International Journal of Islamic Economics and Finance (IJIEF) Vol. 4(2), page 263-292, July 2021 Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria Sagir Muhammad Sulaiman International Institute of Islamic Banking and Finance (IIIBF), Bayero University Kano, Nigeria Corresponding email: sageeerala@gmail.com Mohammed Magaji International Institute of Islamic Banking and Finance (IIIBF), Bayero University Kano, Nigeria Warshu Tijjani Rabiu International Institute of Islamic Banking and Finance (IIIBF), Bayero University Kano, Nigeria Article History Received: May 31st, 2021 Revised: July 20th, 2021 Accepted: July 23th, 2021 Abstract Zakah is an important tool in Islamic economic system, it plays a crucial role in reducing some social and economic problems such as poverty, unemployment, indebtedness and inequitable redistribution of income in the Muslim communities. The Zakah institutions in Gombe metropolis are said to practice favouritism and unfair service quality and distribution of Zakah funds among recipients. The main objective of this study is to empirically examine perception of the Zakah recipients towards the services provided by the institutions. This study adopted descriptive survey design approach. PLS-SEM is employed to test the hypothesized model of the study. The result reveals that reliability, responsiveness and assurance significantly affect performance of Zakah institutions but tangibility and empathy were found to be insignificant. The study recommends the need for Zakah institutions in Gombe metropolis to consider improving the tangibles and empathy dimensions of service quality. The study also recommends the need to concentrate on the antecedents of service quality as it will assist Zakah institutions to improve performance. Lastly, the study suggests the establishment of Zakah board that will serve as regulatory body in charge of supervising the activities of private Zakah institutions in Gombe state. Keywords: Service quality, Performance, structural equation modelling. JEL Classification: M30, Z12, N20, M39 Type of paper: Research Paper @ IJIEF 2021 published by Universitas Muhammadiyah Yogyakarta, Indonesia All rights reserved DOI: https://doi.org/10.18196/ijief.v4i2.11847 Web: https://journal.umy.ac.id/index.php/ijief/article/view/11847 Citation: Sulaiman, S. M., Magaji, M., & Rabiu, W. T. (2021). Assessment of the service performance of zakah institutions in Gombe Metropolis, Nigeria. International Journal of Islamic Economics and Finance (IJIEF), 4(2), 263-292. DOI: https://doi.org/10.18196/ijief.v4i2.11847. mailto:sageeerala@gmail.com https://doi.org/10.18196/ijief.v4i2.11658 https://doi.org/10.18196/ijief.v4i2.11847 https://crossmark.crossref.org/dialog/?doi=10.18196/ijief.v4i2.11847&domain=pdf Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │264 I. Introduction 1.1. Background Zakah is an important tool in Islamic fiscal system. It plays a vital role in reducing socio economic problems such as poverty, unemployment, indebtedness and inequitable redistribution of income in Muslim communities (Dogarawa, 2008). Allah commanded to distribute Zakah to the eight Asnafs mention in the noble Quran, the idea behind that was to satisfy the basic needs of those who are vulnerable and destitute in society. Zakah is given to the Asnafs for them to enjoyed the bounties of Allah and that will subsequently motivate them to be able to contribute their own effort toward the progress of society. Zakah also signal the spirit of brotherhood, making the less privilege know that society cares much about them and their needs. (Siddiqui, 1976). Zakah aims at reducing socio-economic difficulty of Muslims communities by optimising the redistribution of wealth in those respective communities. Zakah is a redistribution tool that is capable of alleviating poverty as evident during the time of Umar Bin Khattab (R.A), furthermore, during time Umar bin Abdul Aziz the people were prosperous to the extent that there was no eligible recipient of Zakah (Hudayati & Tohirin, 2010). The history has shown that if Zakah is properly managed, it can alleviate the poverty (Nadzari, Rahman & Umer, 2012). Hence Common problems found in most of development countries such as hunger, poverty, inequality and other social vices can be addressed by implementing Zakah (Bakar, Ibrahim, & Noh, 2014). The administration of Zakah during the early days of Islam had been organized centrally by the state. The state appointmented the Zakah collector as well the record keepers (Qardawi 2010). However, history has shown that there have been discontinuities of the above practice as a result of colonization across the globe (Abdullatif, 2012). This brought about serious ambiguity in the mind of Muslim that leads to make some Muslims not to pay Zakah as appropriately as possible. At post colonist era many Muslim countries begun to implement Sharia system with re-emergence of the institution of Zakah as a compulsory collection system i.e. a system where the central authority is responsible for the assessment, collection and distribution of Zakah and there is enforcement law against the defaulters, failure to pay results to judicial consequences (Abdullatif, 2012). In reality, talking about Zakah administration, it is proper to emphasize the vital role of government in collection and distribution of Zakah as evidence in countries like Saudi Arabia, Sudan, Libya, Yemen, Pakistan and Indonesia Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │265 In Nigeria, the history of Zakah administration may be traced to the old Sokoto Caliphate after the Jihad of Sheik Usman ibn Fodio which was governed based on Islamic system. The emirates under the caliphate were charged with the responsibility of administering Zakah funds through public treasury. Zakah happens to be the most powerful fiscal tool to the government during that time. In the same vein the system was frustrated and collapsed with the emergence of the colonial masters. Inevitably the system re-emerged in 1982 following a conference held in Bayero University Kano which leads to the creation of Kano state Zakah and hubsi commission (KSZHC) and subsequently with the implementation of Sharia in Zamfara State in 1999 (Mustafa, Baita, Adhama & Sabo, 2018). Nigerian federal government does not have laws as well as regulatory body that guides and supervised Zakah collection and distribution. However, The states has initiated bodies that are responsible for the collection and disbursement of Zakah. Additionally, it is important to note that there is no state own Zakah collection institution in Gombe state, therefore, some private registered Islamic institutions engage themselves in the collection and disbursement of Zakah in order to ensure alleviation of poverty in Gombe metropolis. Among those are Jama’atul Izalatul Bidia wa Iqamatus Sunnah (JIBWIS A) Gombe, Jama’atul Izalatul Bidia wa Iqamatus Sunnah (JIBWIS B) Gombe, and Council of Da’awa Gombe. Meanwhile, JIBWIS A&B are two different institutions that only shared name in common but differ in leadership style. The above named three private Islamic institutions aimed at the same goal but differs in term of service quality renders to the Asnafs. In Zakah institutions, service quality (SERVQUAL) is very important because it portrays the image of Islam. The , SERVQUAL in Zakah institutions involves how Zakah institution as ‘Amil deals with Zakah payers (muzakki) as well as Zakah recipients (mustahiq) . a good quality service encourages all the stakeholders to maintain the loyalty and confidence of Zakah payers and attracts more Zakah payers to pay through respective formal Zakah institutions (Mustafa, et al., 2018). most of the studies conducted on zakah try to explain the type, nature, importance and objective of Zakah, Waqf and sadaqa in general as as an isntrument for alleviating poverty and ensuring fair distribution of wealth among the populace. Thus, they are empirical studies by (Hamisu, 2017; Wali, 2013; Sa’id et al.; 2012 & Kani, 2012) on Zakah and poverty alleviation. To the researchers’ knowledge, although studies on SERVQUAL have been widely carried out, there are very few studies conducted on Zakah institutions SERVQUAL. Hence this study tries to fill in the gap by examining the perception of the Zakah stakeholders, i.e., Zakah recipients towards the services given by the institutions in Gombe state, Nigeria. Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │266 1.2. Objective The main objective of this study is to assess the service quality performance of Zakah institutions in Gombe metropolis. The specific objective of the research accomplished are stated as; i- to examine the influence of Zakah institution staff reliability on Zakah institution service performance in Gombe metropolis. ii- to access the influence of Zakah institution tangibility on Zakah institution service performance in Gombe metropolis. iii- to investigate the influence of Zakah institution staff empathy on Zakah institutions service performance in Gombe metropolis. iv- to examine the influence of Zakah institution staff responsiveness on Zakah institutions service performance in Gombe metropolis. v- to access the influence of Zakah institution staff assurance on Zakah institution service performance in Gombe metropolis. This study comprises of five parts, part one is introduction, part two talks on both empirical and theoretical literatures. part three is the methodology. part four consists of data presentation and analysis. Lastly part five is the conclusion, and recommendation for further studies. II. Literature Review 2.1. Background Theory Input, Process, Output, Link and Outcome (IPOLO) model was developed by Keehley & Abercrombie (2008), to measure the performance of non-profit making organisations. According to the theory performance of organisations should be measured in the following dimensions; input, process, output and outcome. The dimensions of Zakah performance measurement are, firstly, involve input or in other words resources availability, this signifies factor input are required to run an institution. Input resources comprises of infrastructure existence, available data and staffs of the institutions among others. Secondly, the process dimension which is aim at identifying recipient of Zakah (Asnafs) is another issue of concern. The third dimension refers to output and that signifies the achievement of the institution (Abd Halim Mohd Noor, Rasool, Yusof, Ali, & Rahman, 2015). Outcomes are as result of process as well as output, the expectation was that the status of Asnafs will improve due to the Zakah they received. In order to measure outcome some issues need to be taken into consideration i.e the improvement may not be exclusively due to Zakah. Hence, issues such as bias in selection as well as counterfactuals need to be considered. (Keehley & Abbercrombie, 2008). Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │267 This study therefore, adopts IPOLO Model because of its relevance with the topic of the research as its theoretical framework that will help in achieving the objectives of the study. 2.2. Previous Studies Abd Wahab, Alam, Al Haq, Hashim and Zainol (2020) investigate the effectiveness of zakat institutions from the zakat recipients’ perspective. The study basically based on primary data. The data was collected through a structured questionnaire survey. 427 samples were collected through stratified random sampling technique from eleven zones of Kedah, where Partial Least Squares approach was employed as the main data analysis of the study. The study identified the main four perspectives as enshrined by the Balanced Scorecard technique which include financial effectiveness, customer effectiveness, internal effectiveness and learning & growth effectiveness that are interlinked and need a coherent addressing in terms of zakat recipients’ upliftment. The recipients did put emphasis on the priority of the financial effectiveness, but in a non-profit environment where the customer effectiveness is vital, may require the service enhancement along with putting the emphasis on learning and making certain systematic rejuvenation of the processes, as well as the planned financial decision to make effects conducive to empowerment of the recipients. The study is constrained with limitations, Firstly, the sample consists only from one state of Malaysia and that is Kedah. Secondly, only the performance from empowerment is studied, and many other factors are though equally significant to take into account, such as the sustainability of the recipients. Thirdly, a cross-sectional study may not give a long-term perspective. Therefore, the study tried to understand only the performance through the empowerment of recipients ignoring the consequences on the recipients’ sustainability. Mokhtar, Saad, Salleh, Shaari and Nafi, (2020) investigate the effects of service quality and reputation towards the customers’ satisfaction at one of the Zakat Institutions in one of the states in Malaysia. Respondents of the study were residences who reside in the state and used the Institution services. The study employed quantitative research design and 280 questionnaires were distributed to the respondents. The data was collected through a systematic sampling method. Descriptive and inferential analysis has been conducted. And all the data were analysed through the IBM Statistical Package for Social Sciences (SPSS) version 25.0. Findings showed that 88.9% of Zakah institutions customer’s satisfactions are being influenced by service quality. The study found that reliability, assurance and brand reputation have significant relationship towards the customers’ satisfaction. However, the