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Article
Publication date: 9 October 2023

Safwan Kamal, Izra Berakon, Abdul Hamid and Zainal Muttaqin

Previous studies described the professional zakat had been limited. Generally, the past authors conducted a quantitative method with general results and did not focus on the…

Abstract

Purpose

Previous studies described the professional zakat had been limited. Generally, the past authors conducted a quantitative method with general results and did not focus on the behaviour of people who pay the professional zakat. As a result, the purpose of this study is to provide a comprehensive understanding of how the general public can pay their zakat using Bloom’s theory.

Design/methodology/approach

This research uses primary data with in-depth interviews from five informants, including civil servants (PNS) and private employees. Spiral analysis was used to analyse the data, arrange it, read it frequently, take brief notes, find categories, interpret and summarise it.

Findings

The results show Bloom’s theory can accommodate muzakki’s behaviour by paying professional zakat. It can be seen from the following conclusions: firstly, in the cognitive domain, muzakki’s behaviour of paying the professional zakat was motivated by their memories (experiences), the ability to interpret, the ability to understand the principles of zakat, the ability to understand the relations and the ability to understand the role of zakat from its norms. Secondly, in the affective domain, muzakki’s behaviour in paying the professional zakat was motivated by their ability to receive, give positive value, call others and dare to take risks. Thirdly, in the psychomotor domain, guided practice, mechanised practice and adoption drive muzakki’s behaviour of paying zakat.

Research limitations/implications

This study has limitations regarding the number of samples (informants). In addition, the results of the research are designed to be very subjective so that they cannot be generalised to phenomena that exist in other places and countries that also require zakat in the profession. In the future, the results of this study can be used as a variable development with quantitative methods so that it can involve more samples to get maximum and a broader result.

Practical implications

This research has a valuable managerial impact on the zakat management institutions, particularly in Langsa, Aceh, Indonesia and all zakat institutions worldwide. Therefore, the central government can evaluate the zakat gap through various socialisation activities by promoting the cognitive, affective and psychomotor domains. Socialisation should improve people’s behaviour to pay zakat so that the amount of zakat collected will be higher and will reduce the gap between the potency of zakat and the zakat in reality which has been unequal so far.

Originality/value

This research will contribute to the significant development of zakat in terms of studying the behaviour of muzakki paying the professional zakat. Although the theory of planned behaviour was dominated by previous research, this research reveals other aspects of muzakki behaviour using Bloom’s model by elaborating on cognitive, affective and psychomotor domains.

Details

Journal of Islamic Marketing, vol. 15 no. 3
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 10 May 2023

Sri Herianingrum, Indri Supriani, Raditya Sukmana, Effendie Effendie, Tika Widiastuti, Qudsi Fauzi and Atina Shofawati

This study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia.

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Abstract

Purpose

This study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia.

Design/methodology/approach

This study used a qualitative method based on library research sourced from books, financial reports and another previous research.

Findings

The results show that the empowerment programs conducted by Zakat institutions in Indonesia are based on the scale of priorities and the potential of Mustahik. Zakat management considers the level of productivity and long-term impacts that improve Mustahik Economy. Thus, the empowerment programs lead to the reduction of Mustahik living below poverty line.

Research limitations/implications

This study contributes in two ways: first, it analyzes a model to identify the Mustahik’s potential for the Zakat institution in Indonesia. Second, it encourages the awareness of Muzakki and Mustahik regarding the role of Zakat in the Indonesian economy. This is expected to prompt their level of participation in optimizing the potential of Zakat in Indonesia.

Originality/value

Given the scarce literature that provide qualitative and critical reviews of the implementation Zakat empowerment programs to alleviate poverty conducted by the Zakat institutions in Indonesia, this research can act as a bridge for future research in performing empirical studies regarding the impact of a Zakat empowerment program on society.

Details

Journal of Islamic Accounting and Business Research, vol. 15 no. 4
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 28 March 2023

Muhammad Iqmal Hisham Kamaruddin, Zurina Shafii, Mustafa Mohammed Hanefah, Supiah Salleh and Nurazalia Zakaria

This study aims to explore the current Shariah audit practices in zakat and waqf institutions in Malaysia.

Abstract

Purpose

This study aims to explore the current Shariah audit practices in zakat and waqf institutions in Malaysia.

Design/methodology/approach

A focus group discussion (FGD) with 38 zakat and waqf officers from 17 different zakat and waqf institutions in Malaysia was conducted. For reporting purposes, this study used a single-case study approach. The FGD was conducted and completed at the end of June 2021 via an online approach through Microsoft Teams.

