Halal Businesses Research Articles

Halal Industry Recovery of Creative Halal Industry Business After Covid-19 Pandemic

This research identifies gaps in understanding halal business adaptation strategies amid the COVID-19 pandemic, especially in the MSME sector, focusing on case studies of Yotta and Browcyl in Makassar. This study aims to explore the development of the two products' halal businesses after the pandemic, the strategies they implemented, and the application of Sharia principles in their operations. The method used is field research with a qualitative descriptive approach through interviews and thematic analysis. The results showed that Yotta and Browcyl survived and thrived through digital transformation and halal certification despite facing significant challenges such as declining production and sales. However, this study has weaknesses in the generalizability of the findings and the lack of investigation of the long-term economic impact of the strategies adopted. For future development, it is recommended that the scope of the study be expanded by including more cases from different segments of the halal creative business industry and analyzing government policies that affect the industry. Future research is expected to provide comprehensive guidance for industry players to formulate effective strategies to face future challenges and capitalize on growth opportunities.

Halal B2B marketing in the metaverse: crafting a conceptual framework to pinpoint opportunities and challenges, outlining the agenda for future research

Purpose The study aims to explore the theoretical framework of Halal B2B marketing in the metaverse, develop a conceptual framework for future research, identify challenges and opportunities, including technological, cultural and compliance aspects, and provide insights for the effective integration of the metaverse into Halal B2B marketing practices. Design/methodology/approach The research employs a comprehensive literature review, examining works on halal marketing, Islamic business ethics and technology adoption in Islamic markets. The study also identifies key stakeholders in Halal B2B marketing within the metaverse, such as Halal businesses, Muslim buyers, technology developers, regulatory bodies and others, and discusses their unique challenges and contributions. Findings The study presents a conceptual framework depicting the interaction among various stakeholders in Halal B2B marketing within the metaverse. It identifies opportunities such as enhanced customer engagement, global market expansion and innovative branding, and discusses challenges including technological disparities, cultural sensitivities and Halal compliance. Research limitations/implications The conceptual framework delineated in this paper succinctly outlines the potential challenges confronted by diverse stakeholders in building the digital Halal market ecosystem within the metaverse. These frameworks augment the understanding of the metaverse as an evolving digital technology for brands operating within this digital space. This contributes to both theoretical and practical insights into the integration of the metaverse into business operations. While the metaverse holds promise for immersive and interconnected digital experiences, it also comes with several limitations and challenges that need to be taken into account. Practical implications The research introduces a framework that elucidates the professional relationships among key entities: Halal B2B brands aiming to enter the metaverse for brand promotion, buyers seeking business opportunities within the metaverse, and technology developers responsible for establishing the required infrastructure. This framework offers a succinct portrayal of the stakeholders' positions, delves into potential opportunities within the metaverse, and scrutinises the inherent challenges associated with these possibilities. Social implications The metaverse empowers Halal enterprises to provide tailor-made experiences that resonate with the preferences of Muslim consumers. It offers scope for personalised marketing, emphasising its potential as a pivotal element in the triumph of Halal B2B marketing within the metaverse. In the realm of Halal marketing, cultural and ethical alignment holds paramount importance. The metaverse provides opportunities for devising marketing approaches that are attuned to Islamic cultural and ethical values. Originality/value The study results in several recommendations that could help Halal B2B brands effectively leverage the metaverse's potential and cater to Muslim consumers' needs innovatively. These are: (a) Invest in Metaverse Infrastructure by partnering with technology developers or invest in virtual spaces tailored to Halal products; (b) Tailor Marketing Experiences through creating immersive experiences aligned with Muslim consumers' preferences; (c) Ensure Cultural and Ethical Alignment by consulting religious scholars to ensure marketing respects Islamic values; (d) Foster Business Opportunities by facilitating virtual trade shows and marketplaces for Halal products; (e) Educate Stakeholders by organising workshops to introduce the metaverse's potential benefits; (f) Address Challenges Proactively by tackling privacy, accessibility and regulatory issues head-on; (g) Collaborate with Industry Partners and work with other Halal brands and tech partners to drive innovation.

The right literacy on the right performance: Does Islamic financial literacy affect business performance through Islamic financial inclusion?

