Cash waqf innovation in Islamic financial institutions and its governance issues, case studies: Indonesia, Malaysia, Türkiye

Abstract

Purpose This study aims to examine the potential for waqf innovation to be developed as products and services by Islamic financial institutions, identify the barriers and facilitators to the implementation of cash waqf governance in Indonesia, Türkiye and Malaysia, and to explore how pandemics have influenced the role of cash waqf practices in the three countries. Design/methodology/approach This study adopts a qualitative approach with an interpretative perspective, drawing on ecology theory and Ibn Khaldun’s thought. The research method includes conducting literature reviews and interviews to explore the concept and significance of cash waqf, the offerings of Islamic financial institutions and the mechanisms for good governance of cash waqf to bolster the proposed model. Findings The finding shows that a model of cash waqf governance that outlines the relationships and interactions with the goal of advancing cash waqf. The use of technology, specifically computer technology, further strengthens these interactions. Research limitations/implications This study suffers from several limitations, such as the number of countries in the sampling. Thus, future research opportunities include exploring similar initiatives in other countries and examining the connections between different sub-fields within the global cash waqf practice. Originality/value The contribution of this study serves as a guide for cash waqf organizations to promote professional, responsible and accountable management practices; reduce the risks faced by waqf managers and support them in making improvements to enhance the role of waqf in Indonesia and elsewhere; as well as provide a reference for the government and waqf agencies in promoting the importance of cash waqf governance in the country.