INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)  
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XII December 2025  
How Do Innovations in Leadership, Management, Collection and  
Distribution of Zakat Influence Zakat Institutions in Malaysia? A  
Systematic Literature Review  
Hasanah binti Abd Khafidz*, Anoud Mohamed H B Almarri, Nur Nazira binti Rahim  
Research Centre for Dakwah and Leadership, Faculty of Islamic Studies, Universiti Kebangsaan  
Malaysia  
*Corresponding Author  
DOI: https://doi.org/10.47772/IJRISS.2025.91200072  
Received: 15 December 2025; Accepted: 22 December 2025; Published: 31 December 2025  
ABSTRACT  
Innovations in zakat governance have become increasingly significant in enhancing the performance,  
transparency and societal impact of zakat institutions in Malaysia. In recent years, leadership reforms,  
managerial restructuring and the adoption of digital technologies have reshaped zakat collection and distribution  
practices. However, empirical findings on these innovations remain fragmented across multiple disciplines and  
institutional contexts. This study aims to systematically synthesize existing literature on how innovations in  
leadership, management, collection and distribution influence the effectiveness of zakat institutions in Malaysia.  
Guided by the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA), this systematic  
literature review analyzed 40 high-relevance studies selected from an initial pool of 141 publications identified  
through a structured screening process. The findings reveal that digital transformation, through e-payment  
systems, mobile applications, blockchain, artificial intelligence and data-driven decision-making, significantly  
improves operational efficiency, transparency and stakeholder trust. Leadership and governance innovations,  
including strategic planning, internal audit functions, privatization and expanded roles of zakat administrators,  
further enhance institutional responsiveness. Innovations in zakat collection and distribution, such as branding  
initiatives, data-driven prioritization and empowerment programs for asnaf, contribute to improved outreach and  
socio-economic outcomes.  
Despite these positive impacts, the review identifies persistent challenges related to inconsistent adoption,  
cybersecurity risks, standardization gaps and limited long-term evaluations. This study contributes a  
comprehensive synthesis of zakat innovation literature in Malaysia and offers implications for policymakers,  
practitioners and future research.  
Keywords: Zakat institutions; innovation; digitalization; zakat management; zakat collection; zakat distribution;  
systematic literature review  
INTRODUCTION  
Background of the Study  
Zakat institutions play a pivotal role in the Islamic socio-economic system, functioning as formal mechanisms  
for wealth redistribution, poverty alleviation and social justice. In Malaysia, zakat administration is  
institutionalized under state religious authorities and zakat boards, which are responsible for the collection and  
distribution of zakat funds in accordance with Islamic principles. As societal expectations increase and socio-  
economic challenges become more complex, zakat institutions are under growing pressure to enhance efficiency,  
transparency and impact.  
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INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)  
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XII December 2025  
In response to these demands, Malaysian zakat institutions have increasingly adopted innovations in leadership,  
management, collection and distribution. These innovations include governance reforms, strategic planning,  
branding initiatives and the integration of digital technologies such as e-payment platforms, mobile applications,  
blockchain, artificial intelligence and big data analytics. Empirical studies report that such innovations contribute  
to improved operational efficiency, faster fund disbursement and strengthened public trust, with some studies  
noting measurable improvements in funds reaching beneficiaries  
Research Gap  
Despite the growing body of research on zakat management in Malaysia, existing studies are largely fragmented,  
focusing on specific institutions, technologies, or administrative aspects in isolation. Many investigations adopt  
qualitative or case-based approaches limited to individual states or institutions, while others examine  
technological innovations at conceptual or pilot stages. Consequently, there is a lack of comprehensive and  
systematic synthesis that integrates leadership, managerial, collection and distribution innovations into a unified  
analytical framework.  
Moreover, while several studies highlight positive outcomes of innovation, fewer studies critically examine  
implementation challenges, sustainability and long-term institutional impact. This fragmentation underscores  
the need for a systematic literature review that consolidates empirical evidence, identifies dominant themes and  
highlights gaps for future research.  
Objectives of the Study  
This systematic literature review aims to:  
1. Synthesize empirical evidence on innovations in leadership, management, collection and distribution of  
zakat in Malaysia.  
2. Identify dominant innovation themes and their reported impacts on zakat institutional performance.  
3. Examine challenges and limitations associated with the implementation of zakat innovations.  
4. Propose future research directions to strengthen zakat governance and institutional effectiveness.  
Research Questions  
To achieve these objectives, this review addresses the following research questions:  
1. What types of innovations in leadership, management, collection and distribution are reported in  
Malaysian zakat institutions?  
2. How do these innovations influence the performance, transparency and effectiveness of zakat  
institutions?  
3. What challenges and limitations are associated with the implementation of zakat innovations in  
Malaysia?  
METHODOLOGY  
Research Design  
This study adopts a Systematic Literature Review (SLR) design to synthesize empirical evidence on innovations  
in leadership, management, collection and distribution of zakat in Malaysia. The SLR approach was selected due  
to its methodological rigor, transparency and suitability for integrating fragmented findings across diverse  
institutional and disciplinary contexts. The review was conducted in accordance with the Preferred Reporting  
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INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)  
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XII December 2025  
Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines, ensuring systematic identification,  
screening, eligibility assessment and inclusion of relevant studies (Page et al., 2021).  
Review Protocol and PRISMA Procedure  
The review followed the four standard PRISMA phases:  
1. Identification  
2. Screening  
3. Eligibility  
4. Inclusion  
A structured and replicable protocol was applied to minimize selection bias and enhance the reliability of the  
synthesis. The PRISMA process was operationalized using an AI-assisted evidence synthesis tool (Elicit), which  
facilitated large-scale literature retrieval and structured data extraction.  
Data Sources and Search Strategy  
The literature search was conducted using the Semantic Scholar corpus, which indexes over 126 million  
academic publications. The search was guided by the following research questions:  
How do innovations in leadership, management, collection and distribution of zakat influence zakat institutions  
in Malaysia?  
The initial search retrieved 141 potentially relevant studies based on keyword relevance, semantic similarity and  
topic alignment. Keywords and conceptual terms included combinations of:  
1. zakat innovation  
2. zakat management  
3. zakat collection  
4. zakat distribution  
5. digital zakat  
6. blockchain zakat  
7. zakat institutions Malaysia  
The search strategy prioritized peer-reviewed journal articles and verified institutional publications.  
Inclusion and Exclusion Criteria  
To ensure relevance and quality, studies were screened using predefined inclusion and exclusion criteria, applied  
holistically during the screening stage.  
