Integrating WqÄf and Business: Ensuring Business Sustainability for The Welfare of Heirs and Non-Heirs
Keywords:Family business, Going concern, IslÄmic inheritance, WqÄf
Islam has concern on the sustainable welfare of oneâ€™s heirs through wealth preservation and maximization. The objective of this study is to provide a model for the sustainability of a family business through its integration with wqÄf in order to perpetually generate incomes. The essential features of wqÄf (irrevocability, inalienability and perpetuity) would not only prevent the family inheritable business from disposal or liquidation but also ensure that it remains a going concern to generate incomes for the welfare of the heirs, exempted heirs and other members of the IslÄmic society. Profit is expected to be shared among heirs based on the sharing ratio established by IslÄmic succession law. The exempted heirs and other members of IslÄmic society could benefit from the businessâ€™s profit continuously every year if the founder/owner of the business dedicates a certain share of its equity to them by way of a will.
Abdullah, M.A., Z. Abdul Hamid, and J. Hashim. â€œFamily-Owned Businesses: Towards a Model of Succession Planning in Malaysia.â€ International Review of Business Research Papers 7, no. 1 (2011): 251-64.
Adedayo, S.O., and J.O. Ojo. â€œFamily Conflict and Sustainability of Family Owned Businesses in Lagos and Ogun States, Nigeria.â€ Pyrex Journal of Business and Finance Management Research 2, no. 8 (2016): 89-96.
Ahmad, M. â€œRole of WqÄf in Sustainable Economic Development and Poverty Alleviation: Bangladesh Perspective.â€ Journal of Law, Policy and Globalization 42 (2015): 118-30.
Ahmed, E.A. â€œAccounting Postulates and Principles from an Islamic Perspective.â€ Review of Islamic Economics 3, no. 2 (1994): 1-18.
Ahmed, H. â€œWqÄf-Based Microfinance: Realizing the Social Role of Islamic Finance.â€ Paper presented at International Seminar on Integrating Awqaf in the Islamic Financial Sector, Singapore, 6-7 March 2007. https://www.isfin.net/node/1329
Al-Barghouthi, S.J. â€œPassing the Torch, Family Business Succession: Case Study, Bahrain.â€ International Journal of Business and Management Studies 5, no. 1 (2016): 279-94.
Al-HilÄlÄ«, Muá¸¥ammad Taqi al-DÄ«n, and Muá¸¥ammad KhÄn. The Noble QurÊ¾Än, English Translation of the Meaning and Commentary. Saudi Arabia: King Fahd complex for theprinting of the Holy QurÊ¾Än, 1434.
Al-Jibaly, M. Inheritance Regulations and Exhortations (Second Edition). Al-Madinah al-Munawwarah: Al-Kitab and Sunnah Publishing, 2005.
Alma'amun, S. â€œIslamic Estate Planning: Analysing the Malaysian Perceptions on Wassiyah (Will) and Bequest Practice.â€ Durham University, Doctoral Theses, 2010. http://etheses.dur.ac.uk/731/
Amran, N.F., and A.C. Ahmad. â€œFamily Succession and Firm Performance Among Malaysian Companies.â€ International Journal of Business and Social Science 1, no. 2 (2010): 193-203.
Ather, S.M., and M.H. Ullah. â€œIslamic Accounting Systems and Practices.â€ The Cost and Management XXXVII, no. 6 (2009): 9-16.
Australian Institute of Company Directors (AICD). â€œGoing Concern Issues in Financial Reporting: A Guide for Companies and Directors, 2009. http://www.companydirectors.com.au
Aziz, M.R.A., F. Johari, and M.A. Yusof. â€œCash WqÄf Models for Financing in Education.â€ Proceeding of the 5th Islamic Economics System Conference (iECONS 2013), Faculty Economics and Muamalat, Universiti Sains Islam Malaysia, Berjaya Times Square Hotel, Kuala Lumpur, 4-5September 2013.
Azmi, Z. â€œBusiness Transaction â€“ An Islamic Perspective.â€ Global Journal of Contemporary Research in Accounting, Auditing and Business Ethics 1, no. 2 (2015): 332-8.
Budiman, M.A. â€œThe Significance of WqÄf for Economic Development.â€ Equilibrium 2, no. 1 (2014): 19-34.
Cizakca, M. â€œAwqaf in History and its Implications for Modern Islamic Economies.â€ Islamic Economic Studies 6, no. 1 (1998): 1-28.
______. â€œOttoman Cash Awqaf Revisited: The Cash of the Bursa 1555-1823.â€ Foundation for Science Technology and Civilization Publication ID: 4062 (2004).
Elesin, A.M.J. â€œThe Role of Al-awqaf (Islamic Endowments) in Poverty Alleviation and Community Development in the Nigerian Context.â€ Journal of Muslim Minority Affairs 37, no. 2 (2017): 223-32.
