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Analyzing the impact of productive zakat on the welfare of zakat recipients

Author

Listed:
  • Imron Mawardi
  • Tika Widiastuti
  • Muhammad Ubaidillah Al Mustofa
  • Fifi Hakimi

Abstract

Purpose - This study aims to investigate the effects of zakat and business assistance on the growth and well-being ofmustahiqs(zakat recipients). This study also investigates the impact of macroeconomic variables on the welfare ofmutahiqs. Design/methodology/approach - The partial least squares-structural equation modelling method is used in this quantitative study, examining data from 137mustahiqs. The data was collected from seven zakat institutions, which run effective zakat programmes to empowermustahiqs. Findings - Zakat empowerment programmes and business assistantships positively impact the growth ofmustahiqs’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 andmustahiqwelfare. 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).

Suggested Citation

  • Imron Mawardi & Tika Widiastuti & Muhammad Ubaidillah Al Mustofa & Fifi Hakimi, 2022. "Analyzing the impact of productive zakat on the welfare of zakat recipients," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 14(1), pages 118-140, July.
    • Handle: RePEc:eme:jiabrp:jiabr-05-2021-0145
    DOI: 10.1108/JIABR-05-2021-0145
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