Inclusion Criteria  
Studies were included if they:  
1. Focused on zakat institutions in Malaysia  
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INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)  
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XII December 2025  
2. Examined at least one of the following dimensions:  
o
o
o
o
Leadership  
Management  
Collection  
Distribution  
3. Addressed innovation, improvement, or reform (technological, managerial, governance-related, or  
programmatic)  
4. Employed empirical research methods (qualitative, quantitative, mixed-methods, or systematic reviews)  
5. Were published in peer-reviewed journals or recognized academic outlets  
Exclusion Criteria  
Studies were excluded if they:  
1. Focused solely on individual donor behavior without institutional analysis  
2. Were non-academic commentaries or opinion pieces  
3. Lacked methodological clarity  
4. Were not specific to the Malaysian zakat context  
Screening and Study Selection  
During the screening phase, abstracts and metadata were assessed against the inclusion criteria. Of the 141  
identified studies, 61 studies met the initial screening requirements. The review then prioritized the 40 studies  
with the highest screening relevance scores, which demonstrated strong alignment with institutional zakat  
innovation themes  
These 40 studies constituted the final dataset for analysis and synthesis.  
2.6 Characteristics of Included Studies  
The methodological characteristics of the included studies indicate methodological diversity:  
1. Qualitative studies: 27  
(exploratory, descriptive, case studies)  
2. Quantitative studies: 6  
(cross-sectional surveys, predictive modelling, Analytic Hierarchy Process)  
3. Mixed-methods studies: 5  
4. Systematic literature reviews: 4  
The majority of studies focused on zakat institutions, including state zakat boards, Islamic financial institutions  
and religious councils, with some studies examining corporate and higher education contexts.  
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INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)  
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XII December 2025  
Data Extraction and Analysis  
Data extraction was conducted using structured prompts within Elicit to ensure consistency across studies.  
Extracted variables included:  
1. Research methodology  
2. Institutional context  
3. Innovation category  
4. Key findings  
5. Reported impacts  
6. Implementation challenges  
7. Suggestions for future research  
The extracted data were subsequently analyzed using thematic analysis, following a deductive-inductive  
approach. Initial coding was guided by the four predefined innovation dimensions (leadership, management,  
collection, distribution), while inductive coding allowed for the emergence of cross-cutting themes such as  
digitalization, governance, accountability, empowerment and stakeholder engagement.  
Thematic Synthesis Strategy  
The thematic synthesis involved three analytical stages:  
1. Descriptive coding of innovation types and institutional practices  
2. Analytical categorization into higher-order themes  
3. Interpretive synthesis linking innovations to institutional performance outcomes  
This approach enabled the identification of dominant innovation patterns, reported benefits and persistent  
challenges across Malaysian zakat institutions.  
Methodological Limitations  
While the SLR approach enhances transparency and reproducibility, several limitations are acknowledged. First,  
the review relied exclusively on studies indexed and screened through Elicit, which may exclude relevant grey  
literature. Second, many included studies were qualitative and institution-specific, potentially limiting  
generalizability. Third, several technological innovations, such as blockchain and artificial intelligence, remain  
at conceptual or pilot stages, restricting the availability of longitudinal impact evidence.  
FINDINGS / RESULTS  
Characteristics of Included Studies  
This systematic literature review synthesized findings from 40 empirical and review studies examining  
innovations in Malaysian zakat institutions. The selected studies span the period 2011–2024 and reflect a diverse  
range of institutional contexts and methodological approaches.  
Study  
Research Focus  
Methodology  
Institution Type  
Innovation Category  
Full text  
retrieved  
Yamaludin  
al., 2023  
et Zakat  
Qualitative  
Zakat  
institutions,  
Distribution process  
innovation,  
No  
distribution for exploratory  
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INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)  
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XII December 2025  
gharimin  
(debtors) post- theory)  
pandemic  
(grounded  
Islamic  
financial  
institutions  
interpretive  
expansion  
Sukari, 2022  
Use of zakat  
logo to literature  
increase  
corporate zakat  
collection  
Systematic  
State  
boards  
zakat Collection  
innovation,  
Yes  
Yes  
review  
(Lembaga Zakat branding  
Negeri  
Majlis  
Islam  
Kedah,  
Agama  
Wilayah  
Persekutuan)  
Rosele et al., Digitalization  
2022  
Qualitative  
Zakat  
institutions  
(Malaysia)  
Technological  
innovation  
(blockchain,  
artificial  
and technology exploratory,  
in zakat systematic  
management  
review  
intelligence,  
mobile)  
Alam et al.,  
2023  
Mapping  
Malaysian  
zakat literature review  
(2011-2023)  
Systematic  
literature  
Zakat  
institutions  
(Malaysia)  
Distribution,  
management,  
collection,  
No  
digitalization  
Hasan et al.,  
2022  
Factors  
affecting zakat (library,  
administration  
performance  
Mixed-methods  
Zakat  
institutions  
(Klang Valley)  
Institutional  
management,  
collection/distributio  
n mechanisms  
Yes  
Analytic  
Hierarchy  
Process,  
survey)  
Shamsuddin  
Internal  
audit  
Quantitative  
Zakat  
institutions  
(Malaysia)  
Institutional  
management,  
governance  
Yes  
Yes  
and  
Bakar, and  
zakat cross-sectional  
2021  
performance  
Ismail  
and  
Zakat  
Qualitative  
Higher  
Distribution  
process,  
institutional  
management  
Ali, 2021  
distribution by exploratory  
amil assistants  
in  
education  
institutions  
(Selangor)  
higher  
education  
Ismail et al.,  
2023  
Zakat  
Qualitative  
exploratory  
Lembaga  
Zakat  
Kedah  
Distribution,  
Negeri strategic planning,  
Yes  
Yes  
distribution  
practices  
during  
technology  
COVID-19  
Razali et al.,  
2022  
Zakat  
distribution  
(wakalah)  
refund  
Qualitative  
exploratory  
Bank  
Distribution  
process,  
Muamalat  
Malaysia  
Berhad  
collaboration,  
management  
data  
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Arshad et al.,  
2021  
Digitalized  
collaborative  
zakat  
Mixed-  
