“CHALLENGES FACED BY ZAKAT INSTITUTIONS IN IMPLEMENTING TECHNOLOGY-BASED GOVERNANCE: A QUALITATIVE STUDY OF MANAGERIAL PERSPECTIVES”

Abstract

This qualitative study explores the challenges faced by zakat institutions in implementing technology-based governance systems from the perspectives of managerial stakeholders. Despite the growing emphasis on digital transformation in Islamic financial institutions, zakat organizations encounter unique obstacles that hinder their technological advancement. Using a phenomenological approach, this research conducted in-depth interviews with 18 managers from zakat institutions across multiple countries to understand their experiences and perspectives. Thematic analysis revealed five major challenge categories: technological infrastructure limitations, financial constraints, resistance to organizational change, regulatory and compliance complexities, and stakeholder trust issues. The findings indicate that while managers recognize technology's potential to enhance transparency, efficiency, and accountability, they face significant barriers related to legacy systems, limited digital literacy among staff, inadequate budgets for technological investment, and concerns about data security and privacy. This study contributes to the limited body of knowledge on technology adoption in zakat institutions and provides practical recommendations for policymakers and zakat administrators. The research highlights the need for collaborative frameworks, capacity-building programs, and regulatory support to facilitate successful technology integration in zakat governance.