Journal of Islamic Finance <p><em>Journal of Islamic Finance</em> (JIF), published biannually (<strong>June</strong> and <strong>December</strong>), is a <strong><em>double blind peer-reviewed</em></strong> open-access journal of the IIUM Institute of Islamic Banking and Finance (II<em>i</em>BF), International Islamic University Malaysia (IIUM). </p> <p>The journal is designed to provide a platform for researchers, academicians and practitioners who are interested in new knowledge and discussing ideas, issues and challenges in the fields of Islamic banking, finance, accounting, business and economics.</p> <p><strong>Journal Scope</strong></p> <p>The scope of the journal includes, but is not limited to, Islamic banking and finance, Islamic capital markets, Islamic wealth management, issues on Shari'ah implementation and practices of Islamic banking and finance, zakat, waqf, takaful and comparative analysis of Islamic and conventional financial institutions. </p> <p><strong>Publication Frequency</strong></p> <p>The journal is published biannually in <strong>June</strong> and <strong>December </strong>in English.</p> <p><strong>Peer Review Process</strong></p> <p>A manuscript undergoes a double-blind review process with reviews managed by the Editorial team. Authors are required to upload revised versions and reply to the reviewer's comments. </p> <p><strong>Indexing</strong></p> <p>Malaysian Citation Index (MyCite)</p> <p>Islamic World Science Citation Database (ISC)</p> <p>Index Islamicus</p> <p>Almanhal </p> <p><strong>Privacy Statement</strong></p> <p>The names and email addresses entered in this journal site will be used exclusively for the stated purposes of this journal and will not be made available for any other purpose or to any other party.</p> <p><strong>Disclaimer</strong></p> <p>Opinions expressed in articles and creative pieces published in this Journal are those of the authors and do not necessarily reflect the views of the editors, the editorial board or the publisher.</p> <p>Journal of Islamic Finance at <a href=""></a> is licensed under a <a href="">Creative Commons Attribution 4.0 International License</a>.</p> IIUM Press, International Islamic University Malaysia en-US Journal of Islamic Finance 2289-2109 The External Environment Driving Internal Organizational Change: Empirical Evidence from Commercial Banks’ Adoption of Islamic Financial Transactions in Libya <p>This paper examines the Libyan commercial banks’ adoption of Islamic financial transactions to achieve a real value for stakeholders related to internal environmental adaptation. Accordingly, a questionnaire was designed and distributed to 14 commercial banks in Libya. Structural Equation Modelling (SEM) has been employed for testing the hypotheses. In the context of hypothesized modelling, the conceptual framework portrayed the constructs of the variables employed in the study to be Libyan commercial banks’ adoption of financial transactions as the dependent variable and the external environment as factors driving organizational change as the independent variable. The adaptation of the commercial banks’ internal environment acts as a mediating variable. The Confirmatory Factor Analysis (CFA) is applied to the relationship between measures of constructs and indicators. The results showed that the estimations of maximum likelihood (ML) were satisfactory. The results of SEM showed that commercial banks’ adoption of Islamic financial transactions is more related to their capability of adapting their internal environment than achieving an economic and social value of stakeholders. Finally, the article provides future research directions on commercial banks’ ability to adapt to their internal environment to drive change and commercial banks’ adoption of Islamic financial transactions.</p> Salwa Abdel Gader Khalleefah Bin Idrees Syed Musa Alhabshi Ashurov Sharofiddin Anwar Hasan Abdullah Othman Copyright (c) 2021 IIUM Press 2021-12-31 2021-12-31 10 2 148 161 Conceptual Framework for the Adoption of General Takaful Among MSME Owner-Managers in North-West Nigeria: The Role of MSME Owner-Manager Characteristics <p>The ability to manage risk is especially important to Micro, Small and Medium-sized enterprises (MSMEs) which constitute more than 90% of all businesses in Nigeria. One of the mitigating techniques in minimizing risk is through insurance and Nigeria being a Muslim-majority country, takaful is the alternative to conventional insurance. Despite their fragile nature and their exposure to various threats, MSMEs are the least segment utilizing insurance cover. Based on the reports from the country’s financial regulators it shows that majority of these businesses do not participate in any insurance scheme. Furthermore, there are less studies that examined takaful