The impact of blockchain on risk mitigation in Islamic finance: a new mechanism to mitigate &lt;i&gt;Gharar&lt;/i&gt; risks

Hamid, Omer Awad Hag

doi:10.1504/ijebank.2019.10022916

Cited by 2 publications

(2 citation statements)

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“…Through the adoption of the EDI framework, the waqf blockchain platform presents an opportunity for interorganizational networks to engage in waqf, whether through cash or other instruments such as Islamic "trustee finance" or passive partnership contracts (Mudharabah), equity participation contracts Musharakah or Islamic bonds (sukuk-based) instruments (Hamid, 2019). The predictive benefits of Waqftech adoption are observed via the digital agreement using smart contracts, where transparency, security and accountability make it easier to collect cash waqf.…”

Section: Literature Reviewmentioning

confidence: 99%

Assessing the predictive benefits of Waqftech smart contracts on corporate waqf crowdfunding among Malaysian enterprises

Megat,

Al-Shaghdari,

Bin Ngah

et al. 2024

JIMA

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Purpose The purpose of this study is to investigate the adoption of waqf technology (Waqftech) using blockchain smart contracts for corporate waqf crowdfunding. Despite the growing interest in Waqftech, Malaysian enterprises have not fully embraced this emerging technology because of uncertainty regarding the benefits it offers to contributors. The research incorporates two theoretical frameworks: the electronic data interchange (EDI) model for firms’ technology adoption, and the triple bottom line theory (TBL) for corporate social responsibility. Design/methodology/approach A quantitative method using a cross-sectional survey design with a five-point Likert scale questionnaire was used. Data was collected from 210 decision-makers representing small and medium-sized enterprises and analyzed using partial least squares-structural equation modeling. Findings The findings from this research suggest that Malaysian enterprises are influenced by both corporate and social predictive benefits when using blockchain crowdfunding, but not by environmental benefits. The adoption of blockchain smart contracts does not correlate with predictive environmental benefits because of misconceptions about the disruptive technology’s impact on biological and digital environmental preservation. Research limitations/implications This research focuses on organizational behavior rather than individual users of waqf crowdfunding, and it is limited, primarily focusing within Malaysia and regions with similar waqf structures. Practical implications The Waqftech framework allows innovative mechanisms for executing corporate waqf investment returns to the intended beneficiaries through the smart contracts’ platform. In addition, this study supports relevant corporate social responsibility and creating shared value technology adoption theories, including EDI and TBL. Aside from this, the study provides empirical implications for waqf management using fintech platforms. Originality/value This groundbreaking study focuses on creating a Waqftech model for corporate waqf crowdfunding. The results of this study are important for the development of government policies that support the use of Waqftech in charitable fundraising. More research on biological and digital environmental perspectives is proposed to foster investors’ confidence in the visibility of digital tracking and lead to swift investments in future metaverse fundraising platforms.

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Section: Literature Reviewmentioning

confidence: 99%

Assessing the predictive benefits of Waqftech smart contracts on corporate waqf crowdfunding among Malaysian enterprises

Megat,

Al-Shaghdari,

Bin Ngah

et al. 2024

JIMA

View full text Add to dashboard Cite

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“…In another study, Buonpane ( 2018 ) argued that BcT presents significant opportunities in supporting risk management in the insurance industry. Hamid ( 2019 ) investigated the use of BcT in managing risk in Islamic finance, and suggested that BcT is a robust technology to mitigate risks in this area (especially Gharar risk). Wang ( 2019 ) verified that blockchain-based methods of collecting financial information has advantages of reducing risk and increasing speed.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Leveraging blockchain in response to a pandemic through disaster risk management: an IF-MCDM framework

Peker

Erol

et al. 2022

Oper Manag Res

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The COVID-19 pandemic has underscored the necessity for strategic approaches to manage global catastrophes. This study argues that disaster risk management (DRM) is an essential approach to mitigate the impact of global calamities, such as a pandemic. However, due to the uncertainty emerging from variables such as time and demand, managing DRM effectively involves high complexity. Blockchain technology (BcT) can be implemented to help address these challenges due to its potential to build trust, transparency, and accountability in complex operations. However, no research has quantitatively examined the applicability of BcT in the sub-dimensions of DRM to address the COVID-19 pandemic. The goal and scope of this study is to explore the role of BcT in DRM operations during the COVID-19 pandemic through an Intuitionistic Fuzzy Multi-Criteria Decision Making (IF-MCDM) framework. More specifically, the Intuitionistic Fuzzy Analytic Network Process (IF-ANP) method was utilized to calculate the weights of key criteria (i.e., BcT benefits), while Intuitionistic Fuzzy VIKOR (IF-VIKOR) was used to prioritize the alternatives (i.e., the sub-dimensions of DRM). The findings of this study are threefold. First, supporting effective coordination turned out to be the most essential benefit of BcT to build resilience in response to the COVID-19 pandemic. Second, disaster management was found to be the most appropriate DRM sub-dimension for possible BcT implementation during the COVID-19 pandemic. Lastly, eleven distinct activities involved in disaster management and governance and financial protection were discovered to be the most applicable for BcT. The findings of this study could assist disaster risk managers to assess whether (or not) BcT is suitable for the sub-dimensions of DRM to build national and organizational resilience in the wake of the COVID-19 pandemic.

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The impact of blockchain on risk mitigation in Islamic finance: a new mechanism to mitigate <i>Gharar</i> risks

Cited by 2 publications

References 0 publications

Assessing the predictive benefits of Waqftech smart contracts on corporate waqf crowdfunding among Malaysian enterprises

Assessing the predictive benefits of Waqftech smart contracts on corporate waqf crowdfunding among Malaysian enterprises

Leveraging blockchain in response to a pandemic through disaster risk management: an IF-MCDM framework

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