Factors Influencing Online Sadaqah Behavior: The Case of Generation-Z

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.