The determinants of financial technology adoption amongst Malaysian waqf institutions
International Journal of Social Economics
ISSN: 0306-8293
Article publication date: 29 March 2023
Issue publication date: 28 August 2023
Abstract
Purpose
The popularity of financial technology (fintech) is rising in society due to fintech's direct benefits to users. This digital-based approach is one of the outputs of the Industrial Revolution 4.0, which transformed the path of human history and resulted in the development of digital transformation strategy innovation, more commonly referred to as digitalisation. Previous literature has predicted that integrating fintech into waqf management will facilitate fintech's growth and expand waqf outreach in Malaysia. Therefore, this paper aims to examine the impact of “Industry 4.0” on the expansion of fintech into cash waqf in Malaysia.
Design/methodology/approach
This study uses Rogers' (2003) diffusion of innovation (DOI) model. In addition, a quantitative approach based on structural equation modelling (SEM) was utilised to analyse the relationship between awareness, knowledge, relative advantage, social norms, perceived trust and fintech adoption in waqf institutions by using the tool Analysis of Moment Structures (AMOS) version 23.0 with maximum likelihood estimation.
Findings
The overall indicate that perceived trust and social norms significantly influence the adoption of fintech by Malaysian waqf. At the same time, other factors such as awareness, relative advantage and knowledge do not appear to significantly influence the adoption of fintech amongst Malaysian waqf institutions.
Research limitations/implications
This study contributes significantly to the current literature concerning the Fourth Industrial Revolution and the wave of technologies. In addition, this study supports relevant theories, including DOI and other technology adoption theories. Aside from this, the study provides empirical contributions to waqf management regarding collecting and distributing waqf, improving the level of regulation of the waqf institutions and enhancing trust between donors, waqf management and beneficiaries. This study is amongst the first in the area of waqf that focus on Malaysian waqf intitutions.
Originality/value
This is important for policy development to support the utilisation of fintech for waqf institutions, which leads to more transparency and efficiency.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2022-0264
Keywords
Acknowledgements
This research is funded by International Islamic University Malaysia (IIUM) (No: IRF19-012-0012). Hence, researchers would like to express gratitude to IIUM for the fund.
Citation
Zakariyah, H., Salaudeen, A.O., Othman, A.H.A. and Rosman, R. (2023), "The determinants of financial technology adoption amongst Malaysian waqf institutions", International Journal of Social Economics, Vol. 50 No. 9, pp. 1302-1322. https://doi.org/10.1108/IJSE-04-2022-0264
Publisher
:Emerald Publishing Limited
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