Exploring Holistic Performance Indicators for WAQF Institutions in Malaysia
Abstract
The practice of waqf (or Islamic endowment) has been recognized as the mainstream social development in Muslim society today since waqf greatly contributes to Malaysia's socio-economic development. Despite the fact that the current development of waqf is not fully utilized, waqf institutions must play a pivotal role in ensuring the attainment of waqf objectives in contemporary society. To achieve their strategic goals and fulfil their accountability towards relevant stakeholders and the public at large, a comprehensive measurement tool is required to assess the performance of waqf institutions holistically. Thus, the objective of this study is to explore the possible key performance indicators for waqf institutions in Malaysia using the balanced scorecard model with four main perspectives: financial perspective, stakeholder perspective, internal process perspective, and learning and growth perspective. The method of this study is based on a review of the literature on relevant performance measurement for waqf institutions in Malaysia. The findings of this study could assist waqf institutions in Malaysia to define their vision and strategy, as well as change their vision and strategy into specific activities, by implementing the proposed indicators that are measurable and comprehensive and are useful for waqf managers to make an accurate and informed decision. The outcome of this study could provide a guideline for designing a holistic and proper measurement system that can be implemented by all waqf institutions in Malaysia to maintain their sustainability and competitiveness.
Downloads
References
Arena, M., Azzone, G., & Bengo, I. (2015). Performance measurement for social enterprises. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 26 (2), 649-672.
Arshad, R., & Mohd Zain, N. (2017). Performance measurement and accountability of waqf institutions in Malaysia. SHS Web of Conferences, 36(00005), EDP Sciences.
Arshad, R., Mohd Zain, N., Urus, S.T., & Chakir, A. (2018). Modelling maqasid waqf performance measures in waqf institutions. Global Journal Al-Thaqafah, Special Issue, 157-169.
Daud, M.Z., Hanafi, H., & Hussin, M.F. (2022). Literature on the current development of waqf practices in Malaysia. Journal of Shariah Law Research, 7 (2), 223-240.
Febriandika, N.R., Siregar, M.R., & El Ashfahany, A.H. (2022). Performance analysis of waqf institution using balanced scorecard analysis: A case study at Laznas Yatim Mandiri. An-Nisbah: Jurnal Ekonomi Syariah, 9(1), 25-49.
Figge, F., Hahn, T., Schaltegger, S., & Wagner, M. (2002). The sustainability balanced scorecard – Theory and application of a tool for value-based sustainability management. Greening of Industry Network Conference 2002, Gothenburg, 1–32.
Hartnett, B., & Matan, R. (2011). The balanced scorecard: A strategic tool for the nonprofit sector, 15. Retrieved September 8, 2023, from http://sobel-cpa.com/sites/default/files/whitepaper.Jan2011 final.pdf
Hoque, Z. (2014). 20 years of studies on the balanced scorecard: Trends, accomplishments, gaps and opportunities for future research. British Accounting Review, 46(1), 33–59.
Iman, A.H., & Mohammad, M.T.S. (2017). Waqf for a framework of entrepreneurship. Humanomics, Vol. 33 (4), pp. 419-440.
Ismail, C. Z., Muda, S., & Hanafiah, N. J. A. (2014). Challenges and prospects of cash waqf development in Malaysia. Journal of Basic and Applied Scientific Research, 4(2), 340-348.
Kamaruddin, M.I.H., & Ramli, N.M. (2015). Enhancing financial accountability of Islamic philanthropic organizations through financial disclosure. Online Journal Research in Islamic Studies, Volume 2, 29–42.
Kamarubahrin, A. F., Ahmed Ayedh, A. M., & Khairi, K. F. (2019). Accountability Practices of Waqf Institution in Malaysia: A Critical Analysis. International Journal of Management, Accounting and Economics (2), 146-171.
Kaplan, R. S., & Norton, D. P. (1996). Linking the balanced scorecard to strategy. California Management Review, 39 (1), 53-79.
Kaplan, R. (2001). Strategic performance measurement and management in nonprofit organizations. Nonprofit Management & Leadership, 3(Spring), 353 – 370.
Kaplan, R. S. (2009). Conceptual foundations of the balanced scorecard. Handbooks of Management Accounting Research, 3, 1253–1269.