This study examines how Islamic financial literacy and Islamic financial access contribute to the performance of Halal MSMEs using knowledge-based theory. Micro, small, and medium-sized halal businesses (MSMEs) have an important role in the economy and the rapid growth of the world halal industry. The success of halal MSMEs depends on a number of factors, including the availability of Islamic funding and the financial literacy of Islamic finance. This study adopted a hierarchical regression model to examine quantitative data from a sample of 209 halal MSMEs' owners and managers in Malang Raya, Indonesia. The findings demonstrate that a high level of Islamic financial literacy can encourage Islamic financial inclusion, while inclusive Islamic financial institutions have a significant impact on MSMEs’ performance. In promoting inclusive Islamic finance, this study contributes by describing how Islamic financial inclusion affects the performance of Halal MSMEs and the level of society's knowledge on Islamic finance. Implications: Once MSMEs have a strong understanding of the Islamic finance principles, they are more likely to use these resources to increase access to Islamic finance; thereby leading to business growth and expansion. For this study, the halal industry within the food and beverage sector is a noteworthy production sector.

The effect of innovative mindset and behavior on innovation performance and competitive advantage: a case of halal SMEs owner-managers from Malaysian energy-intensive industry

Malaysia was ranked 32nd on the Global Competitiveness Index in 2022, which denotes that the level of R&D and productivity in SMEs in Malaysia needs to be improved. Therefore, more research is needed to ensure it remains competitive in the global halal marketplace by using innovative concepts as a culture to promote energy-intensive halal SMEs. This study examines the sequential influence of an innovative mindset, behavior, and performance on competitive advantage among SME owner-managers embarking on halal businesses. Data were gathered from SME owner-managers from the halal energy-intensive industry by conducting a self-administered and online-based survey involving 140 respondents. Data were analyzed with the partial least squares technique (SmartPLS 3.0). The results of this study show that innovative behavior was a direct result of an innovative mindset. On the other hand, innovative behavior produced innovation performance, which in turn produced a competitive advantage. This study shows that SMEs owner-managers of halal energy-intensive industries need possess both innovative behavior and innovative attitude as valuable assets. Moreover, a key component in their ability to gain a competitive advantage is their performance in innovation.

Building Halal Businesses, Transforming Lives: The Pesantren's Role in Sustainable Development

Building Halal Businesses, Transforming Lives: The Pesantren's Role in Sustainable Development

Impact of Implementation of Halal Tourism in West Nusa Tenggara Province: Maqāṣid al-Sharīa Perspective

This study aims to analyze the benefits and harms of implementing Halal Tourism in West Nusa Tenggara Province from the perspective of maqāṣid sharīa. This study uses a qualitative method with a phenomenological approach and holistic Fiqh theory. The phenomenological approach is carried out to analyze social phenomena after implementing halal tourism. The Fiqh theory approach focuses more on Islamic law within the scope of maqāṣid al-sharīa. The results of the study state that the impact of halal tourism in West Nusa Tenggara Province on the community, tourists, and the government is dominated by benefit rather than benefit. The impact of halal tourism from the perspective of maqāṣid al-sharīa can be seen from indicators in maintaining religion (hifdzu sd-din) in halal tourism, namely the convenience for tourists with the availability of prayer facilities in each destination. In protecting life (hide an-nafs), local governments are increasing the number of halal certifications, localization of Halal tourism destinations, and restrictions on alcoholic beverages. In maintaining reason (hifdz al-'aql), the role of the community in developing halal tourism is carried out through Islamic boarding schools. In protecting offspring (hifdz an-nasl), tourists and the public can use several sharia-compliant lodging accommodations such as the Syariah Motel and the Grand Madani Syariah Hotel. Meanwhile, in protecting assets (hifdz al-maal), the community and government provide halal businesses and Islamic financial institutions such as Bank NTB Syariah. The contribution of this article is a guide for the government in making policies and regulations for the implementation of halal tourism in Indonesia.

