Exploring stakeholder dynamics : strategies and information disclosure for sustainable waqf development

Abstract

As a vital third-sector organisation, waqf is essential in addressing socio-economic challenges through wealth creation, generation, and preservation. However, the underutilisation of waqf assets, insufficient stakeholder engagement, and fragmented governance structures often compromise its sustainability. While the government of Malaysia has established several initiatives on waqf, including the National Master Waqf Plan (NMWP), there are still significant gaps in understanding how stakeholders’ influence shapes strategies and identifies the information needs necessary for sustaining waqf resources in Malaysia. Notably, the existing literature has not adequately explored stakeholders' perspectives on formulating effective sustainability strategies for waqf and information needs. Research into how stakeholders affect strategy development, comprehend their requirements, and how information sharing can impact waqf sustainability remains limited. Thus, this research explored stakeholders' influence on strategies and information needs in sustaining waqf. As such, the study employs a qualitative phenomenological approach and is enhanced by Laughlin's Middle-Range Thinking (MRT) framework, which utilises the Stakeholder Salience Model developed by Mitchell et al. (1997) as the skeleton for the study. Meanwhile, data collection included semi-structured interviews, observations, and document analysis. Furthermore, thematic analysis was applied to interpret the data collected and to derive the study's findings. The research identified a new category of stakeholders: dynamic stakeholders who were essential for harmonising efforts to sustain waqf, including social influencers, activists, and international organisations. Accordingly, stakeholders' influence was categorised into five themes: competence for good governance through engagement, value creation in asset management, community and social influence, Shariah compliance and policy interaction, as well as knowledge empowerment and future innovation. At the same time, three key themes emerged for information disclosure: strategic and operational excellence, impact information for development, and stakeholder engagement insights. This information needs stems from enhancing reputation, fostering accountability, and promoting effective communication. Correspondingly, the findings offer fresh perspectives on the interconnected categories of power, legitimacy, and urgency, resulting in a comprehensive process based on three pillars: perceiving, perceptions, and positioning. In addition, this study contributes to the theoretical framework of the Stakeholder Salience Model by introducing the category of dynamic stakeholders within the waqf ecosystem. It bridges theoretical constructs with practical applications in stakeholder engagement and the sustainability of waqf resources. This research also presents actionable strategies for waqf institutions to improve stakeholder engagement, increase transparency, and align organisational goals with stakeholder priorities. Moreover, by integrating MRT and phenomenology, the study offers a replicable iterative approach for examining complex stakeholder dynamics, contributing to advancements in both academic and practical fields. Nevertheless, the research's geographic focus on Malaysia and its reliance on qualitative methods may limit its generalisability. Hence, future studies should consider broadening the geographic coverage to encompass diverse waqf practices in various regions.