Breaking the Dependency Cycle: a Value Chain Framework for Sustainable Mustahik Empowerment in Islamic Social Finance

This study addresses the critical challenge of dependency in traditional zakat distribution by proposing a transformative framework based on value chain analysis. The research aims to design a sustainable empowerment model for mustahik (zakat recipients) within Islamic social finance. Utilizing a qualitative case study methodology, data were collected through in-depth interviews and focus group discussions with zakat institution managers and successful beneficiaries in Indonesia. The findings culminate in a five-stage Mustahik Transformation Value Chain (MTVC) framework, comprising Screening, Building, Linking, Marketing, and Sustaining. This model shifts the paradigm from consumptive aid to strategic investment in human capital and market integration. The study concludes that systematically applying a value chain approach is essential to breaking the cycle of dependency, enabling mustahik to achieve economic self-sufficiency and potentially transition to muzakki status (zakat payers). This framework offers a practical blueprint for enhancing the long-term socio-economic impact of zakat funds