Factors Influencing Online Sadaqah Behavior: The Case of Generation-Z
DOI:
https://doi.org/10.16947/fsmia.1722241Keywords:
Islamic social finance, online sadaqah, generation-z, factor analysis, structural equation modelingAbstract
Sadaqah is a concrete example of Islamic social finance, which is one of the basic
components of the Islamic economic ecosystem. Sadaqah, given in various ways by
the rich to the poor, is very important in ensuring socioeconomic justice. Thanks to the
applications provided by the advanced technology, online sadaqah can now be done easily
and quickly. In this context, the study aimed to identify the factors that influence the
online sadaqah-giving behavior of Generation Z individuals (born after 2000) in today’s
technological world through internet banking and mobile banking. In addition, the study
also examines the mediating (i.e., indirect) role of attitude on online sadaqah-giving
behavior. The validity and accuracy of the research model were tested using exploratory
and confirmatory factor analysis on 360 Generation-Z individuals. In addition, a path
analysis was conducted using structural equation modeling. According to the results
of the analysis, social influence and altruism have a positive effect on online sadaqah
behavior and the attitude factor mediates this effect. Interestingly, the empathy factor
does not affect online sadaqah-giving behavior.
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