study was only conducted in a Northern state in Malaysia in four different locations. Thus, this Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │268 could give an issue on possibility of the sampling of the study which was not sufficient to represent other Zakat Institutions. Zakaria and Mohamad (2019) examines Zakah recipients’ perceptions of daruriyat/basic needs and the effectiveness of Zakah funds to fulfill the needs and elevate recipients’ standard of living to hajiyat/comfort living. Data were gathered from in-depth interviews and focus group discussions with Majlis Agama Islam Kelantan (MAIK)’s Zakah recipients. The data were audio- recorded, transcribed verbatim and analysed qualitatively by referring to daruriyat/basic needs of Maqasid al-Shariah. Results indicated that recipients perceive daruriyat needs as needs consisting of property, life, lineage and intellect. The study also perceived that Zakah has successfully assisted them in fulfilling the needs but has yet to elevate their life to the standard of hajiyat/comfort. Although faith is one of the Maqasid al-Shariah daruriyat elements and paramount in one’s life, none highlighted it as important. This provides useful insights to Zakah agency to educate recipients on the importance of faith and rejuvenate its programs so that the recipient’s standard of living would be raised to a higher level. The goal of Maqasid al- Shariah in Zakah jurisprudence will be achieved, if Zakah funds successfully fulfil all the five elements of daruriyat needs (faith, property, life, lineage and intellect) and elevate recipients’ standard of living to the standard of hajiyat/comfort. Nahar (2018) explore stakeholders’ views toward zakah management performance issues based on a selected zakat institution (ZI) operating on a corporatized platform with corporate administrative style. A quantitative approach using a questionnaire survey distributed to Muslims in the State which ZI is operating was adopted. A total of 448 usable responses are used in the analysis covering descriptive and mean difference. The results indicate that managerial reform configuration in terms of corporatization has been viewed positively by stakeholders, translated into a comforting agreement score toward ZI’s improved management performance (collection, disbursement and reporting). Such perceptions are, however, observably sensitive to demographic factors of gender and employment type. The survey also document evidence that the corporatization exercise itself had improved respondents’ confidence toward ZI being the zakat administrator in the State. The study possesses few methodological limitations that should be acknowledged. First, although respondents were assured complete anonymity and confidentiality, bias resulting from self-reporting may have potentially influenced the results. Second, the respondents are discernibly represented by a small fraction of zakat stakeholders in Selangor, whose perceptions might not be representative of the entire population, thereby raising the generalizability concern. Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │269 Hamisu, (2017) assess the performance of kano state Zakah and Hubusi Commission (KSZHC) towards collection and distribution of Zakah in Kano State. Logit Regression Model (LRM) and descriptive statistics has been used for the analysis of Zakah recipient’s satisfaction about the performance of KSZHC. Finding reveals that KSZHC discharged its responsibility of Zakah collection and distribution very well, therefore its performance towards achieving its goal and objective is satisfactory. However, the study employed weak technique of analysis (i.e LRM) in analysing the variables of study which are latent construct in nature, hence, further study can employ more robust technique such as SEM. Wahab and Rahman, (2013) in their studies assess the efficiency of Zakah institutions in Malaysia during the period of 2003-2007 and examine the determinants of efficiency, the technical efficiency analyses has been carried out, and the finding reveals that size of the management staff, computerized Zakah system, committee of auditors and decentralization which have significant impact on Zakah institutions in Malaysia as full corporatization and decentralization are positively associated with the efficiency of Zakah institutions. However, the duration covered by the study is either short or much longer compared to the time of the writing. Indeed, the work is diligently written using robust methodological approach. This contains valuable indicators that can be used to measure the dependent variable of this work. Wali (2013), analyse the role of Zakah institution in poverty reduction with particular reference to Kano state Zakah and Hubsi Commission. Secondary data was used, which was obtained from reports and memos of the commission. The study found that, Zakah poverty rate in the state failed to tackle the poverty in Kano State by considering the increase in poverty rate in the state. Since the inception of Kano state Zakah and Hubsi, the total Zakah collected by the commission heavily relies on grant from the state government. Sa’id et al. (2012), examine the composite performance measurement for Zakah organizations using a series of focus group interviews, descriptive statistics and logic model. They found out that performance assessment of Zakah institutions should be based on financial perspective, customer satisfaction, internal perspective as well as learning and growth perspective. Thus, the study recommends that Zakah managers should be more creative and innovative in increasing Zakah collection and its disbursement to the rightful recipients within the same year. A study by Muhammad and Rahim (2012) examine role of Zakah in reducing poverty in Sarawak, the state employed policies and programs which aimed at eradicating the menace of poverty in the state. the programs comprise of New Economic Policy (NEP), National Development Policy and Vision Policy among Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │270 others, the programs are aimed to eradicate poverty and to achieved distribution of resources. Data was source from Zakah collection authority, descriptive statistical was employed through the use of frequency distribution tables, charts and percentage. The findings of the study reveal that more attention was given only to the poor (Masakin) and the indebted (Garimin) by reducing the problem of absolute poverty, the research also found out that 60% of Zakah fund was distributed while 40% was saved by the TBS. therefore, there is need for the TBS to employ a financing model that enable the investment of the idle fund in form of business between TBS and the Asnaf. 