The practice of local economic development and<i>Maqāṣid al-Sharī‘ah</i>

Hudaefi, Fahmi Ali; Heryani, Neni

doi:10.1108/imefm-08-2018-0279

Cited by 27 publications

(32 citation statements)

References 29 publications

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“…This paper used a qualitative research approach. This method offers an effective way of exemplifying and categorising the unknown variables, which allows the authors to study an organisation in its natural settings (Aoun and Tournois, 2015; Creswell, 2012; El-Bassiouny, 2017; Hudaefi and Heryani, 2019). On this ground, a qualitative method thus suits this study, which aims to explore the means of digital zakāh campaign during COVID-19 pandemic.…”

Section: Methodsmentioning

confidence: 99%

“…A case study is relevant to explore a new perspective on a particular issue that is unknown using various data sources to articulate propositions (Bashir, 2019; Baxter and Jack, 2008). A case study may form either one single case study or a small number of cases (Dul and Hak, 2008), which lets the researchers understand multiple facets of the phenomenon and promotes an in-depth examination that is relevant to organisation and management studies (Hudaefi and Heryani, 2019; De Massis and Kotlar, 2014; Stake, 1995; Yin, 2011).…”

Section: Methodsmentioning

confidence: 99%

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Digital zakāh campaign in time of Covid-19 pandemic in Indonesia: a netnographic study

Hudaefi

Beik²

2021

JIMA

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Purpose Despite the COVID-19 recession, the collection of zakat (almsgiving) managed by the National Board of Zakat Republic of Indonesia (BAZNAS RI) has increased, especially during Ramaḍān 1441 Hijra. Previous works show a positive relationship between digital zakat campaign and zakat collection. This paper aims to study the means of digital zakat campaign during COVID-19 outbreak. This topic is theoretically and practically important in the emerging debate of Islamic marketing, notably in Islamic social finance field. Design/methodology/approach This paper uses a qualitative research approach. A case study is engaged in the selection of BAZNAS RI for a detailed discussion of a zakat organisation. Meanwhile, a netnographic approach is used to analyse the number of 549 posts from BAZNAS RI’s social media, which are Facebook, Instagram, Twitter and YouTube. Furthermore, a qualitative software analysis of NVivo 12 Plus is used in performing the analytical procedures. Findings This work explains the means of digital zakat campaign during COVID-19 outbreak with a case of BAZNAS RI. It is identified the number of 6 parent nodes and 64 child nodes from the analysis using NVivo 12 Plus. The authors’ parent nodes are “donation”, “infaq” (Islamic spending for charities), “Ramaḍān matters”, “ṣadaqah” (voluntary charity), “virtual events” and “zakat”. These nodes detail digital campaign of BAZNAS RI posted in its social media during COVID-19 period in Ramaḍān. A theoretical implication of inclusive marketing is derived from the analysis. It explains that the inclusiveness of digital contents is practically significant in campaigning zakat as a religious obligation that contributes to social and financial benefits. Research limitations/implications This paper does not claim a positivist perspective on the relationship between digital zakat campaign and zakat collection. Instead, this paper explores in-depth the practice of digital zakat campaign, which the previous study confirms its association with a muzakki’s (Muslims who are obliged to pay zakat) decision to pay zakat. Practical implications This paper establishes the Islamic marketing theory that is derived from industrial practices. The inclusiveness of digital contents in zakat campaign is critical in activating zakat as a religious obligation that authentically shapes the social and economic processes of a Muslim community. This theory is practically important for 'amils (employees) of zakat institution who work in the marketing division, chiefly to create such contents to post in social media. Social implications The authors’ node of zakat distribution for COVID-19 relief indicates the importance of a formalised zakat institution to actualise zakat’s role in handling socioeconomic problems. Thus, paying zakat formally in an authorised organisation may contribute to a greater social contribution and maṣlaḥah (public interest) than paying it informally without any effective measurement. Originality/value This study contributes to the novelty in the Islamic marketing debate within two folds. First, this paper is among the pioneers in studying digital zakat campaign during COVID-19 outbreak by using a netnographic approach. Therefore, a theoretical implication derived from industrial practices is contributed. Second, this paper details the steps in using NVivo 12 Plus to analyse the unstructured data sampled from the internet. The future studies may thus refer to this work to understand the application of netnography and the procedures in analysing data from social media using this software.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Digital zakāh campaign in time of Covid-19 pandemic in Indonesia: a netnographic study

Hudaefi

Beik²

2021

JIMA

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“…In the discourse of Islamic economics, scholars have engaged with the theory of maq a Á sid al-Sharī'ah to analyse the recent phenomenon in economics from an Islamic perspective. For example; the recent measurement of Islamic banks performance by Hudaefi and Noordin (2019), the elaboration of fundamental local economic development and maq a Á sid al-Sharī'ah by Hudaefi and Heryani (2019), and other relevant topics, which to some degree, such discussion of maq a Á sid al-Sharī'ah in the recent scholarly articles can best ground the relevance of Islam to the current context, including to the global call of SDGs.…”

Section: Sustainable Development Goals and Its Recent Implementation In Indonesiamentioning

confidence: 99%

How does Islamic fintech promote the SDGs? Qualitative evidence from Indonesia

Hudaefi

2020

QRFM

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Purpose This study aims to explore the existing Islamic financial technology (fintech) lending in Indonesia. Doing so is to better understand in what way the fintech firms have been promoting the global movement of sustainable development goals (SDGs) in the local context. Design/methodology/approach This study engages qualitative methods. This paper first reviews relevant literature related to fintech and establishes the substantive definition of Islamic fintech. Further, the existing literature of SDGs is explored to understand its original idea and its recent implementation, particularly in Indonesia. Following this, the official reports from the domestic regulators are referred to select the fintech firms which meet the criteria of Islamic fintech lending based on the proposed definition. The selected firms are then analysed based on several themes which best capture their position in promoting the SDGs. Finally, the discussion is linked to the recent performance of Indonesia in implementing SDGs. Findings This work finds that the reviewed fintech firms have been promoting the idea of financial inclusion, for example, financing the underdeveloped sectors such as agriculture and small and micro enterprises (SMEs). Furthermore, the selected fintech firms are also found to collect and distribute Islamic social funds such as infaq (charity spending), waqf (endowment) and sadaqah (voluntary charity). Besides, the firms are also found to initiate charity programmes for underprivileged community. In some degree, these findings are synonymous of the firms’ effort in promoting SDG of ending poverty (SDG 1) and hunger (SDG 2) and reducing the inequalities (SDG 10). Research limitations/implications The discussion of this work does not provide any positivist generalisation due to the method used. Practical implications The Indonesian Government is advised to legally engage with the existing fintech firms and other related stakeholders to best solve its recent issue of the declining trend in SDG 15 (life on land). Social implications This work elaborates in what way the Islamic fintech lending has been promoting the SDGs in Indonesian context. In some extent, such discussion can best challenge the social issue of fintech which has been stigmatised of bringing mafsadah (harm), as subjectively claimed by one particular religious group in Indonesia. Originality/value This study is among the pioneers which offers the definition of Islamic fintech and further explains its position in endorsing the global movement of SDGs.

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“…Instrumental rationality can be matched with maqasid al-Shari'ah. Islamic banks must not only follow the Shari'ah principles as the legal system of pragmatism and convenience, but they should also uphold the guiding spirit of maqasid al-Shari'ah (Dusuki, 2008;Hudaefi and Heryani, 2019;Laldin and Furqani, 2013;Yusof et al, 2019). From the Islamic economic perspective, maqasid can be observed in two dimensions: the Shari'ah (law) and the objective of mukallaf (religiously responsible or accountable).…”

Section: Shari'ahcompliant Benchmarkmentioning

confidence: 99%

Shari’ah-compliant benchmark and Shari’ah-based “raf’ al-haraj” benchmark on prohibition of riba

Suzuki

Miah

2020

IMEFM

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Purpose This paper aims to propose two benchmarks “Shari’ah-compliant” benchmark and “Shari’ah-based” “raf’ al-haraj” (the removal of hardship) benchmark. The former benchmark can be applied to ensure that a transaction brings “profits on sales” and not “profits on loan”, and the latter benchmark should be addressed to ensure that a transaction does not exploit the customers of Islamic banks. Design/methodology/approach The authors draw upon the theory of institutional economics, in particular, instrumental and procedural rationality, to argue that the believers can pay their best effort as an exercise of ijtihad to understand and incarnate the logic and rationales implicit in the Qur’anic text. Findings Currently, there is no benchmark that determines the profit ceiling on murabaha. The authors suggest two types of “gray-zones” – the “Shari’ah-compliant but less contributing to the removal of hardship” and the “controversial on compliance but contributing to the removal of hardship in borrowers” to use as a benchmark in endorsing less shariah-compliant Islamic products. Practical implications There is no benchmark or a clear-cut demarcation that can be used to endorse less Shari’ah-compliant Islamic finance. Thus, Shari’ah-compliant’ benchmark and “Shari’ah-based” “raf’ al- haraj” benchmarks can be used to guide whether a financial transaction is acceptable or not. This guideline can be of huge practical relevance for Islamic finance. Originality/value There is no sensible study that offers such guidelines that can be used to demarcate whether a particular financial transaction, which has no clear-cut fatwa, is acceptable or not. Hence, the current research is novel and contributes to the existing literature of Islamic finance.

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The practice of local economic development andMaqāṣid al-Sharī‘ah

Cited by 27 publications

References 29 publications

Digital zakāh campaign in time of Covid-19 pandemic in Indonesia: a netnographic study

Digital zakāh campaign in time of Covid-19 pandemic in Indonesia: a netnographic study

How does Islamic fintech promote the SDGs? Qualitative evidence from Indonesia

Shari’ah-compliant benchmark and Shari’ah-based “raf’ al-haraj” benchmark on prohibition of riba

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