Developing a comprehensive performance measurement system forwaqfinstitutions

Purpose - The purpose of this paper is to contribute to the literature on management ofwaqfinstitutions 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 andwaqfinstitutions. Findings - The findings suggest that an effective PMS is undoubtedly significant in promoting good governance and ethical management ofwaqfinstitutions. However, the current practice of performance measurement inwaqfinstitutions 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 mostwaqfinstitutions’ management and researchers primarily rely on financial reporting and economic indicators to report to the stakeholders about the performance ofwaqfinstitutions. Practical implications - The contributions of this paper are twofold. First, the authors develop a contingency framework for assessing performance ofwaqfinstitutions. Second, the authors outline eight necessary steps that can serve as guidelines forwaqfinstitutions in designing their own comprehensive PMS. Originality/value - The novelty of this paper lies in highlighting the feasibility of adopting qualitative approaches bywaqfinstitutions. This study hopes to shed light on a standard measurement system that can be adopted by thewaqfinstitutions to ensure efficiency and sustainability of thewaqfinstitutions, not just in Malaysia but in the Muslim world.