2.3. Conceptual Framework Figure 1 shows that all the six variables of the study are latent constructs in nature, service performance is the endogenous latent variable, whereas service quality dimension, namely, reliability, tangibility, empathy, responsiveness and assurance are the exogenous constructs of the study. Figure 1. Research Model Source: Adopted from Dick and Basu (1994); Zainol, Abu Bakar, Ibrahim & Minhaj, (2016) Service Performance of Zakah Institution Reliability Tangibility Empathy Assurance Responsiveness Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │271 III. Methodology This section describes the methodology used to access this work. The section presents the following: research design, population of the study, sample size and sampling technique, sources and method of data collection, techniques of data analysis, model specification as well as estimation procedure. 3.1. Data A descriptive research design is employed in this study. The study target population is drawn from three private religious organizations namely Jama’atul Izalatul Bidia wa Iqamatus Sunnah (JIBWIS A) Gombe, Jama’atul Izalatul Bidia wa Iqamatus Sunnah (JIBWIS B) Gombe and Council of Da’awa Gombe as at July 2020, the recipients of Zakah in Gombe metropolis are amount to be 2278. The study used Yamane’s (1967) formula with an error margin of 5 percent in finding the sample size of the study which is amount to be 400 (See Table 1). Purposive sampling technique is used in selecting the respondents of the study. Primary data is used in this study and data is collected through the use of self-administered questionnaires. Table 1. Proportional Distribution of Sample Size No Name of Organization Number of Recipients Sample size proportion 1 Izalatul Bidia wa Iqamatus Sunnah (JIBWIS A) Gombe 1006 177 2 Izalatul Bidia wa Iqamatus Sunnah (JIBWIS B) Gombe 752 132 3 Council of Da’awa Gombe 520 91 Total 2278 400 Source: Organization Officials (2020) and computed by author 3.2. Model Development According to Othman and Owen (2001) service quality dimension can be categorised as most adopted and cited components in service quality literature. The SERVQUAL views of Parasuraman, et al., (1988) is a 22-items scale that measures service quality along five dimensions, reliability, tangible, empathy, responsiveness and assurance namely, these forms the basis upon which each works has been built (Sureshchandar et al., 2002). Initially Parasuraman, et al. (1985) identified 10 dimensions of service quality which include: (1) Tangibles, (2) Reliability, (3) Responsiveness, (4) Access, (5) Courtesy, (6) Communication, (7) Credibility, (8) Security, (9) Understanding and (10) Competence. Subsequently, Parasuraman, et al. (1988) collapsed the initial 10 dimensions into five which include: (1) Reliability, (2) Responsiveness, (3) Tangibles, (4) Assurance and (5) Empathy. Here, assurance captures communication, competence, credibility, courtesy and security dimensions Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │272 while empathy captures access and understanding dimensions. Sachdev and Verma (2004) made the following explanations in respect of the five dimensions. Reliability refers to performance of service in a dependable and appropriate manner by Zakah institutions staffs, it is also view as staff effort in meeting up with deadline in providing services, staff ability to provide courteous and diligent services, knowledge and experienced management team, sincere effort to assist customers, proper advice to the customer, friendliness of personnel to the customers, provision of wide and easy network for customer access, integrated value-added service and is in accordance to Islam. Tangible, refers to availability and appearance of facilities and personnel, interior comfort of the organization, physical facility of the organization, external appearance such as parking space, location convenience such as accessibility via public transport, counter partitions/special room for customer with "issues". Materials associated with service such as brochure or magazines, operation house, number of counters during peak hours, relevant forms associated with the service, facilities for disabled people. Empathy is willingness of staff to understand the needs of customers, employees’ ability to understand customer’s needs, giving personal attention to customers and employees have a sense of humor, employees. Take care of customers specific needs, confidentiality of customer moral issue, value added service in terms of financial/personal counselling, zero service charge, availability of user-friendly forms, value added services such as photocopy services and filling forms for customers. Responsiveness and willingness of staff to assist customers and provide prompt service. Employees’ knowledge about Zakah, employees are always willing to assist customers. Ability of employees to fulfill customer’s needs. Courteous Counter Service Staff, fast and efficient Counter service, number of branches available, prompt service, one stop centre, that is everything under one roof, number of staff/counters available, staff never too busy to respond to customer’s needs. The above index may be used by Zakah institution to assess individual performance (Said, et. al., 2012). With regards to employees, the performance index could motivate the staff towards achieving desired result. Better organizational success may be achieved via the index and the index may serve as a guideline for motivating not only Zakah institution but also all Islamic philanthropic organizations that are currently performing below average to learn from these at higher ranking level. Assurance: It means to inspire trust and confidence. Assurance is defined as employees’ knowledge of courtesy and the ability of the Zakah institution and its employees to inspire trust and confidence. This dimension is likely to be Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │273 particularly important for the services that the Zakah stakeholders i.e., payers and beneficiaries perceives as involving high rising and/or about which they feel uncertain about the ability to evaluate. Trust and confidence may be embodied in the person who links the customer to the company. Thus, employees are aware of the importance to create trust and confidence from the customers to gain competitive advantage and for customers’ loyalty. Performance: has been interpreted by the many scholars in different ways. However, regarding non-profit organization like Zakah institutions performance may be seen as the consequences of organizational activities that have been carried out (Kasri, 2013). Therefore, performance of institution may be regarded as a mirror that reflects the productive efficiency and the organizational impact to the society. According to Broeckling (2010) states that performance measurement of non-profit organization may be regarded as an avenue used in measuring organizations, programs and