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The Importance of Incentives to Sustain Voluntary Projects

Ariffin, Muhammad Irwan (2021) The Importance of Incentives to Sustain Voluntary Projects. In: Economics and Management Sciences: Reflections on Humanizing Education. Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, pp. 119-129. ISBN 978-967-26219-1-1

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Many impactful projects started off on a voluntary basis. However, some of these projects were not sustainable due to lack of an incentive system to motivate new members to support the projects. The problem to realign the mindset and motivation between founding members and new members of a project can be viewed systematically from a principal-agent problem perspective. There are three conditions for an effective incentive mechanism: (1) the agent must be able to influence the outcome, (2) the principal must be able to monitor the behavior of the agent, and (3) the incentive offered must be valuable to the agent. The incorporation of an incentive system to a philanthropist project should not be seen as a negative element that pollute the originally noble goals of the project. Instead, it is a factor to propel the project to be more impactful and long lasting. The effective incentive mechanism also enhances the role of human as the khalifah of Allah on earth, and motivate them to fulfill their duties as the ‘abd of Allah.

Item Type: Book Chapter
Uncontrolled Keywords: Incentive, Principal-Agent, Motivation, Sustainability, Khalifah, Teamwork
Subjects: BPH Islamic Economics
BPH Islamic Economics > BPH72 Economic development. Growth. Sustainable development. Sustainability
H Social Sciences > HB Economic Theory > HB126.4 Islamic Economics
H Social Sciences > HC Economic History and Conditions > HC79 Special topics. Including air pollution, consumer demands,famines, flow of fund etc
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Centre for Islamic Economics
Kulliyyah of Economics and Management Sciences
Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User: Muhammad Irwan Ariffin
Date Deposited: 09 Nov 2021 09:13
Last Modified: 09 Nov 2021 09:13
URI: http://irep.iium.edu.my/id/eprint/93388

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