Can Zakat Institutions Adopt Consumer-Centric Knowledge Management Successfully to Alleviate Poverty?

Can Zakat Institutions Adopt Consumer-Centric Knowledge Management Successfully to Alleviate Poverty?

Abu baker Ramadan Mohamed Hussain (Taibah University, Saudi Arabia)
Copyright: © 2015 |Pages: 26
DOI: 10.4018/978-1-4666-6547-7.ch022
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Drawing upon Consumer-Centric Knowledge Management (CCKM) approach and poverty alleviation efforts, this chapter elaborates the adoption of these approaches in Zakat Institutions (ZI) in their search to alleviate poverty. It assesses the interrelationships of the two approaches in ZI considering the poor and needy as the main envisioned stakeholders. The investigation deliberates the landscape of poverty alleviation by key agents of knowledge change, reviewing their contributions to establish communities of practices in creating and sharing knowledge on poverty alleviation. Similarly, it relates major strategic focus of poverty alleviation to CCKM processes. It explores knowledge management gaps that could affect ZI outreach highlighting the main internal and external challenges. The substances of outreach stipulate the importance of poverty intelligence portfolio that utilizes key elements of CCKM, namely poor and needy intelligence, demand intelligence, situational intelligence, and networking intelligence. As a result, the effective engagement of ZI in the two approaches is valued with respect to knowledge on poverty alleviation.
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Existing research on the effect of consumer – centric knowledge management on poverty alleviation by Zakat Institutions (ZI) has not yielded definitive conclusions, in part because of differences in methods. Four issues distinguish recent literature based on assessing factors influencing poverty alleviation as strategic goal in economic development. First, knowledge and knowledge sharing is essential for development in general and alleviating poverty in particular (Shin and Kook, 2014; World Bank, 2011; KDI & WBI, 2011; FAO, WFP & IFAD 2012; IFAD, 2011; Anand, & Lea, 2011; Anderson et al, 2013. Second, different perceptions caused by demand –led poverty alleviation approaches (Biard, 2013; Camacho & Conover, 2011). Third, all types of organizations can benefit from the essence of knowledge management (KM), customer relationship management (CRM) – customer-centric approach (Jirinova, 2013; Wang & Fen, 2012; Kopetz et al. 2012; Alhawari, 2013; Al-Shammari, 2011; Lee, 2014; Gebert, 2003). Fourth, globalization changed the nature of economic activities, which results in redefining poverty, and the poor. This process modifies the role of Zakat Institutions (ZI) as social safety net organizations (Al Baraka, 2011, 2012 & The Kuwaiti Zakat-House).

These four issues are interrelated: for instance the millennium declaration and the move towards knowledge economy places knowledge as a global strategic goal to alleviate poverty. However, many countries, international, national and organizations adopted Consumer Centric Knowledge Management approach to support collaboration oriented activities (Tsai et al; 2006). The effectiveness of these relations in organizations (i.e. ZI) depends on not only social capital and knowledge management processes but also on knowledge sharing and partnership (Barry & Tacneng, 2013; Abuo-Zeid; 2007).

Key Terms in this Chapter

Zakat Institutional Learning: Zakat institutional (organizational) learning is a prudent behavior of knowledge acquiring, sharing, storing, and dissemination of knowledge; processes; related technologies and Zakat institutions culture.

Formal and Informal Exclusions: Informal exclusion from Zakat distribution is the phenomenon characterized by lack of understanding, processes, strategies and low staff competences; where formal exclusion denotes inadequate Zakat institutions’ methods, criteria and policies that deter the poor and needy from benefiting from the offered products by various means.

Poverty Intelligence: Poverty intelligence involves database management about the poor and needy and their environments.

Zakat Outreach: Zakat outreach is the processes of distributing Zakat to its prescribed categories mentioned in the Holy Quran as end beneficiaries.

Zakat Institutions: Zakat institutions are religiously based organizations aim to match payees’ obligations and receivers’ rights on prescribed alms.

Poor and Needy: Poor and needy are those sections in the society below the acceptable level poverty measures.

Institutionalization Process: Institutionalization process is the means of incorporating CCKM components into knowledge management practices in Zakat institutions.

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