Cash waqf linked sukuk adoption among muslim youth: islamic altruism as a mediating mechanism across generation y and generation z

  • Muhammad Reyhanmulky 
    Universitas Brawijaya
    Indonesia
  • Asfi Manzilati
    Universitas Brawijaya
    Indonesia
  • Aji Purba Trapsila
    Universitas Brawijaya
    Indonesia
  • Izzah Salsabila
    International Islamic University Malaysia, Malaysia
    Malaysia

Abstract

This study examines the determinants of Muslim youths’ intention to adopt Cash Waqf Linked Sukuk (CWLS), focusing on the mediating role of Islamic altruism and generational differences between Generation Y and Z. A quantitative research design was employed using an online self-administered questionnaire and purposive sampling. Data were collected from 391 Indonesian Muslim respondents from Generation Y and Z using a five-point Likert-scale instrument, with 21 retained measurement items. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) and Partial Least Squares Multi-Group Analysis (PLS-MGA). The results show that income level (β = 0.568, p < 0.001), religiosity (β = 0.185, p = 0.001), and Islamic altruism (β = 0.147, p = 0.023) significantly predict CWLS adoption intention, whereas Islamic financial literacy has no significant direct effect (β = −0.065, p = 0.181). Islamic altruism significantly mediates the effects of Islamic financial literacy (β = 0.061, p = 0.033), religiosity (β = 0.053, p = 0.027), and income level (β = 0.024, p = 0.046) on intention. PLS-MGA reveals that Islamic financial literacy, religiosity, and Islamic altruism significantly predict intention among Generation Y but not Generation Z, while income level is significant for both groups. These findings highlight the importance of generation-specific strategies for enhancing CWLS adoption among Muslim youth.

Keywords
  • Cash waqf linked sukuk, Islamic financial literacy, Islamic altruism, Multi-group analysis
Lisensing Information
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

