Intergenerational analysis of cash waqf behavior: lessons learned from Indonesia

• Published in: Journal of Islamic accounting and business research 2024-03, Vol.15 (4), p.590-618
• Main Authors: Jatmiko, Wahyu, Haidlir, Banu Muhammad, Azizon, A., Laksmono, Bambang Shergi, Kasri, Rahmatina
• Format: Article
• Language: English
• Subjects: Baby boomers; Donations; Economic development; Economic growth; Endowment; GDP; Generation X; Generation Z; Gross Domestic Product; Islamic financing; Liquidity; Millennials; Muslims; Theory of planned behavior
• ISSN: 1759-0817; 1759-0825; 1759-0817
• DOI: 10.1108/JIABR-03-2022-0086

Purpose The proponents of cash waqf speak highly about its huge potential for mobilizing the third sector of the economy to fund the socio-economic development agenda. However, the under-collection issue has been characterizing the cash waqf movement globally. This study aims to examine how understanding the distinct cash waqf donating behavior across different generations has the potential to address the problem. Design/methodology/approach This study extends the theory of planned behavior by adding religiosity and knowledge variables into the standard model, using the partial least square structural equation modeling. A survey is conducted on 684 respondents representing the main provinces in Indonesia and four major generations (Baby Boomers [BB], Generations X, Y and Z). Findings Religiosity, Knowledge, Attitude, Subjective Norms and Perceived Behavioral Control directly or indirectly affect cash waqf intention. The effect is contingent on the characteristics of generations. Research limitations/implications This study covers only the Indonesian case with limited coverage of the more heterogeneous provinces in the country. The sample distribution for BB can also be enlarged. Practical implications Cash waqf institutions (government and private) should apply the dynamic segmenting strategy, where the diversification of the promotion, marketing, awareness and approaches are contingent on the different characteristics of each generation. Originality/value To the best of the authors’ knowledge, this is the first study evaluating the intergenerational determinants of Intention toward cash waqf, particularly in Indonesia.