Investigating the impact of technological and spiritual capital on organizational performance: Evidence from zakat institutions

Purpose – The study aims to investigate the impact of technological capital and spiritual capital on organizational performance in zakat institutions.Methodology – Data were collected through structured questionnaires from 156 respondents in six provinces in Java, Indonesia. A two-stage non-probability sampling design was employed: all six provinces in Java were purposively selected, and the participating zakat institutions were selected through convenience sampling. The data were analyzed using partial least squares structural equation modeling (PLS-SEM) to assess the measurement and structural models. Findings – The findings indicate that technological capital and spiritual capital are positively and significantly related to organizational performance in zakat institutions. The adjusted R² value of 0.607 indicates that the independent variables have substantial explanatory power in predicting organizational performance. Spiritual capital (β = 0.505) shows a stronger effect on organizational performance than technological capital (β = 0.422). These findings further highlight the importance of leveraging technology and embedding spiritual values within organizational practices to enhance the effectiveness of zakat institutions in collecting and distributing zakat.Implications – The findings in this study illustrate the importance of technological and spiritual capital management in zakat institutions. Effective technological and spiritual capital management assists zakat managers in identifying problems and formulating effective and efficient policies to improve organizational performance.Originality – This study extends the conceptualization of intellectual capital, which has traditionally comprised human, structural, and relational capital. By incorporating technological and spiritual capital, this study broadens the scope of intellectual capital and highlights the strategic role of these dimensions in supporting organizational performance in zakat institutions.