their impact, and this is due to some internal and external forces that includes demand for accountability, stimulants for growth and development, competition, pressure from funders and an increase in the private sector performance measurement tools. In view of this we may say that performance measure in Islamic non-profit organization like Zakah is an attempt to know how well these institutions discharge their duties towards collection and distribution as enshrined in the Islamic legal system. However, the issue of performance measurement is earnestly desired to non-profit organizations like that of Zakah for they face the challenges of scarce donors and government funding (Kaplan 2001). Regarding the ways of performance measurement in private sectors, it involves comparison of financial information such as profit margin and stock price whereas non-profits organizations like Zakah are looking for similar yardstick to indicate their relative value and social impact which is referred to as non-profit organization equivalent (Hatry, 1999). Therefore, to determine how well Zakah institution performed, its activities must be evaluated against its own purpose of establishment such as ability to reduce the incidence of poverty and identification of resources input and output of an organization at both monetary and nonmonetary perspective (Kasri, 2013). The functional relationship of the model is given Υ𝑖 = (𝑋𝑖1, 𝑋𝑖2, 𝑋𝑖3, 𝑋𝑖4𝑋𝑖5, ) (1) 𝑌𝑖 = 𝜛𝑜 + 𝜛𝑖 𝑋𝑖1 + 𝜛𝑖 𝑋𝑖2 + 𝜛𝑖 𝑋𝑖3 + 𝜛𝑖 𝑋𝑖4 + 𝜛𝑖 𝑋𝑖5 + 𝜀𝑖 (2) 𝑃𝐹𝑀𝑖 =𝜛𝑜 + 𝜛1𝑅𝐿𝐵𝑖 + 𝜛2𝑇𝐺𝐵𝑖 + 𝜛3𝐸𝑀𝑃𝑖 + 𝜛4𝑅𝑃𝑉𝑖 + 𝜛5𝐴𝑆𝑈𝑖 + 𝜀𝑖 (3) 𝑃𝐹𝑀𝑖 = Performance. 𝑅𝐿𝐵𝑖 = Reliability. 𝑇𝐺𝐵𝑖 = Tangibility. 𝐸𝑀𝑃𝑖 = Empathy. Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │274 𝑅𝑃𝑉𝑖 = Responsiveness. 𝐴𝑆𝑈𝑖 = Assurance. 𝜛𝑜= Autonomous variable. 𝜛1, 𝜛2 and 𝜛3= are parameter estimates or coefficients 𝜀𝑖 = the error variance 3.3. Method The analytical tools to be employed include both descriptive and inferential statistical methods. The descriptive method involves the use of tables, frequency and percentages to describe the data, the inferential statistic; SEM (i.e., variance based structural equation modelling) method is used to analyses the performance of Zakah institution using service quality in Gombe State metropolis. The idea behind using PLS-SEM technique was that the variables of the study are latent construct. Therefore, data will be analyse using SPSS version 22.0 and SmartPLS 3.0. IV. Results and Analysis Prior the main analysis, data went into some form of cleansing, which includes multi-collinearity and normality test, respondent’s demographic characteristics is presented. Subsequent to which the hypotheses were evaluated. However, hypothesis testing requires other rigorous preliminary analysis and validation, thus, occurs in two different stages. The first is the measurement model, where the individual item reliability, internal consistency reliability, convergent and discriminant validity are assessed. The second section provides result on postulated hypothesis, path coefficient significance, R-squared values, lastly, exogenous variable effect size and predictive relevance of the whole model also reported and discussed. 4.1 Survey Response Analysis The study distributed 400 questionnaires to Zakah beneficiaries in Gombe metropolis, the questionnaires was adopted from Parasuraman, et al. (1985), however, only 383 responses were retrieved representing 95.7% which is considered fit and sufficient for the survey (Sekaran, Foster, Lucas & Hankins, 2003). 4.2 Data cleaning and Pre-Estimation Test In multivariate analysis data screening and other preliminary examinations are vital in achieving qualitative data set (Hair, Black, Babin, & Anderson, 2010). Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │275 This analysis provides an insight on any violation of the basic assumptions associated with multivariate analysis (Hair, Money, Samouel, & Page, 2007). In fact, conducting these analyses provides the researcher with understanding on how well the data fit the intended analysis. There are two basic issues to be put into consideration in data cleaning and preliminary analysis. They are testing of normality and multi-collinearity tests. This is the process of examining the data before further analysis i.e. inferential statistics can be conducted. 4.2.1 Normality Test A normality test using skewness and Kurtosis was conducted with the sole aim of improving the statistical accuracy of the analysis, especially the path coefficient estimations. Table 2. Result of Normality Test Tests of Normality variable Skewness Kurtosis Performance -0.847 1.889 Reliability 0.743 -0.876 Tangibility -0.948 -1.857 Empathy -0.893 0.851 Responsiveness 0.453 0.819 Assurance 0.873 -1.971 From the Table 2, the skewness and kurtosis result clearly indicates that all items are within the acceptable threshold of -1 to +2 for skewness and -2 to +2 for kurtosis. Specifically, the maximum and minimum numbers in Table 2 of skewness ranges from -0.893 to 0.873, while, the values of the kurtosis range from a minimum of -1.971 to a maximum of 1.889, thus, satisfying the normality assumptions. 4.2.2 Multi-collinearity Test Multi-collinearity refers to a situation in which two or more independent variables become highly correlated. The presence of multi-collinearity among the independent variables can substantially distort the estimates of regression coefficients and their statistical significance tests (Hair, Black, Babin, Anderson, & Tatham, 2010). Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │276 Table 3. Tolerance and Variance Inflation Factors (VIF) Latent Constructs Collinearity Statistics Variance inflation Factor (VIF) Tolerance Value Reliability 1.025 0.975 Tangibility 1.033 0.968 Empathy 1.098 0.911 Responsiveness 1.043 0.958 Assurance 2.088 0.478 Table 3 indicates that multi-collinearity did not exist among the exogenous latent constructs as all VIF values were less than 5 and tolerance values is greater than 0.2 as suggested by Hair et al. (2011). Thus, that none of the variables is highly correlated as such the data is free from multi-collinearity. 