Does Strategic Planning Matter in Enhancing Performance of Zakah Organization? Some Insights from Zakah Management in Indonesia International Journal of Zakat | ISSN: 2548 2335 | Vol.3 (1) 2018

Main Article Content

Rahmatina Awaliah Kasri Niken Iwani Surya Putri


The paper aims to explore strategic planning practices of zakah organizations in Indonesia and their impacts on the organizational performance. It uses qualitative research approach with semi-structured interviews and a quantitative approach based on financial data from the organizations. The study found several interesting findings. First, from mission statement analysis, different zakah organizations seem to have different idealized views and focus on achieving either particular organizational characteristics or organizational targets/outcomes. Second, the strategic planning processes tend to follow the “by-design” and the “by-flow” strategies which are implemented in all zakah agencies regardless of its type. However, it is notable that only the non-government zakah agencies were flexible enough to run programs based on recommendation of the zakah payers. Third, in terms of performance, it is found that corporate zakah agency has the highest collection capacity, while the private zakah agency has the highest distributional capacity. Based on the findings, it is suggested that the zakah organizations should focus on their targets/outcomes and properly design their programs. It is also argued that all zakah agency has formulated sound mission statements and it is reflected well in the organizational capacity. This implies that there is a positive relationship between strategic planning and organizational performance.


Keywords: Zakat, Strategic Management, Zakah organization


Download data is not yet available.

Article Details

How to Cite
Awaliah Kasri, R., & Iwani Surya Putri, N. (2018, May 25). Does Strategic Planning Matter in Enhancing Performance of Zakah Organization? Some Insights from Zakah Management in Indonesia. International Journal of Zakat, 3(1), 1-21.