Developing theoretical lenses for upstream halal businesses

PurposeThis study aims to underline Islamic principles to the business theories for producers and policymakers and to explain halal marketing by value creation approach for halal stakeholders concerned with halal certification and its implementation.Design/methodology/approachThis study applied inductive reasoning with the systematic literature review (SLR) of peer-reviewed published research papers, followed by the preferred reporting items for systematic reviews and meta-analyses framework. Furthermore, the content analysis with ATLAS.ti 2022 helped to undergo concept and thematic analysis that show the theoretical lenses for the upstream halal businesses.FindingsAmong 360 papers, the SLR from 2012 to 2022 found 32 papers dealing with the halal theory–based studies on certification, standards, producers and policymakers and halal supply chains. Only seven studies consulted the resource-based view (RBV), a strategy theory and the institutional theory (IT) connected to halal. This study further underpinned qualitative Quranic verses to add to the current body of RBV and IT, resulting in halal sustainable competitive advantage and halal certification institutionalization.Practical implicationsIslamic principles can guide halal stakeholders to create and manage valuable resources through halal certification. Also, academics can synthesize conventional theories as value-creation mechanisms compliant with Islamic codes.Originality/valueTo the best of the authors’ knowledge, this novel study was the first to contribute to the current body of RBV and IT with Islamic principles. It has primarily concentrated on the upstream halal businesses to create and manage halal value, certification and competitive advantages for halal marketing.

Utilization of Business Analytics by SMEs In Halal Supply Chain Management Transactions

Halal supply chain management has transformed beyond food and beverage certification. However, extant literature shows that Halal transaction management still has much to improve in terms of transaction permissibility, with the main gap in understanding Halal businesses and their transactions limited to a system that separately defines e-commerce and financial technology data into its IT business environment. This study aims to demonstrate the usefulness of managing Halal transactions and its permissibility analysis through a proposed Halal Supply Chain Management Transactions (HSCMT) model and prototype by applying a business analytic approach to integrate both e-commerce and financial technology data. The study uses literature analysis to ensure the correct structure of the integrated datasets, before modeling the transaction's permissibility and prototyping its analytics into decision-making analytics. The developed HSCMT prototype uses a payment gateway that can be embedded into a Halal SME owners' e-commerce site. This creates a holistic Halal Financial technology (FinTech) transaction permissibility dashboard, increasing the effectiveness of HSCMT for Malaysia Halal SME Owners (MHSO) by an average usability score of 83.67%. Results also indicate that the key basic mechanisms to verify transactional permissibility are the source of the transaction, the use of the transaction, transaction flow, and transaction agreement. Furthermore, its mechanisms must be mapped onto a submodule post-transformation and modeling of the transaction dataset. Further improvements in multisource data points can be further considered, as this research only focuses on local data points from one payment gateway service. This is due to restrictions in data policy when involving overseas supply chain and transaction documentation. This research utilizes available data in business through data management, optimization, mining, and visualization to measure performance and drive a company's growth. The competency of business analytics can be beneficial to Halal SMEs players because it can provide them with insights into the permissibility decision-making process.

Integration of using Fintech and social media for the Sustainability Halal Business in Pesantren

The urgency of Fintech and social media in halal business to realize Halal Value Chain (HVC) That support the addition of economic value for halal businesses including business activities at Islamic boarding schools in the Society 5.0 era. The purpose of this study is to analyze the optimization of the integration of the use of financial technology and social media in halal businesses managed by Islamic boarding schools to achieve the SDGs in the 5.0 era. This study uses phenomenology with data sources from Islamic boarding schools in Central Sulawesi. This study uses phenomenology with data sources from Islamic boarding schools in Central Sulawesi. The results of the study indicate the optimization of the integration of the use of fintech and social media in halal business activities in the form of recording transactions, analysis of financial reports, decision making, market mapping, product innovation, resilience, and building and maintaining business networks.

LINKING CONSUMER BEHAVIOR AND DEMAND FOR HALAL LOGISTICS — EVIDENCE FROM BRUNEI DARUSSALAM

This study aims to investigate elements associated with consumer behavior towards the demand for halal logistics, namely concern about halal (COHA), knowledge of halal (KNHA), awareness of halal logistics (AWHL), and perceptions of halal logistics (PEHL). This research applied a quantitative methodology that gathered primary data from Muslim consumers residing in Brunei Darussalam. Data were collected using an online self-administrated survey questionnaire, and regression and correlation analyses were tested to investigate the proposed hypotheses. The result demonstrates that COHA, KNHA, AWHL, and PEHL constructs significantly influence demand for halal logistics (DEHL). All four elements show a medium to strong positive correlation with the dependent variable, inferring that the independent variables and the DEHL construct are closely related or associated — suggesting that an increase in the independent variables will increase DEHL and vice versa. This research does not fully represent the general consumers in Brunei markets as this research solely focuses on Muslims. Future research on non-Muslim consumers might be an option to give a bigger picture of the need for halal logistics in Brunei Darussalam. This study is beneficial to relevant stakeholders such as halal businesses, logistics service providers (LSP), policymakers, and consumers to reconsider the extent of halal logistics in not only safeguarding halal integrity across the logistics chain but also its significance in shaping continuous and viable demands in the pursuit of competitive advantage. This paper is among the first attempts to investigate Muslim consumer demand for halal logistics in Brunei, considering that past research focused heavily on Malaysian and Indonesian markets. This paper could contribute to future theoretical and empirical studies and suggest practical initiatives towards relevant stakeholders.

