IDEAS home Printed from https://ideas.repec.org/a/idn/jimfjn/v7y2021i4hp759-790.html
   My bibliography  Save this article

Understanding The Impact Of Institutional Factors On Asnaf Sustainability: A Pls-Sem Approach

Author

Listed:
  • M Ashraf Al Haq

    (Islamic Business School, Universiti Utara Malaysia)

  • Norazlina Abd Wahab

    (Islamic Business School, Universiti Utara Malaysia)

  • Md. Mahmudul Alam

    (School of Economics, Finance and Banking, Universiti Utara Malaysia)

Abstract

The study looked at the level of sustainable development, whether the institutional factors or often, the demographic changes over time, that might have an impact. The data was meticulously collected through 427 returned questionnaires among zakat recipients in eleven districts of Kedah, Malaysia, and it was thoroughly analysed using Partial Least Square – Structural Equation Modelling (PLS-SEM). This study found that the asnaf receives very minimum assistance and that can hardly empower them. Accordingly, it’s imperative that the fund needs to be geared towards long term productive use. The results support that the institutional contributory performance (ICP) having a positive effect, and the level of sustainable development of zakat recipients (SDZR) do increase after receiving zakat, but there are issues that need careful addressing. The study further examined the moderating role of demographic factors, such as earnings, age, marital status and gender, and witnessed that after zakat, all parameters improved, though individual moderating variables yet to show any significance. The study initiated a newer dimension through incorporating before-zakat and after-zakat scenarios in examining the comparative impact on SDZR, and likewise understanding the recipient’s level of Islamic self-actualisation.

Suggested Citation

  • M Ashraf Al Haq & Norazlina Abd Wahab & Md. Mahmudul Alam, 2021. "Understanding The Impact Of Institutional Factors On Asnaf Sustainability: A Pls-Sem Approach," Journal of Islamic Monetary Economics and Finance, Bank Indonesia, vol. 7(4), pages 759-790, November.
    • Handle: RePEc:idn:jimfjn:v:7:y:2021:i:4h:p:759-790
    DOI: https://doi.org/10.21098/jimf.v7i4.1289
    as

