What Drives Zakat Collection? Unpacking Internal Capabilities of Indonesian Amil Zakat Institutions

Abstract

Grounded in the Resource-Based View (RBV), this study examines the effects of the internal organizational capabilities of Indonesian National Zakat Institutions (NZIs) on their zakat collection performance. Specifically, it investigates whether transparency, employee competence, and organizational governance significantly influence organizational performance. The study employs a quantitative research design using secondary data collected from nationally accredited zakat institutions in Indonesia. Of the 59 registered NZIs, only 29 were included in the analysis due to the availability of complete financial and organizational data. Multiple linear regression was employed to test the proposed relationships. The findings indicate that a considerable proportion of NZIs have not yet achieved the minimum annual zakat collection target of IDR 30 billion required by national regulations. The regression results further reveal that transparency, employee competence, and organizational governance jointly exert a significant influence on zakat collection performance. However, partial regression analysis demonstrates that only transparency has a significant positive effect, whereas employee competence and organizational governance do not exhibit statistically significant individual effects. These findings underscore the importance of transparency as a strategic organizational capability for enhancing institutional performance, strengthening public trust, and improving zakat collection. The study contributes to the Islamic social finance literature by providing empirical evidence on the role of internal organizational capabilities in improving the performance of zakat institutions in Indonesia.