Behavioral Factors Influencing Loyalty of Waqifs in Cash Waqf: The Mediating Roles of Trust and Commitment

The extant literature suggests that waqf and waqf institutions face issues such as still being in the nascent phase, inadequate of funds, decreasing numbers of waqifs, perception of waqf as ṣadaqah, trust and commitment of waqifs specifically in cash waqf, and the collection of cash waqf being not in tandem with the growth of the Muslim population in Malaysia. While most studies discuss solutions to problems related to the management and governance of waqf institutions, little attention has been paid to the behavioral aspects of waqifs. This study aims to determine the behavioral factors influencing waqifs’ loyalty in cash waqf. This study examines the relationship between the waqifs’ internal attributes that are attitude, knowledge, experience, and perception with the impact of trust and commitment to the waqifs’ loyalty in cash waqf, the mediating effect of trust and commitment on the relationship between the waqifs’ internal attributes and loyalty in cash waqf, and the relationship between trust and commitment. The research framework is based on the Mehrabian-Russell Stimulus-Response (SOR) Model which serves as the grand theory, and supported by other theories such as the Social Cognitive Theory and the Trust-Commitment Theory of Relationship Marketing. In prior research SOR model has been used in the contemporary marketing studies, however, this study has filled the gap by applying the theory into the context of waqf, specifically the cash waqf. To achieve the objectives of this study, a quantitative survey method was employed to collect relevant data from waqifs who are committed to contribute consistently to cash waqf through salary deduction. For data analysis, a total of 378 completed surveys by waqifs from government agencies, subsidiaries, and semi-bodies in Selangor registered under Pejabat Waqf Selangor (PWS) were utilized. A descriptive analysis was conducted to analyse the demographic background of the respondents and the pattern in the waqifs’ participation in cash waqf. The study model was then analysed further using the Partial Least Squares-Structural Equation Modeling (PLS-SEM). The research findings contributed to a better understanding of the behavioral factors influencing the waqifs’ loyalty to contribute to cash waqf. Five research findings were derived: 1) attitude as a factor influencing the waqifs’ loyalty in cash waqf was significant, 2) except for knowledge, all factors influencing the waqifs’ loyalty in cash waqf were significant to trust, whereas only experience and perception were significant to commitment, 3) the impact of trust on the waqifs’ loyalty in cash waqf was insignificant whilst the effect of commitment was significant, 4) trust mediates the relationship between attitude, experience, and perception and loyalty in cash waqf, while commitment mediates the relationship between experience and perception and loyalty in cash waqf, and 5) the relationship between the two mediators, i.e., trust and commitment was significant. Consequently, with the framework of waqifs’ loyalty to cash waqf, the development of cash waqf institutions specifically in marketing aspects and from the behavioral perspective can be facilitated. In addition, this study contributes to the relevant theories in explaining the relationship between the significant variables from an academic standpoint, leading to the basic purpose of recognizing the development of cash waqf institutions, which aims to address the economic woes of the ummah.