Abstract:Purpose
This study aims to investigate the effects of zakat and business assistance on the growth and well-being of mustahiqs (zakat recipients). This study also investigates the impact of macroeconomic variables on the welfare of mutahiqs.
Design/methodology/approach
The partial least squares-structural equation modelling method is used in this quantitative study, examining data from 137 mustahiqs. The data was collected from seven zakat institutions, which run effective zakat programmes to empower mustahiq… Show more
“…Several research findings have uncovered the role of zakat during the COVID-19 pandemic. Mawardi et al (2022) found that productive zakat can increase business income for mustahik who own a business even during the COVID-19 pandemic. This shows that the productive zakat funds that are channeled to mustahik make mustahik able to survive in business even in global economic conditions that are experiencing a decline.…”
Purpose
This study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia.
Design/methodology/approach
This study used a qualitative method based on library research sourced from books, financial reports and another previous research.
Findings
The results show that the empowerment programs conducted by Zakat institutions in Indonesia are based on the scale of priorities and the potential of Mustahik. Zakat management considers the level of productivity and long-term impacts that improve Mustahik Economy. Thus, the empowerment programs lead to the reduction of Mustahik living below poverty line.
Research limitations/implications
This study contributes in two ways: first, it analyzes a model to identify the Mustahik’s potential for the Zakat institution in Indonesia. Second, it encourages the awareness of Muzakki and Mustahik regarding the role of Zakat in the Indonesian economy. This is expected to prompt their level of participation in optimizing the potential of Zakat in Indonesia.
Originality/value
Given the scarce literature that provide qualitative and critical reviews of the implementation Zakat empowerment programs to alleviate poverty conducted by the Zakat institutions in Indonesia, this research can act as a bridge for future research in performing empirical studies regarding the impact of a Zakat empowerment program on society.
“…Several research findings have uncovered the role of zakat during the COVID-19 pandemic. Mawardi et al (2022) found that productive zakat can increase business income for mustahik who own a business even during the COVID-19 pandemic. This shows that the productive zakat funds that are channeled to mustahik make mustahik able to survive in business even in global economic conditions that are experiencing a decline.…”
Purpose
This study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia.
Design/methodology/approach
This study used a qualitative method based on library research sourced from books, financial reports and another previous research.
Findings
The results show that the empowerment programs conducted by Zakat institutions in Indonesia are based on the scale of priorities and the potential of Mustahik. Zakat management considers the level of productivity and long-term impacts that improve Mustahik Economy. Thus, the empowerment programs lead to the reduction of Mustahik living below poverty line.
Research limitations/implications
This study contributes in two ways: first, it analyzes a model to identify the Mustahik’s potential for the Zakat institution in Indonesia. Second, it encourages the awareness of Muzakki and Mustahik regarding the role of Zakat in the Indonesian economy. This is expected to prompt their level of participation in optimizing the potential of Zakat in Indonesia.
Originality/value
Given the scarce literature that provide qualitative and critical reviews of the implementation Zakat empowerment programs to alleviate poverty conducted by the Zakat institutions in Indonesia, this research can act as a bridge for future research in performing empirical studies regarding the impact of a Zakat empowerment program on society.
“…This complex multivariate regression method (Hair et al , 2019) explains and reveals a relationship between variables (Sinkovics et al , 2016). PLS-SEM can be used when the distributional assumptions cannot be met (Mawardi et al , 2022; Widiastuti et al , 2021). The philosophy of using the PLS-SEM method is for research to predict and develop theory.…”
Purpose
The halal cosmetics industry continues to grow significantly. Furthermore, using halal cosmetics is a must for Muslims. This study aims to analyze the factors influencing the switching intention to halal cosmetics in Indonesia.
Design/methodology/approach
This quantitative study uses a Partial Least Square-Structural Equation Modelling (PLS-SEM) on 214 respondents. The variables include halal certification, halal awareness, product image, perceived behavioral control, subjective norm, attitude, advertisement and switching intention.
Findings
The product image plays the most influential role in deriving the attitude toward switching intention to halal cosmetics, following perceived behavioral control, halal awareness and subjective norm, but not halal certification and advertisement. The result indicates that the image of halal cosmetics influences customers’ attitudes toward switching to using halal cosmetics. Indonesian customers know the obligation to use halal products because they are Muslim. However, the existence of halal certification does not derive the switching intention to halal cosmetics.
Research limitations/implications
This study conducts research only in Indonesia. As a recommendation, further studies might conduct a comparative test using multicultural respondents in several countries. Other studies also suggested examining factors of switching intention through different generational, especially in countries with high individualism traits.
Practical implications
This study will encourage the halal industry, especially the halal cosmetics industry, to pay more attention to the product image. Meanwhile, the government can provide incentives or rewards to promote industry participation in halal cosmetics. The findings provide a more detailed understanding of how product image can influence someone to switch to halal cosmetics.
Originality/value
Research on switching intention to halal cosmetics is still limited. This study uses halal variables, while previous studies only used religiosity. This study also introduced the product images motivating customers’ switching intention to use halal cosmetics.
“…The distribution of zakat as productive zakat encourages efforts to work optimally and obtain decent outcomes. On the other hand, the economic situation of mustahik or zakat empowerment programme recipients is not too influenced by macroeconomic variables that show the economic resilience of the lower layers (Mawardi et al, 2022).…”
Section: Analysis Of the Business Development Of Productive Zakat Rec...mentioning
This study aims to reveal the impact of productive zakat of Baznas Surakarta on the economy of zakat recipients. The research of impact that is based on the perceptions of zakat recipients is fundamental so that Baznas Surakarta can evaluate some program deficiencies and determine whether effective zakat programs help the welfare of zakat recipients. This study is descriptive qualitative research by conducting in-depth interviews with Baznas Surakarta officials and ten productive zakat recipients. The results of this study indicate that in the view of zakat recipients, the effective zakat program has improved the recipients' economy, and the majority of their businesses have been able to develop. However, to develop a business, the tenacity of zakat recipients is required to manage their business.On the other hand, the form of supervision carried out by Baznas Surakarta still needs to be improved by providing capital without training. Furthermore, Baznas Surakarta has yet to confirm whether the zakat funds given to zakat recipients are used optimally. This study recommends the importance of supervision in the distribution of zakat in the form of productive business funding. Penelitian ini bertujuan untuk mengungkapkan dampak zakat produktif dari Baznas Surakarta terhadap kondisi ekonomi penerima zakat. Penelitian dampak berdasarkan persepsi penerima zakat sangat penting agar Baznas Surakarta dapat memperbaiki kekurangan program dan mengetahui apakah program zakat produktif membantu mensejahterakan kehidupan penerima zakat. Penelitian ini merupakan penelitian kualitatif deskriptif dengan melakukan wawancara mendalam terhadap petugas Baznas Surakarta dan sepuluh penerima zakat produktif. Hasil penelitian ini menunjukkan bahwa dalam pandangan penerima zakat program zakat produktif telah meningkatkan perekonomian mustahiq dan mayoritas bisnis mereka mampu berkembang. Namun demikian, untuk mengembangkan usaha diperlukan keuletan penerima zakat dan mampu mengelola usahanya. Di sisi lain, bentuk pengawasan yang dilakukan oleh Baznas Surakarta masih belum optimal dengan hanya memberikan modal tanpa pelatihan. Baznas Surakarta belum dapat memastikan apakah dana zakat yang diberikan kepada penerima zakat digunakan secara maksimal. Penelitian ini merekomendasikan pentingnya supervisi dalam pendistribusian zakat dalam bentuk pendanaan usaha produktif.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.