Moderating role of religiosity on Zakat compliance behavior in Nigeria

Abstract

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.

The Effect of Religiosity and Trust on Intention to Pay in Ziswaf Collection Through Digital Payments

“…Intention is a willingness to try to do something (Ajzen, 1991). Meanwhile, Farouk et al (2018) added that intention indicates how much effort someone is willing to commit to doing something. Intention plays an important role in the implementation of worship in Islam because worship that is not accompanied by intention will not get a good reward from God (Qardawi, 1988).…”

Zakat and the Empowerment of the Hardcore Poor in the 21st Century

“…It is commonplace not only in the underdeveloped and developing countries, but also developed countries (in the form of homeless people). Eradicating poverty remains a constant struggle although various past thinkers and scholars have attempted to eliminate this problem through different approaches and ideologies (Farouk, Idris and Saad, 2018;. This is because poverty is a part of human nature.…”

“…The word 'miskin' also refers to the state of lack of well-being, deprivation and backwardness of a society based on specific measures or norms. Islam is more advanced in defending the rights of the poor (surah al-Baqarah (2), verse 267) with the implementation of zakat (obligatory charity in the form of almsgiving) (surah al-Tawbah (9), verse 5) with no prior objections or demands from the poor of their rights from the wealthy. Al-Qaradhawi (2003) points out that zakat is not only a system that relies on personal sympathy or individual's donations, it is also a socio-economic system, in which its implementation is regulated by the government.…”

Determinant Factors of Zakat Compliance Behavior of Muzakki: Evidence from Malaysia

“…This attitude of zakat is a faith owned by the Muzakki. This indicates that the religious factors can form Muzakki's behavior in paying Zakat [9].…”

“…The significance of zakat for Muzakki will form a behavior of paying Zakat. In carrying out their obligation of zakat, Muzakki should behave in accordance with Islamic concepts [9]. As well as hadith of Prophet Muhammad SAW, "Innamal A'malu Binniat" means practice was determined by the niyyah (intention) [18]; [17]; [7].…”