Integration of Using Fintech and Social Media for The Business Sustainability in Pesantren

<p>The urgency in utilizing fintech and social media in business to realize the Halal Value Chain (HVC) is paramount because it can provide added economic value for halal business actors, including Islamic boarding schools in the era of Society 5.0. This study aims to analyze the optimization of financial technology and social media integration in halal businesses managed by Islamic boarding schools to achieve the SDGs in the 5.0 era. This study uses phenomenology with data sources from Islamic boarding schools in Central Sulawesi. This research reveals that the integration relationship between fintech and social media highly depends on optimizing both. Factors driving the use of fintech and social media in Islamic boarding schools business consist of internal factors in the form of pesantren awareness of the importance of sustainable business activities and the vision of independence that exists in Islamic boarding schools. Furthermore, internal driving factors include the Covid-19 pandemic, market growth, digital market behavior, market growth, digital access, and customer behavior. Optimizing the use of social media in market mapping to see market demand trends has implications for Islamic boarding school business strategies in developing products.</p>

Perbedaan Perbankan Syariah dengan Konvensional

This article aims to test the financial performance between Islamic Banks and Conventional Banks, and examine the influence of financial performance on investment decisions, both in Islamic Banks and Conventional Banks. Basically it has a function as a place to collect funds from the public in the form of savings and distribute them again to the community in the form of credit or other forms in order to improve the standard of living of the people as explained in Law Number 10 of 1998 concerning Banking, so that today's society many use banking services in Indonesia, but many Indonesian people are now starting to hesitate to use banking services, especially conventional banking because it adheres to the interest system which according to Islam is forbidden. As an alternative for people who are afraid of bank interest, Islamic banking is born which applies a profit-sharing system in calculating the profits of its funds and based on Islamic law is recognized as halal. Differences Islamic Banks and Conventional Banks:. Sharia banking law is based on Islamic sharia based on the Qur'an and Hadith and Fatwa Ulama (MUI) while conventional banks are legal based on positive law applicable in Indonesia (Civil and Criminal). violates Islamic law (only for halal businesses) while lending to conventional banks can be done in various businesses that are considered safe and profitable. As long as it doesn't violate applicable laws and regulations
 

The Role of University Resource Support and Entrepreneurial Characteristics On Halal Startup Businesses

This study aims to determine the effect of university resource support, self-efficacy, entrepreneurial motivation, and entrepreneurial competence on halal startup business performance in Indonesia. This quantitative research uses the causal method to analyze the relationship between research variables. The research data was collected in 2021 using questionnaires to 130 students who have been running their businesses for at least the last three months. Statistical analysis using SEM-PLS showed that three of the four research hypotheses were accepted. The study's results found that university resource support and self-efficacy significantly affect the performance of the halal startup business. Meanwhile, entrepreneurial motivation does not positively influence student halal startup business performance. This research is expected to provide a contribution that can be a solution, suggestion, and recommendation that can be used as a reference for university decision-makers in Indonesia. The results of this study are expected to add to the repertoire of scientific literature, especially studies on the management of new halal businesses. Keywords: business performance, entrepreneurial competence, self efficiency, startup, universities education, universities support

Examining new measure of asnaf muslimpreneur success model: a Maqasid perspective