Findings

The finding highlights the existing Shariah governance practices especially in terms of Shariah supervision roles, Shariah audit implementation in terms of Shariah audit scopes and common findings, Shariah audit competency, Shariah audit effectiveness especially the need for external Shariah audit function and Shariah audit issues and challenges faced in the implementation of Shariah audit practices.

Practical implications

The study findings and recommendations are useful for zakat and waqf institutions as well as the State Islamic Religious Councils to enhance Shariah audit practices in Malaysia.

Originality/value

This study is among the pioneer studies that explore Shariah audit practices in zakat and waqf institutions in Malaysia.

Details

Journal of Islamic Accounting and Business Research, vol. 15 no. 3
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 1 April 2024

Ahmad Hidayat bin Md Nor, Aishath Muneeza and Magda Mohsin

This study aims to develop a comprehensive insolvency model tailored to Islamic banks, ensuring alignment with Shariah principles throughout pre-insolvency, bankruptcy and…

Abstract

Purpose

This study aims to develop a comprehensive insolvency model tailored to Islamic banks, ensuring alignment with Shariah principles throughout pre-insolvency, bankruptcy and post-bankruptcy stages.

Design/methodology/approach

The research adopts a qualitative research method, using a desktop research approach. Primary sources and secondary sources are examined to gather information and draw conclusions.

Findings

This study presents a comprehensive insolvency model designed for Islamic banks, rooted in Shariah principles. The model covers pre-insolvency, bankruptcy (taflis) and post-bankruptcy stages, incorporating key Shariah parameters to ensure adherence to Islamic finance principles. It addresses challenges such as adapting to dynamic financial landscapes and varying interpretations of Shariah principles. Notably, the model recognizes the separate legal personality of Islamic banks and emphasizes transparency, fairness and compliance with religious obligations. In the post-bankruptcy stage, directors are urged to voluntarily settle remaining debts, aligning with ethical and Shariah-compliant standards.

Originality/value

The study contributes to the stability and growth of Shariah-compliant financial systems by extending insolvency principles to Islamic banks, providing a foundation for future research and policymaking specific to this context.

Details

International Journal of Law and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 11 March 2024

Denizar Abdurrahman Mi'raj and Salih Ulev

Given the overlapping themes and periods in specific subjects within Islamic economics and finance bibliometric research, which may yield similar findings in bibliometric studies…

Abstract

Purpose

Given the overlapping themes and periods in specific subjects within Islamic economics and finance bibliometric research, which may yield similar findings in bibliometric studies, it is essential to document the growth of Islamic economic and financial research using bibliometric methodologies. This study aims to understand better the critical bibliometric review trends and scientific advancements in Islamic economics and finance.

Design/methodology/approach

This study uses bibliometric analysis, collecting 46 Islamic economics bibliometric papers from the Web of Science Core Collection from 1975 to 2022. The authors generated top scientific scholars, keyword analysis, citation analysis, content analysis and conclusions for journal development using R Biblioshiny, VOSviewer, ATLAS.ti and Excel.

Findings

This study has established a comprehensive bibliometric framework for Islamic economics and finance bibliometric papers, encompassing all critical areas within the discipline and identifying any remaining research gaps. The major significant areas revealed were Islamic social finance and microfinance concerns, which are closely pertinent to the issues of ethics, corporate social responsibility and sustainability, respectively. The authors also identified opportunities for future bibliometric analyses in Islamic economics and finance, which include using more comprehensive databases, refining or broadening search strategies, using advanced techniques and units of analysis and suggesting themes for further exploration.

Research limitations/implications

The study relies merely on the Web of Science Core Collection database, which provides the most in-depth citations by source for the world’s scientific and scholarly research. Future research may consider expanding its scope to include other databases for a broader range of sources. Furthermore, due to the rise of bibliometric studies in Islamic economics and finance, this study also comments on the saturation of bibliometric studies conducted in several similar areas. While researchers bring their unique analytical perspectives to bibliometrics, this study provides a comprehensive view of existing research in Islamic economics and finance, highlighting well-explored topics and those that remain less studied. Thus, this could assist researchers in determining their future research priorities.

Practical implications

Policymakers in Islamic financial and economic institutions, including banking institutions, social, financial institutions and halal institutions, should be impacted by this research when making policies or conducting research. The viability of the current Islamic economic and financial ecosystem will be indirectly maintained and managed by these implications.

Social implications

This comprehensive meta-analysis in Islamic economics and finance is expected to impact the development and sustainability of the Islamic economic and financial ecosystem, promoting societal welfare through applying Islamic economics and finance.