References
  1. Ab. Aziz, M. R., Yusof, M. A., Johari, F., & Sabri, H. (2014a). Relationship Between Level of Income and Method of Contribution and Appointment of Islamic Waqf Bank as an Agent in Collecting Waqf Fund. Journal of Emerging Economies and Islamic Research, 2(2), 15. https://doi.org/10.24191/jeeir.v2i2.9621
  2. Ab. Aziz, M. R., Yusof, M. A., Johari, F., & Sabri, H. (2014b). Relationship Between Level of Income and Method of Contribution and Appointment of Islamic Waqf Bank as an Agent in Collecting Waqf Fund. Journal of Emerging Economies and Islamic Research, 2(2), 15. https://doi.org/10.24191/jeeir.v2i2.9621
  3. Ab Rashid, R., Zainol, Z., Yazidlsa, M., Mohd Taib, N., & Nizam, A. N. H. K. (2019). Exploring the Conceptual Definition of Islamic Financial Literacy from the Quran and Sunnah. Engineering and Management TEST, 2920–2932.
  4. Ab Shatar, W. N., Hanaysha, J. R., & Tahir, P. R. (2021). Determinants of cash waqf fund collection in Malaysian Islamic banking institutions: empirical insights from employees’ perspectives. ISRA International Journal of Islamic Finance, 13(2), 177–193. https://doi.org/10.1108/IJIF-06-2020-0126
  5. Addury, M. M., Nugroho, A. P., & Khalid, S. (2020). The Intention of Investing Sharia Stocks on Millennials: The Role of Sharia Financial Literacy. Ihtifaz: Journal of Islamic Economics, Finance, and Banking, 3(2), 89. https://doi.org/10.12928/ijiefb.v3i2.3170
  6. Ahmad, M. (2019). An empirical study of the challenges facing zakat and waqf institutions in Northern Nigeria. ISRA International Journal of Islamic Finance, 11(2), 338–356. https://doi.org/10.1108/IJIF-04-2018-0044
  7. Albaity, M., & Rahman, M. (2019). The intention to use Islamic banking: an exploratory study to measure Islamic financial literacy. International Journal of Emerging Markets, 14(5), 988–1012. https://doi.org/10.1108/IJOEM-05-2018-0218
  8. Aldeen, K. N., Ratih, I. S., & Herianingrum, S. (2020). Contemporary Issues on Cash Waqf: A Thematic Literature Review. International Journal of Islamic Economics and Finance (IJIEF), 3(3). https://doi.org/10.18196/ijief.3236
  9. Allah Pitchay, A., Sukmana, R., Ratnasari, R. T., & Abd Jalil, M. I. (2023). A study of cash waqf contribution between millennials of Malaysia and Indonesia. International Journal of Islamic and Middle Eastern Finance and Management, 16(4), 802–818. https://doi.org/10.1108/IMEFM-01-2022-0034
  10. Andam, A. C., & Osman, A. Z. (2019). Determinants of intention to give zakat on employment income: Experience from Marawi City, Philippines. Journal of Islamic Accounting and Business Research, 10(4), 528–545. https://doi.org/10.1108/JIABR-08-2016-0097
  11. Antara, P. M., Musa, R., & Hassan, F. (2016). Bridging Islamic Financial Literacy and Halal Literacy: The Way Forward in Halal Ecosystem. Procedia Economics and Finance, 37, 196–202. https://doi.org/10.1016/S2212-5671(16)30113-7
  12. Armstrong, J. S., & Overton, T. S. (1977). Estimating nonresponse bias in mail surveys. 14(3), 396–402.
  13. Badan Wakaf Indonesia. (2021). Di Tengah Kondisi Pandemi CWLS Ritel seri SWR002 Sukses Menarik 91,03 Persen Wakif Baru.
  14. Badan Wakaf Indonesia. (2023). Cash Waqf Linked Deposit (CWLD) Diluncurkan. https://www.bwi.go.id/9160/2023/11/27/cash-waqf-linked-deposit-cwld-diluncurkan/
  15. Barr, N. (2004). Problems and definition of measurement. In Economics of the welfare state. Oxford University Press.
  16. Beik, I. S., Arsyianti, L. D., & Permatasari, N. (2024). Analysis on the determinant of millennials’ zakat payment through digital platform in Indonesia: a multinomial logistic approach. Journal of Islamic Marketing, 15(2), 541–572. https://doi.org/10.1108/JIMA-09-2021-0313
  17. Berakon, I., Aji, H. M., & Hafizi, M. R. (2022). Impact of digital Sharia banking systems on cash-waqf among Indonesian Muslim youth. Journal of Islamic Marketing, 13(7), 1551–1573. https://doi.org/10.1108/JIMA-11-2020-0337
  18. BPS. (2022). Data dan Informasi Kemiskinan Kabupaten_Kota Tahun 2022. Badan Pusat Statistik. https://www.bps.go.id/publication/2023/06/23/ff7dcfef2c72cc9979b8b971/pengeluaran-untuk-konsumsi-penduduk-indonesia-september-2022.html
  19. Briliana, V., & Mursito, N. (2017). Exploring antecedents and consequences of Indonesian Muslim youths’ attitude towards halal cosmetic products: A case study in Jakarta. Asia Pacific Management Review, 22(4), 176–184. https://doi.org/10.1016/j.apmrv.2017.07.012
