An Empirical Examination of Factors Influencing the Behavioral Intention to Use Zakat-Based Crowdfunding Platform Model for Countering the Adverse Impact of COVID-19 on MSMEs in Indonesia

Abstract

ABSTRACT
 This study aims to examine the behavioral intention of the Muslim crowd funders to use the Zakat-based crowdfunding platform model by adopting the concept of the Unified Theory of Acceptance and Use of Technology (UTAUT) Model. The platform model, as an intermediary between Muslim crowd funders and MSMEs, provides financing services for MSMEs to fight any kind of situation/pandemic like COVID-19 nowadays. This study used the primary data that is collected by using the online survey questionnaires, and then the analysis is conducted using partial least squares (PLS) regression. The empirical study shows that all the variables except for facilitating conditions have a significant positive effect on the intention of Muslim crowd funders to use the Zakat-based crowdfunding platform model. The present study will help the government and policymakers to plan appropriate intervention strategies to minimize the adverse impact of the COVID-19 pandemic on MSMEs in Indonesia. Furthermore, the study will contribute to the existing literature especially on the factors influencing the adoption of the Zakat-based crowdfunding platform model.

Determinants of digital zakat payments: lessons from Indonesian experience

“…It is furthermore argued that effort expectancy positively influences the intention of using online platforms to pay zakat. This is supported by the findings from several previous studies (Li et al, 2018;Sulaeman and Ninglasari, 2020;Venkatesh et al, 2003), which stated that effort expectancy has a positive influence on the intention to use and accept technology. Thus, the following hypothesis is established:…”

“…It is also considered very effective in explaining up to 70% of the variance on the intention to use technology than the other eight theories (Venkatesh et al, 2003). This framework has been used by studies related to online donation (Li et al, 2018;Chen et al, 2019;Choi et al, 2019) and few JIABR 12,3 zakat studies (Sulaeman and Ninglasari, 2020). With this approach, and based on the hypotheses developed in Section 2, the overall research framework is illustrated in Figure 1 below.…”

“…In this respect, the study of Li et al (2018) in China and Choi et al (2019) in South Korea showed a significant positive influence between performance expectancy on the intention to use and accept technology. Performance expectancy was also positively affecting zakat collection during Indonesia's pandemic time (Sulaeman and Ninglasari, 2020). Therefore, the following hypothesis is proposed: H1.…”

“…Although this study focuses on the distribution aspects of zakat from the zakat recipients' perspective (asnaf/mustahiq), it is notable that all UTAUT factors, except effort expectancy, were significant in the study. The UTAUT framework was also used by Sulaeman and Ninglasari (2020), who examined Muslim crowdfunders' behavioral intention to use a zakatbased crowdfunding platform in Indonesia. However, their focus was the respondents specifically aimed to support the adverse impacts of COVID-19 pandemic on MSMEs in Indonesia.…”

“…It is notable, however, that these studies are qualitative and explorative in nature. Recently, Sulaeman and Ninglasari (2020) conducted a quantitative study that examined Muslims' intention to use a zakatbased crowdfunding platform in Indonesia. However, their focus was those specifically aimed to support the adverse impacts of Novel Coronavirus (COVID-19) on micro, small and medium enterprises (MSMEs) in the country.…”