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Understanding The Impact of Institutional Factors on Asnaf Sustainability: A PLS-SEM Approach

Author

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  • Haq, Ashraf Al
  • Wahab, Norazlina Abd
  • Alam, Md. Mahmudul

    (Universiti Utara Malaysia)

Abstract

The study looked at the level of sustainable development, whether the institutional factors or often, the demographic changes over time, that might have an impact. The data was meticulously collected through 427 returned questionnaires among zakat recipients in eleven districts of Kedah, Malaysia, and it was thoroughly analysed using path techniques of the PLS-SEM. This study found that the asnaf receiving, very minimum assistance and that can hardly empower them. Accordingly, it’s imperative that the fund needs to be geared towards long term productive use. The results support that the institutional contributory performance having a positive effect, and the level of sustainability do increase after receiving zakat, but there are issues that need careful addressing. The study further examined the moderating role of demographic factors, such as earnings, age, marital status and gender, and witnessed that after zakat, β value, R², ƒ², Q², CR all improved, though individual moderating variables yet to show any significance. The study initiated a newer dimension through incorporating before-zakat and after-zakat scenarios in examining the comparative impact on sustainability, and likewise understanding the recipient’s level of Islamic self-actualisation.

Suggested Citation

  • Haq, Ashraf Al & Wahab, Norazlina Abd & Alam, Md. Mahmudul, 2021. "Understanding The Impact of Institutional Factors on Asnaf Sustainability: A PLS-SEM Approach," OSF Preprints vxh86_v1, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:vxh86_v1
    DOI: 10.31219/osf.io/vxh86_v1
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