4.3 Demographic Profile of the Respondents This section describes the demographic profile of the respondents of the study. The demographic characteristics examined in this study include gender, age, marital status and category of Zakah recipient. Table 4. Demographic Characteristics of the Respondents Frequency Percentage (%) Gender Male 277 72.3 Female 106 27.7 Total 383 100.0 Age Below 30 14 3.7 30-39 65 17.0 40-49 129 33.7 50-Above 175 45.7 Total 383 100.0 Marital Status Single 13 3.4 Married 210 54.8 Divorced 102 26.6 Widow 58 15.1 Total 383 100.0 Category of Zakah Recipient Fuqara 116 30.3 Masakin 125 32.6 mu'allaf 48 12.5 Algharimin 74 19.3 Fisabilillah 20 5.2 Total 383 100.0 Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │277 The characteristics of the respondents as shown above in Table 4 highlight that 277(72.3%) were men while 106 (27.7%) were female. This signifies that male Zakah recipients double the female counter part. The descriptive statistics shows that 14 (3.7%) of the respondents age below 30, 65 (17.0%) of the respondents fall within the age bracket of 30-39, 129(12.7%) representing 40- 49, 175 (45.7%) aged between 50- Above. This revealed that most of Zakah recipients are old i.e., within the range of 50 and above. Among the respondents 13(3.4%) are single, 210 (54.8%) are married, 102(26.6%) are divorced and 58(15.1%) are widowed. The Table 4 also reveals that 116(30.3%) of the respondents are in Category of Fuqara, while 125(32.6%) are in category of Masakin, while 48(12.5%) of the respondents are mu'allaf and 74 (19.3%) of the respondents are Algharimin, lastly 20(5.2%) of the respondents falls in Fisabilillah category, this clearly signifies that majority of the respondents are Masakin 32.6% then follow by Fuqara 30.3%. 4.4 Descriptive Analysis of the Latent Constructs After the overall data cleaning and screening, descriptive statistics of the latent variable of the study were also evaluated, presented and discussed. Specifically, four latent variables were analysed to determine their mean, standard deviation as well as the minimum and maximum values. Table 5 provides a summary of the descriptive statistics of the study. Table 5. Descriptive Statistics for Latent Variables Descriptive Statistics Lantern construct N Mean Std. Deviation Statistic Statistic Performance 383 4.2963 .77239 Reliability 383 4.4517 .47414 Tangibility 383 4.0161 1.19077 Empathy 383 3.7942 1.05646 Responsiveness 383 4.0292 .89066 Assurance 383 3.4569 .93109 Table 5 shows that the mean and standard deviation for the performance were 4.2963 and 0.77239, respectively. This suggests that organization tended to have moderate level of performance. Table 5 also indicates that the mean for the reliability was 4.4517, with a standard deviation of 0.47414, suggesting that the organization reliability level as high. Further, the results show a moderate score for the tangibility (Mean = 4.0161, Standard deviation = 1.19077) but a low score for empathy with mean and standard deviation of 3.7942 and 1.05646, the results show a moderate score for the responsiveness (Mean = 4.0292, Standard deviation =0.89066) and lastly the results show a Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │278 low score for the assurance (Mean = 3.4569, Standard deviation = 0.93109) respectively. 4.4. Evaluation of PLS-SEM Path Model Results Structural equation model (PLS-SEM) is a second-generation statistical tool that involve latent variables and multiple indicators. This study used a two- step process to evaluate and report the results of PLS-SEM path. This two-step process adopted in the present study comprises (1) the assessment of a measurement model, and (2) the assessment of a structural model, as depicted in Figure 1 (Hair et al., 2014; Hair et al., 2012; Henseler et al., 2009). 4.4.1 Assessment of Measurement Model In order to assess outer model (measurement or factor model) in SmartPLS analysis. The measurement model is key in determining the goodness, reliability, and validity of the measures used. It constitutes assessing individual item reliability, internal consistencies of the items, convergent and discriminant validity respectively (Henseler et al., 2009). Figure 1. Measurement Model Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │279 Individual Item Reliability This refers to the convergence of sub-item of a particular construct and was assessed by examining the outer loadings of each construct’s measure (Hair et al., 2014). In adherence to the yard stick for retaining items with loadings between 0.40 and 0.70, it was discovered that out of 36 items, three were deleted because they presented loadings below the threshold of 0.40 which are ASU3=0.103, RLB1=0.395, RLB3=0.382, the deletion of items should not exceed 30% of all items in the measurement model (Hair et al., 2013). Internal Consistency This refers to the convergence of sub-item of a particular construct in order to measure the same construct (Bijttebier et al., 2000). In essence, composite reliability measures inter-items consistency, hence, ensures the existence of correlations among sub-items of a construct. The most common method of assessing internal consistency are Cronbach’s alpha (Cronbach, 1951) and Composite reliability (Fornell & Larcker, 1981). Hence, the present study adopted both Cronbach’s alpha and Composite reliability in ascertaining internal consistency to clear doubt in the validity of the study. Convergent Validity Convergent validity refers to the extent to which items truly represent the intended latent construct and indeed correlate with other measures of the same latent construct (Hair et al., 2007), it explained in table 6. Convergent validity was assessed by examining the Average Variance Extracted (AVE) of each latent construct as suggested by Fornell and Larcker (1981). Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │280 Table 6. Loadings, Composite reliability and Average Variance extracted Factor loadings Composite reliability (pc) Average variance Extracted Cronbach Alpha Performance 0.962 0.767 0.952 PFM1 0.929 PFM2 0.888 PFM3 0.828 PFM4 0.950 PFM5 0.509 PFM6 0.961 PFM7 0.928 PFM8 0.921 Reliability 0.813 0.476 0.732 RLB2 0.429 RLB4 0.815 RLB5 0.707 RLB6 0.798 RLB7 0.627 Tangibility 0.962 0.811 0.971 TGB1 0.818 TGB2 0.981 TGB3 0.848 TGB4 0.890 TGB5 0.871 TGB6 0.980 Empathy 0.949 0.758 0.944 EPT1 0.917 EPT2 0.935 EPT3 0.807 EPT4 0.957 EPT5 0.645 EPT6 0.923 Responsiveness 0.967 0.856 0.957 RPV1 0.976 RPV2 0.923 RPV3 0.936 RPV4 0.964 RPV5 0.819 Assurance 0.804 0.585 0.645 ASU1 0.764 ASU2 0.909 ASU4 0.589 Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │281 Discriminant Validity The last validity of the measurement model is the discriminant validity. Discriminant validity is aimed at examining the difference that exists between constructs in the study (Barclay et al., 1995). Despite aiming at explaining the same thing, constructs are expected to be dissimilar, thus, sharing more with its items than the other constructs. Specifically, measures of one construct are not expected to overlap in the territory of another construct. Adequate discriminant validity is achieved when a construct shares more variance than it does with other construct of the model. Hence this study adopted (Fornell & Larcker 1981). Discriminant validity where the cross loading is ascertains at the item or indicator level. The cross loadings threshold is 0.50 and above (Hair et al., 2010). However, values greater than 0.40 is also accepted, it explained in table 7. Table 7. Cross Loadings Assurance Empathy Performance Reliability