The Management of Productive Zakat in Indonesia: The Case of Baznas’ Economic Empowerment Program

Abstract

Research Originality: This study contributes to the gap in the literature on the empowerment process in measuring the success history of zakat management. The mixed method of qualitative and quantitative methods is one of the novelties of this study in measuring the empowerment model in managing the transformation of Mustahik to muzaki (MoM).

Research Objectives: This research aims to measure the factors influencing the improvement of Mustahik's welfare through a mediating variable, namely, the empowerment process.

Research Method: This research uses mixed-method analysis through quantitative and qualitative approaches. Data was collected through survey methods using open- and closed-ended questionnaire instruments for Z-Chicken Mustahik in Jabodetabek.

Empirical Research: The study's findings show that the empowerment process is a mediating variable capable of providing more substantial value and a favorable influence on Mustahik welfare, depending on input factors such as zakat funds and mentorship at the individual, organizational, and community levels. Meanwhile, the Z-Chicken initiative had no substantial positive influence on Mustahik's welfare.

Implications:  The study's findings indicate the necessity of assessing Baznas' management of distribution programs to improve the empowerment process, primarily via the community empowerment method. 

JEL Classification: I30, I31, O12