methods  
(qualitative,  
simulation)  
Pusat Pungutan  
Zakat-Majlis  
Digitalization,  
governance,  
Yes  
Agama  
Islam collaboration  
management  
Wilayah  
Persekutuan  
Wahab et al.,  
2022  
Effectiveness  
Quantitative  
Lembaga  
Zakat  
Kedah  
Institutional  
Negeri management,  
empowerment  
Yes  
of  
zakat cross-sectional  
institutions  
from  
recipients’  
perspective  
Paizin  
Sarif, 2021  
and  
Privatization  
Qualitative  
State  
institutions  
(Johor,  
Selangor,  
Penang, Federal  
Territory)  
zakat  
Institutional  
management,  
Yes  
Yes  
Yes  
and  
human descriptive  
resource  
management in  
zakat  
Perak, privatization  
Haniff et al.,  
2021a  
Lembaga  
Descriptive  
Lembaga  
Zakat  
Kedah  
Institutional  
Zakat  
Negeri qualitative  
Negeri management,  
technological  
Kedah  
innovation  
during  
innovation  
COVID-19  
Haniff et al.,  
2021b  
Lembaga  
Descriptive  
Lembaga  
Zakat  
Kedah  
Institutional  
Negeri management,  
technological  
Zakat  
Negeri qualitative  
Kedah  
innovation  
during  
innovation  
COVID-19  
Ariffin  
Osman, 2022  
and  
Zakat  
computation  
Mixed-  
methods  
Islamic banks,  
Development  
Financial  
Institutional  
management,  
computation/disclos  
ure  
Yes  
Yes  
Yes  
and  
in  
disclosure  
Islamic  
Institutions  
banks  
Aris  
2021  
et  
al.,  
Economic  
development  
for  
Qualitative  
exploratory  
Zakat  
institutions  
(Perak, Penang, recipients)  
Perlis,  
Distribution, asnaf  
(eligible  
zakat  
asnaf  
agropreneurs  
empowerment  
Kelantan)  
Yamaludin and  
Alwi, 2023  
Collaborative  
model  
gharimin  
support  
Qualitative  
for exploratory  
Zakat  
institutions,  
Islamic  
financial  
institutions  
Distribution,  
collaboration  
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Yaakob  
al., 2022  
et  
Qualitative  
exploratory  
Islamic  
financial  
institutions  
Technological  
innovation  
(blockchain,  
Yes  
Cryptocurrency  
for zakat  
transactions  
cryptocurrency)  
Sutrisno,  
2024  
Business  
mentoring  
mustahik  
(zakat  
Descriptive  
for qualitative  
Lembaga Amil  
Institutional  
Yes  
Zakat  
dan  
Infaq management,  
Shadaqah empowerment  
asnaf  
role  
Muhammadiyah  
Malaysia  
recipients)  
Rahman  
Shakor, 2024  
and  
Interpretation  
of amil  
zakat  
Qualitative  
in descriptive  
State religious  
councils  
Institutional  
management,  
expansion  
Yes  
Yes  
management  
Rahman  
al., 2024  
et  
Artificial  
intelligence  
Descriptive  
qualitative  
State religious  
councils (Majlis innovation  
Technological  
and  
in  
calculation  
big  
data  
zakat  
Agama  
Negeri)  
Islam (artificial  
intelligence,  
data)  
big  
Sukari et al.,  
2023  
Zakat  
logo  
Qualitative  
Lembaga  
Zakat  
Kedah  
Collection  
Negeri innovation,  
branding  
Yes  
Yes  
for  
corporate exploratory  
collection  
Kedah  
in  
Majid et al.,  
2024  
Ummah  
Economic  
Development  
Qualitative  
case study  
Lembaga  
Zakat  
Kedah  
Distribution,  
Negeri technological  
innovation,  
asnaf  
Zone  
(Zon  
empowerment  
Pembangunan  
Ekonomi  
Ummah)  
Hamzah  
al., 2023  
et  
E-payment  
for zakat  
Quantitative  
cross-sectional  
Zakat  
(Malaysia)  
payers  
Digitalization,  
payment  
e-  
Yes  
Yes  
Ishak et al.,  
2023  
Zakat  
refund  
Qualitative  
via descriptive  
Bank  
Distribution,  
digital platforms  
(wakalah)  
Bank  
Muamalat  
Malaysia  
Berhad  
Muamalat  
Malaysia  
Berhad  
Rejab et al.,  
2023  
Accountability  
Qualitative  
Zakat  
institutions  
(Malaysia)  
Institutional  
management,  
accountability  
Yes  
Yes  
in  
zakat exploratory  
institutions  
Azhar et al.,  
2023  
Zakat  
Quantitative  
(Analytic  
Hierarchy  
Process)  
State religious  
councils  
Distribution,  
prioritization  
distribution  
priorities  
(Analytic  
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Hierarchy  
Process)  
Nazeri et al.,  
2023  
Blockchain in  
zakat  
management  
Qualitative  
exploratory  
Zakat  
institutions  
(Malaysia)  
Technological  
innovation  
(blockchain)  
Yes  
Yes  
Ibrahim  
and  
Zakat  
Qualitative  
Islamic banks,  
Development  
Financial  
Institutional  
management,  
disclosure  
Mahmod, 2023 disclosure  
Islamic  
in exploratory,  
mixed-methods  
banks/Develop  
Institutions  
ment Financial  
Institutions  
Rahman  
al., 2021  
et  
Corporate  
responsibility  
Qualitative  
exploratory  
Corporate  
Collection,  
No  
sector  
(Hotel institutional  
Kota management  
in  
zakat  
Perdana  
Bharu)  
payment  
Bakar, 2022  
E-wallet  
usage  
zakat  
Quantitative  
for cross-sectional  
Polytechnic  
lecturers  
(Selangor)  
Digitalization,  
wallet  
e-  
Yes  
Yes  
during  
COVID-19  
Anuaruddin  
et al., 2023  
Business  
zakat  
collection  
during  
Mixed-  
methods  
Pusat  
Pungutan  
Zakat-Majlis  
Collection,  
institutional  
management  
Agama  
Islam  
COVID-19  
Wilayah  
Persekutuan  
Aziz  
2023  
et  
al.,  
Machine  
learning  
zakat  
Quantitative  
for predictive  
modeling  
Universiti  
Teknologi  
MARA  
Distribution,  
technological  
innovation  
No  
distribution  
Cawangan  
Perlis  
Sapingi  
al., 2023  
et  
and  
al.,  
Disclosure  
and  
information  
asymmetry  
Qualitative  
exploratory  
Zakat  
institutions  
(Malaysia)  
Institutional  
management,  
accountability  
Yes  
Yes  
Shariff  
Abdullah,  
2023  
Zakat  
Qualitative  
Islamic  
(Malaysia)  
banks  
Institutional  
management,  
computation  
computation/dis exploratory  
closure in  
Islamic banks  
Saro  
2022  
et  
Digitalization  
Qualitative  
Zakat  
institutions  
(Malaysia)  
Digitalization,  
financial technology  
Yes  
No  
in  
zakat descriptive  
management  
Harun et al.,  
2024  
Evolution  
of  
zakat literature  
management review  
Systematic  
Lembaga  
Zakat  
Kedah  
Institutional  
Negeri management,  
digitalization  
paddy  
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Zulkifli  
al., 2023  
et  
Zakat  
Qualitative  
Majlis Agama  
Institutional  
Yes  
Yes  
Yes  
management in exploratory  
Perlis  
(historical)  
Islam dan Adat management,  
Istiadat Melayu digitalization  
Perlis  
Saad  
2023  
et  
al.,  
Zakat  
Touch  
On  
Qualitative  
(ZOT) exploratory  
Lembaga  
Zakat  
Technological  
Negeri innovation,  
app  
aid  
for food  
Kedah  
digitalization  
Ismail et al.,  
2021  
Asnaf  
entrepreneur  
development  
Qualitative  
exploratory  
State  
zakat  
Institutional  
management,  
empowerment  
institutions  
asnaf  
METHODOLOGICAL DISTRIBUTION  
The methodological profile of the included studies indicates a strong qualitative orientation:  
1. Qualitative studies (n = 27)  
Exploratory, descriptive and case study designs focusing on institutional practices, governance structures  
and innovation processes.  
