Integrated model of the maqasid al-shariah with strategic management : its applicability and financial viability in municipal solid waste business

Abstract

This research is addresses three main issues, - the perception of Maqasid Al-Shariah (MAS) among shariah scholars and professional managers, the existence of a dichotomy of knowledge between shariah and strategic management, and addressing the increasing disposal of Municipals Solid Waste (MSW) and transforming it into a viable business. The problem is, there is no model to integrate these issues to bring the gap closer. Objectives of this study are, to assess the understanding of MAS among shariah scholars and professional managers, to identify the composition and disposable method of MSW in line with MAS as Corporate Strategy, and to evaluate the effect of incorporating MAS as a Corporate Strategy in management. An Integrated Model is proposed to facilitate this study. A combined qualitative and quantitative research designs were carried out. Qualitative research was done to analyse the text data from interviews (2018.1.1 - 2019.8.31) with 10 shariah scholars and 10 professional managers, and secondary text data from 20 books and 10 journals (published in 2000 - 2019) by these groups. Quantitative research was used to determine the composition and market price of MSW, through a survey of MSW area removed (Kuching landfill, 2011.7.6 - 2011.7.16) and a market survey (20 traders in July 2011), respectively. Analysis from qualitative research shows a positive result, where there is a change in perception towards the application of MAS in strategic management among shariah scholars and professional managers. Analysis from quantitative research also shows very positive results and supports the establishment of an integrated MSW plant. Financial analysis also supports this proposal (NPV=positive, IRR, 15.7% and PBP = 7 years). The study proposed that “Maqasid Al -Shariah is Applicable as Corporate Strategy in Business and Supports the Financial Viability of a Business”. In conclusion, this study paves the way for further empirical research in development of knowledge and application of MAS in the industry.