Originality/value

This pioneering bibliometric analysis of Islamic economics and finance papers aims to offer insights and projections for future research in the field. This research contributes to the literature by examining various aspects, including evaluating literature on trending topics, analyzing papers related to research areas and conducting content analysis of existing bibliometric studies in Islamic economics and finance. It specifically groups these studies around fundamental topics, summarizes findings from contemporary research and identifies emerging research gaps.

Details

Qualitative Research in Financial Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 22 August 2023

Yusuff Jelili Amuda and Shafiqul Hassan

This study reports the results of the empirical investigation of the Shari'ah legal framework which serves as a basis of the crowd humanitarian fund and poverty reduction among…

Abstract

Purpose

This study reports the results of the empirical investigation of the Shari'ah legal framework which serves as a basis of the crowd humanitarian fund and poverty reduction among members of Organization of Islamic Cooperation (OIC) for improving living conditions of less privileged people in the society.

Design/methodology/approach

Quantitative design was employed in this study and the population comprised middle and high-skilled workers among members of the OIC.

Findings

The results demonstrated that the majority of middle- and high-skilled workers were from the middle east and others were from Saudi Arabia, Asia and Africa respectively.

Research limitations/implications

Most studies on crowd humanitarian funds were theoretical in nature, this study has empirically investigated.

Practical implications

By making crowd humanitarian funds to be grounded within the framework of Shari'ah, it will enable majority of people in predominant Muslim countries to partake in mutual or crowd funding in order to help the less-privileged individuals among OIC members in the society.

Social implications

It is an important contribution for financial inclusion and economic growth for improving social and living conditions of the less privileged people in the society.

Originality/value

Most studies on crowd humanitarian funds were theoretical in nature; this study has empirically provided a substantial direction for activating the mindset of the empirical investigation of different financial concepts.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2022-0773.

Details

International Journal of Social Economics, vol. 51 no. 4
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 31 March 2023

Nur Laili Ab Ghani, Noraini Mohd Ariffin and Abdul Rahim Abdul Rahman

This study aims to assess the extent of the mandatory and voluntary Shariah compliance disclosure in the Shariah Committee Report of Islamic financial institutions (IFIs) in…

Abstract

Purpose

This study aims to assess the extent of the mandatory and voluntary Shariah compliance disclosure in the Shariah Committee Report of Islamic financial institutions (IFIs) in Malaysia. The study highlights the accountability and transparency of the Shariah Committee members to provide full disclosure of relevant Shariah compliance information to the stakeholders.

Design/methodology/approach

The study adopts content analysis to quantify and code the number of sentences in the Shariah Committee Report disclosed in the 2016 annual report of 47 IFIs in Malaysia. The extent of Shariah compliance disclosure in the Shariah Committee Report is measured based on the Standard (S) and Guidance (G) items outlined in the Shariah Governance Framework (SGF) as well as the Financial Reporting for Islamic Banking Institutions and takaful operators guidelines issued by Bank Negara Malaysia (BNM) as the reference.

Findings

The findings indicate that majority of IFIs complied with the minimum mandatory disclosure requirement based on the Standard (S) items in the Shariah Committee Report as required by the SGF. Highest information on the purpose of Shariah Committee engagement and scope of work performed is disclosed to the stakeholders in almost all IFIs. Only two prominent full-fledged Islamic bank and Islamic banking business in development financial institutions have shown highest accountability to go beyond the minimum disclosure requirement. This includes disclosing higher voluntary information on Shariah governance processes in the Shariah Committee Report of these two IFIs.

Research limitations/implications

This study adopts the SGF (Bank Negara Malaysia, 2010), Financial Reporting for Islamic Banking Institutions (Bank Negara Malaysia, 2016) and Financial Reporting for Takaful Operators (Bank Negara Malaysia, 2015) as the reference to develop the measurement of Shariah compliance disclosure in the Shariah Committee Report. These guidelines issued by BNM are still effective during the period of study, i.e. the year 2016.

Practical implications

The findings contribute towards the relevance for BNM as the regulator to enhance the current disclosure requirement in the Shariah Committee Report as stated in the SGF especially in Islamic windows and takaful operators. The main argument of this paper is that the more information being disclosed in the Shariah Committee Report will lead to better Shariah assurances. The issuance of Shariah Governance Policy Document in 2019 is expected to enhance the credibility, accountability and transparency of the Shariah Committee members concerning their oversight responsibility towards Shariah matters in IFIs’ business operations.

Originality/value

After five years since the issuance of the SGF in 2010, further study on the extent of mandatory and voluntary Shariah compliance disclosure is important to highlight the accountability and transparency on the implementation of the Shariah governance across various types of IFIs in Malaysia.

