Proposing a Novel Performance Management Framework for Malaysian Non-profit Organisations: Towards Achieving Sustainability

While there is a clear importance for performance measurements in commercial entities or business firms, the relevance of performance measurement in non-commercial entities or non-profit organisations (NPOs), especially social institutions, still lacks research. Similar to commercial entities, NPOs need to show that they are efficiently managed and performing in a desired manner in order to fulfil their responsibility to diverse stakeholders. This study aims to develop a novel performance management framework (PMF) that would enable improved oversight and governance of NPOs in Malaysia, as well as other non-profit organisations, such as waqf institutions. This study used a systematic literature review (SLR) methodology, and 20 peer-reviewed papers that were recently published in reputable journals were used. The results of this study confirm that the proposed PMF can efficiently manage and monitor the performance of NPOs, which can be crucial for ensuring the sustainability of the existing non-profit institutions in Malaysia. The findings of this study will provide important dimensions regarding the significance of an efficient performance management framework for NPOs generally, and particularly for Islamic social institutions like waqf/endowment institutions.