Mudharabah based crowdfunding as an alternative source of funding book publications in Malaysia

Abstract

Purpose This paper aims to explore the applicability of mudharabah (partnership) based crowdfunding as an alternative fund to support the book publishing industry, particularly for self-publishers and small publishers. Design/methodology/approach This is an exploratory qualitative study whereby the data are obtained from library research and empirical studies. As for empirical data, it is sourced from semi-structured interviews with three types of groups: the book industry, the crowdfunding platform and Shari’ah experts. Findings The study found that mudharabah crowdfunding could overcome the book publishing industry’s financial problems. However, this requires special requirements for applicants (writers or publishers) to avoid fraudulent cases, as well as committed management in running the platform and a substantial crowd of loyal funders to maintain the platform. Simultaneously, even though mudharabah is a risky instrument, the risk can be mitigated by closely monitoring the progress of the project. As a result, this study proposes a special framework for mudharabah based crowdfunding to fund self-publishers and small publishers in Malaysia. Research limitations/implications This is an exploratory study, in which its findings may not be generalised due to the limited number of participants. Practical implications A special model for mudharabah based crowdfunding can be established through an online platform to support book publishing in Malaysia. Social implications As this mudharabah crowdfunding model has the potential to support the book industry financially, it could also nurture talented young writers while also preserving knowledge. Originality/value This study highlights a fresh and in-depth discussion both in theory and practice in proposing a special Islamic crowdfunding framework based on mudharabah as an alternative fund for the book industry, particularly to support self- and small publishers.