THE MEDIATING ROLE OF BLOCKCHAIN TECHNOLOGY IN IMPROVING THE DETERMINANTS OF TRUST IN ZAKAT INSTITUTIONS

Abstract

Purpose — The purpose of this study is to explore the mediating role and impact of blockchain technology in the relationship between the determinants of individuals’ attitudes and their trust in zakat management institutions in Indonesia, focusing on a case study of Badan Amil Zakat Indonesia (BAZNAS) in North Sumatra province. Design/Methodology/Approach — The structural equation modelling (SEM) technique using the bootstrap method in Analysis of Moment Structures (AMOS) was employed to examine and investigate how blockchain technology mediates the relationship between the determinants of zakat payers’ attitudes and their trust in BAZNAS North Sumatra. Findings — The findings demonstrate that blockchain technology partially mediates the relationship between governance practices and zakat payers’ trust in BAZNAS North Sumatra, providing empirical evidence of blockchain’s role in strengthening transparency and trust in zakat institutions. Originality/Value — Although trust in zakat institutions has been widely examined, the mediating role of blockchain technology remains underexplored. This study is among the first to empirically test this relationship by integrating blockchain with attitudinal determinants, especially using BAZNAS North Sumatra as a case study. It extends previous research on governance and transparency, contributing to Islamic social finance by offering new insights into the digital transformation of zakat management. Research Limitations/Implications — As this study is based on the case of BAZNAS North Sumatra, the findings may not be fully generalisable to all zakat institutions. Future research may consider multiple institutions across different regions to enhance generalisability. In addition, the study uses a quantitative method; future studies could be conducted on the same topic using qualitative methods, which might produce different results depending on the type of respondents questioned. Practical Implications — Zakat institutions can increase trust by integrating blockchain technology into their management practices.