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PurposeThis paper aims to add to the existing body of literature on this subject by advocating how waqf-based entrepreneurship can be practiced in Malaysia.Design/methodology/approachThe paper begins by presenting an overview of waqf and its role in entrepreneurship and proceeds by proposing a model of waqf-based entrepreneurship which is synthesized from various models existing in the Islamic world.FindingsThe paper concludes by recommending waqf-based entrepreneurship as an alternative socio-economic framework of society’s wellbeing.Research limitations/implicationsThe research is limited to the preliminary aspects of waqf entrepreneurship.Practical implicationsWaqf organization may be able to finance its own businesses through crowdfunding and other methods and also disburse waqf funds to small and large ventures.Social implicationsThe waqf system is a social tool that not only finances social development projects but also has social economic alternatives to assist poor and underprivileged groups in the society. This paper is toward such a socio-economic direction.Originality/valueThis paper might be considered the first attempt to detail the practical aspect of waqf entrepreneurship, in terms of enterprises to be financed, and how the funds to be accumulated.

PurposeThe purpose of this paper is to determine the impact of corporate brand equity and corporate brand credibility on customer’s intention to donate the charity program. To understand the complex relationship, this study points out the moderating effect of the materialistic attitude.Design/methodology/approachThe empirical study involved a survey of young customers in Indonesia telecommunication industry. The data collection involved face-to-face interviews among 409 respondents in Jakarta Indonesia between December 2015 and January 2016.FindingsThis study indicates a positive impact of corporate brand equity and brand credibility on their customers’ intention to support the social charity. However, materialistic attitude slightly changes the impact direction of corporate brand on the customers’ intention to participate.Research limitations/implicationsThis research relies on a cross-sectional observation, which was one snapshoot observation in specific time. Second, this study uses interview to help the respondents understand the questionnaires; this may imply on the level of objectiveness of respondents.Practical/implicationsThis paper extends the discussion on the altruism theory and corporate brands by establishing a critical linkage between materialistic attitude, corporate brand credibility and consumers’ intention to charity. Under high materialistic attitude, corporations are encouraged to promote strong business ethics.Originality/valueThis study makes a contribution to the deepening understanding on altruism theory and conscious corporate responsibility through raising a concern on marketing practices, which entails a potential fraud from charity ethics.

PurposeThis paper aims to discuss the opinions of current Shariah scholars on the concept of debt money in the present-day fiat money system.Design/methodology/approachResearch design of this paper is a quantitative investigation of Shariah experts by distributing a questionnaire to them. As majority of Shariah scholars are also Shariah advisory of the current banking system, it is important to find out their level of knowledge on the issue of debt money created by the commercial banking system through the fractional-reserve banking (FRB) system.FindingsBased on this investigation, most Shariah scholars are unaware of and confused about the mechanics underpinning the creation of money, especially with respect to FRB as it is practiced by the conventional and Islamic banking systems.Originality/valueBased on this research, it is recommended that these scholars should improve their understanding of the operation of the fiat money system and its consequences. It is recommended that, in future, Shariah scholars should think “outside of the box” by creating Islamic financial instruments that do not resemble those of the conventional system.

PurposeThe halal industry is one of the most growing industries in the world. It refers to the industry in line with Islamic principles and requirements. The emergence of this industry aims to fulfil the requirement of Islamic-compliant products and services. Surprisingly, the industry has been growing in both Muslim and non-Muslim countries. Assessing the performance of the industry will be notable for ensuring that it obtains its objectives. The proper performance measurement should highlight business perspectives and religious aspects. This study aims to explore the current issues and challenges in developing Maqashid Al-Shari’ah-based performance measurement in the halal industry.Design/methodology/approachThis is a qualitative research using in-depth interviews, and uses content analysis to interpret and explain the interview result. Interviews were conducted with experts in Maqashid Al-Shari’ah and Islamic capital markets.FindingsThe existence of the concept of Maqashid Al-Shari’ah is to create maslahah for all human beings. The development of Maqashid Al-Shari’ah performance measurement for the business is very important. It has only been developed for Islamic financial industry. Unfortunately, it is found that the development of Maqashid Al-Shari’ah performance measurement has not been carried out comprehensively in non-financial industry. The main issue is the absence of the applicable measurements. Therefore, collective decision is required to develop the appropriate measurements.Practical implicationsThere is a necessity for regulator to produce standards on Maqashid Al-Shari’ah-based performance measurement. The government policy plays an important role in the development and implementation of Maqashid Al-Shari’ah -based measurement index.Originality/valueThis paper highlights the issue of the development of Maqashid Al-Shari’ah -based performance measurement in halal business and commerce which has not much discussed in prior studies.

