Role of practicing good governance in tackling Islamic social finance institutions' challenges: a case study of direct aid society

Good governance is so vital and inevitable, particularly in the context of governance within charitable social finance institutions in contemporary times. The objective of this study is to explore the role of good governance practices in addressing challenges faced by Islamic social finance institutions (ISFIs), with a specific focus on the Direct Aid Society in the state of Kuwait. This study employs a qualitative research approach, utilizing a combination of official document analysis, library research, and interviews. The methodology is designed to capture a comprehensive understanding of the governance practices within the Direct Aid Society and their impact on overcoming institutional challenges. Semi-structured interviews were conducted with key stakeholders, including board members, management, and staff of the Direct Aid Society. These interviews were designed to elicit detailed insights into the practical challenges faced by the institution and the role of governance in addressing these challenges. The collected data were analyzed using thematic analysis, a method that identifies, analyses, and reports patterns (themes) within the data. This approach enabled the researcher to distil key themes related to governance practices and their effectiveness in tackling the challenges of Islamic social finance institutions. The present study contributes to the existing body of literature by examining the role of good governance practices on Islamic social finance institutions (ISFIs), a topic that has been relatively understudied. Through an examination of the Direct Aid Society as a specific case study, this research provides a distinctive viewpoint on the potential of governance principles derived from Islamic values to effectively tackle significant obstacles, including transparency, trust, and disclosure. This study not only makes a valuable contribution to the scholarly conversation around Islamic social finance, but also provides constructive recommendations for improving governance frameworks in comparable charitable institutions around the globe