A strategic decision framework for Waqf innovation in Islamic higher education: lessons from Indonesia

Purpose This study aims to assess the strategic potential of waqf innovation in mitigating financial constraints and improving the sustainability of Islamic higher education institutions in Indonesia. This research utilises the analytic network process (ANP) in conjunction with the benefit, opportunity, cost and risk (BOCR) framework to present an empirically substantiated, expert-informed decision-making model for prioritising waqf-based institutional strategies. Design/methodology/approach This research uses a systematic, expert-driven multicriteria decision-making (MCDM) methodology. A group of academic and waqf experts from prominent institutions engaged in pairwise comparisons and model development utilising Super Decisions software. The experts’ assessments, based on their practical experience, constituted the foundation for evaluating strategic criteria and alternatives. Findings The findings highlight that Waqf-driven research and development (R&D) centers consistently rank as the most impactful innovation for Islamic higher education, followed by partnerships with corporations and the digitalization of waqf assets. Sustainability and growth potential emerge as the most critical strategic criteria, underscoring the importance of long-term planning and resource optimization for waqf innovation. Originality/value This study introduces the integration of ANP-BOCR as a novel methodological approach for waqf management in higher education. It contributes to the literature by offering a structured and multidimensional framework to guide decision-making, addressing gaps in prior research by incorporating the interrelationships between financial, operational and social factors in waqf innovation.