PurposeThis study aims to investigate mustahiq business success using a newly developed index called asnaf muslimpreneur success index (AMSi).Design/methodology/approachFollowing Abu Zaharah theory of al-Maqasid al-Shariah, the authors developed the AMSi through literature analyses and expert judges involving three Shariah scholars for improved extensions and applications. Subsequently, the authors conducted the actual survey, which included 17 mustahiq who had been assisted by the zakat institution in running their small and halal businesses in Sabah, Malaysia.FindingsUsing the AMSi, the success of asnaf businesses was in the moderate index, implying the success meets the index score of more than 50%. All indexes capturing asnafs’ business experience, asnafs’ business justice, asnafs’ well-being and asnafs’ financial wisdom were greater than the threshold value of 0.5 or 50%, implying that the interaction of the battery items involved in those variables resulted in satisfactory results, indicating that they are relevant and essential in gauging the asnafs’ success level in the development business programme.Research limitations/implicationsThe results obtained were at the exploratory level, and for that, more studies related are expected to be conducted in the future, where the coverage of the respondents used is larger to extend the findings, at least.Practical implicationsThe results obtained can become a yardstick to gauge the success of asnaf muslimpreneurs in Sabah, East Malaysia.Originality/valueThis study introduces new measures of asnaf muslimpreneur success model, where mustahiq business is brought into play.

Identifying stakeholders’ perspectives on the success factors of halal tourism in the city of Makassar: a group model building approach

Purpose Islamic attributes and activities need to be developed in compliance with the halal concept to attract potential Muslim tourists and ensure the success of halal tourism. Although the literature shows that many factors can influence the success of halal tourism, a complete picture of the success factors of halal tourism in a city is still very limited. As such, this explorative study aims to examine stakeholders’ perspectives regarding the antecedents of halal tourism success and the benefits of halal tourism for the city. Design/methodology/approach Qualitative system dynamics modeling was used for this study, and Makassar (a successful halal tourism city) was considered as the basis for the study. A causal loop diagram (CLD) of halal tourism was developed using the group model building technique to elicit stakeholders’ knowledge and assumptions. Network analysis and feedback loop analysis were used to identify the driving factors of successful halal tourism. Findings Two factors need to be taken into account by halal tourism stakeholders in the city: support from the central and local government and improving and maintaining potential tourists’ perceptions of the city. There are four benefits of halal tourism success for the city: an increase in the number of micro-, small- and medium-sized halal businesses in the city, increased support from the central and local government to further develop halal tourism infrastructure in the city, increased word-of-mouth promotion of Makassar as a tourism destination and a decrease in the price of halal tourism components (e.g. food and accommodation). Originality/value The resulting CLD shows the interlinkage between political, societal and economical factors that could influence the success of halal tourism development. In particular, the findings show how governments and tourism stakeholders need to promote halal tourism socialization in the community and improve the public perception of this type of tourism. Therefore, the findings can help destination stakeholders and tourism developers in other cities develop halal tourism potential.

Halal Education: Curriculum Management Based on Halal Entrepreneurship at Nahdlatul Ulama University of Sidoarjo

Indonesia is well-known for having the world’s largest Muslim population. As a result, Indonesia has significant halal market potential. After forming the Institute for the Study of Food, Drugs, and Cosmetics in the Indonesian Ulema Council, halal products became more widely known (LPPOM-MUI). Since then, public awareness and demand for Halal products have risen significantly, making Indonesia a lucrative market for halal businesses. In response to the rapid rise of the halal industry, a new curriculum has emerged in education to meet the difficulties of today’s industrial world. Halal entrepreneurship is a newly designed university program. This study was implemented to determine the curriculum management based on halal entrepreneurship at the Nahdlatul Ulama University of Sidoarjo. The result of this study can be reflected in the well-run and methodical planning, execution, and evaluation stages. The curriculum development team incorporates halal entrepreneurship into courses and teaches halal materials in halal food management, halal cosmetics, and halal supply chain management. At the end of each lecture, students participate in curriculum evaluation exercises used to improve the curriculum in the future.