Englisch, P. â€œBuilt to Lastâ€“family Businesses Lead the Way to Sustainable Growth.â€ Ernst & Young in Collaboration with Family Business Network International (2012). www.fambiz.com.au â€º wp-content â€º uploads â€º FBN-Er.
Faruki, K. â€œOrphaned Grandchildren in Islamic Succession Law: A Comparision of Modern Muslim Solutions.â€ Islamic Studies (Islamabad) 4, no. 3 (1965): 253-74.
Gomba, M., and T. Kele. â€œSuccession Planning in Black-Owned Family Businesses: A South African Perspective.â€ International Journal of Business Administration 7, no. 5 (2016): 1-13.
Gunto, M., and M.H. Alias. â€œSMEs Development in Malaysia: Lessons for Libya.â€ Prosiding Perkem III, no. 3 (2013): 1521-30.
Haniffa, Ros, and Mohammed Hudaib. â€œA Conceptual Framework for Islamic Accounting.â€ In Islamic Accounting Series, edited by Christopher Napier and Roszaini Haniffa, 1-42. Cheltenham: Edward Elgar Pub., 2011.
Hannonen, T. â€œManagement Succession in Family-Owned SMEs: Learning from Failure.â€ Masterâ€™s Degree Thesis, Aalto University, 2013.
Ibrahim, D., and H. Ibrahim. â€œRevival of WqÄf Properties in Malaysia.â€ Proceeding of the 5th Islamic Economics System Conference (iECONS 2013), Faculty Economics and Muamalat, Universiti Sains Islam Malaysia, Berjaya Times Square Hotel, Kuala Lumpur, 4-5 September 2013.
Ibrahim, H., and F.A. Samad. â€œFamily Business in Emerging Markets: The Case of Malaysia.â€ African Journal of Business Management 4, no. 13 (2010): 2586-95.
ImÄm HÃ£fiz AbÃ¼ 'Elsa Mohammad Ibn 'Elsa At-Tirmidhi. Jami' At-Tirmidhi. Translated by Abu Khaliy, Maktaba Dar-us-Salam, Riyadh, Saudi Arabia, 2007.
Institute of Family Business. â€œThe UK Family Business Sector 2015/16â€. IFB Research Foundation, 2016.www.ifb.org.uk â€º media â€º ifbrf-sector-report-2015-16.
Ismail, A.M. â€œFinancing through Cash-WqÄf: A Revitalization to Finance Different Needs.â€ International Journal of Islamic and Middle Eastern Finance and Management 6, no. 4 (2013): 304-21.
Ismail, A.G., and U. Taufiq. â€œZakat on Financial Instrument.â€The Islamic Research and Training Institute, no. 1436-1, 2015.www.irti.org/English/Research/Documents/PP-1436-01.pdf
Kahf, M. â€œThe Role of WqÄf in Improving the Ummah Welfare.â€ Paper Presented at International Seminar on WqÄf as a Private Legal Body, Islamic University of North Sumatra, Medan, Indonesia, 6-7 January 2003.
Kahf, M. â€œFinancing the Development of Awqaf Property.â€ Paper Presented at Seminar on Development of Awqaf, IRTI, Kuala Lumpur, Malaysia, 2-4 March, 1998.
Khamis, S.R., and M.C.M. Salleh. â€œStudy on the Efficiency of Cash WqÄf Management in Malaysia.â€ Journal of Islamic Monetary Economics and Finance 4, no. 1 (2018): 61-84.
Kuran, T. â€œThe Islamic Commercial Crisis: institutional Roots of Economic Underdevelopment in the Middle East.â€ The Journal of Economic History 63, no. 2 (2003): 414-46.
Lakhvi, S.H. Almirath Justice of Islam in the Rules of Inheritance. Kano: Aminu Kano College of Legal and Islamic Studies, 2003.
Lucky, E.O., M.S. Minai, and A.O. Isaiah. â€œA Conceptual Framework of Family Business Succession: Bane of Family Business Continuity.â€ International Journal of Business and Social Science 2, no. 18 (2011): 106-13.
McKinsey and Company. Perspective on Founder-and-Owned Businesses, 2014. https://www.mckinsey.com/industries/ private-equity-and-principal-investors/our-insights/perspecti ves-on-founder-and-family-owned-businesses.
Melinen, P., and I. Vento-Vierikko. â€œLike Father Like Son? Transfer of Entrepreneurship in Small Family Businesses in the Finnish context- Some Critical Elementsâ€, n.d. https://www.researchgate.net/publication/265987118_LIKE_FATHER_LIKE_SON_TRANSFER_OF_ENTREPR
Mohammad, M.T.S. and A.M. Iman. â€œObstacles of the Current Concept of WqÄf to the Development of WqÄf Properties and the Recommended Alternative.â€ Malaysian Journal of Real Estate 2, no. 1 (2006): 27-38.