Khamis, S.R., & Mohd Salleh, M.C. (2018). Study on the efficiency of cash waqf management in Malaysia. Journal of Islamic Monetary Economics and Finance, 4 (1), 61-84.
Khalil, I.A., Ali, D.Y., & Shaiban, D.M. (2014). Waqf fund management in Kuwait and Egypt: Can Malaysia learn from their experiences? International Conference on Masjid, Zakat and Waqf, Monash University, Kuala Lumpur, p. 69.
Mahamood, S.M., Ab Rahman, A., Zam Ahmad, H.Z., & Muhammad, S. (2007). Konsep wakaf sebagai instrumen pembangunan harta tanah di Wilayah Pembangunan Iskandar (WPI). Jurnal Pengurusan JAWHAR, 1(2), 1-32.
Mahamood, S.M. (2006). Waqf in Malaysia: Legal and administrative perspectives. University Malaya Press.
Mahamood, S. M., Ab Rahman, A., & Che Seman, A. (2018). Pembentukan Institusi Pengajian Tinggi Berteraskan Wakaf di Malaysia: Cadangan Model Pelaksanaannya: The Establishment of a Waqf-Based Higher Educational Institution in Malaysia: Proposed Model for Implementation. Jurnal Syariah, 26(1), 1–22.
Martello, M., Fischer, M. J., & Watson, J. G. (2008). Implementing a balanced scorecard in a not-for-profit organization. Journal of Business & Economics Research, 6(9), 67–80.
Masruki, R., Mohd Hanefah, M., Aryani, D.N., & Bunyamin. (2019). Performance measurements of socio-economic impact for waqf (endowment) institutions. International Journal of Innovation, Creativity and Change, 7 (6), 1-16.
Noordin, N.H., Haron, S.N., & Kassim, S. (2017). Developing a comprehensive performance measurement system for waqf institutions. International Journal of Social Economics, 44 (7), 921-936.
Official Portal Department of Awqaf, Zakat and Hajj (JAWHAR Website). Retrieved September 7, 2023, from https://www.jawhar.gov.my/en/corporate-info/history-of-jawhar/waqf/waqf-institutions/
Pitchay, A.A., Thaker, M.A.T., Mydin, A.A., Azhar, Z., & Abdul Latiff, A.R. (2018). Cooperative-waqf model: A proposal to develop idle waqf lands in Malaysia. ISRA International Journal of Islamic Finance, 10 (2), 225-236.
Rani, M.A., & Aziz, A.A. (2010). Waqf management and administration in Malaysia: Its Implementation from the perspective of Islamic Law. Malaysian Accounting Review, Special Issue 9(2), 115-121.
Sani, A.A., Saidin, A., Adanan, S. A., & Bustamam, K. S. (2019). Performance measurement system using balanced scorecard: A case study in Pusat Zakat Melaka, Malaysia. Journal of Islamic Philanthropy & Social Finance, 1(1), 15-29.
Salleh, M., & Muhammad, S. (2008). Waqaf development in Malaysia: Issues and challenges. Jurnal Pengurusan JAWHAR, 2 (1), 13-35.
Siraj, S. A. (2012). An empirical investigation into the accounting, accountability and effectiveness of waqf management in the State Islamic Religious Councils (SIRCs) in Malaysia. (Unpublished doctoral dissertation). University of Cardiff, UK.
Somers, A. B. (2005). Shaping the balanced scorecard for use in UK social enterprises. Social Enterprise Journal, 1(1), 43–56.
Sulaiman, M., & Zakari, M. A. (2019): Financial sustainability of state waqf institutions (SWIs) in Malaysia. Journal of Islamic Accounting and Business Research, 10 (2), 236-258.
Sulaiman, M., & Zakari, M. A. (2015). Efficiency and effectiveness of Waqf institutions in Malaysia: Towards financial sustainability. Bloomsbury Qatar Foundation Journal, 1, 43-53.
Zain, N.S., & Sori, Z.M. (2020). An exploratory study on Musharakah SRI Sukuk for the development of waqf properties/Assets in Malaysia. Qualitative Research in Financial Market, 12, 301–314.
Zimmerman, J. (2009). Using a balanced scorecard in a nonprofit organization. Nonprofit World, 27(3), 10–12.
Copyright (c) 2023 A’ieshah Abdullah Sani, Khair Syakira Bustamam, Khairunnisa Abd Samad, Siti Azrina Adanan, Amilia Saidin
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