Details

Journal of Islamic Accounting and Business Research, vol. 15 no. 3
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 19 December 2023

Roni Andespa, Yulia Hendri Yeni, Yudi Fernando and Dessy Kurnia Sari

This study aims to investigate what past scholars have learned about Muslim consumer compliance behaviour in Islamic banks and identify what future research is needed. In…

Abstract

Purpose

This study aims to investigate what past scholars have learned about Muslim consumer compliance behaviour in Islamic banks and identify what future research is needed. In addition, it also explores the relationship model between the previously studied determining factors and the customer’s Sharia compliance behaviour.

Design/methodology/approach

This study used a bibliometric–systematic literature review analysis using the Preferred Reporting Items for Systematic reviews and Meta-Analyses (PRISMA) technique by reviewing the articles published from 2013 to 2023. The PRISMA procedures involved several stages, including identification, screening, eligibility, analysis and conclusion based on the findings.

Findings

The results found that customer Sharia compliance behaviour determinants in Islamic banks are attitude, subjective norms, perceived behavioural control, Islamic financial literacy, religiosity, consumer conformity, Islamic branding and behavioural intention. Interestingly, the results indicated that such factors as consumer conformity, Islamic branding and sustainable intentions are less discussed.

Practical implications

Decision-makers in Islamic banks must use digital technology to offer better service and make operations more reachable for customers to access information, complete transactions and manage their accounts by Sharia principles. Therefore, the bank needs to continually produce innovative products and services so that customers have a greater variety of options to suit their Sharia-compliant financial needs. Theoretically, this study has contributed by finding the main critical domains influencing customers’ Sharia compliance behaviour, such as attitudes, subjective norms, perceptions of behavioural control, knowledge of Islamic finance, religiosity, consumer conformity, Islamic branding and behavioural intentions. Then, it makes a theoretical contribution by establishing a model that explains how customers make decisions based on Sharia-related factors in the context of their purchases.

Originality/value

Past studies focused on the Sharia compliance behaviour in paying Zakat for takaful customers. Therefore, this study provides critical factors of Sharia compliance behaviour on conformity, Islamic branding and sustainable intention regarding unexplored consensus on the determinants and outcomes of customer Sharia compliance behaviour of Islamic banking.

Details

Journal of Islamic Marketing, vol. 15 no. 4
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 28 April 2023

Bashayer Merdef AlQashouti and Nasim Shah Shirazi

The purpose of this paper is to conduct a systematic literature review of research conducted in the economic Islamicity (EI) index field, in terms of non-Islamic countries.

Abstract

Purpose

The purpose of this paper is to conduct a systematic literature review of research conducted in the economic Islamicity (EI) index field, in terms of non-Islamic countries.

Design/methodology/approach

This study thoroughly assessed the literature on the EI index by conducting extensive systematic literature reviews.

Findings

The critical analysis of these indices shows the need for amendments, which can be achieved by improving the Islamicity index seen in non-Islamic countries. This step will help validate the Islamicity index assessment and help Islamic countries develop and strengthen Islamic economic values.

Originality/value

As the first comprehensive literature review in the Islamicity indices domain to the best of the authors’ knowledge, this research may contribute for Islamic country to increase the Islamicity index in terms of economic issue for future research themes.

Details

Journal of Islamic Accounting and Business Research, vol. 15 no. 2
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 28 March 2024

Tarjo Tarjo, Alexander Anggono, Zakik Zakik, Shahrina Md Nordin and Unggul Priyadi

This study aims to empirically examine the influence of Islamic corporate social responsibility (ICSR) on social welfare moderated by financial fraud.

Abstract

Purpose

This study aims to empirically examine the influence of Islamic corporate social responsibility (ICSR) on social welfare moderated by financial fraud.

Design/methodology/approach

The method used was the mix method. The number of respondents was 410. They combined the moderate regression analysis with PROCESS Andrew F Hayes to test the research hypothesis. After conducting the survey, it was continued by conducting interviews with the village community and the head of the village.

Findings

The first finding of this study is that ICSR has a significant positive effect on social welfare. The second finding is that financial fraud weakens the influence of ICSR on social welfare. The results of the interviews also confirmed the two findings of this study.

Research limitations/implications

The high level of bias in answering the questions is due to the low public knowledge of ICSR. In addition, the interviews still needed to involve the oil and gas companies and government.

Practical implications

The main implication is improving social welfare, especially for those affected by offshore oil drilling. Furthermore, stakeholders are more sensitive to the adverse effects of financial fraud. Finally, to make drilling companies more transparent and on target in implementing ICSR.

Originality/value

The main novelty in this research is using of the mixed method. In addition, applying financial fraud as a moderating variable is rarely studied empirically.

Details

Journal of Financial Crime, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1359-0790

Keywords

1 – 10 of 38