Al Qardawi, Y. (2000). Fiqh Al Zakah: A Comparative Study of Zakah, Regulations, and Philosophy in the Light of Quran and Sunnah. Jeddah: King Abdulaziz University.
Andreasen, A., &Kotler, P. (2003). Strategic marketing for non-profit organizations. New Jersey: Prentice Hall.
Anheier, H. K. (2005). Nonprofit organizations: Theory, management, policy. Oxon: Routledge.
Armstrong, J., & Overton, T. (1977).Estimating non-response bias in mail surveys.Journal of Marketing Research, 14, August.
Baetz, M. C., & Bart, C. K. (1996).Developing mission statements which work. Long Range Planning, 29(4).
Bakar, M. H. A., &Abdghani, A. H. (2011).Towards achieving the quality of life in the management of zakat distribution to the rightful recipients (the poor and needy).International Journal of Business and Social Science, 2(4).
Bart, C., &Hupfer, M. (2004).Mission statements in Canadians hospitals.Journal of Health Organisation and Management, 18(2), 92e110.
Bartkus, B., & Glassman, M. (2008). Do firms practice what they preach? The relationship between mission statements and stakeholder management.Journal of Business Ethics, 83(2), 207e216.
Beekun, R. I. (2006). Strategic planning and implementation for Islamic organizations.IIIT.
Benkhoff, B. (1997). Ignoring commitment is costly: new approaches establish the missing link between commitment and performance. Human Relations, 50(6), 701e726.
Braun, V., & Clarke, V. (2014). What can “thematic analysis” offer health and wellbeing researchers?.International journal of qualitative studies on health and well-being, 9.
Bryce, H. (1992). Financial and strategic management for nonprofit organizations. Englewood Cliffs, NJ: Prentice Hall.
Bryman, A., & Burgess, B. (Eds.). (2002). Analyzing qualitative data. Routledge.
Bryson, J. M. (1995). Strategic planning for public and nonprofit organizations. San Francisco: JosseyBass.
Campbell A. 1993. The Power of Mission: Aligning Strategy and Culture. Planning Review (Special Issue) 20(5): 10-12
Campbell, A., &Yeung, S. (1991). Creating a sense of mission. Long Range Planning, 24(4), 10e20.
Carley, K. M. (1997). Extracting team mental models through textual analysis. Journal of Organizational Behavior, 533-558.
Cassell, C., &Symon, G. (2006).Taking qualitative methods in organization and management research seriously. Qualitative Research in Organizations and Management: An International Journal, 1(1), 4-12.
Charity Navigator. (2012). How do we rate charities? Retrieved from
Courtney, R. (2002). Strategic management for voluntary and non-profit organisations. London: Routledge
Crittenden, W. F., & Crittenden, V. L. (2000).Relationships between organizational characteristics and strategic planning processes in nonprofit organizations. Journal of Managerial Issues, 12 (2), 150-169.
Crittenden, W. F., Crittenden, V. L., & Hunt, T. G. (1988).Planning and stakeholder satisfaction in religious organizations. Journal of Voluntary Action Research, 17, 60-73.
David, F. R. (2011). Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Drucker, P. (1974). Management: Tasks, responsibilities and practices. New York, NY: Harper & Row.
Drucker, P. (1990). Managing the non-profit organisation. New York: Harper Collins.
Edwards, J. R., &Bagozzi, R. (2000).On the nature and direction of relationships between constructs and measures.Psychological Methods, 4, 155e174.European Economic and Social Committee. (2012). The social economy in the European Union. Brussels: Visits and Publications.
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they?.Strategic management journal, 1105-1121.
Eisinger, P. (2002). Organizational capacity and organizational effectiveness among street-level food assistance programs. Nonprofit and Voluntary Sector Quarterly, 31(1), 115-130.
Ekpe, E. O., Eneh, S. I., &Inyang, B. J. (2015).Leveraging Organizational Performance through Effective Mission Statement.International Business Research, 8(9), 135.
Forbes, D., &Seena, S. (2006). The value of a mission statement in an association of not-for-profit hospitals.International Journal of Health Care Quality Assurance, 19(5), 409e419.
Forehand, A. (2000). Mission and organizational performance in the healthcare
Gomes, R. C., &Liddle, J. (2009). The balanced scorecard as a performance management tool for third sector organizations: the case of the Arthur Bernardes foundation, Brazil. BAR. Brazilian Administration Review, 6(4), 354-366.
Grønbjerg, K. A. (1998). Markets, politics, and charity: Nonprofits in the political economy. In W. W.
Heymann, P. B. (1987). The politics of public management. New Haven, CT: Yale University Press.
Horton, D. (2003). Evaluating capacity development: experiences from research and development organizations around the world.IDRC.
Hunt, S. D., Sparkman, R. D., & Wilcox, J. B. (1982). The pretest in survey research: issues and preliminary findings. Journal of Marketing Research, 62(3), 42e54.
Jarvis, C. B., Mackenzie, S. B., &Podsakoff, P. M. (2003).A critical review of construct indicators and measurement model misspecification in marketing and consumer research.Journal of Consumer Research, 30(September), 199e218.
Jensen, M. C. (1998). Foundations of organizational strategy. Cambridge, MA: Harvard University Press.
Johari, F., Ab Aziz, M. R., Ibrahim, M. F., & Ali, A. F. M. (2013).The Roles of Islamic Social Welfare Assistant (Zakat) for the Economic Development of New Convert. Middle-East Journal of Scientific Research, 18(3), 330-339.
Kaplan, R. (2001). Strategic performance measurement and management in nonprofit organizations.Nonprofit Management and Leadership, 11, 353e370.
Kaplan, R. S., & Norton, D. P. (1996).The balanced scorecard. Boston: Harvard Business School Press.
Kasri, R. (2013). Giving Behaviors in Indonesia: Motives and Marketing Implications for Islamic Charities.Journal of Islamic Marketing, 4(3), 6-6.
Kendall, J., & Knapp, M. (2000).Measuring the performance of voluntary organizations. Public Management Review, 2(1), 105-132.
Kirk, G., & Nolan, S. B. (2010).Nonprofit mission statement focus and financial performance.Nonprofit Management & Leadership, 20(4), 473e490.
Leone, R. A. (1986).Who profits: Winners, losers, and government regulation. New York: Basic Books.
Macedo, I. M., &Pinho, J. C. (2006). The relationship between resource dependence and market orientation: the specific case of non-profit organisations. European Journal of Marketing, 40(5/6), 533e553.