Funding higher education through waqf: a lesson from Pakistan

PurposeThis paper aims to study waqf practice in Pakistan with regard to its utilisation in funding for higher educational institutions (HEIs) and investigates waqf raising, waqf management and waqf income utilisation.Design/methodology/approachThe paper is based on the views of 11 participants who are actively involved in the waqf, its raising, management and income utilisation, and is divided into three subcategories: personnel of higher educational waqf institution, personnel of waqf regulatory bodies and Shari’ah and legal experts as well as archival records, documents and library sources.FindingsIn Pakistan, both public and private awqaf are existing, but the role of private awqaf is greater in higher education funding. However, due to lack of legal supervision private awqaf is considered as a part of the not-for-profit sector and legitimately registered as a society, foundation, trust or a private limited company. Waqf in Pakistan is more focusing on internal financial sources and waqf income. In terms of waqf management, they have firm guidelines for investing in real estate, the Islamic financial sector and various halal businesses. Waqf uses the income for developmental and operational expenditure, and supports academic activities for students and staff. Waqfs are also supporting some other HEIs and research agencies. Thus, it can be revealed that a waqf can cater a sufficient amount for funding higher educational institutions.Research limitations/implicationsIn Pakistan, both public and private awqaf are equally serving society in different sectors, but the role of private awqaf is much greater in funding higher education. Nevertheless, the government treats private awqaf as a part of not-for-profit sector in the absence of a specific legal framework and registers such organisations as society, foundation, trust or private limited company. The waqf in Pakistan mostly relies on internal financial resources and income from waqf assets. As the waqf managers have over the time evolved firm guidelines for investment in real estate, Islamic financial sector and various other halal businesses, and utilisation of waqf income on developmental and operational expenditures, academic activities of students and educational staff, other HEIs and research agencies, it can be proved that the waqf can potentially generate sufficient amount for funding HEIs.Practical implicationsThe study presents the waqf as a social finance institution and the best alternative fiscal instrument for funding works of public good, including higher education, with the help of three selected waqf cases. Hence, the paper’s findings offer some generalisations, both for the ummah at large and Pakistan.Social implicationsThe paper makes several policy recommendations for policymakers, legislators and academicians, especially the government. As an Islamic social finance institution, the waqf can help finance higher education anywhere around the world in view of the fact that most countries grapple with huge fiscal deficits and are hence financially constrained to meet growing needs of HEIs.Originality/valueThe study confirms that the waqf can be an alternative source for funding higher education institutions whether it is managed by the government or is privately controlled.

An Analysis of Strategy Formulation for Halal Hotel Human Resources in Indonesia

The emergence of halal hotel businesses has attracted many scholars’ and practitioners’ attention. However, the halal hotel concept and the required human resources are still not very clear. This s...

Halal Industry: Are The Businesses Fully Awake?

Nowadays, organisations are involved in intense competition to sell their products and services globally. The current target market covers nearly every country in the world, including Islamic countries. For example, Japan and Australia are putting great effort into catering to a rising number of Muslim clients by increasing their investment and expertise in halal products and services. Their aim is to attract the attention of the growing Muslim population to add a billion by 2050. Halal products include food and beverages, personal care, cosmetics, pharmaceuticals and health products. Meanwhile, halal services comprise areas such as Islamic finance, takaful, travel, education and healthcare. Subsectors such as media, consulting, events, online services, software development, logical services and lab testing can also benefit from the growth of the halal sector as a whole. The authors will attempt to achieve two objectives in this paper: (i) to examine current literature and (ii) to determine the success factors of and issues faced by halal businesses. The Malaysian government’s intention is not only to support the halal industry in terms of complying with regulations set by the authorities and obtaining the relevant certification; the output must also meet international standards to supply consistently high-quality products and services to win customers’ hearts.

Zakah as tool for social cause marketing and corporate charity: a conceptual study

PurposeThis paper explores the role of Zakah in social cause marketing. Academic literature on Islamic economics, finance and management mostly deals with the links that exists between Zakah and consumption, neglecting important and strategic links with social cause marketing. This paper emanated from need to outline social cause and the charitable role of Zakah in promoting Halal businesses, poverty alleviation and sustainable development. Most works in the field of Zakah did not foresee the role of marketing. This is a misjudgement, as this work showed that Zakah yields large and measurable social gains to help the society and a firm.Design/methodology/approachSecondary sources were used in writing this paper. Available literature in the form of journals, books, manuals and reports was referred to. As a conceptual work, the paper does not test hypothesis or pretends to provide empirical evidences. It uses mathematical economics in arriving at some of the conclusions. Findings were derived through deductions and critical discourses, not through crunching of primary data.FindingsThe paper shows how Zakah, Halal consumption and corporate social responsibility are connected and highlights the role of Zakah as a social marketing tool. It shows how Zakah affects consumption through marginal propensity of Zakah recipients who spend Zakah money on basic needs.Research limitations/implicationsThe paper looks at the broad aspects of Zakah and social marketing. How to make Zakah a pillar of Islamic firms’ social cause programs shall be the focus of future academic works in this area.Originality/valueThe paper is unique in drawing attention of Islamic firms to the effectiveness of Zakah in building a corporate image. It draws the attention of firms, activists, academics and governments to functions of Zakah that have not been studied in depth.