What roles do stakeholders play in waqf innovation: a case study at Muhammadiyah organization, Indonesia

Purpose This study aims to investigate the roles of stakeholders in Muhammadiyah’s waqf innovation, focusing on how diverse stakeholder involvement is. It examines stakeholder dynamics in waqf innovation and evaluates their impact on the strategic development and governance of waqf assets within the Muhammadiyah organization. Design/methodology/approach The study adopts a qualitative approach, using stakeholder analysis within the theoretical framework of power, legitimacy and urgency. Semi-structured interviews with key stakeholders, including waqf officers, donors, regulators and beneficiaries, were examined using thematic analysis to identify patterns in stakeholder interactions and their contributions to innovation. Findings The study identifies key internal and external stakeholders in Muhammadiyah’s waqf innovation, including regulatory bodies, supervisors, donors, partners, beneficiaries and administrators. Stakeholder power and interest levels vary, with the Muhammadiyah Central and Provincial Boards and the Indonesian Waqf Board being identified as key players due to their significant influence and interest in waqf innovation. The study categorizes stakeholders into four quadrants based on their power and interest, revealing that donors and investors have the most power to influence waqf activities while beneficiaries do not. However, highly interested individuals have less influence in decision-making. The findings emphasize the need for strategic engagement with definitive stakeholders who are empowered and legitimacy to shape Waqf innovation. Originality/value This research offers a novel perspective by emphasizing the dynamics of stakeholder collaboration as drivers of Waqf governance and innovation. Examining these dynamics within Muhammadiyah provides actionable insights for policymakers and administrators seeking to modernize waqf management through inclusive stakeholder strategies.