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International Journal of Islamic Economics and Business Sustainability

Abstract

Purpose – The purpose of the paper is to find out the factors that affect the intention of Indonesian Muslims to participate in Cash Waqf Linked Deposit (CWLD), a new Islamic banking product that combines cash waqf and sharia time deposits, launched in Indonesia in late 2023 to help overcome the gap between the potential cash waqf in the country and its actual collection.

Design/methodology/approach – This study employed an Extended Theory of Planned Behaviour (TPB) model which included religiosity, knowledge, trust and perceived benefit in addition to attitude, subjective norm and perceived behavioural control. The primary data were sourced from 306 Indonesian Muslim respondents aged 17 to 64 years via an online self-administered questionnaire. The data were analysed using Partial Least Square-Structural Equation Modelling (PLS-SEM). An experimental survey, using a between-subject design and based on Prospect Theory, investigated whether framing salary-receipt and bill-payment scenarios influences intention, analysed with Mann-Whitney U and Kruskal-Wallis H tests.

Findings – Religiosity has a positive and significant effect on intention, directly and thru attitude. Trust and perceived benefit indirectly influence intention via attitude, while knowledge does not have any significant effect. Attitude did not significantly predict intention but subjective norm and perceived behavioural control did. Scenario framing had no significant impact on intention, although previous waqf donors reported stronger intention than first-time prospects.

Implications – To accelerate CWLD adoption, waqf institutions and Islamic banks should focus on facilitating participation processes, reinforcing religiosity-based messaging and institutional trust.

Originality/value – This is one of the first studies to examine behavioural determinants of intention toward CWLD specifically, integrating the Extended TPB with an experimental Prospect Theory design.

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