Determinants of cash waqf fund collection in Malaysian Islamic banking institutions: empirical insights from employees’ perspectives

Abstract

Purpose This paper aims to test the main factors that affect cash waqf collection among the employees of Islamic banking institutions (IBIs) in Malaysia. Design/methodology/approach The data was gathered using a survey method from 218 employees of IBIs in Malaysia. The obtained data was analyzed using the Statistical Package for the Social Sciences software and smart partial least squares-structural equation modeling to verify the hypothesis and reach conclusions. Findings The results revealed that word of mouth and trust have significant positive impacts on cash waqf collection. The outcomes also confirmed that convenience and accessibility to cash waqf play significant roles in affecting cash waqf collection. Originality/value Based on the researchers’ knowledge, there are only a few studies which focused on measuring the driver of cash waqf collection from the employees’ perspective, particularly in the Malaysian context. This study specifically applies the theory of reasoned action to determine employees’ attitudes toward cash waqf fund collections in IBIs in Malaysia. Having an understanding of the factors that influence employees to contribute to cash waqf would better equip IBIs in managing their cash waqf contributions and in designing their marketing and branding strategies for promoting their institutions.

Cash waqf from the millennials' perspective: a case of Indonesia

“…Cash waqf institutions should exhibit their achievements in serving the community. This is expected to increase the credibility of the nāz˙ir (Ab Shatar et al , 2021).…”

“…Cash waqf institutions should exhibit their achievements in serving the community. This is expected to increase the credibility of the n az _ ir (Ab Shatar et al, 2021). It is believed that the BWI should play a greater role in ensuring the n az _ ir's efficiency.…”

“…Transparency means that data related to a certain waqf manager are made publicly available, which reflects positively on public awareness. A further study by Ab Shatar et al (2021) also stresses the level of trust in the n az _ ir. Their findings depict that trust positively influences the cash waqf contribution in Malaysian Islamic banks.…”

“…This is particularly important, given that Indonesia is one of the largest Muslim-majority countries and possesses tremendous potential in terms of Islamic philanthropy. Related studies have examined the issue of cash waqf and its various aspects in the context of Malaysia (Aziz et al , 2013; Aziz and Yusof, 2014; Adeyemi et al , 2016; Hasan et al , 2019; Maamor and Mutalib, 2020; Ab Shatar et al , 2021) as well as Indonesia (Ihsan and Ibrahim, 2011; Furqon, 2011; Indahsari et al , 2014; Siswantoro et al , 2018; Iqbal et al , 2019; Berakon et al , 2021).…”

Factors influence intention of management of Shariah-compliant companies to participate in Islamic voluntary charity

“…As a result, the government financing for waqf development has been declining over time. As a result, waqf assets lack funding for development and various past studies examined into several areas such as cash waqf risk management (Azrai Azaimi Ambrose and Abdullah Asuhaimi, 2021), digital Shariah Banking on cash waqf (Berakon et al , 2021), cash waqf collection and bank employees (Ab Shatar et al , 2021), enterprise risk management and Malaysian waqf institutions (Yakob et al , 2021), new Malaysia waqf land framework (Yakob et al , 2021; Ghazali et al , 2021). This study examines the prospect of revitalising the function of waqf in Malaysia by using cash waqf to alleviate the liquidity issue.…”