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

• Published in: Journal of Islamic marketing 2024-04, Vol.15 (5), p.1303-1325
• Main Authors: Megat, Puteri Aina, Al-Shaghdari, Fahd, Bin Ngah, Besar, Abdelfattah, Sami Samir
• Format: Article
• Language: English
• Subjects: Accountability; Bank technology; Beneficiaries; Blockchain; Communications networks; Crowdfunding; Digital currencies; Electronic data interchange; Environmental economics; Equity participations; Financial institutions; Fund raising; Social responsibility; Technology adoption; Transparency
• ISSN: 1759-0833; 1759-0833; 1759-0841
• DOI: 10.1108/JIMA-08-2023-0262

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.