Do Religious Practices Influence Compliance Behaviour of Business Zakat among SMEs?

Khamis, Mohd Rahim; Mohd, Rohani; Salleh, Arifin; Nawi, Abdol Samad

doi:10.24191/jeeir.v2i2.9622

Cited by 19 publications

(24 citation statements)

References 17 publications

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“…Thus, a highly religious person will have a positive attitude towards paying Zakat as compared to a person who is not highly inclined to religiosity. This position is aligned with the findings of past studies on subjects such as Azman & Bidin (2015), R. M. Khamis et al(2014) and Pope, 2014) on Zakat on savings, Zakat of SMEs and taxation respectively. Therefore, Zakat establishments can do more in terms of Zakat collection by developing distinct policies that will further encourage those highly religious and attract those not highly religious through organizing educative programs in masjids and other religious avenues and places of worship, while government should focus on awareness creation through other forms of reaching out to those not highly religious, such as the distribution of pamphlets and other forms of promotions through the social media, radio, newspapers, television and so on.…”

Section: Structural Model Assessmentsupporting

confidence: 87%

“…Results from past studies were mixed on the relationship between capability and intention (Ifinedo, 2012;Shin, 2009;Yang, 2012), while research on capability as a determinant of attitude are few in the literature which scholars have cautioned on generalizing such findings (Khamis & Yahya, 2015;Khamis et al, 2014;Oladimeji et al, 2013;Rahman & Omar, 2010). It is thus not known whether capability will have an influencing effect on the attitude of employees towards compliance; more so that capability is not a generalized phenomenon that reflects a universal personality trait, but rather varies among different behavioral spheres (Ifinedo, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

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Determinants of Attitude Towards Zakat on Employment Income in Nigeria

Farouk¹,

Idris

Saad

2018

International Journal of Banking and Finance

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The objective of this paper was to empirically examine the influence of perceived capability, perceived government support and religiosity as determinants of attitude towards Zakat in Nigeria. A survey questionnaire was administered on government employees and 343 valid observations were retrieved and analyzed from the survey. The PLS analysis technique was used to assess the measurement model, the structural model as well as the predictive relevance of the model of the study. The outcome of the examination disclosed the appropriateness of the model of the study as well as the analytical tool utilized. The postulated relationships were all supported. Thus, the findings, if utilized in developing policies for strengthening the attitude of employees towards Zakat, will boost Zakat collections, since a positive attitude leads to improved collections. The study establishes the efficacy and the suitability of its model on factors influencing the attitude of employees towards Zakat in Nigeria.

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Section: Structural Model Assessmentsupporting

confidence: 87%

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Attitude Towards Zakat on Employment Income in Nigeria

Farouk¹,

Idris

Saad

2018

International Journal of Banking and Finance

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“…Further support was provided by Abdullah and Sapiei (2018) who discovered that religiosity has a significant influence on Zakah compliance. On the other hand, Khamis et al (2014) did not find the usual relationship between religiosity and compliance. Apart from the inconsistency of these results, the significance of religiosity among Muslims is considerably manifest in the literature, stimulating Zakah payers to comply with Zakah rules.…”

Section: Discussionmentioning

confidence: 62%

Zakah compliance in Muslim countries: an economic and socio-psychological perspective

Bin-Nashwan

Abdul-Jabbar

Aziz

et al. 2020

JFRA

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Purpose Although Zakah is the cornerstone of the social protection system in Muslim societies, providing relief to those in need and collecting funds from those who have access to money and property, many administrative and legal improvements need to be made to ensure that Zakah funds are managed effectively and efficiently in Muslim states. It is therefore important to recognize why some Muslims are not paying their Zakah through Zakah authorities. The purpose of this paper is to propose a viable and comprehensive research model, derived from an economic and socio-psychological perspective, to provide a richer understanding of Zakah payers’ compliance behaviour. Design/methodology/approach Drawing on extant literature, this study offers a conceptual framework for a better understanding of compliance behaviour by proposing an economic and socio-psychological model based on Fischer’s tax compliance model, which could be applied cautiously in an Islamic setting like Zakah. Findings The four main categories of the Fischer model are derived from socio-psychological and economic perspectives, namely, attitude and perception (system fairness, ethics and peer influence); Zakah system structure (Zakah law complexity and law enforcement); non-compliance opportunity (education level, wealth source and occupation); and demographic factors (age and gender). Each has much to offer in understanding Zakah payers’ compliance decisions. To suit the nature of Zakah, the influence of Islamic religiosity and the moderating effect of trust in the Zakah institution are incorporated into the model. Practical implications Those Muslim communities that strive to have functional Zakah systems to search for solutions to the perennial problem of low Zakah funding and its damning consequences, are offered a compliance model for systematically assessing Muslims’ compliance behaviour with Zakah provisions. This framework is anticipated to offer invaluable input to policymakers in streaming and strategizing the minimization of losses of Zakah revenue to Zakah authorities. Originality/value Although behavioural models such as the theory of reasoned action and the theory of planned behaviour have been extensively used in Zakah compliance studies, to the best of the authors’ knowledge, this study is perhaps the first to apply a socio-psychological and economic framework, emerging from tax literature, in the Zakah environment to develop fully understanding of Zakah payers’ compliance decisions.

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“…Consequently, this study used the socio-economic theory of regulatory compliance (SETRC) to support the underpinning theory. Thus, as identified by Khamis et al (2014), the worship factor IMEFM (religiosity/religious practices) is one of the primary motivations and determinants of intention for carrying out a religious duty such as Zakat. In Islam, a person's intention to pay Zakat as a religious obligation depends highly on the strength of the person's belief and commitment to the religion itself.…”

Section: Religiositymentioning

confidence: 99%

Moderating role of religiosity on Zakat compliance behavior in Nigeria

Farouk¹,

Idris

Saad

2018

IMEFM

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Purpose This paper examines the moderating effect of religiosity in the theory of reasoned action (TRA) on intention to comply with the Zakat on employment income (ZEI). Design/methodology/approach A survey of civil servants in Kano State, Nigeria was carried out and 474 valid observations were retrieved from the 700 distributed questionnaires. Partial least squares structural equation modeling (PLS-SEM) was used to validate the instrument that measures the variables, examined the structural model and the predictive relevance of the study’s model. Findings The results revealed the suitability of both the TRA and the PLS-SEM in the study of ZEI behavioral intention in a developing country. All the hypothesized direct relationships were supported on the one hand. On the other hand, one of the two indirect relationships, subjective norm and behavioral intention moderated by religiosity was supported, but the other tests for moderating effects of religiosity on the relationship between attitude and behavioral intention was not. Practical implications Public and private Zakat institutions in Muslim majority societies in Nigeria and in other Muslim countries may use the findings to focus their attention on the formulation of policies based on the findings of the study to strengthen eligible Zakat payers’ intention to comply to further boost their Zakat collections. Originality/value This study extends the TRA in the context of ZEI by proposing religiosity as a moderator in the predictive capacity of TRA on ZEI. Moreover, the suitability for the use of PLS-SEM as a statistical tool in investigating the extended TRA with religiosity as a moderating variable as well as its implications for theory and practice were also discussed.

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Do Religious Practices Influence Compliance Behaviour of Business Zakat among SMEs?

Cited by 19 publications

References 17 publications

Determinants of Attitude Towards Zakat on Employment Income in Nigeria

Determinants of Attitude Towards Zakat on Employment Income in Nigeria

Zakah compliance in Muslim countries: an economic and socio-psychological perspective

Moderating role of religiosity on Zakat compliance behavior in Nigeria

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