5. WAQF INPUTS AND OUTPUTS IN MEASURING TECHNICAL EFFICIENCY USING DATA ENVELOPMENT ANALYSIS (DEA): A SYSTEMATIC REVIEW

Abstract

In measuring the technical efficiency of Waqf institutions, several methods can be applied, with Data Envelopment Analysis (DEA) being one of the most prominent. Despite its widespread use, DEA has certain limitations. One significant limitation is its sensitivity to the selection of inputs and outputs, which can greatly influence the results. Therefore, it is crucial to identify the appropriate inputs and outputs for measuring the technical efficiency of Waqf institutions using DEA to ensure the accuracy of the results. This study aims to identify the inputs and outputs commonly used in measuring the technical efficiency of Waqf institutions using DEA. The research methodology involved a systematic review of relevant studies. Two databases, namely Scopus and Google Scholar, were utilized for searching articles published between 2014 and 2024. Sixteen studies were reviewed and assessed in the final stage. In conclusion, researchers commonly consider inputs in analyzing the technical efficiency of Waqf institutions using Data Envelopment Analysis (DEA) including financial resources, such as total donations and operating costs, and human resources, such as the number of employees and volunteers. Other inputs often include physical assets like the number of properties or facilities owned by the Waqf institution. On the other hand, the outputs typically considered in these analyses include the number of beneficiaries served, the number of programs or services provided, and the impact or outcomes of these services, such as improvements in community well-being or educational achievements. Other outputs may include the total revenue generated from Waqf properties and the utilization rates of these properties. This study has identified the commonly used inputs and outputs in measuring the technical efficiency of Waqf institutions using DEA. These insights can guide future research. However, the selection of inputs and outputs should align with the specific objectives and context of the Waqf institution to ensure accurate and meaningful efficiency assessments.