How intellectual capital efficiency drives collection performance in zakat institutions? Evidence from Indonesia

Purpose This study aims to investigate the impact of intellectual capital efficiency on collection performance and the interrelationships among the independent variables, human capital efficiency and structural capital efficiency in zakat institutions in Indonesia. Design/methodology/approach This study is analyzed using panel data estimation. The data required to calculate the intellectual capital efficiency and collection performance have been obtained from the financial reports of zakat institutions for 2010–2024. This study’s model is subjected to endogeneity problem i.e. omitted variable bias. Thus, the authors perform two-stage least squares (2SLS) regression to address the endogeneity issue. Findings The findings demonstrate that intellectual capital efficiency positively enhances collection performance in zakat institutions. On the other hand, human capital efficiency is positively associated with structural capital efficiency. The result is robust to the endogeneity issue. Practical implications Standardization of human resources for zakat institutions through amil certification. Furthermore, integration of technology systems to increase transparency, efficiency and ease of zakat management. Another important implication for the leaders of zakat institutions is that there must exist a constant interplay between human and structural capital for an organization to leverage its complete knowledge base. Originality/value This paper extends previous research on intellectual capital and zakat performance by analyzing its impact on collection performance and the interrelationships among intellectual capital dimensions. The study also applies 2SLS regression to address endogeneity, a method not used in prior studies.