  20. Cahyono, E. F., & Hidayat, S. E. (2022). Cash Waqf and The Development: A Case Study of Cash Waqf Linked Sukuk in Indonesia. El-Barka: Journal of Islamic Economics and Business, 5(1), 150–182. https://doi.org/10.21154/elbarka.v5i1.3713
  21. Carabain, C. L., & Bekkers, R. (2011). Religious and secular volunteering: a comparison between immigrants and non-immigrants in the Netherlands. Voluntary Sector Review, 2(1), 23–41. https://doi.org/10.1332/204080511X560602
  22. Chapman, C. M., Dixon, L., Wallin, A., Young, T., Masser, B. M., & Louis, W. R. (2024). We Usually Give Like This: Social Norms Describe Typical Charitable Causes Supported by Group Members. Nonprofit and Voluntary Sector Quarterly, 53(1), 29–53. https://doi.org/10.1177/08997640231160467
  23. Choudhury, M. A., Pratiwi, A., & Hoque, M. N. (2019). Waqf, perpetual charity, in a general system theory of tawhidi metascience. Thunderbird International Business Review, 61(5), 777–792. https://doi.org/10.1002/tie.22039
  24. Cupian, C., & Najmi, N. (2020). Analisis Faktor-Faktor yang Memengaruhi Persepsi Masyarakat Terhadap Wakaf Uang di Kota Bandung. Jurnal Ilmiah Ekonomi Islam, 6(2), 151. https://doi.org/10.29040/jiei.v6i2.1045
  25. Cutler, J., Nitschke, J. P., Lamm, C., & Lockwood, P. L. (2021). Older adults across the globe exhibit increased prosocial behavior but also greater in-group preferences. Nature Aging, 1(10), 880–888. https://doi.org/10.1038/s43587-021-00118-3
  26. Eisenberg, R., & Avenue, N. (2013). The Charity Divide: Boomers Vs. Gen X And Gen Y. https://www.forbes.com/sites/nextavenue/2013/10/04/the-charity-divide-boomers-vs-gen-x-and-gen-y/
  27. Etikan, I. (2016). Comparison of Convenience Sampling and Purposive Sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1. https://doi.org/10.11648/j.ajtas.20160501.11
  28. Etter, N. (2019). Religiosity and Altruism: Exploring Religiosity’s Impact on the Altruistic Motivations behind Prosocial Behaviors. Midwest Journal of Undergraduate Research, 10, 88–107.
  29. Hadi, E. F., Huzaini, Moh., & Hidayat, A. A. (2023). Factors Influencing The Interest Of The Muslim Generation In Cash Waqf In West Nusa Tenggara Province. International Journal Of Multidisciplinary Research And Analysis, 06(10). Https://Doi.Org/10.47191/Ijmra/V6-I10-21
  30. Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2011). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications Inc.
  31. Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2018). The Results of PLS-SEM Article information. European Business Review, 31(1), 2–24.
  32. Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
  33. Hartoko, S. (2022). The Effect of Understanding, Income, Promotion, and Trust on Cash Waqf Collection in Indonesia. International Conference on Applied Science and Technology on Social Science. https://doi.org/10.2991/assehr.k.220301.020
  34. Harvard, E. L. (2019). Motivations for Charitable Giving Among Generations X and Y: Applying an Extended Theory of Planned Behavior to Independent School Alumni. School of Professional and Continuing Studies Nonprofit Studies Capstone Projects, 7. https://scholarship.richmond.edu/spcs-nonprofitstudies-capstones/7
  35. Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
  36. Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. In R. R. Sinkovics & P. N. Ghauri (Eds.), New Challenges to International Marketing (Vol. 20, pp. 277–319). Emerald Group Publishing Limited. https://doi.org/10.1108/S1474-7979(2009)0000020014
  37. Hoffman, M. (2011). Does Higher Income Make You More Altruistic? Evidence from the Holocaust. Review of Economics and Statistics, 93(3), 876–887. https://doi.org/10.1162/REST_a_00087
  38. Hopkins, R. A., & Powers, T. L. (2009). Development and test of new dimensions of altruistic buying behavior. Journal of Consumer Marketing, 26(3), 185–199. https://doi.org/10.1108/07363760910954127
  39. Kahf, M., & Mohomed, A. N. (2017). Cash Waqf: An Innovative Instrument of Personal Finance In Islamic Banking. Journal of Islamic Economics, Banking and Finance, 13(3), 13–29.
  40. Kamayanti, A. (2021). Metodologi Penelitian Kualitatif Akuntansi: Pengantar Religiositas Keilmuan.
  41. Kasri, R. A., & Chaerunnisa, S. R. (2022). The role of knowledge, trust, and religiosity in explaining the online cash waqf amongst Muslim millennials. Journal of Islamic Marketing, 13(6), 1334–1350. https://doi.org/10.1108/JIMA-04-2020-0101
  42. Kementerian Keuangan. (2022). Keterangan Pers Minat Masyarakat untuk Berwakaf Semakin Besar,SWR003 Berhasil Mencapai Pemesanan Terbesar Sepanjang Penerbitan CWLS Ritel. www.djppr.kemenkeu.go.id