Responsibility Tangibility ASU1 0.764 0.238 0.059 0.049 -0.015 0.043 ASU2 0.909 0.197 0.137 0.059 0.082 0.007 ASU4 0.589 0.254 0.077 0.028 -0.042 0.040 EPT1 0.311 0.917 0.036 0.057 0.011 0.055 EPT2 0.237 0.935 0.016 0.098 0.095 0.058 EPT3 0.292 0.807 0.015 0.032 0.064 0.104 EPT4 0.305 0.957 0.035 0.081 0.047 0.069 EPT5 0.421 0.645 -0.012 0.030 -0.056 0.073 EPT6 0.233 0.923 0.031 0.105 0.102 0.038 PFM1 0.089 0.034 0.929 0.281 0.187 -0.046 PFM2 0.083 0.059 0.888 0.273 0.187 -0.029 PFM3 0.075 0.080 0.828 0.313 0.051 -0.046 PFM4 0.122 0.014 0.950 0.275 0.153 -0.056 PFM5 0.250 -0.004 0.509 0.279 0.087 0.094 PFM6 0.121 0.004 0.961 0.290 0.142 -0.054 PFM7 0.064 0.023 0.928 0.291 0.197 -0.019 PFM8 0.107 0.043 0.921 0.315 0.112 -0.059 RLB2 -0.014 -0.022 0.077 0.429 0.072 0.037 RLB4 0.059 0.106 0.316 0.815 0.095 0.058 RLB5 0.004 -0.084 0.198 0.707 0.069 0.048 RLB6 0.087 0.195 0.278 0.798 0.107 0.054 RLB7 0.024 -0.019 0.189 0.627 0.070 0.046 RPV1 0.035 0.076 0.156 0.129 0.976 0.152 RPV2 0.040 0.039 0.181 0.117 0.923 0.118 RPV3 0.009 0.098 0.111 0.085 0.936 0.145 RPV4 0.042 0.081 0.148 0.113 0.964 0.155 RPV5 0.019 0.055 0.135 0.100 0.819 0.194 TGB1 0.069 0.182 0.016 0.095 0.244 0.818 TGB2 0.021 0.037 -0.034 0.053 0.140 0.981 TGB3 0.069 0.139 -0.013 0.093 0.222 0.848 TGB4 0.067 0.143 -0.009 0.121 0.199 0.890 TGB5 0.046 0.146 -0.011 0.088 0.207 0.871 TGB6 0.022 0.060 -0.020 0.064 0.164 0.980 Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │282 4.4.2 Assessment of Significance of the Structural Model Figure 2. Structural Model Having ascertained the measurement model, next, the present study assessed the structural model. The present study also applied the standard bootstrapping procedure with a number of 5000 bootstrap samples and 383 cases to assess significance of the path coefficients The structural model is concerned about R2, coefficient, P-value, predictive relevance (Q2) and effect size (F2) was explained by the structural model with help of bootstrapping. Figure 2 provides the graphical display of the standardized path coefficient (β) and T- values of the hypothesis in this study, when a study is exploratory in nature, researchers often assume a significance level of 10% (significance level= 1.65), Table 8 provides standardized path coefficient (β), T- values and confidence intervals as suggested by Cho and Abe (2013). It can be deduced that all direct relationship between variables (responsiveness and performance) is accepted. Also, the relationship between the two variables (assurance and performance) is accepted but tangible and performance is rejected. Also, the relationship between empathy and performance is rejected and lastly the relationship between reliability and performance is accepted, in essence, three alternative hypotheses are accepted and two null hypotheses are accepted. Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │283 Test of Hypothesis Hypotheses one was stated in null form as reliability is not positively related to performance. The result revealed a significant and positive relationship between reliability and performance based on 0.1 significance level with t- value of 1.65 (β = 0.391, t= 5.593), hence we accept the alternative hypothesis. This finding is consistent with previous results by Hamisu, (2017); Abd Halim et. al., (2020) and Norazlina and Abdul Rahman (2013). Hypotheses two was stated in null form as tangibility is not positively related to performance. The result revealed an insignificant and negative relationship between tangibility and performance based on 0.1 significance level with t- value of 1.65 (β = -0.078, t=1.166), hence we accept the null hypothesis. This finding is inconsistent with previous results by Hamisu, (2017); Abd Halim et. al., (2020) and Norazlina and Abdul Rahman (2013). Hypotheses three was stated in null form as empathy is not positively related to performance. The result revealed an insignificant and negative relationship between empathy and performance based on 0.1 significance level with t- value of 1.65 (β = -0.030, t= 0.405), hence we accept the null hypothesis. This finding is inconsistent with previous results by Hamisu, (2017); Abd Halim et. al., (2020) and Norazlina and Abdul Rahman (2013). Hypotheses four was stated in null form as responsiveness is not positively related to performance. The result revealed a significant and positive relationship between responsiveness and performance based on 0.1 significance level with t-value of 1.65 (β = 0.135, t=2.587), hence we accept the alternative hypothesis. This finding is consistent with previous results by Hamisu, (2017); Abd Halim et. al., (2020) and Norazlina and Abdul Rahman (2013). Hypotheses five was stated in null form as assurance is not positively related to performance. The result revealed a significant relationship between assurance and performance based on 0.1 significance level with t-value of 1.65 (β = 0.188, t= 1.818), hence we accept the alternative hypothesis. This finding is consistent with previous results by Hamisu, (2017); Abd Halim et. al., (2020) and Norazlina and Abdul Rahman (2013). Table 8. Results of Direct Hypotheses Note: ***Significant at 0.1 (two-tailed) Relationship Beta T-Statistics Findings RLB->PFM 0.391 5.593 Supported TGB->PFM 0.078 1.166 Not Supported EPT->PFM 0.030 0.405 Not Supported RPV->PFM 0.135 2.587 Supported ASU->PFM 0.188 1.818 Supported Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │284 Assessment of Variance Explained in the Dependent Latent Variables The next is to determine the R-squared value which is an important segment in assessing the validity of the structural model. The R-squared is also referred to as coefficient determinant (Hair et al., 2012). The R-squared value clarifies the variance that exists in explaining endogenous variable as a result of one or two exogenous variables (Hair et al., 2010). Although the acceptable level of R2 value depends on the research context (Hair et al., 2010), an R-squared value of 0.10 is a minimum acceptable level. Table 9. Variance Explained in the dependent Variables Variable Variance Explained (R2) Zakah Performance 15% Table 9 explains that in predicting the dependent variable in the model an R- square of (0.145 = 15 percent) is estimated which signifies the variance in Zakah performance. This is to say, that other variables or predictors that could explain the remaining model account for (0.85= 85 percent). According to (Hair, et al., 2012) the acceptable thresh hold value of accepting R-squared is 0.19, 0.50 and 0.75 described as weak, moderate and substantial. Assessment of Effect Size (F2) Having assessed and confirmed the postulated hypotheses of the study, the next criteria for the evolution of the structural model is the effect size (F2) (Hair et al., 2013). Effect size indicates the relative effect of a particular exogenous latent variable