adoption by MSMEs, especially in Nigeria. These past studies are also inconclusive on the significant factors influencing adoption especially from the behavioral perspective. This paper aims to propose a conceptual framework to study the factors that influence general takaful adoption among MSMEs owner-managers’ in North-West Nigeria. An integrated framework based on the Diffusion of Innovation Theory (DOI) and the Unified Theory of Acceptance and the Use of Technology (UTAUT) was developed to examine what motivates MSMEs owner-managers to adopt general takaful. Furthermore, the proposed model incorporates MSME owner-manager’s personal and demographic characteristics (age, gender, education, prior loss experience and religiosity) as potential moderators in the study to enhance the predictive power of the model. Validating the conceptual framework of this research will be useful to takaful operators, financial regulators and policy makers in Nigeria to devise appropriate strategies that will increase the adoption rate of general takaful scheme among MSMEs.</p> Nurudeen Abdulkadir Safeza Mohd Sapian Norhazlina Ibrahim Syadiyah Abdul Shukor Copyright (c) 2021 IIUM Press 2021-12-31 2021-12-31 10 2 134 147 How Middle-Low Income Muslim Group Financially Reacts in Pandemic Crisis <p>The purpose of this study is to determine factors constituting financial behavior of middle - low income group living in the sub-urbs area in Indonesia during a pandemic. This paper employs Structural Equation Modeling Partial Least Square (SEM-PLS), with a selection of 150 respondents that meet the criteria, based on: jobs, income, and house location (purposive sampling). The findings indicate that Islamic financial literacy, locus of control, and attitudes affect positively and significantly the financial behavior of this segment. While locus of control serves the highest factor, it is pertinent to emphasize the findings that Islamic financial literacy shows the lowest value than other variables. This situation has a real implication, essentially for policymakers and religious scholars, to create a continuous program targeting on improvements of Islamic financial literacy in general aiming on building a responsible financial behavior for middle-low income Muslim groups particularly during the pandemic crisis.</p> Nurlaili Putri Swastika Copyright (c) 2021 IIUM Press 2021-12-31 2021-12-31 10 2 124 133 The Theory of Product Innovation and Its Application in Islamic Banking <p>The success of banking institution depends on continuous innovation and improvement of the product offering to increase profitability and marketability. Product innovation is also one of the important aspects for Islamic banking institution, but it requires attention in observing Shariah requirements. This article will analyze the principles of innovation and development and its application in Islamic banking product. The analysis is based on qualitative research approach where reference will be made to primary and secondary sources gathered through library research. The discussion will study several literature on the concept of product innovation and analyze the applicable Shariah principles in the aspect of innovation of Islamic banking product. From the study, it is concluded that the general concept of product innovation in conventional banking can be applied in the context of Islamic banking. This is because Islamic banking is still within the framework of banking which is also subject to similar commercial aspects but with the requirement to uphold Shariah principles. Product innovation in Islamic banking involves the role of creativity and the concept of reform in Shariah as well as the approach in the construction of Shariah ruling. Therefore, continuous product innovation is significant for Islamic banking institution to remain competitive with other financial institutions in the industry.</p> Mohamad Syafiqe Abdul Rahim Ahmad Hidayat Buang Copyright (c) 2021 IIUM Press 2021-12-31 2021-12-31 10 2 112 123 A Systematic Literature Review on Zakat <p>Although zakat is an extremely studied topic in Islamic Social Finance, a systematic, comprehensive, and diverse review in the domain of zakat is lacking. This paper attempts to conduct a systematic review on the status of zakat literature, taking Malaysia as a case study. The article searched on the Scopus database and identified sixty-three (63) related studies. However, only thirty-one (31) studies throughout 2009-2020 met the criteria set for the study. This study examined several aspects of literature review which include research type, research approach and subject area. The outcome of this article is to provide direction for future studies.</p> Nurul ‘Iffah M A Zaaba Rusni Hassan Copyright (c) 2021 IIUM Press 2021-12-31 2021-12-31 10 2 101 111