The roles of property rights and transaction costs on the institutional zakat performance

Zakat is the third pillar of Islam and is regarded as the social security system for the development of Muslim communities. Currently, however, the performance of the zakat institution, especially in Malaysia, is still considered to be below the expected level. The zakat institution seems to only pe...

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Main Author:	Mohd Amar, Aziz
Format:	Thesis
Language:	eng eng eng
Published:	2019
Subjects:	BP174 The practice of Islam
Online Access:	https://etd.uum.edu.my/9063/1/s95646_01.pdf https://etd.uum.edu.my/9063/2/s95646_02.pdf https://etd.uum.edu.my/9063/3/s95646_references.docx
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id	my-uum-etd.9063
record_format	uketd_dc
spelling	my-uum-etd.90632022-02-15T00:39:42Z The roles of property rights and transaction costs on the institutional zakat performance 2019 Mohd Amar, Aziz Din, Badariah Ghazali Shafie Graduate School of Government Ghazali Shafie Graduate School of Government BP174 The practice of Islam Zakat is the third pillar of Islam and is regarded as the social security system for the development of Muslim communities. Currently, however, the performance of the zakat institution, especially in Malaysia, is still considered to be below the expected level. The zakat institution seems to only perform as a charity organisation instead of as a social security institution. This study is conducted to investigate the structures of the zakat institution and how these ‘structures’ could determine 'zakat institution performance'. Two aspects of the institutional structures are measured in this study, namely property rights and transaction costs. In terms of zakat performance, it is estimated based on two types of performance, which are socio-economic and psychological performance. With regard to the institutional structures, three objectives have emerged. The first is to examine to what extent securing the property rights of zakat and transaction costs could produce an impact on zakat institution performance. Secondly, this study endeavours to investigate whether the transaction costs perform as mediators when referring to the relationship between property rights and zakat performance. Third, this study is attempted to develop an institutional innovation for zakat through an open innovation strategy. A total of 428 respondents among zakat payers agreed to participate in this study, and the data was analysed using partial least square – structural equation modelling (PLS-SEM) approach. The results of the analysis found that property rights and transaction costs produce a moderate impact on the zakat institution’s performance. Transaction costs performed as the ‘complementary partial mediation’ between property rights and socio-economic performance and as ‘full-mediation’ between property rights and psychological performance. Based on the results and with the combination of the open innovation strategy, the institutional innovation of zakat was developed, so then it could perform as the social security institution. Seven elements have been proposed to be integrated into the zakat institution. The integration of the elements under the wings of zakat would be able to reduce the costs involved in the processes of the zakat transaction, as well as to ensure that the category of asnaf’s rights on zakat will be protected. 2019 Thesis https://etd.uum.edu.my/9063/ https://etd.uum.edu.my/9063/1/s95646_01.pdf text eng public https://etd.uum.edu.my/9063/2/s95646_02.pdf text eng public https://etd.uum.edu.my/9063/3/s95646_references.docx text eng public other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Din, Badariah
topic	BP174 The practice of Islam
spellingShingle	BP174 The practice of Islam Mohd Amar, Aziz The roles of property rights and transaction costs on the institutional zakat performance
description	Zakat is the third pillar of Islam and is regarded as the social security system for the development of Muslim communities. Currently, however, the performance of the zakat institution, especially in Malaysia, is still considered to be below the expected level. The zakat institution seems to only perform as a charity organisation instead of as a social security institution. This study is conducted to investigate the structures of the zakat institution and how these ‘structures’ could determine 'zakat institution performance'. Two aspects of the institutional structures are measured in this study, namely property rights and transaction costs. In terms of zakat performance, it is estimated based on two types of performance, which are socio-economic and psychological performance. With regard to the institutional structures, three objectives have emerged. The first is to examine to what extent securing the property rights of zakat and transaction costs could produce an impact on zakat institution performance. Secondly, this study endeavours to investigate whether the transaction costs perform as mediators when referring to the relationship between property rights and zakat performance. Third, this study is attempted to develop an institutional innovation for zakat through an open innovation strategy. A total of 428 respondents among zakat payers agreed to participate in this study, and the data was analysed using partial least square – structural equation modelling (PLS-SEM) approach. The results of the analysis found that property rights and transaction costs produce a moderate impact on the zakat institution’s performance. Transaction costs performed as the ‘complementary partial mediation’ between property rights and socio-economic performance and as ‘full-mediation’ between property rights and psychological performance. Based on the results and with the combination of the open innovation strategy, the institutional innovation of zakat was developed, so then it could perform as the social security institution. Seven elements have been proposed to be integrated into the zakat institution. The integration of the elements under the wings of zakat would be able to reduce the costs involved in the processes of the zakat transaction, as well as to ensure that the category of asnaf’s rights on zakat will be protected.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Mohd Amar, Aziz
author_facet	Mohd Amar, Aziz
author_sort	Mohd Amar, Aziz
title	The roles of property rights and transaction costs on the institutional zakat performance
title_short	The roles of property rights and transaction costs on the institutional zakat performance
title_full	The roles of property rights and transaction costs on the institutional zakat performance
title_fullStr	The roles of property rights and transaction costs on the institutional zakat performance
title_full_unstemmed	The roles of property rights and transaction costs on the institutional zakat performance
title_sort	roles of property rights and transaction costs on the institutional zakat performance
granting_institution	Universiti Utara Malaysia
granting_department	Ghazali Shafie Graduate School of Government
publishDate	2019
url	https://etd.uum.edu.my/9063/1/s95646_01.pdf https://etd.uum.edu.my/9063/2/s95646_02.pdf https://etd.uum.edu.my/9063/3/s95646_references.docx
_version_	1747828519336935424

The roles of property rights and transaction costs on the institutional zakat performance

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