    Download full text from publisher

    File URL: http://jimf-bi.org/index.php/JIMF/article/view/1289/883
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.21098/jimf.v7i4.1289?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sandra A. Waddock & Samuel B. Graves, 1997. "The Corporate Social Performance–Financial Performance Link," Strategic Management Journal, Wiley Blackwell, vol. 18(4), pages 303-319, April.
    2. Zubair Hasan, 2006. "Sustainable Development from an Islamic Perspective: Meaning, Implications and Policy Concerns التنمية المستدامة من منظور إسلامي : المفهوم والنتائج," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 19(1), pages 3-18, January.
    3. C. K. Prahalad & Gary Hamel, 1994. "Strategy as a field of study: Why search for a new paradigm?," Strategic Management Journal, Wiley Blackwell, vol. 15(S2), pages 5-16, June.
    4. Roslina Kamaruddin & Shamzaeffa Samsudin, 2014. "The Sustainable Livelihoods Index: A Tool To Assess the Ability and Preparedness of the Rural Poor in Receiving Entrepreneurial Project," Journal of Social Economics Research, Conscientia Beam, vol. 1(6), pages 108-117.
    5. Necmi K. Avkiran, 2018. "Rise of the Partial Least Squares Structural Equation Modeling: An Application in Banking," International Series in Operations Research & Management Science, in: Necmi K. Avkiran & Christian M. Ringle (ed.), Partial Least Squares Structural Equation Modeling, chapter 0, pages 1-29, Springer.
    6. Dr. Patmawati Ibrahim & Dr. RuziahGhazali, 2014. "Zakah as an Islamic Micro-Financing Mechanism to Productive Zakah Recipients," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(1), pages 117-125, January.
    7. Hasan, Zubair, 2006. "Sustainable development from an Islamic Perspective: meaning implications and policy concerns," MPRA Paper 2784, University Library of Munich, Germany.
    8. Nasrin R. Khalili, 2011. "Business Case for Sustainability," Palgrave Macmillan Books, in: Practical Sustainability, chapter 0, pages 79-99, Palgrave Macmillan.
    9. Patmawati Ibrahim & Ruziah Ghazali, 2014. "Zakah as an Islamic Micro-Financing Mechanism to Productive Zakah Recipients," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(1), pages 117-125.
    10. Wynne W. Chin & Barbara L. Marcolin & Peter R. Newsted, 2003. "A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study," Information Systems Research, INFORMS, vol. 14(2), pages 189-217, June.
    11. repec:idn:jimfjn:v:1:y:2016:i:2d:p:1-30 is not listed on IDEAS
    12. Bilqis Ololade Ahmed & Fuadah Johari & Kalsom Abdul Wahab, 2017. "Identifying the poor and the needy among the beneficiaries of zakat," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 44(4), pages 446-458, April.
    13. Roslina Kamaruddin & Shamzaeffa Samsudin, 2014. "The Sustainable Livelihoods Index: A Tool To Assess the Ability and Preparedness of the Rural Poor in Receiving Entrepreneurial Project," Journal of Social Economics Research, Conscientia Beam, vol. 1(6), pages 108-117.
    14. Graham Hubbard, 2009. "Measuring organizational performance: beyond the triple bottom line," Business Strategy and the Environment, Wiley Blackwell, vol. 18(3), pages 177-191, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Miftahorrozi Miftahorrozi & Shabeer Khan & Muhammad Ishaq Bhatti, 2022. "Waste Bank-Socio-Economic Empowerment Nexus in Indonesia: The Stance of Maqasid al-Shariʻah," JRFM, MDPI, vol. 15(7), pages 1-23, June.
    2. Oyedeji, Oluwafemi A. & Babatunde, Rapheal O., 2022. "Analysis of Maize Biomass-based Value Web and Household Livelihood Security in Nigeria," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322201, Agricultural and Applied Economics Association.
    3. María Luisa Pajuelo Moreno & Teresa Duarte-Atoche, 2019. "Relationship between Sustainable Disclosure and Performance—An Extension of Ullmann’s Model," Sustainability, MDPI, vol. 11(16), pages 1-33, August.
    4. Anna Carolina Machado & Charlotte Bilo & Imane Helmy, 2018. "The role of zakat in the provision of social protection: a comparison between Jordan, Palestine and Sudan," Working Papers 168, International Policy Centre for Inclusive Growth.
    5. Shafiu Ibrahim Abdullahi, 2019. "Financing Afforestation in the Organization of Islamic Cooperation Countries: What Role for Islamic Economics and Finance? تمويل استزراع الغابات في دول منظمة التعاون الإسلامي: ما دور الاقتصاد والتمويل," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 32(2), pages 161-177, January.
    6. Gerald Chidozie Kwazu & Alice Chang-Richards, 2022. "A tool to assess livelihood preparedness for disasters: a study of Kaikōura earthquake in New Zealand," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 113(1), pages 745-766, August.
    7. Anto, Mb Hendrie, 2011. "Introducing an Islamic Human Development Index (I-HDI) to Measure Development in OIC Countries," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 19, pages 69-95.
    8. Viswanatha Reddy Krishna & Venkatesh Paramesh & Vadivel Arunachalam & Bappa Das & Hosam O. Elansary & Arjun Parab & Dendi Damodar Reddy & K. S. Shashidhar & Diaa O. El-Ansary & Eman A. Mahmoud & Moham, 2020. "Assessment of Sustainability and Priorities for Development of Indian West Coast Region: An Application of Sustainable Livelihood Security Indicators," Sustainability, MDPI, vol. 12(20), pages 1-19, October.
    9. Ivan Pribićević & Boris Delibašić, 2021. "Critical sustainability indicators identification and cause–effect relationships analysis for sustainable organization strategy based on fuzzy DEMATEL," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 17263-17304, December.
    10. Muhammad Haseeb & Hafezali Iqbal Hussain & Sebastian Kot & Armenia Androniceanu & Kittisak Jermsittiparsert, 2019. "Role of Social and Technological Challenges in Achieving a Sustainable Competitive Advantage and Sustainable Business Performance," Sustainability, MDPI, vol. 11(14), pages 1-23, July.
    11. Mercedes Rubio‐Andrés & María del Mar Ramos‐González & Miguel Ángel Sastre‐Castillo & Ignacio Danvila‐del‐Valle, 2020. "Exploring sustainability, good governance, and social responsibility in small and medium enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 852-869, March.
    12. Sakiru Adebola Solarin, 2019. "Modelling the relationship between financing by Islamic banking system and environmental quality: evidence from bootstrap autoregressive distributive lag with Fourier terms," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(6), pages 2867-2884, November.
    13. Lokesh Chandra Dube & Sudipto Chatterjee, 2022. "Assessing livelihood impact of forest carbon projects using sustainable livelihood framework," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 27(8), pages 1-18, December.
    14. Yaping Liu & Zhe Huang & Jin Chen & Linlin Nie, 2023. "Diagnosis of the Livelihood Sustainability and Its Obstacle Factors for Poverty-Alleviation-Relocation Residents in Tourism Communities: Data from China," Sustainability, MDPI, vol. 15(7), pages 1-27, April.
    15. Mai Dong Tran & Samuel Adomako, 2021. "How CEO social capital drives corporate social performance: The roles of stakeholders, and CEO tenure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 819-830, March.
    16. Hee‐Chan Song, 2021. "Buddhist approach to corporate sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3040-3052, November.
    17. Sánchez-Infante Hernández, Juan Pablo & Yañez-Araque, Benito & Moreno-García, Juan, 2020. "Moderating effect of firm size on the influence of corporate social responsibility in the economic performance of micro-, small- and medium-sized enterprises," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    18. Dipanwita De & Chandan Surabhi Das, 2021. "Measuring Livelihood Sustainability by PCA in Indian Sundarban," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 18424-18442, December.
    19. Elizabeth-Anne Thomas, 2019. "How Useful Is the Global Reporting Initiative (GRI) Reporting Framework to Identify the Non-financial Value of Corporate Social Performance (CSP)?," CSR, Sustainability, Ethics & Governance, in: Nicholas Capaldi & Samuel O. Idowu & René Schmidpeter & Martin Brueckner (ed.), Responsible Business in Uncertain Times and for a Sustainable Future, pages 37-87, Springer.
    20. Mohammad Haider Syed & Shahnawaz Khan & Mustafa Raza Rabbani & Yannis E. Thalassinos, 2020. "An Artificial Intelligence and NLP based Islamic FinTech Model Combining Zakat and Qardh-Al-Hasan for Countering the Adverse Impact of COVID 19 on SMEs and Individuals," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 351-364.

    More about this item

    Keywords

    Zakat recipients; Sustainable development; Balanced scorecard; Islamic self-actualisation;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idn:jimfjn:v:7:y:2021:i:4h:p:759-790. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lutzardo Tobing or Jimmy Kathon (email available below). General contact details of provider: https://edirc.repec.org/data/bigovid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.