The Impact of Subjective Norm and Religiosity on Zakat Compliance of Muslim Entrepreneurs: The Mediating Role of Intention

Nurul Ilmi -  Faculty of Economics and Business, Universitas Negeri Surabaya, Indonesia
Ahmad Ajib Ridlwan* -  Faculty of Economics and Business, Universitas Negeri Surabaya, Indonesia
A’rasy Fahrullah -  Faculty of Economics and Business, Universitas Negeri Surabaya, Indonesia
Yan Putra Timur -  Faculty of Economics and Business, Universitas Negeri Surabaya, Indonesia
Md. Kausar Alam -  BRAC Business School, BRAC University, Bangladesh

Supp. File(s): common.other

This study aims to identify the effect of Muslim entrepreneurs’ perceptions of zakat compliance mediated by the intention to pay zakat with subjective norms and religiosity. Quantitative methods were employed in this study. Questionnaires were administered to Muslim entrepreneurs, and we examined the information from 140 participants using the Smart-PLS 3 application. The findings indicate that the direct impact on religiosity yielded significant results, whereas the subjective norm was insignificant. Subsequently, the indirect effect, specifically on religiosity and subjective norms, demonstrated a significant impact between the two. In this study, the theory of planned behavior can be used as a determining factor to identify the impact of Muslim entrepreneurs on zakat compliance. This research suggests that Muslim entrepreneurs’ zakat compliance can signal to stakeholders the importance of using zakat payments optimally to achieve poverty reduction goals. Implementing this research not only maximizes institutional benefits in promoting zakat, but also broadens the perspective on zakat compliance among Muslim entrepreneurs based on the theory of planned behavior through intention.

Supplement Files

Keywords : Intention; Muslim Entrepreneurs; Religiosity; Subjective Norms; Zakat Compliance