  43. Lubis, B., & Mulianingsih, S. (2019). Keterkaitan Bonus Demografi Dengan Teori Generasi. Jurnal Registratie, 1(1), 21–36. https://www.bkkbn.go.id/detailpost/bonus-
  44. Mallén, F., Domínguez-Escrig, E., Lapiedra, R., & Chiva, R. (2019). Does leader humility matter? Effects on altruism and innovation. Management Decision, 58(5), 967–981. https://doi.org/10.1108/MD-11-2018-1180
  45. Masrizal, Huda, N., Harahap, A., Trianto, B., & Sabiu, T. T. (2023). INVESTIGATING THE DETERMINANTS OF CASH WAQF INTENTION: AN INSIGHT FROM MUSLIMS IN INDONESIA. Journal of Islamic Monetary Economics and Finance, 9(1), 17–38. https://doi.org/10.21098/jimf.v9i1.1607
  46. Masrizal, Sukmana, R., Fianto, B. A., & Gultom, R. Z. (2023). Does economic freedom fosters Islamic rural banks efficiency? Evidence from Indonesia. International Journal of Productivity and Performance Management, 72(9), 2538–2558. https://doi.org/10.1108/IJPPM-11-2021-0660
  47. Muhammad, A. D., Alkassim, J. L., & Sulaiman, S. M. (2023). Cash Waqf Acceptance Among Entrepreneurs in Kano Metropolis, Nigeria. International Journal of Islamic Economics and Finance (IJIEF), 6(1). https://doi.org/10.18196/ijief.v6i1.16966
  48. Mujahidah, A. S., & Rusydiana, A. S. (2023). Perceptions of Indonesian Muslim Youth on Factors Influencing Their Intention to Perform Cash Waqf. International Journal of Islamic Economics and Finance (IJIEF), 6(1). https://doi.org/10.18196/ijief.v6i1.13964
  49. Mukhtar, A., & Mohsin Butt, M. (2012). Intention to choose Halal products: the role of religiosity. Journal of Islamic Marketing, 3(2), 108–120. https://doi.org/10.1108/17590831211232519
  50. Nitzl, C., Roldan, J. L., & Cepeda, G. (2016). Mediation analysis in partial least squares path modeling. Industrial Management & Data Systems, 116(9), 1849–1864. https://doi.org/10.1108/IMDS-07-2015-0302
  51. Nour Aldeen, K., Ratih, I. S., & Sari Pertiwi, R. (2022). Cash waqf from the millennials’ perspective: a case of Indonesia. ISRA International Journal of Islamic Finance, 14(1), 20–37. https://doi.org/10.1108/IJIF-10-2020-0223
  52. Nuryitman, T. R. (2022). DETERMINANTS OF THE INTENTION TO PARTICIPATE IN WAQF: ALTRUISM, TRUST, AND RELIGIOSITY. Airlangga Journal of Innovation Management, 3(2), 197–211. https://doi.org/10.20473/ajim.v3i1.40261
  53. Osman, I., Syed Alwi, S. F., Rehman, M. A., Muda, R., Hassan, F., Hassan, R., & Abdullah, H. (2024). The dilemma of millennial Muslims towards financial management: an Islamic financial literacy perspective. Journal of Islamic Marketing, 15(1), 59–78. https://doi.org/10.1108/JIMA-09-2021-0283
  54. Patwary, A. K., Rasoolimanesh, S. M., Rabiul, M. K., Aziz, R. C., & Hanafiah, M. H. (2022). Linking environmental knowledge, environmental responsibility, altruism, and intention toward green hotels through ecocentric and anthropocentric attitudes. International Journal of Contemporary Hospitality Management, 34(12), 4653–4673. https://doi.org/10.1108/IJCHM-01-2022-0039
  55. Penner., L. A., Dovidio., J. F., Piliavin., J. A., & Schroeder., D. A. (2005). Prosocial Behavior: Multilevel Perspectives. Annual Review of Psychology, 56(1), 365–392. https://doi.org/10.1146/annurev.psych.56.091103.070141
  56. Pessi, A. B. (2011). Religiosity and Altruism: Exploring the Link and its Relation to Happiness. Journal of Contemporary Religion, 26(1), 1–18. https://doi.org/10.1080/13537903.2011.539835
  57. Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903. https://doi.org/10.1037/0021-9010.88.5.879
  58. Priyambodo, A., Nurhidayati, I., & Mardoni, Y. (2023). The Effect of Income Level, Education Level and Religiosity Level on Muzakki’s Interest in Paying Zakat in Semarang City. International Conference on Multidisciplinary Academic Studies, 183–191. https://conference.ut.ac.id/index.php/icomus/article/view/984
  59. Rajagukguk, W. (n.d.). Dark Side of Economic Growth: A Case Study of the Relationship between Economic Growth and Suicide Mortality.
  60. Reyhanmulky, M., Supriani, I., & Al-Ghifary, M. S. (2024a). What Drives Millennials’ and Gen Z’s Intentions to Participate in Cash Waqf Linked Sukuk? Perspectives from Islamic Altruism. International Journal of Islamic Economics and Finance (IJIEF), 7(2).
  61. Reyhanmulky, M., Supriani, I., & Al-Ghifary, M. S. (2024b). What Drives Millennials’ and Gen Z’s Intentions to Participate in Cash Waqf Linked Sukuk? Perspectives from Islamic Altruism. International Journal of Islamic Economics and Finance (IJIEF), 7(2), 200–222. https://doi.org/10.18196/ijief.v7i2.20703