2. Quantitative studies (n = 6)  
Predominantly cross-sectional surveys, predictive modelling and Analytic Hierarchy Process (AHP)  
analyses.  
3. Mixed-methods studies (n = 5)  
Combining qualitative insights with survey or simulation-based analysis.  
4. Systematic literature reviews (n = 4)  
Providing secondary synthesis of zakat management and innovation trends in Malaysia.  
This distribution suggests that zakat innovation research in Malaysia remains largely contextual, exploratory and  
institution-specific, with limited longitudinal or experimental designs.  
Institutional Context  
The reviewed studies focused primarily on formal zakat governance entities, including:  
1. Zakat institutions and state zakat boards (e.g., Lembaga Zakat Negeri Kedah, MAIWP) (n = 25)  
2. Islamic financial institutions (e.g., Islamic banks, development financial institutions, Bank Muamalat  
Malaysia Berhad) (n = 8)  
3. State religious councils (n = 3)  
4. Higher education institutions, corporate entities and other groups (n = 6)  
Most innovations were implemented at the institutional level, with fewer studies addressing state-wide or  
national policy frameworks.  
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Overview of Innovation Categories  
Across the reviewed literature, innovations were categorized into six broad domains, with varying frequencies:  
1. Institutional management innovation (n = 20)  
2. Distribution innovation (n = 12)  
3. Technological innovation (n = 10)  
4. Digitalization and financial technology (n = 12)  
5. Collection innovation (n = 6)  
6. Empowerment, collaborative models etc. (n = 11)  
Among these, institutional management and digital or technology-related innovations were the most frequently  
examined, indicating a strategic shift toward governance reform and digital transformation within Malaysian  
zakat institutions.  
Thematic Findings  
Leadership and Management Innovation  
Leadership and management innovation was identified as a core thematic category across the reviewed studies,  
with consistent evidence indicating its influence on institutional performance, transparency and operational  
effectiveness of zakat institutions in Malaysia. The findings show that innovations in governance, strategic  
planning, human resource management and role structuring contribute to improved organizational coordination  
and stakeholder confidence.  
Overall, the reviewed studies report that leadership-driven reforms primarily manifest through two interrelated  
dimensions: (i) strategic planning and governance mechanisms and (ii) privatization, human resource  
management and collaborative leadership models.  
Strategic Planning and Governance  
Several studies highlight the role of formal governance structures and internal control mechanisms in  
strengthening zakat institutional performance. In particular, the establishment of internal audit functions and  
clearly defined governance frameworks is reported to improve transparency, accountability and compliance.  
Shamsuddin and Bakar (2021) report that effective internal audit functions are positively associated with  
improved zakat performance by enhancing financial oversight and institutional monitoring processes.  
Strategic planning also emerged as a recurring leadership innovation, particularly in the context of crisis  
management. Studies examining zakat administration during the COVID-19 pandemic report that institutions  
with structured strategic planning frameworks were better able to respond to operational disruptions and  
increased demand for assistance. Ismail et al. (2023) and Haniff et al. (2021a/b) document that strategic  
leadership enabled zakat institutions to adjust distribution mechanisms, prioritize vulnerable beneficiary groups  
and sustain service delivery during periods of uncertainty. These findings indicate that strategic planning  
contributes to institutional resilience and continuity.  
Privatization, Human Resource Management and Collaborative Leadership  
In addition to governance-oriented reforms, leadership innovation is reflected in privatization and human  
resource management practices. Paizin and Sarif (2021) report that the corporatization and privatization of zakat  
administration are associated with more flexible and efficient human resource management, including improved  
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staff deployment and reduced bureaucratic constraints. Such arrangements are reported to enhance operational  
responsiveness and organizational agility.  
The reviewed studies also highlight the expansion of leadership roles and the adoption of collaborative  
management models. Rahman and Shakor (2024) report that broader interpretations of the role of amil support  
more systematic and professional zakat management practices. Similarly, Yamaludin and Alwi (2023) document  
that collaborative models involving zakat institutions and Islamic financial institutions contribute to improved  
coordination and efficiency in zakat distribution, particularly for complex beneficiary categories such as  
gharimin.  
Taken together, the findings indicate that leadership and management innovations function as institutional  
enablers, supporting other forms of innovation such as digitalization and programmatic reform. Across the  
reviewed studies, effective leadership is consistently associated with clearer organizational structures, improved  
operational processes and enhanced institutional performance.  
Technological Innovation and Digital Transformation  
Technological innovation and digital transformation emerged as one of the most prominent thematic categories  
across the reviewed studies. A substantial number of studies report the increasing digitalization of zakat  
management processes, particularly in relation to collection, distribution, data management and stakeholder  
interaction. The adoption of digital technologies is reported to occur at varying levels of implementation, ranging  
from conceptual models and pilot projects to institution-level applications.  
The reviewed literature identifies several forms of technological innovation, including e-payment systems and  
e-wallets, mobile applications, blockchain-based zakat management models, artificial intelligence (AI), machine  
learning and big data analytics. These technologies are primarily applied to modernize zakat collection  
mechanisms, enhance distribution efficiency and improve institutional data management.  
