International Journal of Economics and Financial Issues Developing Service Quality Index for Zakat Institutions

Norazlina Wahab, Zairy Zainol, Mahyuddin Bakar, Ahmad Ibrahim, Norida Minhaj
2016 International Journal of Economics and Financial Issues   unpublished
The aim of this paper is to examine service quality (SERVQUAL) of zakat institutions in Malaysia using an enhanced model appropriate for zakat institution. We use a new and enhanced model (combination of SERVQUAL and CARTER) to examine the extent of SERVQUAL of zakat institutions from the perspective of zakat stakeholders. Data were collected from 799 respondents including both zakat payers and zakat recipients. The paper utilizes the structural equation modeling in examining the extent of
more » ... the extent of SERVQUAL given by zakat institution and further develops SERVQUAL Index (SQI) for both zakat payers (SQI ZP) and zakat recipients (SQI ZR) using a Customer Satisfaction Index. The results reveal that responsiveness and compliance was found to be the strongest indicator to influence satisfaction of the zakat payers while reliability was found to be the strongest indicator to influence satisfaction of the zakat recipients. The SQI ZP and SQI ZR of Malaysian zakat institutions are 76.3 and 76.4 respectively. This study is one of the first to examine the SERVQUAL of zakat institutions using an extended SERVQUAL and CARTER models with both zakat payers and zakat recipients as respondents. The model is not only relevant and applicable to Malaysia but also to other Muslim countries.
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