  62. Ridwan, M., Pimada, L. M., & Asnawi, N. (2019). Zakat distribution and macroeconomic performance: Empirical evidence of Indonesia. International Journal of Supply Chain Management, 8(3), 952–957. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85068325323&partnerID=40&md5=1981433547cb97e47194eea736743807
  63. Rizal, H., & Amin, H. (2017). Perceived ihsan, Islamic egalitarianism and Islamic religiosity towards charitable giving of cash waqf. Journal of Islamic Marketing, 8(4), 669–685. https://doi.org/10.1108/JIMA-05-2015-0037
  64. Rodríguez-Ardura, I., & Meseguer-Artola, A. (2020). Editorial: How to Prevent, Detect and Control Common Method Variance in Electronic Commerce Research. Journal of Theoretical and Applied Electronic Commerce Research, 15(2), 0–0. https://doi.org/10.4067/S0718-18762020000200101
  65. Sahrina, M., Hatta, M., Simamora, A. M., & Puspita, L. M. N. (2024). Religiosity, Waqf literacy and income to interest in endowing money: Role of accountability as a moderating variable. Proceeding of International Conference on Accounting & Finance, 257–268.
  66. Sarstedt, M., Ringle, C. M., & Hair, J. F. (2017). Partial Least Squares Structural Equation Modeling. In Handbook of Market Research (pp. 1–40). Springer International Publishing. https://doi.org/10.1007/978-3-319-05542-8_15-1
  67. Sayuti, K. M., & Amin, H. (2020). Integrating the effects of price fairness and Islamic altruism with the TPB model: The case of Islamic mortgage adoption. International Journal of Housing Markets and Analysis, 13(5), 791–807. https://doi.org/10.1108/IJHMA-07-2019-0077
  68. Setya, V. A., Supriani, I., & Fianto, B. A. (2020). Determinants of Underpricing in Islamic and Non-Islamic Shares on IPO. Shirkah Journal of Economics and Business, 5(1). https://doi.org/10.22515/shirkah.v5i1.276
  69. Shaikh, S. A., Ismail, A. G., & Mohd Shafiai, M. H. (2017a). Application of waqf for social and development finance. ISRA International Journal of Islamic Finance, 9(1), 5–14. https://doi.org/10.1108/ijif-07-2017-002
  70. Shaikh, S. A., Ismail, A. G., & Mohd Shafiai, M. H. (2017b). Application of waqf for social and development finance. ISRA International Journal of Islamic Finance, 9(1), 5–14. https://doi.org/10.1108/IJIF-07-2017-002
  71. Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J.-H., Ting, H., Vaithilingam, S., & Ringle, C. M. (2019). Predictive model assessment in PLS-SEM: guidelines for using PLSpredict. European Journal of Marketing, 53(11), 2322–2347. https://doi.org/10.1108/EJM-02-2019-0189
  72. Suzuki, Y., & Miah, M. D. (2016a). Altruism, reciprocity and Islamic equity finance. International Journal of Islamic and Middle Eastern Finance and Management, 9(2), 205–221. https://doi.org/10.1108/IMEFM-09-2014-0091
  73. Suzuki, Y., & Miah, M. D. (2016b). Altruism, reciprocity and Islamic equity finance. International Journal of Islamic and Middle Eastern Finance and Management, 9(2), 205–221. https://doi.org/10.1108/IMEFM-09-2014-0091
  74. Ubaidillah, U., Masyhuri, M., & Wahyuni, N. (2021). Cash Waqf Linked Sukuk (CWLS): An Alternative Instrument for Infrastructure Financing. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 4(1), 35–49. https://doi.org/10.31538/iijse.v4i1.1473
  75. Wulandari, P., & Rabbani, M. (2019). Do Religiosity and Socio-Economic Aspects Influence Zakat and Waqf Payment? In Revitalization of Waqf for Socio-Economic Development, Volume II (pp. 269–292). Springer International Publishing. https://doi.org/10.1007/978-3-030-18449-0_14
  76. Yusfiarto, R., Nugraha, S. S., Mutmainah, L., Berakon, I., Sunarsih, S., & Nurdany, A. (2023). Examining Islamic capital market adoption from a socio-psychological perspective and Islamic financial literacy. Journal of Islamic Accounting and Business Research, 14(4), 574–594. https://doi.org/10.1108/JIABR-02-2022-0037
  77. Yusfiarto, R., Nugraha, S. S., Pambudi, D. S., & Pambekti, G. T. (2022). Islamic Banking and Loyalty: Service Quality, Intimacy or Religious Driven? Studies in Business and Economics, 17(2), 300–318. https://doi.org/10.2478/sbe-2022-0040
  78. Zabri, M. Z. M., & Mohammed, M. O. (2018). Examining the behavioral intention to participate in a Cash Waqf-Financial Cooperative-Musharakah Mutanaqisah home financing model. Managerial Finance, 44(6), 809–829. https://doi.org/10.1108/MF-05-2017-0189
  79. Zhao, X., Lynch, J. G., & Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis. Journal of Consumer Research, 37(2), 197–206. https://doi.org/10.1086/651257

Downloads

PDF

Statistic

Abstract Views
: 20 times
PDF
: 6 times