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Toward developing a sustainability index for the Islamic Social Finance program: An empirical investigation

Author

Listed:
  • Tika Widiastuti
  • Arie Prasetyo
  • Anidah Robani
  • Imron Mawardi
  • Rida Rosida
  • Muhammad Ubaidillah Al Mustofa

Abstract

Several previous studies state that the Islamic Social Finance program has not fully succeeded in creating prosperity, and there are no definite measurements to show the sustainability impact of the program. Thus, a measurement is needed to analyze various aspects in achieving the success and sustainability of Islamic social finance programs. This study developed an index for performance evaluation with an emphasis on the success and sustainability of the Islamic Social Finance program. The study used the Analytical Network Process to determine and analyze priority components. Furthermore, the Multistage Weighted Index method was used to calculate the final index score. The index was built by taking into consideration various factors, stakeholders, aspects, and indicators. This study indicates that aspects of funding contribution from donors (0.22), involvement of donors in giving advice (0.99), and controlling of supervisor (0.08) are priority aspects in the success and sustainability of the program. An empirical investigation was performed on three different programs in Indonesia: A, B, and C. Program A (0.81) and C (0.80) have succeeded in improving the beneficiaries’ quality of life to the level of economic resilience, although at a low level of sustainability (76–84.33). On the other hand, program B (0.73) is at the economic reinforcement and has not yet achieved sustainability. This index can be seen as a comprehensive tool for measuring the success and sustainability of the program at several levels.

Suggested Citation

  • Tika Widiastuti & Arie Prasetyo & Anidah Robani & Imron Mawardi & Rida Rosida & Muhammad Ubaidillah Al Mustofa, 2022. "Toward developing a sustainability index for the Islamic Social Finance program: An empirical investigation," PLOS ONE, Public Library of Science, vol. 17(11), pages 1-26, November.
    • Handle: RePEc:plo:pone00:0276876
    DOI: 10.1371/journal.pone.0276876
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    References listed on IDEAS

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    1. Muneer M. Alshater & Ram Al Jaffri Saad & Norazlina Abd. Wahab & Irum Saba, 2021. "What do we know about zakat literature? A bibliometric review," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 12(4), pages 544-563, June.
    2. Laura Aibolovna Kuanova & Rimma Sagiyeva & Nasim Shah Shirazi, 2021. "Islamic social finance: a literature review and future research directions," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 12(5), pages 707-728, July.
    3. Farah Muneer & Foyasal Khan, 2022. "Impact of Qard-al-Hasan (interest-free loan) program in reducing multidimensional poverty: an evidence from the southwest Bangladesh," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 15(6), pages 1072-1087, February.
    4. Farah Muneer & Foyasal Khan, 2022. "Impact of Qard-al-Hasan (interest-free loan) program in reducing multidimensional poverty: an evidence from the southwest Bangladesh," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 15(6), pages 1072-1087, February.
    5. Tika Widiastuti & Eko Fajar Cahyono & Siti Zulaikha & Imron Mawardi & Muhammad Ubaidillah Al Mustofa, 2021. "Optimizing zakat governance in East Java using analytical network process (ANP): the role of zakat technology (ZakaTech)," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 12(3), pages 301-319, February.
    6. Gizem Arikan & Pazit Ben-Nun Bloom, 2019. "“I was hungry and you gave me food”: Religiosity and attitudes toward redistribution," PLOS ONE, Public Library of Science, vol. 14(3), pages 1-24, March.
    7. Tika Widiastuti & Ilmiawan Auwalin & Lina Nugraha Rani & Muhammad Ubaidillah Al Mustofa, 2021. "A mediating effect of business growth on zakat empowerment program and mustahiq’s welfare," Cogent Business & Management, Taylor & Francis Journals, vol. 8(1), pages 1882039-188, January.
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