Reported Benefits of Digital Transformation  
Across the reviewed studies, digitalization is consistently associated with a range of reported institutional  
benefits. Several studies document that digital platforms enhance transparency, operational efficiency and  
accessibility in zakat collection and distribution processes. The use of mobile applications and digital platforms  
is reported to improve user experience for both zakat payers and beneficiaries, while also facilitating more  
systematic data management (Saad et al., 2023; Hamzah et al., 2023).  
Blockchain technology is frequently highlighted as a digital innovation with significant implications for zakat  
governance. Studies report that blockchain-based systems improve traceability and transparency of zakat fund  
flows, thereby strengthening institutional trust and accountability (Rosele et al., 2022; Nazeri et al., 2023). In  
addition, artificial intelligence and machine learning applications are reported to support data-driven  
optimization of zakat calculation, beneficiary prioritization and distribution processes, although most  
implementations remain at exploratory or pilot stages (Rahman et al., 2024; Aziz et al., 2023).  
Overall, the reviewed studies indicate that digital transformation contributes to faster processing times, reduced  
administrative bottlenecks and improved access to zakat services, particularly through online and mobile-based  
platforms.  
Challenges in Technological Adoption  
Despite the reported benefits, the reviewed literature also identifies several challenges associated with  
technological innovation in zakat institutions. Commonly reported issues include the digital divide,  
cybersecurity risks and inconsistent adoption of digital systems across states and institutions (Rosele et al., 2022;  
Saro et al., 2022; Harun et al., 2024). These challenges are reported to limit the scalability and uniformity of  
digital zakat initiatives.  
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In addition, several studies note that user readiness, staff training and integration with existing institutional  
processes remain significant barriers to effective implementation. The absence of standardized digital  
frameworks and varying levels of technological capability across institutions further contribute to uneven  
adoption outcomes.  
Taken together, the findings suggest that while technological innovation plays a central role in modernizing  
zakat management in Malaysia, its effectiveness depends on institutional capacity, implementation readiness and  
the alignment of digital systems with existing governance and operational structures.  
Innovation in Zakat Collection  
Innovation in zakat collection represents a recurring theme across the reviewed studies, with a primary focus on  
enhancing compliance, participation and convenience among zakat payers. The findings indicate that collection-  
related innovations are largely oriented toward modernizing payment mechanisms and strengthening  
institutional visibility, particularly in response to changing financial behaviors and technological advancements.  
Two dominant approaches to zakat collection innovation were consistently reported in the literature: branding  
and awareness initiatives and digital payment mechanisms.  
Branding and Awareness Initiatives  
Several studies report that branding strategies, particularly the introduction and institutionalization of official  
zakat logos, contribute to increased corporate zakat participation. Sukari (2022) and Sukari et al. (2023)  
document that the use of an official zakat logo enhances institutional credibility and visibility, which in turn  
supports greater confidence among corporate zakat payers. These branding initiatives are reported to function as  
symbolic indicators of legitimacy, helping to differentiate authorized zakat institutions from informal or  
unregulated collection channels.  
The findings suggest that branding initiatives are especially effective in the context of corporate zakat, where  
organizational trust, compliance assurance and reputational considerations play a significant role in payment  
decisions.  
Digital Payment Mechanisms  
In addition to branding, the reviewed studies consistently report the adoption of digital payment mechanisms as  
a central innovation in zakat collection. These mechanisms include mobile applications, e-wallets and online  
banking platforms. Empirical findings indicate that such digital tools enhance ease of payment, accessibility and  
payment convenience, thereby increasing the intention to pay zakat.  
Bakar (2022) and Hamzah et al. (2023) report that e-wallets and other digital payment tools are positively  
associated with users’ willingness to adopt digital zakat payment methods, particularly during periods of  
restricted physical movement such as the COVID-19 pandemic. These platforms are reported to align zakat  
payment practices with contemporary digital financial behaviors, especially among younger demographics and  
digitally literate users.  
Overall, the reviewed studies indicate that innovations in zakat collection contribute to the modernization of  
payment processes, reduce transaction barriers and support broader participation among zakat payers. Across  
the literature, collection-related innovations are reported to complement broader institutional digitalization  
efforts, reinforcing the efficiency and accessibility of zakat institutions.  
Innovation in Zakat Distribution  
Innovation in zakat distribution represents a critical thematic dimension in the reviewed literature, reflecting a  
growing emphasis on improving the accuracy, fairness and socio-economic impact of zakat disbursement. The  
findings indicate that distribution-related innovations increasingly move beyond traditional assistance models  
toward more systematic, data-informed and outcome-oriented approaches.  
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Across the reviewed studies, three dominant distribution innovation approaches were identified: data-driven  
prioritization models, targeted empowerment programs and collaborative distribution arrangements.  
Data-Driven Distribution and Prioritization Models  
Several studies report the application of data-driven analytical tools to support zakat distribution decision-  
making. In particular, the use of the Analytic Hierarchy Process (AHP) and machine learning algorithms is  
reported to assist zakat institutions in prioritizing eligible asnaf groups and optimizing resource allocation. Azhar  
et al. (2023) and Aziz et al. (2023) document that these analytical approaches enable more structured assessment  
of beneficiary needs, thereby supporting more transparent and consistent distribution outcomes.  
The findings indicate that data-driven models contribute to improved accuracy in identifying priority recipients  
and reducing subjectivity in distribution decisions. These approaches are primarily implemented at the  
institutional or pilot level and are often integrated with broader digitalization initiatives.  
Targeted Empowerment Programs  
In addition to analytical models, the reviewed literature highlights targeted empowerment programs as a key  
innovation in zakat distribution. Several studies report initiatives aimed at supporting asnaf entrepreneurs and  
agropreneurs through structured economic development programs. Aris et al. (2021) and Majid et al. (2024)  
document that such programs focus on income generation, skills development and long-term economic  
sustainability, rather than short-term financial assistance.  
These empowerment-oriented distribution strategies are reported to align zakat distribution with broader poverty  
reduction and economic development objectives, particularly in rural and agricultural contexts. The findings  
suggest that empowerment programs represent a shift toward outcome-focused zakat distribution practices.  
Collaborative Distribution Models  
The reviewed studies also report the adoption of collaborative distribution models, particularly those involving  
partnerships between zakat institutions and Islamic financial institutions. These collaborative arrangements are  
commonly applied in supporting complex beneficiary categories, such as gharimin (debtors), where financial  
restructuring and coordinated assistance are required.  
Collaborative distribution models are reported to enhance coordination, expand institutional capacity and  
improve the effectiveness of zakat disbursement by leveraging the expertise and infrastructure of multiple  
stakeholders. Such models are typically implemented at the institutional or program level and complement  
existing distribution mechanisms.  
