Analyzing the impact of productive zakat on the welfare of zakat recipients
Journal of Islamic Accounting and Business Research
ISSN: 1759-0817
Article publication date: 25 July 2022
Issue publication date: 2 January 2023
Abstract
Purpose
This study aims to investigate the effects of zakat and business assistance on the growth and well-being of mustahiqs (zakat recipients). This study also investigates the impact of macroeconomic variables on the welfare of mutahiqs.
Design/methodology/approach
The partial least squares-structural equation modelling method is used in this quantitative study, examining data from 137 mustahiqs. The data was collected from seven zakat institutions, which run effective zakat programmes to empower mustahiqs.
Findings
Zakat empowerment programmes and business assistantships positively impact the growth of mustahiqs’ businesses, beneficial to their well-being. Nevertheless, their well-being is unaffected by the proxy of the macroeconomy.
Originality/value
This study adds to the zakat literature by identifying the relationship between zakat, business growth, macroeconomic conditions and mustahiq welfare. Accordingly, this approach was made by combining primary and secondary data. This research offers a unique measure of welfare based on the concept of the Islamic objectives (Maqasid al-Shariah).
Keywords
Acknowledgements
The authors would like to express their gratitude to the Universitas Airlangga’s Research and Community Service Institution (LPPM) for funding this study. Additionally, the authors would like to acknowledge the representatives of the zakat institute, zakat practitioners, academics, zakat associations and regulators for their assistance and participation in completing this research.
Citation
Mawardi, I., Widiastuti, T., Al Mustofa, M.U. and Hakimi, F. (2023), "Analyzing the impact of productive zakat on the welfare of zakat recipients", Journal of Islamic Accounting and Business Research, Vol. 14 No. 1, pp. 118-140. https://doi.org/10.1108/JIABR-05-2021-0145
Publisher
:Emerald Publishing Limited
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