Macedo, I. M., Pinho, J. C., & Silva, A. M. (2016).Revisiting the link between mission statements and organizational performance in the non-profit sector: The mediating effect of organizational commitment. European Management Journal, 34(1), 36-46.
Maududi, A.A. (1988), Maashiaati Islam, Islamic Publication, Lahore.
Miller, G., Dingwall, R., & Murphy, E. (2004).«|" T Using qualitative data xi and analysis. Qualitative research: Theory, method and practice, 325.
Moore, M. H. (1995). Creating public value: Strategic management in government. Cambridge, MA: Harvard University Press.
Moore, M. H. (2000). Managing for value: organizational strategy in for-profit, nonprofit, and governmental organizations.Nonprofit and Voluntary Sector Quarterly, 29(1), 183e204.
Morphew, C. C., & Hartley, M. (2006). Mission statements: A thematic analysis of rhetoric across institutional type. The Journal of Higher Education, 77(3), 456-471.
Nunnally, J. (1978). Psychometric theory. New York, NY: McGraw-Hill.
Oghojafor, B. E. A., Olayemi, O. O., Okonji, P. S., &Okolie, J. U. (2011). Enhancing Organization's Performance Through Effective Vision and Mission. Chinese Business Review, 10(11).
Osborne, S. (1996). What is ‘voluntary’ about the voluntary and non-profit sector? In S. Osborne (Ed.), Managing the voluntary sector: A handbook for managers in charitable and non-profit organizations (pp. 5e17). London: International Thomson Press.
Osman-Gani, A. M., &Sarif, S. M. (2011).Spirituality in Management from Islamic Perspective.
Oster, S. (1995). Strategic management for nonprofit organizations: Theory and cases. New York: Oxford University Press.
Oster, S. M. (1995). Strategic management for nonprofit organizations: Theory and cases. New York: Oxford University Press.
Pearce II, J. A. (1982). The company mission as a strategic tool. Sloan Management Review (pre-1986), 23(3), 15.
Peters, T. J., & Waterman, R. H. (1982). In search of excellence: Lessons from America’s best-run companies. New York: Warner.
Phills, J. (2005). Integrating mission and strategy for nonprofit organisations. New York: Oxford University Press.
Pock, A. (2007).Strategic management in Islamic finance.Springer Science & Business Media.
Podsakoff P, Dalton, D. 1987. Research methodology in organizational studies. Journal of Management 13(2): 419-441
Porter, L., Steers, R., Mowday, R., &Boulian, P. (1974). Organisational commitment, job satisfaction and turnover among psychiatric technics.Journal of Applied Psychology, 59, 603e609.
Porter, M. (1980).Corporate strategy. New York. New York, NY.
Porter, M. E. (1980). Competitive strategy. New York: Free Press.
Powell & E. Clemens (Eds.), Private action and the public good (pp. 137-150). New Haven, CT:
Preacher, K. J., & Hayes, A. F. (2008).Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods, 40, ,879e,891.
Rarick, C., Vitton, J. (1995).Mission statements make cents. Journal of Business Strategy, 16, 11-12
Roberts, N., &Tatcher, J. (2009). Conceptualizing and testing formative constructs: tutorial and annoted example. The Data Base for Advances in Infirmation Systems, 40, 9e13.
Salancik, G. (1977). Antecedents and outcomes of organisational commitment. Administrative Science Quarterly, 22(1), 46e56
Sargeant, A. (1999). Marketing Management for Nonprofit Organizations. Oxford: Oxford University Press.
Sargeant, A., & Lee, S. (2004). Trust and relationship commitment in the United Kingdom voluntary sector: Determinants of donor behavior. Psychology and Marketing, 21(8), 613-635.
Sattari, S., Pitt, L. F., &Caruana, A. (2011). How readable are mission statements? An exploratory study. Corporate Communications: An International Journal, 16(4), 282e292.
Sawhill, J. C., & Williamson, D. (2001).Mission impossible?Measuring success in nonprofit organizations.Nonprofit Management & Leadership, 11(3), 371e386.
Schendel, D., & Hofer, C. W. (Eds.). (1979). Strategic management: A new view of business policy and planning. Little, Brown.
Schlesinger, M., Mitchell, S., & Gray, B. H. (2004). Restoring public legitimacy to the nonprofit sector: a survey experiment using descriptions of nonprofit ownership.Nonprofit and Voluntary Sector Quarterly, 33, 673e710.
Sheaffer, Z., Landau, D., &Drori, I. (2008). Mission statement and performance: an evidence of ‘coming of age’. Organization Development Journal, 26(2), 49e62.
Shrivastava, P. (1987). Rigor and practical usefulness of research in strategic management. Strategic Management Journal, 8(1), 77-92.
Siciliano, J. I. (2008). A comparison of CEO and director perceptions of board involvement in strategy.Nonprofit and Voluntary Sector Quarterly, 27, 152e162.
Siddiqi, M. N. (1988). The guarantee of a minimum level of living in an Islamic state. Distributive Justice and Need Fulfillment in an Islamic Economy, The Islamic Foundation, Leicester, 251-86.
Sidhu, J. (2003). Mission statements: is it time to shelve them? European Management Journal, 21(4), 439e446.
Smith, S. R., &Lipsky, M. (1993). Nonprofits for hire: The new welfare state in the age of contracting. Cambridge, MA: Harvard University Press.
Steers, R. (1977). Antecedents and outcomes of organisational commitment.Administrative Science Quarterly, 22(1), 46e56.
Sufi, T., & Lyons, H. (2003). Mission statements exposed. International Journal of Contemporary Hospitality Management, 15(5), 255e262.
Swales, J. M., & Rogers, P. S. (1995). Discourse and the projection of corporate culture: The mission statement. Discourse & Society, 6(2), 223-242.
Tober, J. (1991). Strategic planning in organizations and environments (working paper no. 165). New Haven, CT: Yale Program on Non-profit Organizations.
Weerawardena, J., Mcdonald, R. E., & Sullivan-Mort, G. (2010). Sustainability of nonprofit organizations: an empirical investigation. Journal of World Business, 45, 346e356.
Weissbrod, B. A. (1988). The nonprofit economy. Cambridge, MA: Harvard University Press. Wilson, J. Q. (1989). Bureaucracy: What government agencies do and why they do it. New York: Basic Books.
Wilson I. 1992. Realizing the Power of Strategic Vision. Long Range Planning 25(5): 18-28
Wolch, J. (1990). Planning as crisis management: An analysis of London's voluntary sector (working paper no. 147). New Haven, CT: Yale Program on Non-Profit Organizations
Wooldridge, B., & Floyd, S. W. (1990).The strategy process, middle management involvement, and organizational performance.Strategic management journal, 11(3), 231-241.
Young, D. (1986). Executive leadership in nonprofit organizations. In W. W. Powell (Ed.), The Nonprofit Sector.