Overall, the reviewed findings indicate that innovation in zakat distribution contributes to more targeted,  
transparent and impact-oriented disbursement practices. Distribution-related innovations are consistently  
reported to support improved beneficiary outcomes and align zakat institutions with broader socio-economic  
development goals.  
Reported Impacts of Innovation  
Across the reviewed studies, innovations were consistently associated with positive institutional outcomes,  
including:  
1. Improved operational efficiency and performance  
2. Enhanced transparency and accountability  
3. Strengthened stakeholder trust and engagement  
4. More effective collection and distribution of zakat funds  
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5. Greater socio-economic empowerment of asnaf  
Notably, some studies reported measurable improvements, such as increased funds reaching eligible  
beneficiaries following the adoption of digital systems.  
Study  
Innovation Type  
Implementation  
Level  
Challenges  
Outcomes  
Yamaludin  
al., 2023  
et  
Interpretive  
expansion  
gharimin  
Conceptual, pilot  
Need for broader  
adoption  
Improved support  
for  
for  
debtors,  
default  
reduced  
risk  
Sukari, 2022  
Zakat  
corporate  
collection  
logo  
for  
State-level  
(Kedah, Selangor)  
Limited adoption,  
standardization  
Increased  
corporate  
collection  
zakat  
Rosele  
2022  
et  
al.,  
Blockchain,  
artificial  
intelligence,  
Conceptual, some  
pilot  
Digital  
cybersecurity  
divide,  
Improved  
transparency, 10%  
increase in funds  
mobile platforms  
to  
needy  
(as  
reported)  
Alam  
2023  
et  
al.,  
al.,  
Digitalization,  
management  
strategies  
National,  
literature-based  
Varying  
Identified  
new  
adoption, research research directions  
gaps  
Hasan  
2022  
et  
Standardized law,  
collection  
mechanisms  
Policy  
recommendation  
Regulatory  
inconsistency  
Improved  
efficiency,  
confidence  
public  
Shamsuddin  
Bakar, 2021  
and  
Internal  
governance  
audit,  
Institution-level  
Institution-level  
Skills  
structure  
gap,  
Improved  
performance,  
transparency  
Ismail and Ali,  
2021  
Amil  
in  
education  
assistants  
higher  
Transparency,  
coverage  
Enhanced student  
support  
institutions  
Ismail  
2023  
et  
et  
al.,  
al.,  
Strategic  
planning,  
on Touch  
Institution-level  
Limited financial  
Strengthened  
distribution during  
COVID-19  
Zakat (Lembaga  
Zakat technology  
Negeri Kedah)  
adoption  
Razali  
2022  
Wakalah  
contract,  
Bank-level (Bank  
data Muamalat  
Account  
Efficient  
management, haul, distribution,  
management  
Malaysia Berhad)  
beneficiaries  
broader  
participation  
Arshad  
2021  
et  
al.,  
Digital  
collaborative  
model  
Conceptual,  
simulation  
Non-  
Enhanced  
governance, faster  
decisions  
governmental  
organization  
impact  
demonstration  
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Wahab  
2022  
et  
al.,  
Balanced  
Scorecard  
effectiveness  
Institution-level  
State-level  
Need for service  
enhancement  
Improved  
empowerment,  
satisfaction  
for  
Paizin and Sarif,  
2021  
Privatization  
Non-privatized  
states lag  
Flexible  
resources,  
human  
operational agility  
Haniff  
et  
al.,  
Asnaf Care, food  
Institution-level  
Bureaucracy,  
Sustainable  
2021a/b  
Ariffin  
bank, digital apps (Lembaga  
Zakat access  
Development  
Negeri Kedah)  
Goals  
alignment,  
innovation model  
and  
Zakat  
Bank-level  
Inconsistency,  
Improved  
Osman, 2022  
computation/disclo  
sure  
regulatory impact  
transparency, need  
for frameworks  
Aris et al., 2021  
Agropreneurship  
programs  
State-level  
Conceptual  
Impact  
assessment  
Asnaf  
empowerment,  
poverty reduction  
Yamaludin  
and  
al.,  
Collaborative  
Model validation  
Enhanced  
distribution  
effectiveness  
Alwi, 2023  
model  
for  
gharimin  
Yaakob  
2022  
et  
Cryptocurrency,  
blockchain  
Conceptual,  
expert view  
Security,  
readiness  
Guidelines  
Islamic financial  
for  
institutions, further  
research needed  
Sutrisno, 2024  
Business  
Institution-level  
Scaling, resource  
Increased  
mentoring,  
display  
smart (Lembaga  
Zakat Infaq  
Shadaqah  
Amil needs  
dan  
mustahik  
recipient) income  
(zakat  
Muhammadiyah)  
Rahman  
Shakor, 2024  
and  
Expanded  
role  
amil  
Policy/interpretive  
Diverse  
definitions  
Systematic,  
efficient  
management  
Rahman  
2024  
et  
al.,  
al.,  
Artificial  
intelligence,  
data in calculation  
Conceptual, pilot  
Data integration,  
standardization  
Improved  
efficiency, fairness  
big  
Sukari  
2023  
et  
Zakat  
logo  
for  
State-level  
(Kedah)  
Broader adoption  
Optimized  
collection,  
economic  
corporate  
collection  
acceleration  
Majid  
2024  
et  
al.,  
Smart  
System  
Intensification,  
farming,  
of  
Institution-level  
Technology  
Asnaf  
empowerment,  
food security  
Rice (Lembaga  
Zakat integration  
Negeri Kedah)  
Zon Pembangunan  
Ekonomi Ummah  
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Hamzah  
2023  
et  
al.,  
al.,  
al.,  
al.,  
E-payment,  
mobile apps  
National, survey  
User-friendliness,  
adoption  
Increased  
intention  
e-payment  
to  
use  
Ishak  
2023  
et  
Wakalah,  
platforms  
digital  
Bank-level (Bank  
Muamalat  
Malaysia Berhad)  
Distribution  
restrictions  
Efficient,  
distribution  
timely  
Rejab  
2023  
et  
et  
Accountability  
management  
Institution-level  
Trust,  
information gaps  
Improved  
stakeholder  
confidence  
Azhar  
2023  
Analytic  
Hierarchy Process driven  
National,  
data-  
Data limitations  
Prioritized  
poverty  
groups,  
for  
distribution  
program design  
priorities  
Nazeri  
2023  
et  
al.,  
Blockchain  
model  
Conceptual,  
expert view  
Adoption  
readiness  
Enhanced  
transparency,  
traceability  
Ibrahim  
Mahmod, 2023  
and  
Disclosure  
practices  
Bank-level  
Inconsistency,  
lack of detail  
Need  
standardization,  
improved  
for  
corporate  
social  
responsibility  
Rahman  
2021  
et  
al.,  
Knowledge,  
leadership  
collection  
Corporate  
in study  
case  
Motivation,  
awareness  
Enhanced  
collection,  
practical insights  
Bakar, 2022  
E-wallet  
zakat  
for  
Institution-level  
Perceived  
marketing  
risk,  
Institutional  
support  
key  
for  
adoption  
Anuaruddin  
al., 2023  
et  
Awareness,  
management  
efficiency  
Institution-level  
Economic  
Increased  
collection  
COVID-19  
(Pusat  
Pungutan challenges  
during  
