Alms tax (ZAKAT) compliance intention among entrepreneurs from a social cognitive perspective: the moderating role of knowledge

Abstract

Purpose This research aims to explore the moderating role of alms tax (zakat) knowledge in the relationship between extrinsic and intrinsic motivations (i.e. political instability, trust in institutions and service quality) and zakat compliance among businessmen in a Muslim developing country. Design/methodology/approach A final sample of 315 Algerian entrepreneurs randomly collected through a self-administered survey was analysed. Drawing on the social cognitive theory, estimation and analysis were done using structural equation modelling (Smart PLS). Findings The results indicate that all the hypothesised direct relationships are supported. Particularly, the knowledge-moderated interaction of political instability’s effect on entrepreneurs’ zakat compliance intention was significant, while its interactions with service quality and trust were not. Practical implications Findings that emerged from this study may serve as a reminder to zakat agencies and policymakers that varying degrees of knowledge about zakat can have a significant impact on shaping intentions to comply with zakat rules, particularly in an unstable political environment. Additionally, this work sheds light on the critical role of service quality delivered by zakat institutions and businessmen’s trust in such entities in shaping their zakat compliance intentions. Finally, it demonstrates how critical it is to strengthen the business sector’s social responsibility to support the zakat’s noble socioeconomic objectives. Originality/value This present work augments the scanty literature on zakat compliance because it validates a research model drawing on social cognitive perspectives. Additionally, the model blends the moderating role of knowledge into social cognitive perspectives of zakat compliance among businessmen.

A systematic review of customer Sharia compliance behaviour in Islamic banks: determinants and behavioural intention

“…According to Purwanto et al (2022) and Yusfiarto et al (2023), PBC is a customer's assessment of the ease or difficulty of using Islamic banking products. A previous study shows a positive and significant association between PBC factors and behavioural intents and compliance behaviour (Sadallah et al, 2023). Alzadjal et al (2021) found that Islamic bank clients' behaviour is highly influenced by their perception of behavioural control.…”

“…Saad et al (2023) found a model to increase zakat compliance as income increased. Sadallah et al (2023) found that knowledge and political instability significantly affected businessmen’s zakat compliance, while service quality and trust had no significant effect on businessmen’s zakat compliance. Hoque (2023) examined Sharia compliance in welfare-oriented projects in corporate social responsibility (CSR), whose funds are from Zakat .…”