Maahad Riyadus Shalihin: sustaining a faith-based educational institution through waqf, community resilience, and social enterprise

Mhd. Sarif, Suhaimi and Hidayatullah, Rakhmad Agung and Firmansah, Yayan (2026) Maahad Riyadus Shalihin: sustaining a faith-based educational institution through waqf, community resilience, and social enterprise. IIUM Journal of Case Studies in Management, 17 (2). pp. 18-34. ISSN 2810-2327 E-ISSN 2710-7175

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Abstract

This case explores a deeply compelling and somewhat unexpected strategic dilemma faced by the leadership of Maahad Riyadus Shalihin (MRS), a humble yet steadily growing Islamic educational institution located in the heart of Central Java, Indonesia. Established on waqf land through the sincere sacrifices of villagers, and nurtured by a strong Javanese-Islamic tradition of discipline, hard work, and collective responsibility, MRS has gradually evolved into a respected centre of tahfiz and tarbiyyah. It has successfully transformed students from modest and disadvantaged backgrounds into confident huffaz, ethical individuals, and emerging community leaders. Yet, beneath this inspiring journey lies a quietly intensifying challenge. The Maahad is now confronted with increasingly severe constraints—overcrowded classrooms, ageing and inadequate dormitory facilities, and inconsistent financial inflows that depend heavily on donations and goodwill. At the same time, external expectations are rising. There is growing pressure to ensure safety compliance, provide conducive learning environments, and maintain a level of institutional professionalism expected in today’s educational landscape. Amid these pressures, the leadership, guided by Ustaz Dr Rakhmad and his dedicated team, had to make a critical and delicate decision. Should MRS continue relying solely on its traditional model of waqf and community-based contributions, trusting that sincerity and barakah will sustain its future? Or should it embrace a more adaptive and strategic path by developing a hybrid model, or one that preserves its spiritual mission while strengthening its economic resilience? A particularly promising yet challenging option has emerged: the development of a faith-based social enterprise, namely the MRS Snacks Entrepreneurship Initiative, a student-led halal business rooted in values of discipline, dignity, and self-reliance. Alongside this, there is an urgent need to expand and upgrade physical infrastructure to safely and effectively accommodate the growing number of students. This case invites learners, particularly in business and management, to engage with a rich and multidimensional problem. It challenges them to think beyond conventional profit-driven frameworks and to explore how Tawhidic epistemology, which emphasises divine purpose, amanah, and holistic success, can be meaningfully integrated with contemporary strategic management tools. At the same time, it encourages the application of ESG-like principles, including ethical stewardship, social responsibility, and long-term sustainability, within a non-profit, faith-based institutional context. Ultimately, this case is not merely about organisational survival. It is about preserving identity while pursuing progress, balancing sincerity with strategy, and ensuring that growth does not come at the expense of spiritual integrity.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Tawhidic epistemology, waqf-based institutions, community resilience, social entrepreneurship, ESG, Islamic education, sustainable development.
Subjects:	BPH Islamic Economics > BPH830.3 Social systems. Urban groups. Cities and towns. Sustainable urban development BPL Islamic education > BPL27 Aims and objectives of education. Sustainable education H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5387 Business ethics H Social Sciences > HF Commerce > HF5475.I74 Halal business, entrepreneur, marketing, management, and administration
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Business Administration
Depositing User:	Dr Suhaimi Mhd Sarif
Date Deposited:	16 Jul 2026 12:35
Last Update:	16 Jul 2026 12:35
Queue Number:	2026-07-Q3997
URI:	http://irep.iium.edu.my/id/eprint/129832

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