Zakat-Majlis  
Agama  
Islam  
Wilayah  
Persekutuan)  
Aziz  
2023  
et  
al.,  
Machine learning  
for distribution  
Institution-level  
(Universiti  
Teknologi  
Data,  
integration  
process  
Streamlined  
distribution,  
efficiency  
MARA)  
Sapingi  
2023  
et  
al.,  
Disclosure,  
information  
asymmetry  
Institution-level  
Inadequate  
information,  
accessibility  
Need  
improved  
accountability  
for  
Shariff  
and  
Computation  
Bank-level  
Inconsistency  
Growth  
method  
Abdullah, 2023  
methods in banks  
most common  
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Saro et al., 2022  
Digitalization,  
financial  
technology  
National, review  
Low  
app development  
adoption,  
Improved  
services,  
payment  
easier  
Harun  
2024  
et  
al.,  
al.,  
Digitalization  
paddy zakat  
in  
Institution-level  
Education,  
Modernized  
management,  
social impact  
(Lembaga  
Zakat collaboration  
Negeri Kedah)  
Zulkifli  
2023  
et  
Historical  
evolution,  
digitalization  
Institution-level  
Research  
gaps,  
Improved  
management,  
community  
involvement  
(Majlis  
Islam  
Agama role clarity  
dan  
Adat  
Istiadat  
Perlis)  
Melayu  
Saad  
2023  
et  
al.,  
al.,  
Zakat On Touch  
(ZOT) app  
Institution-level  
(Lembaga Zakat enforcement  
Negeri Kedah)  
Institution-level  
Training,  
Enhanced  
management,  
transparency  
data  
Ismail  
2021  
et  
Asnaf  
entrepreneur  
model  
Collaboration,  
personnel gaps  
Empowerment,  
poverty alleviation  
Summary of Key Findings  
Overall, the findings demonstrate that innovations in leadership, management, collection and distribution  
positively influence the effectiveness of zakat institutions in Malaysia. Digital transformation and governance  
reform appear to be the most impactful innovation domains, while empowerment-oriented distribution models  
contribute directly to socio-economic outcomes.  
Nevertheless, the effectiveness of these innovations varies depending on institutional readiness, implementation  
capacity and stakeholder engagement, highlighting the need for more standardized and scalable approaches.  
DISCUSSION  
Synthesis of Innovation Trends in Malaysian Zakat Institutions  
This systematic review demonstrates that innovations in leadership, management, collection and distribution  
have collectively reshaped the operational landscape of zakat institutions in Malaysia. Rather than functioning  
as isolated interventions, these innovations appear to operate as interconnected mechanisms that reinforce  
institutional effectiveness, transparency and social impact.  
A central pattern emerging from the synthesis is the convergence of governance reform and digital  
transformation. Leadership and management innovations provide the institutional foundation, through strategic  
planning, governance structures and role clarification, upon which technological and operational innovations  
can be effectively deployed. This finding suggests that technological adoption alone is insufficient without  
corresponding organizational readiness and leadership commitment.  
Leadership and Management Innovation as Enablers of Institutional Performance  
The reviewed studies consistently indicate that leadership and management innovations play a catalytic role in  
improving zakat institutional performance. Strategic planning initiatives, particularly during crisis periods such  
as the COVID-19 pandemic, enabled zakat institutions to rapidly reconfigure collection and distribution  
mechanisms while maintaining service continuity. Similarly, the strengthening of internal audit functions and  
accountability frameworks contributed to enhanced transparency and stakeholder confidence.  
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Privatization and corporatization models were also found to increase organizational agility, particularly in human  
resource management. These models facilitated faster decision-making and greater operational flexibility  
compared to traditional bureaucratic arrangements. However, the effectiveness of such reforms appears to  
depend on institutional capacity and governance maturity, suggesting that structural change must be  
accompanied by professional development and clear regulatory oversight.  
Collectively, these findings reinforce the view that leadership innovation is not merely administrative but  
strategic, shaping how zakat institutions respond to environmental uncertainty, stakeholder expectations and  
technological change.  
Digital Transformation: Opportunities and Structural Constraints  
Digital transformation emerged as the most prominent innovation theme across the reviewed literature. The  
adoption of e-payment systems, mobile applications, blockchain, artificial intelligence and data analytics has  
been widely reported to enhance operational efficiency, transparency and accessibility. These technologies  
streamline zakat processes, reduce administrative delays and enable more accurate tracking of funds from  
collection to distribution.  
Notably, blockchain-based systems were highlighted for their potential to improve traceability and trust,  
addressing long-standing public concerns regarding transparency in zakat management. Similarly, artificial  
intelligence and machine learning applications were reported to support data-driven decision-making in zakat  
calculation and beneficiary prioritization.  
Despite these advantages, the review reveals structural constraints that limit the transformative potential of  
digital innovation. Many technologies remain at conceptual or pilot stages, with limited large-scale  
implementation. Inconsistent adoption across states, cybersecurity risks, data integration challenges and uneven  
digital literacy among staff and stakeholders were frequently cited barriers. These findings suggest that digital  
innovation in zakat institutions is best understood as an evolutionary rather than revolutionary process, requiring  
sustained investment, capacity building and regulatory alignment.  
Innovation in Zakat Collection: Modernization and Compliance  
Innovations in zakat collection primarily focused on improving compliance, convenience and engagement  
among zakat payers. Branding initiatives, such as the use of official zakat logos, were reported to strengthen  
corporate confidence and participation, signaling institutional legitimacy and professionalism. Digital payment  
platforms further reduced transaction barriers and aligned zakat payment practices with contemporary financial  
behaviors.  
