Islamic Leadership Principles as a Driver of Innovation for Asnaf Development: The Kedah Zakat Experience

Abstract

This study explores how Islamic leadership practices shape innovation processes within zakat institutions, focusing on Lembaga Zakat Negeri Kedah (LZNK). The research aims to identify various types of innovation and examine leadership values that facilitate innovation for asnaf development. Using a qualitative case study approach, data were collected through document analysis and semi-structured interviews. Then, thematic analysis was employed to explore how Islamic leadership principles shape organizational innovation. The findings reveal that amanah, hikmah, shura and ihsan are deeply embedded in how innovation is perceived and practiced within zakat institutions. These values guide product, process, and system innovations, thereby cultivating transparency, efficiency and asnaf empowerment in zakat governance. The study concludes that zakat institutions can strengthen their innovation capabilities by aligning leadership practices with Islamic ethical principles and system-oriented management. Overall, this research contributes to Islamic leadership theory by linking it with innovation and systems thinking in zakat management.