Organizational capability and performance of waqf institutions in Malaysia / Norzaihan Mohd Zain

The Waqf institution is regarded as one of the most important institutions of Islamic civilization and has contributed significantly to the socioeconomic development of society for centuries. Notwithstanding its remarkable contribution to society, waqf institutions still face various challenges which include, underperformance and substantial improvements that need to be made. Based on the past literature, the possible causes are a lack of capable internal resources and performance measurement mechanisms. Resources management through organizational capabilities and a comprehensive performance measurement framework have been suggested for a better organizational performance of waqf institutions. Nevertheless, the recommendation was not supported empirically within the academic literature. It is in response to this that this study examined the influence of organizational capabilities, namely, entrepreneurship orientation dimensions that are risk-taking, pro-activeness and innovativeness, learning orientation, information technology capability (IT capability), and top management commitment on the performance of waqf institutions through the integration of the Resources Based View (RBV) theory and the Upper Echelon Theory (UPT). Due to the inconsistent results on the relationship between the variables in the literature, this study also assessed the mediating effect of IT capability on the relationship between innovativeness, learning orientation, and top management commitment and performance of waqf institutions.