on endogenous latent variable(s) by means of changes in the R- squared (Chin, 1998). Cohen (1988) describes F2 values of 0.02, 0.15 and 0.35 as having weak, moderate, strong effects respectively. Table 10 shows the respective effect sizes of the latent variables of the structural model. Table 10. Effect Sizes of the Latent Variables on Cohen’s (1988) Recommendation Independent variable Dependent variable F2 Effect size Reliability Performance 0.216 Moderate Tangibility Performance 0.071 Weak Empathy Performance 0.032 Weak Responsiveness Performance 0.172 Moderate Assurance Performance 0.197 Moderate From the Table 10, it can be concluded that all the exogenous variables of the study namely reliability, tangibility, empathy, responsiveness and assurance possess some exploratory power towards the endogenous variable. Specifically, reliability, responsiveness and assurance have a moderate effect Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │285 on performance while tangibility and empathy have a weak effect on performance. Assessment of Predictive Relevance Subsequent to determining the effect size or variation of the R-square, Hair et al. (2013) recommended that predictive relevance of the model should be ascertained using stone-Geisser’s (Q²) (Geisser, 1974; Stone, 1974). The process is a resampling technique where data are systematically deleted and predicted on each of the endogenous construct’s indicators (Geisser, 1974; Hair et al., 2011; Stone, 1974). In fact, predictive relevance estimates how well the model of the study predicts or represents omitted cases (Chin, 1998; Hair et al., 2013). The process is only befitting for endogenous reflective constructs to ascertain its predictive relevance in the model. If the Predictive relevance (Q2) value is greater than zero, then the model has predictive relevance (Hair et al., 2013). Table 10 presents the results of the cross-validated redundancy Q2 test. Table 11. Q2 or Cross-Validation Redundancy Total SSO SSE Q2 Performance 3,064.000 2,762.778 0.098 The Table 11 revealed that cross-validation redundancy result is Q²=0.098 for the endogenous variable which is above zero and signifies predictive relevance of the model. V. Research Implication and Disscussion The primary aim of this study is to assess the performance of Zakah institution in Gombe metropolis through the use of service quality dimension (reliability, tangibility, empathy, responsiveness and assurance). Specific objectives of the study are to assess whether reliability, tangibility, empathy, responsiveness and assurance has influence on performance of Zakah institution in Gombe metropolis. To address this relevant data is collected and analyzed and the following conclusions were drawn: The result of this study shows a significant positive effect between reliability and performance of Zakah institutions in Gombe metropolis. The result of this study revealed that reliability positively influence performance of Zakah institutions in Gombe metropolis. Therefore, this study concludes that reliability improve the performance of Zakah institution in Gombe metropolis. The result of this study shows an insignificant effect between tangibility and performance of Zakah institutions in Gombe metropolis. The result of this Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │286 study revealed that tangibility does not influence performance of Zakah institutions in Gombe metropolis. Therefore, this study concludes that tangibility does not improve the level of performance of Zakah institution in Gombe metropolis. The result of this study shows an insignificant effect between empathy and performance of Zakah institutions in Gombe metropolis. The result of this study revealed that empathy does not influence performance of Zakah institutions in Gombe metropolis. Therefore, this study concludes that empathy do not improve the level of performance of Zakah institution in Gombe metropolis The result of this study shows a significant positive effect between responsiveness and performance of Zakah institutions in Gombe metropolis. The result of this study revealed that responsiveness positively influence performance of Zakah institutions in Gombe metropolis. Therefore, this study concludes that responsiveness improves the performance of Zakah institution in Gombe metropolis. The result of this study shows a significant positive effect between assurance and performance of Zakah institutions in Gombe metropolis. The result of this study revealed that assurance positively influence performance of Zakah institutions in Gombe metropolis. Therefore, this study concludes that assurance improve the performance of Zakah institution in Gombe metropolis. VI. Conclusion and Recommendation 5.1. Conclusions Based on the findings from empirical i.e., the results from the data analysis, the following recommendations are made in order to provide adequate measure to complement the assessment of the performance of Zakah institutions in Gombe metropolis. (i) It is fundamental for the Zakah institutions in Gombe metropolis to consider improving the tangibles and empathy dimensions of service quality as the results of this research proved that they are underperforming in the model i.e., Zakah recipient’s perception was out rightly unsatisfactory on the two dimensions. (ii) The square multiple correlation of the model appears to be (0.145) i.e., service quality dimension was able to explain only 14 percent variation in performance of Zakah institutions in Gombe Metropolis, the study Sulaiman, Magaji, & Rabiu │ Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria International Journal of Islamic Economics and Finance (IJIEF), 4(1), 263-292 │287 recommends concentrating on the antecedents of service quality as it will assist Zakah institutions in Gombe metropolis in delivery its mandate and consequently improve its performance. (iii) The state government should intervene by providing an institution that will serve as regulatory body that will be supervising the activities of Zakah institutions in Gombe state and also this study recommend the need for establishment of government own institution that will be engaging in collecting and distribution of Zakah, like Sokoto State Zakah and Endowment Commission (SOZECOM) in Sokoto state, Zamfara State Zakah and Endowment Board (ZSZEB) Zamfara state and Kano state Zakah and Hubsi commission (KSZHCOM) in Kano state. 5.2. Recommedation This study assesses the performance of Zakah institutions in Gombe metropolis; however, the outcomes from this research cannot be generalized across the Zakah institutions in Nigeria; hence there is need for similar research across Zakah institutions in Nigeria, this will assist in comparing and contrasting the findings so as to be able to make proper generalization. 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