The role of blockchain technology in enhancing Islamic social finance: the case of Zakah management in Malaysia
ISSN: 1463-6689
Article publication date: 5 July 2021
Issue publication date: 10 August 2021
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.
Keywords
Acknowledgements
Declarations: Availability of data and materials: Not applicable.the authors would like to extend their gratitude to UKM for providing the grant EP-2020–064 and GGP-2017–071. They acknowledge the contribution of Yusry Yusoff and Razli Ramli from Islamic Banking and Finance Institute Malaysia, IBFIM for the initial idea of the research.
Citation
Mohd Nor, S., Abdul-Majid, M. and Esrati, S.N. (2021), "The role of blockchain technology in enhancing Islamic social finance: the case of Zakah management in Malaysia", Foresight, Vol. 23 No. 5, pp. 509-527. https://doi.org/10.1108/FS-06-2020-0058
Publisher
:Emerald Publishing Limited
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