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Developing a comprehensive performance measurement system for waqf institutions

Nazrul Hazizi Noordin (IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, Malaysia)
Siti Nurah Haron (IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, Malaysia)
Salina Kassim (IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, Malaysia)

International Journal of Social Economics

ISSN: 0306-8293

Article publication date: 10 July 2017

Abstract

Purpose

The purpose of this paper is to contribute to the literature on management of waqf institutions by developing a contingency framework and outlining approaches that can be followed to instigate a comprehensive performance measurement system (PMS).

Design/methodology/approach

It conducts a thorough and critical review of the literature on relevant performance measurement literature of third sector organizations and waqf institutions.

Findings

The findings suggest that an effective PMS is undoubtedly significant in promoting good governance and ethical management of waqf institutions. However, the current practice of performance measurement in waqf institutions is less standardized and does not cover its entire aspects of performance as a religious as well as a voluntary organization. It is also found that most waqf institutions’ management and researchers primarily rely on financial reporting and economic indicators to report to the stakeholders about the performance of waqf institutions.

Practical implications

The contributions of this paper are twofold. First, the authors develop a contingency framework for assessing performance of waqf institutions. Second, the authors outline eight necessary steps that can serve as guidelines for waqf institutions in designing their own comprehensive PMS.

Originality/value

The novelty of this paper lies in highlighting the feasibility of adopting qualitative approaches by waqf institutions. This study hopes to shed light on a standard measurement system that can be adopted by the waqf institutions to ensure efficiency and sustainability of the waqf institutions, not just in Malaysia but in the Muslim world.

Keywords

Citation

Noordin, N.H., Haron, S.N. and Kassim, S. (2017), "Developing a comprehensive performance measurement system for waqf institutions", International Journal of Social Economics, Vol. 44 No. 7, pp. 921-936. https://doi.org/10.1108/IJSE-09-2015-0257

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited