New measures of Islamic social finance receptiveness index

Purpose This study investigated the receptivity of the zakat wakalah system in social finance in Malaysia under the lens of innovation diffusion theory (IDT). Design/methodology/approach This study conducted quantitative research using Google Forms. The sample size was 261 respondents who participated and were useable in this study. The Statistical Package of Social Science (SPSS) 27 was employed to analyse the data. The data were collected online from August 1 till August 31, 2022. Findings The results reported significant effects of relative advantage, simplicity, compatibility and perceived benevolence on the zakat wakalah receptiveness index (ZAWi) for Medium Group Acceptance (MEGA) and High Group Acceptance (HIGA). As for Low Group Acceptance (LOGA), insignificant results were reported in relative advantage, compatibility and perceived benevolence but not simplicity. Research limitations/implications This study was limited to Labuan geographically, Malaysia and the variables employed. Yet, the results highlight the factors that influenced ZAWi and the two groups namely HIGA and MEGA found them all significant. Practical implications This study enhanced the theoretical and practical effects of ZAWi. The results rendered a competitive benchmark for zakat institutions and zakat payers for improved zakat distribution policy. Social implications This study advanced psychology and management theory by improving knowledge of zakat wakalah for effective zakat distribution. In turn, it can be employed as the baseline theory for future studies to enhance existing hypotheses. Originality/value This study introduced a new ZAWi formulated from IDT in the context of zakat distribution in Malaysia.