  1. Abashah, A., Samah, I. H. A., Saraih, U. N., Rashid, I. M. A., Ramlan, S. N., & Radzi, W. N. S. W. M. (2018). The impact of attitude and subjective norms towards zakat compliance behavior in Malaysia. International Journal of Engineering & Technology, 7(3.21), 171-174.
  2. Abashidze, A. K., Inshakova, A. O., Solntsev, A. M., & Gugunskiy, D. A. (2021). Socio-economic inequality as a barrier on the path of sustainable development: “institutional traps” and perspectives of overcoming them. International Journal of Sociology and Social Policy, 41(1–2), 62–75.
  3. Abdullah, M., & Sapiei, N. S. (2018). Do religiosity, gender and educational background influence zakat compliance? The case of Malaysia. International Journal of Social Economics, 45(8), 1250–1264.
  4. Afandi, A., Heri, S., Nugrohowati, R. N. I., & Tumewang, Y. K. (2022). The determinant of Indonesia enterpreneur’s intention to pay zakat: Does government support matter? Global Review of Islamic Economics and Business, 10(2), 183–203.
  5. Ahmed, H., & Salleh, A. M. H. A. P. M. (2016). Inclusive Islamic financial planning: a conceptual framework. International Journal of Islamic and Middle Eastern Finance and Management, 9(2), 170–189.
  6. Ajzen, I., & Fishbein, M. (2011). Predicting and changing behavior: The reasoned action approach. Taylor & Francis.
  7. Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50(2), 179–211.
  8. Ajzen, I. (2005). EBOOK: Attitudes, Personality and Behaviour. McGraw-hill education (UK).
  9. Al-Qaradawi, Y. (2000). Fiqh Al Zakah: A comparative study of Zakah, regulations and philosophy in the light of Quran and Sunnah. Scientific Publ. Centre King Abdulaziz University.
  10. Amilahaq, F., & Ghoniyah, N. (2019). Compliance behavior model of paying zakat on income through zakat management organizations. Share: Jurnal Ekonomi dan Keuangan Islam, 8(1), 114–141.
  11. Azman, F. M. N., & Bidin, Z. (2015). Factors influencing zakat compliance behavior on saving. International Journal of Business and Social Research, 5(1), 118-128.
  12. Bin-Nashwan, S. A. (2020). Zakat Compliance behavior among entrepreneurs : Economic factors approach. International Journal of Ethics and Systems, 36(2), 285–302.
  13. Bin-Nashwan, S. A., Abdul-Jabbar, H., Dziegielewski, S. F., & Aziz, S. A. (2021). Moderating effect of perceived behavioral control on Islamic tax (zakah) compliance behavior among businessmen in Yemen. Journal of Social Service Research, 47(2), 292-302.
  14. BPS. (2022). Gini Ratio. Badan Pusat Statistik.
  15. BPS. (2023). Gini Ratio 2023. Badan Pusat Statistik.
  16. Chin, W. W. (1998). The partial least squares approach for structural equation modeling. In G. A. Marcoulides (Ed.), Modern methods for business research (pp. 295–336). Lawrence Erlbaum Associates Publishers.
  17. Cokrohadisumarto, W. bin M., Zaenudin, Z., Santoso, B., & Sumiati, S. (2020). A study of Indonesian community’s behaviour in paying zakat. Journal of Islamic Marketing, 11(4), 961–976.
  18. Fahrullah, A., Anwar, M. K., Ridlwan, A. A., Prabowo, P. S., & Yasin, A. (2020). How Ramadan and global pandemic affect religiosity and donating behaviors. Shirkah: Journal of Economics and Business, 5(2), 1–23.
  19. Farah, J. M. S., Haji-othman, Y., & Omar, M. M. (2017). The influence of attitude, religiosity, and perception towards law enforcement on intention towards compliance behaviour of income zakat among KUIN staff in Kedah, Malaysia. International Journal of Muamalat, 1(1), 9–31.
  20. Farouk, A. U., Idris, K. M., & Saad, R. A. J. Bin. (2017). Moderating role of religiosity on Zakat compliance behavior in Nigeria. International Journal of Islamic and Middle Eastern Finance and Management, 11(3), 357–373.
  21. Ghozali, I., & Latan, H. (2014). Structrural equation modeling metode alternatif dengan PLS. Universitas Diponegoro.
  22. Hair, F. J., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Structural Equation Modeling (PLS-SEM) (2nd ed.). Sage.
  23. Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. Advances in International Marketing, Volume 20, 277–319, 20, 277–319.
  24. Idris, K. M., Bidin, Z., & Saad, R. A. J. (2012). Islamic religiosity measurement and its relationship with business income zakat compliance behavior. Jurnal Pengurusan, 34, 3–10.
  25. Khamis, M. R., & Kamarudin, F. M. (2022). Factors determining compliance behavior of business zakat among SMEs: A logistic regression analysis approach. Journal of Entrepreneurship, Business and Economics, 10(2S2), 71–108.
  26. Kurniawan, R., Nazri, M. Z. A., Lestari, F., & Salambue, R. (2022). A Web-Based Zakat Recipient Determination System using the Naïve Bayes Algorithm. In 2022 5th International Conference of Computer and Informatics Engineering (IC2IE) (pp. 337-341).
  27. Nurillah, S. L., Aini, Z. N., Timur, Y. P., & Widiastuti, T. (2022). Online review and rating on consumer purchase intention: The moderating role of religiosity. Jurnal Ekonomi Dan Bisnis Airlangga, 32(2), 160–175.
  28. Nurillah, S. L., Timur, Y. P., & Yasin, A. (2021). Nazhir image and wakif trust, which influences the wakif’s intention to give waqf. AFEBI Islamic Finance and Economic Review, 7(2), 115–126.
  29. Pratiwi, I. E. (2018). Factors influencing muslims compliance behavior in paying Zakah of income: A case study in Jayapura (a non-muslim region in Indonesia). QIJIS (Qudus International Journal of Islamic Studies), 6(1), 69-88.
  30. Puskas BAZNAS. (2022). Outlook zakat Indonesia 2022. BAZNAZ.
  31. Ratnasari, R. T., Timur, Y. P., Battour, M., & Jamilu, U. (2023). An effort to increase waqf intention : The role of celebrity endorsers in social campaigns. Al-Uqud: Journal of Islamic Economics, 7(1), 154–171.
  32. Ringle, C. M., & Sarstedt, M. (2016). Gain more insight from your PLS-SEM results the importance-performance map analysis. Industrial Management and Data Systems, 116(9), 1865–1886.
  33. Saad, R. A. J., & Haniffa, R. (2014). Determinants of zakat (Islamic tax) compliance behavior. Journal of Islamic Accounting and Business Research, 5(2), 182–193.
  34. Sadallah, M., Abdul-Jabbar, H., & Aziz, S. A. (2022). Promoting zakat compliance among business owners in Algeria : The mediation effect of compliance intention compliance. Journal of Islamic Marketing, 14(6). 1603-1620.
  35. Saragih, A. H. (2018). Generation XYZ’s perception on zakat mal and tax the planned behavior perspective. Shirkah: Journal of Economics and Business, 3(3).
  36. Timur, Y. P., Ratnasari, R. T., & Author, N. (2022). Celebrity endorsers vs expert endorsers: Who can affect consumer purchase intention for halal product? JEBIS: Jurnal Ekonomi Dan Bisnis Islam, 8(2), 220–236.
  37. Wahab, N. A., & Rahim Abdul Rahman, A. (2011). A framework to analyse the efficiency and governance of zakat institutions. Journal of Islamic Accounting and Business Research, 2(1), 43–62.
  38. Yasin, A., Indrarini, R., & Suryaningsih, S. A. (2022). How relgiosity, knowledge, and characteristics of muzaki affect zakat compliance. JEBIS : Jurnal Ekonomi Dan Bisnis Islam, 8(1), 69–81.

Shirkah: Journal of Economics and Business
Published by Faculty of Islamic Economics and Business (FEBI)
Institut Agama Islam Negeri Surakarta, Indonesia
Jln. Pandawa No. 1, Pucangan, Kartasura, Central Java, Indonesia, 57168
Phone: +62271-781516

P-ISSN :2503-4235 | E-ISSN : 2503-4243

This ejournal system and it's contents licensed under
a Creative Commons Attribution-NonCommercial 4.0 International License