aims to examine the relationship of work–family demands with employees’ well-being, and the role of management/supervisory support in this relationship. The following hypotheses were proposed: work–family demands would be negatively related to employees’ well-being; management/supervisory support would moderate the relationship of work–family demands with employees’ well-being.
Design/methodology/approach
The researchers used 250 working female academicians as respondents, working in the research universities in Kuala Lumpur, Malaysia. Their ages ranged from 30 to 60 years.
Findings
The findings of the present study proved that the work–family demands were negatively associated with employees’ well-being. Results also revealed that management and supervisory support strengthens the relationship between work–family demands and employees’ well-being. Thus, management and supervisory support plays an important role in balancing work demands and family roles and also in increasing working female academicians’ well-being.
Originality/value
In this study, management and supervisory support was found to be directly related to well-being, including life satisfaction, job satisfaction and family satisfaction. However, the direct relationship between management/supervisory support and well-being was positive and significant. This study also found that management/supervisor support reduced work–family conflict and work–family demands. Also, supervisory and management support was found to have a significant and positive relationship with well-being. Given these findings, supervisory and management support plays a very important role as a moderator of work–family demands and in developing and improving well-being in working women.
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To describe and evaluate the collection of the library of the International Institute of Islamic Thought and Civilization (ISTAC).
Abstract
Purpose
To describe and evaluate the collection of the library of the International Institute of Islamic Thought and Civilization (ISTAC).
Design/methodology/approach
The relevant Association of College and Research Libraries’ (ACRL) Standard for College Libraries of 1986 (Standard 2) is used to assess the quality of the Library collection.
Findings
The library of the International Institute of Islamic Thought and Civilization (ISTAC) achieves level B of the ACRL standard.
Research limitations/implications
The paper takes one very particular, widely respected quantitative tool for collection evaluation and uses it “as is” – the paper thus accepts and applies the theoretical framework on which the tool is based, but applies it in a relatively unfamiliar library setting.
Practical implications
The description of the collection is of value to those needing to locate materials relating to Islamic culture and civilization; the implementation of the ACRL methodology is a useful demonstration of a practical tool for collection management and assessment.
Originality/value
It is important for any educational institution to establish an effective library collection, one that is able to support the teaching and learning activities of the institution. To ensure that the library achieves its objectives, evaluation of the library collection needs to be done. This paper applies an internationally accepted standard for collection evaluation to a particular library, giving a model for other libraries to follow, especially libraries in the developing world. It is important to demonstrate that libraries in the developing world can aspire to and attain standards designed for collections in developed countries: this paper achieves that goal.