Factors influencing Asnaf entrepreneurs’ compliance behaviour towards zakat on business

Compliance behaviour is an issue that needs to be explored in detail due to its relationship to an individual’s psychology. In the context of zakat that also acts as microfinancing (non-refundable fund), compliance behaviour plays an important role in terms of collection and distribution. However, previous literature about zakat has not clarified this phenomenon especially in the context of Asnaf entrepreneurs. Asnaf entrepreneurs represent micro entrepreneurs who depend on zakat funds. Then, by benefiting the funds and getting support from the zakat institutions, Asnaf entrepreneurs become less dependent on the support and become zakat payers. Therefore, grounded by
Theory of Planned Behaviour (TPB) framework, the purpose of this study is to investigate the compliance behaviour among Asnaf entrepreneurs and their factors towards zakat in business. The TPB in this study identifies whether the basics of the theory such as attitude, subjective norms, and perceived behavioural control could be used to explore compliance behaviour towards zakat in business. The decomposition approach and spiritual quotient conceptualization, as well as their main constructs, were employed in this study. A total of 274 Asnaf entrepreneurs from Kelantan and Selangor had participated in this study. Data were collected through self- administered survey questionnaires. The main statistical technique used in this study is Structural Equation Modelling (SEM) by using Analysis of Moment Structure (AMOS) version 23. The study has shown that subjective norms is found to be most dominant predictor towards compliance behaviour closely followed by attitude, spiritual quotient, intention and perceived behavioural control. The above findings have added several implications towards theory, both practical and managerial. In general, the findings of the study are consistent with the theory of planned behaviour. The decomposition approach, typical conceptualization, and the effect of intention (mediator) construct have made this model of compliance behaviour towards zakat on business a better fit with optimal parsimony for Asnaf entrepreneurs.