Nurrachmi, R. â€œThe Implication of Cash WqÄf in the Societyâ€. Jurnal Ekonomi Islam Al-Infaq 3, no. 2 (2012): 150-5.
Oâ€™Hara, William T. Centuries of success: Lessons from the world Most Enduring Family Businesses of Centuries of Success. Massachusetts: Adams Media, 2004.
Osunde, C. â€œFamily Businesses and its Impact on the Economy.â€ Journal of Business and Financial Affairs 6, no. 1 (2017): 1-3.
Palliam, R., H.A. Cader, and C. Chiemeke. â€œSuccession Issues Among Family Entrepreneurs in Countries of the Gulf.â€ International Journal of Business Administration 2, no. 2 (2011): 25-34.
Rexhepi, B. â€œSmall Family Business-Guarantor of Economic and Social Development.â€ AAB College Repository, 2015. https://dspace.aab-edu.net/handle/123456789/88.
Sahih al-BukhÄrÄ«. Translation by M. Muhsin Khan, https://d1.islamhouse.com/data/en/ih_books/single/en_Sahih_Al-Bukhari.pdf
Sahih Muslim. Translated by Abd-al-Hamid Siddiqui, 2009. https://d1.islamhouse.com/data/en/ih_books/single/en_Sahih_Muslim.pdf.
Saleem, M.Y. â€œSuccession Planning of Family Businesses froman Islamic Perspective.â€ Labuan IBFC Inc., 2019. www.labuanibfc.com/â€¦/Succession-Planning-of-Family-Businesses-from-an-Isl
Schwass, J. â€œFamily Businesses: Successes and Failuresâ€, International Institute for Management Development, 2013. www.cepor.hr/cepra/wp-content/.../IMD-Family-Businesses-Successes-and-Failures.pd
Shulthoni, M., and N.M. Saad. â€œWqÄf Fundraising Management: A Conceptual Comparison between Traditional and Modern Methods in the WqÄf Institutions.â€ Indonesian Journal of Islam and Muslim Societies 8, no. 1 (2018): 57-86.
Stibbard, P., D.R. QC, and B. Bromley. â€œUnderstanding the WqÄf in the World of the Trust.â€ Trust and Trustee 18, no. 8 (2012): 785-10.
Toraman, C. B. TunÃ§siper, and S. Yilmaz. â€œCash Awqaf in The Ottomans as Philanthropic Foundations and Their Accounting Practices.â€ In 5th Accounting History International Conference, Banff, Canada, 9-11. 2007.
Umar, U. H., and S. Mohammed. â€œThe Nexus between Islamic Inheritance and Financial Accounting: An Expository Discourseâ€. Paper Presented at Second International Research Conference on Economics Business and Social Sciences, Penang, Malaysia, 11-12, July 2017.
______. â€œA Basic Comprehensive Accounting Package for MushÄrakah: Consolidation of Islamic and Conventional Practices.â€ In Management of SharÄ«Ê¿ah Compliant Businesses. Management for Professionals, edited by E. Ghazal, D. Mutum, M. Rashid and J. Ahmed, 85-93. Springer, Cham, 2019a.
______. â€œIntegrating Family WqÄf into an Inheritable Going Concern Business: An Instrument for the Sustainable Welfare of Exempted Heirs.â€ In Revitalization of WqÄf for Socio-Economic Development, Volume II, edited by K.M. Ali, M.K. Hassan and Ali, A.E.S. Ali.67-87. Palgrave Macmillan, Cham, 2019b.
______ , and J.M. Kurawa. â€œBusiness Succession from an Islamic Accounting Perspective.â€ ISRA International Journal of Islamic Finance 11, no. 2 (2019): 267-81.
Walsh, G. â€œFamily Business Succession Managing the All-Important Family Componentâ€, KPMG Enterprise, 2011. assets. kpmg â€º kpmg â€º pdf â€º 2015/07 â€º 3468-succession
Wan Haron, W.A.H. Mengurus Harta Pusaka: Asas Pembahagian Harta Cara Faraid. Kuala Lumpur: Percetakan Zafar, 2012.
Yalawae, A., and I. Mohd Tahir. â€œThe Role of Islamic Institutions in Achieving Equality and Human Development: WqÄf or Endowment.â€ Paper Presented at 5th Annual Conference of the HDCA, New Delhi, India, 10-13 September 2008. https://hd-ca.org/publications.
Zakaria, A.Z.M., R.R. Abd. Samad, and Z. Shafii. â€œVenture Philanthropy WqÄf Model: A Conceptual Study.â€ Jurnal Pengurusan 38 (2013): 119-25.