The role of intellectual capital on zakat performance: insight from Indonesia

Abstract

PurposeThis research aims to examine the impact of intellectual capital on zakat performance in Indonesia.Design/methodology/approachThe sample examined in this study consists of 39 zakat management organizations, encompassing 241 observations from 2010 to 2022. Zakat performance is measured using zakat excess efficiency score to align with the characteristics of zakat management organizations. The independent variables in this study are proxied by the components of intellectual capital. Data is analyzed using a panel data estimation technique.FindingsThe empirical findings indicate that human capital efficiency and capital employed efficiency positively and significantly impact zakat performance. In contrast, structural capital efficiency does not impact zakat performance. Meanwhile, value added intellectual coefficient positively and significantly impacts zakat performance.Practical implicationsThe findings in this study highlight the significance of managing intellectual capital in zakat management organizations. Furthermore, this research provides input to mandate the amil to undergo certification, develop information technology in zakat management, and enhance synergy among zakat management organizations in zakat distribution. Additionally, zakat regulators must oversee and standardize zakat management according to what is stipulated in the zakat core principles.Originality/valueThis is one of the first studies using secondary data to examine intellectual capital and zakat performance in Indonesia.