Technology Adoption among Zakat Institutions in Malaysia

Salleh, Marhanum Che Mohd; Chowdhury, Muhamad Abdul Matin

doi:10.37706/iconz.2020.238

Cited by 9 publications

(8 citation statements)

References 13 publications

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“…There are more than 440 research papers published covering zakat and technology (Kasri and Yuniar, 2021; Widiastuti et al , 2021; Fauzia, 2020; Budi, 2022; Hassan and Muneeza, 2021; Hudaefi and Beik, 2021; Khatiman et al , 2021; Mohd Nor et al , 2021; Omar and Khairi, 2021; Syahbudi and Moertiono, 2021; Rusydiana and Nailah, 2020; Salleh and Chowdhury, 2020; Sulaeman and Ninglasari, 2020; Muneeza and Nadwi, 2019; Shaari et al , 2019). Muneeza and Nadwi (2019) observed that apart from using online platforms to enhance zakat administration using technology: rice automated teller machines are used to disburse zakat in-kind to the needy recipients; mobile applications are also being used; and blockchain platforms are also being used.…”

Section: Theoretical Analysismentioning

confidence: 99%

“…Technology can also be used to provide correct information about the zakat authorities in a timely manner to the public, as it is found that one of the reasons why mistrust of the public about zakat authorities exists due to the feeding of wrong information in social media about them (Shaari et al , 2019). Salleh and Chowdhury (2020) also state that the use of technology in zakat administration will increase the trust of the public toward zakat institutions. Likewise, Khatiman et al (2021) also state that blockchain-based zakat collection will overcome the trust issues of zakat payers and the issues identified in this regard include zakat payers not being satisfied with the zakat distribution, and lack of transparency in the zakat management leading to mistrust.…”

Section: Theoretical Analysismentioning

confidence: 99%

See 1 more Smart Citation

Adoption of ZakaTech in the time of COVID-19: cross-country and gender differences

Bin-Nashwan

Ismaiel

Muneeza

et al. 2023

JIMA

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Purpose Despite the significant growth in Islamic economies and the increasing number of Muslim youths inclining digital services, empirical-based research addressing the adoption of digital Islamic services is still limited. ZakaTech is a new phrase that has recently emerged as a modern term describing novel technologies adopted by zakat institutions; yet, it has been largely neglected in the literature. Therefore, this study aims to provide an integrated model that scrutinizes the determinants of acceptance and use of technology (UTAUT) of ZakaTech, combined with social cognitive theory (SCT), in the midst of the COVID-19 crisis where social distancing is the norm in conducting economic activities. Design/methodology/approach Based on cross-national evidence from two Muslim-majority countries, a total of 1,006 valid responses were collected from zakat payer users in Saudi Arabia and Egypt using a Web-based survey. To validate the research model and draw significant insights, SmartPLS structural equation modeling was used. Findings By analyzing both Saudi and Egyptian samples, the authors found that all UTAUT constructs are statistically significant, except for effort expectancy in Egypt. The effects of self-efficacy and social isolation on ZakaTech adoption are supported across both countries. Trust in technology reduces users’ inherent risks and increases their likelihood of adopting ZakaTech services in Saudi Arabia, while this is not the case in Egypt. However, the study revealed that trust in electronic-zakat systems (EZSs) is a vital predictor for mitigating perceived risk among Egyptian users of ZakaTech, but it is not the case in Saudi Arabia. Moreover, significant gender differences were found between males and females in the adoption of such digital services in both countries, particularly regarding self-efficacy, trust in EZSs, social isolation and social influence. Practical implications The results provide meaningful insights for policymakers to find ways to develop strategies to escalate the adoption of technology in zakat administration and also to create awareness among the users of ZakaTech in a gender-balanced manner that will include zakat payers and recipients as well in the hope that the digital gender divide will be bridged. Bridging the digital gender divide in this regard is imperative for sustainable inclusive development of zakat. Further, strategies need to be developed to provide incentives to zakat authorities and zakat organizations that adopt technology in managing zakat. This is important to escalate the process of fusing technology with zakat, which is an important social finance tool to eradicate poverty in the world. Originality/value This research serves as a building block for literature by empirically testing an integrated model of UTAUT-SCT within a modern and unique related context like ZakaTech. Also, it adds value by testing gender disparities in ZakaTech adoption among Muslims.

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Section: Theoretical Analysismentioning

confidence: 99%

Section: Theoretical Analysismentioning

confidence: 99%

Adoption of ZakaTech in the time of COVID-19: cross-country and gender differences

Bin-Nashwan

Ismaiel

Muneeza

et al. 2023

JIMA

View full text Add to dashboard Cite

show abstract

“…Technology can also be used to provide correct information about the zakat authorities in a timely manner to the public as it is found that one of the reasons why mistrust of the public about zakat authorities exists because of the feeding of wrong information in social media about them (Shaari et al, 2019). Salleh and Chowdhury (2020) also state that the use of technology in zakat administration will increase the trust of the public toward zakat institutions. Likewise, Khatiman et al (2021) also state that blockchainbased zakat collection will overcome the trust issues of zakat payers, and the issues identified in this regard include zakat payers not being satisfied with the zakat distribution and lack of transparency in the zakat management leading to mistrust.…”

Section: Trust In Ezsmentioning

confidence: 99%

Social-related factors in integrated UTAUT model for ZakaTech acceptance during the COVID-19 crisis

Bin-Nashwan

Shah

Abdul-Jabbar

et al. 2023

JIABR

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Purpose Despite the significant growth in Islamic economies and the increasing number of Muslim youths inclining digital services, empirical-based research addressing the adoption of digital Islamic services is still scarce. Particularly, as a new term in the Islamic finance industry, ZakaTech has recently emerged as a modern term describing novel technologies adopted by zakat (compulsory levy on all believing and practicing high-net-worth Muslims) institutions; yet, it has largely been neglected in the literature. Therefore, this paper aims to propose an integrated model that scrutinizes the factors of unified model of acceptance and use of technology (UTAUT) of ZakaTech, combined with social cognitive theory (SCT), especially in a time of COVID-19 social distancing. Design/methodology/approach The UTAUT–SCT model was validated via SmartPLS structural equation modeling by using a valid sample of 510 users (individual zakat payers) from Saudi Arabia. Findings The results demonstrated the suitability of the integrated UTAUT–SCT model in predicting zakat payers’ intention to use ZakaTech services. This proposed model has 70% explanatory power to explain variance in intention. All UTAUT constructs are statistically significant, except for effort expectancy. Social isolation caused by the pandemic and trust in e-zakat system exerted a significant influence on the inclination to uptake ZakaTech services. Originality/value To the best of the authors’ knowledge, this research is among the first research that studies Muslims’ adoption of ZakaTech during COVID-19. Particularly, this study could add value to FinTech acceptance literature by empirically examining an integrated framework of UTAUT–SCT in a context as modern and unique as ZakaTech.

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“…The transition to a digital economy is anything but easy, specific, or predictable. Moreover, it is likely revolutionary or disruptive, negatively affecting linked organisational outcomes relating to technological capabilities and behaviours (Salleh & Chowdhury, 2020).…”

Section: Digital Transformationmentioning

confidence: 99%

Digital Transformation Strategy For Non-Government Organization (Case Study: Inisiatif Zakat Indonesia)

Luqmanul Hakim,

Utami,

Fissalma

2023

jist

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Zakat is a philanthropic activity Zakat is a philanthropic activity with huge prospects and usage, yet there is a significant gap between its economic potential and its actualization; according to BAZNAS, in 2020 Indonesia's zakat fund only utilized 4.3% of its potential. Moreover, the majority of Zakat funds are acquired through conventional channels; in 2019, only 13% of IZI's total Zakat funds came from digital channels, while 87% came from traditional channels. One of the reasons for this is that muzak (people who must pay zakat) are not proficient in using digital platforms, and the community is unaware of exactly what to do. Also, when it comes to collecting zakat funds, their administration and distribution to ashraf or mustahik (those who qualify to receive zakat funds), their accurate distribution, and staff members not using digital tools. The objective of this study is to find answers that will help us figure out what the Zakat IZI management system needs to accomplish to become digitally transformed and how it can be improved and gained. This research is a case study with qualitative methods. We collect data for this study using a variety of methods, such as interviews, literature reviews, and document analysis.

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Technology Adoption among Zakat Institutions in Malaysia

Cited by 9 publications

References 13 publications

Adoption of ZakaTech in the time of COVID-19: cross-country and gender differences

Adoption of ZakaTech in the time of COVID-19: cross-country and gender differences

Social-related factors in integrated UTAUT model for ZakaTech acceptance during the COVID-19 crisis

Digital Transformation Strategy For Non-Government Organization (Case Study: Inisiatif Zakat Indonesia)

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