PurposeThe purpose of this paper is to come-up with a systematic exertion on Maqasid Shari’ah in Islamic economics, banking and finance, with a clear focus on forming an appropriate and novel framework that identifies the effort of contemporary scholars and detects the existing gap that might possibly champion new research commitments.Design/methodology/approachA systematic approach to literature review was steered through the means propagated by the Centre for Reviews and Disseminations (DSR), but modified to the precise requirements of this review. Google Scholar was searched throughout the passage. The search criteria are confined to English documents that are within the period of 2006-2016. Articles that did not score or did not convince that the subject of Maqasid Shari’ah has been applied in Islamic economy, Islamic banking, Islamic finance, Islamic financing products and economic development are excluded. Appropriate search keys are used to gather better results.FindingsThe findings inform that contemporary scholars show a robust commitment to the themes of the result during the stated period. The outcome reveals that contemporary scholars designate more interest and attention on Islamic banking and expose their potential specialty in the expanse than other themes. The study further highlighted the gap of some significant areas that are either outside the coverage of the reviewed documents or require more attention from contemporary scholars, for instance, wealth formation and management, wealth consumption, socioeconomic security, risk management, corporate governance, management policy, human resource development, prohibition of Riba, profit and loss sharing (PLS), etc.Research limitations/implicationsThe paper is limited to contemporary aspects of Islamic economics, banking, finance and economic development that have a link with the subject of Maqasid Shari’ah.Practical implicationsA review of these scholarly reported documents has the potential to draw attention toward filling the existing gap that will likely result in salvation of current issues on the subject of Maqasid Shari’ah that has a direct association with Islamic economy, banking and finance.Originality/valueThe paper is original in its nature considering the fact that it is assumed as the maiden attempt of its kind in the field. It is a treasure to all those who may cherish and find it relevant in their progressive and rounded convention or application on the matter.

PurposeThis paper aims to identify the appropriate model to address the financial challenges in agricultural sector in Zanzibar. Since the middle of 1960, clove production has continually and significantly decreased because of some problems and challenges that include financial ones. The financial intermediaries such as banks, cooperatives and micro-enterprises provide micro-financing to the farmers with high interest rates along with collateral requirements. The numerous programmes, measures and policies adopted by the relevant parties to find out the solutions to the dwindling clove production have failed.Design/methodology/approachThe authors will review and examine several existing financial models, identify the issues and challenges of the current financial models and propose an appropriate Islamic financing model.FindingsThe numerous programmes, measures and policies adopted by the relevant parties to find out the solutions to the dwindling clove production have failed. This study, therefore, proposed a Waqf-Muzara’ah-supply chain model to address the financial challenge. Partnership arrangement is also suggested in the model to mitigate the issues of high interest rates and collateral that constrains the financial ability of the farmers and their agricultural output.Originality/valueThe contribution of the agricultural sector to the economic development of Zanzibar Islands is considerable. As one of the important agricultural sectors, the clove industry was the economic backbone of the government of Zanzibar. This study is believed to be a pioneering work; hence, it is the first study that investigates empirically the challenges facing the clove industry in Zanzibar.

PurposeThis paper aims to examine the characteristics influencing internal Shariah audit effectiveness in Islamic financial institutions (IFIs) in Bahrain.Design/methodology/approachData were collected from 76 internal Shariah auditors, 23 Shariah supervisory board and 16 audit and governance committee from 52 IFIs in Bahrain. The data were analyzed using structural equation method via SmartPLS 2.0 to examine the relationship between characteristics and effectiveness of internal Shariah audit.FindingsIt was found that competency and work performance were positively significant with internal Shariah audit effectiveness. The findings revealed that the main competency of internal Shariah audit to influence effectiveness were to have professional certification and skills, while work performance to influence effectiveness were engagement planning, performing the engagement and communicating results with management and having sufficient information to provide sound opinion formed by Shariah audit.Originality/valueFrom the research perspective, this is the first study that examines the relationship between internal Shariah audit characteristics and its effectiveness in Bahraini IFIs.

PurposeThis paper aims to explore the level of productivity of Islamic banks specifically in selected Southeast Asian Countries from the period 2006 to 2014. Besides, this study also investigates the potential determinants of bank-specific characteristics and macroeconomic conditions that may influence the productivity of banking sector.Design/methodology/approachThe present study gathers data on the 29 Islamic banks from Southeast Asian countries, namely, Brunei, Indonesia and Malaysia. The productivity level of the Islamic banks is evaluated using the data envelopment analysis-based Malmquist productivity index method. The authors then used a panel regression analysis framework based on the ordinary least square to identify potential determinants.FindingsThe domestic and foreign Islamic banks have exhibited progress in total factor productivity change solely attributed to the increase in efficiency change (EFFCH) which were mainly managerial rather than scale related. Foreign-owned banks have been slightly more productive compared to their domestic-owned bank counterparts, attributed to a higher EFFCH but insignificantly different. Furthermore, capitalisation, liquidity and world financial crisis determinants have significantly influenced productivity level of Islamic banks.Originality/valueThe study on the productivity of Islamic banking is still in its formative stage. To date, very limited study has been conducted to examine the productivity level in Southeast Asian, which is a strong regional hub for Islamic banking. This study intends to fill the gaps with a specific focus on the productivity level, specifically narrowing down to Southeast Asian countries in the domestic and foreign Islamic banking sector.

Purpose This study aims to examine the relationship between public sector education expenditure and the GINI coefficient as a measure of injustice in income distribution. Design/methodology/approach Data from 31 European countries gathered from 2004 to 2011 were analyzed using panel error correction models. Findings According to the study’s findings, a relationship between education expenditures and the GINI coefficient exists. There is a 1 per cent increase for the European countries examined in this study in their rate of education expenditure in gross domestic product (GDP), which raises the GINI coefficient by 0.20 per cent in the short-term and decreases it by 0.22 per cent in the long-term, as expected. Thus, an increase in the proportion of education expenditures in GDP affects the GINI coefficient in a statistically significant, negative way over the long-term. Originality/value This study fills a gap in the literature by determining whether the interaction between education expenditure and GINI coefficient changes in the short- and long-term. The results show that education expenditure generates positive results particularly by lowering income inequality in the long-term. This interaction can be more clearly observed in developing countries. So this conclusion adds an important empirical evidence to the literature and it may contribute in forming policies toward reducing income inequality.