However, the review indicates that while digital tools increase intention to pay zakat, sustained compliance  
depends on broader institutional factors, including trust, transparency and awareness. This suggests that  
collection innovation must be supported by effective communication strategies and governance practices to  
achieve long-term impact.  
Distribution Innovation and Socio-Economic Impact  
Innovations in zakat distribution represent a shift from short-term relief toward impact-oriented and data-driven  
approaches. The use of analytical models, such as Analytic Hierarchy Process and machine learning, reflects an  
increasing emphasis on prioritization, fairness and outcome optimization. Empowerment programs targeting  
asnaf entrepreneurs and agropreneurs further illustrate a strategic orientation toward poverty alleviation and  
economic sustainability.  
Collaborative distribution models involving zakat institutions and Islamic financial institutions were found to  
enhance reach and coordination, particularly in supporting vulnerable groups such as gharimin. These  
approaches align zakat distribution with broader socio-economic development goals, positioning zakat  
institutions as active development actors rather than passive fund distributors.  
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Nevertheless, the review highlights the need for more robust evaluation of long-term outcomes. While many  
studies report positive impacts, empirical evidence on sustainability, scalability and comparative effectiveness  
remains limited.  
Cross-Cutting Challenges and Research Gaps  
Across innovation domains, several recurring challenges were identified:  
1. Lack of standardization across states and institutions  
2. Limited longitudinal and comparative studies  
3. Uneven technological readiness and skills gaps  
4. Fragmented regulatory frameworks  
These challenges point to a significant research gap concerning the institutionalization and sustainability of zakat  
innovation. Future research should move beyond descriptive case studies toward comparative, longitudinal and  
outcome-based analyses that assess not only implementation success but also long-term social and institutional  
impact.  
Implications of the Study  
The findings of this systematic literature review offer several important implications for policy, practice and  
research in the context of zakat institutions in Malaysia.  
Policy Implications  
At the policy level, the synthesis highlights the need for greater standardization and coordination across  
Malaysian zakat institutions. While innovation initiatives, particularly digitalization and governance reform,  
have yielded positive outcomes, inconsistent adoption across states limits their systemic impact. Policymakers  
and state religious authorities may consider developing national-level guidelines or frameworks to harmonize  
digital platforms, governance practices and reporting standards, while still respecting state-level autonomy.  
Furthermore, the growing use of advanced technologies such as blockchain, artificial intelligence and big data  
analytics suggests a need for regulatory readiness. Clear policies addressing cybersecurity, data governance and  
ethical use of technology are essential to mitigate risks and enhance institutional trust.  
Managerial and Institutional Implications  
For zakat administrators and institutional leaders, the findings underscore that innovation is most effective when  
technological adoption is aligned with leadership capacity and organizational readiness. Digital tools alone do  
not guarantee improved performance; rather, they must be supported by strategic planning, internal audit  
mechanisms, professional development and role clarity among zakat personnel.  
Innovations in zakat collection, such as branding initiatives and digital payment platforms, should be  
complemented by transparent disclosure and communication strategies to sustain compliance and public  
confidence. Similarly, distribution innovations that emphasize data-driven prioritization and empowerment-  
oriented programs highlight the importance of impact-based performance measurement, moving beyond short-  
term disbursement metrics.  
Societal Implications  
From a societal perspective, the reviewed innovations position zakat institutions as key actors in inclusive socio-  
economic development. Empowerment-focused distribution models, collaborative partnerships and targeted  
programs for asnaf demonstrate zakat’s potential to contribute to poverty alleviation, economic resilience and  
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social sustainability. Strengthening these approaches can enhance the credibility and relevance of zakat  
institutions in addressing contemporary socio-economic challenges.  
Limitations of the Study  
Despite its methodological rigor, this systematic literature review is subject to several limitations. First, the  
review relied exclusively on studies retrieved and screened through the Elicit platform, which may exclude  
relevant grey literature, policy documents, or unpublished institutional reports. Second, the predominance of  
qualitative and case-based studies limits the generalizability of findings across all zakat institutions in Malaysia.  
Third, many technological innovations identified in the literature, particularly blockchain and artificial  
intelligence, remain at conceptual or pilot stages, resulting in limited empirical evidence on long-term  
effectiveness and scalability. Finally, variations in institutional context, regulatory environments and  
implementation capacity across states may influence outcomes in ways not fully captured by the reviewed  
studies.  
Directions for Future Research  
Building on the identified gaps, several directions for future research are proposed. First, there is a need for  
longitudinal and comparative studies to assess the sustained impact of innovation initiatives across different  
zakat institutions and states. Such studies would provide stronger evidence on causality and long-term outcomes.  
Second, future research should explore integrated innovation frameworks that examine the interaction between  
leadership, governance, technology and stakeholder engagement. This would move the literature beyond  
fragmented analyses toward a more holistic understanding of zakat institutional transformation.  
Third, empirical evaluation of emerging technologies, such as blockchain, artificial intelligence and machine  
learning, using real-world implementation data remains limited. Rigorous impact assessments and cost–benefit  
analyses are needed to inform evidence-based adoption decisions.  
Finally, greater attention should be given to beneficiary-centered outcomes, particularly the long-term socio-  
economic effects of empowerment-oriented distribution models on asnaf livelihoods and community  
development.  
CONCLUSION  
This systematic literature review provides a comprehensive synthesis of how innovations in leadership,  
management, collection and distribution influence zakat institutions in Malaysia. The findings indicate that  
innovation has become a critical driver of institutional effectiveness, particularly through governance reform,  
digital transformation and impact-oriented distribution strategies.  
Leadership and management innovations establish the organizational foundations necessary for successful  
technological adoption, while digital tools enhance efficiency, transparency and accessibility. Innovations in  
collection modernize compliance mechanisms and distribution reforms increasingly emphasize data-driven  
prioritization and socio-economic empowerment. However, the effectiveness of these innovations is contingent  
upon institutional readiness, standardization and sustained stakeholder engagement.  
Overall, this review contributes to the zakat literature by integrating fragmented empirical findings into a  
coherent analytical framework. It offers practical insights for policymakers and practitioners while identifying  
critical gaps for future research. As zakat institutions continue to evolve, a strategic and integrated approach to  
innovation will be essential to maximize their social and economic impact in Malaysia.  
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ACKNOWLEDGEMENT  
The authors acknowledge the financial support provided by the Islamic Research Grant (Geran Penyelidikan  
Islam) sponsored by the Faculty of Islamic Studies, Universiti Kebangsaan Malaysia (Grant Code: PP-2025-  
028). This support contributed significantly to the completion of the study.  
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