Economic and Behavioral Predictors of Zakah Compliance Among Muslim Entrepreneurs

Rini Setiawati

doi:10.5281/zenodo.16854148

Authors

Rini Setiawati Faculty of Da'wah and Communication Sciences, UIN Raden Intan Lampung, Bandarlampung, Indonesia

DOI:

https://doi.org/10.5281/zenodo.16854148

Keywords:

Zakah adherence, Religiosity, Complexity of the law, Financial education, Perception of equality

Abstract

Objective: The objective of this study is to investigate the predictors of zakah compliance behavior of Muslim entrepreneurs by combining 3 dimensions: regulatory, religious, and perceptual.
Methods: This study employed a quantitative cross-sectional design in which structured questionnaires were used to collect primary data from 300 Muslim entrepreneurs. The study applied (PLS-SEM) to examine law complexity, law enforcement, religiosity, financial literacy, and perception fairness of zakah distribution on zakah compliance behavior.
Results: The results show a deleterious effect of law complexity in zakah compliance but a positive and significant impact of religiosity, financial literacy and perceived justice of zakah distribution on zakah compliance behaviour. However the other variables and no effect on law enforcement. With an adjusted R ^2 of over 60%, the model indicated that internalized values and perceptions played a more significant role in zakah compliance than formal regulative mechanisms.
Novelty: The present study brings together economic and behavioral theories of zakah compliance and also introduces the perceived fairness of distribution as an important predictor which has not been addressed in the prior literature.
Implications: These findings highlight the essentiality of integrated zakah governance reforms that promote religious knowledge and dynamics by increasing the funds allocation transparency, through learning and training, and raising the funds efficiency through financial literacy education though non-permanent zakah institutions. These findings substantiate a practical roadmap for policymakers and zakah institutions on how to best increase compliance and maximise zakah potential to better achieve the socio-economic outcomes desired.

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Author Biography

Rini Setiawati, Faculty of Da'wah and Communication Sciences, UIN Raden Intan Lampung, Bandarlampung, Indonesia

Dr Rini Setiawati, S.Ag., M.Sos.I is a permanent lecturer at the Faculty of Da'wah and Communication Sciences, State Islamic University (UIN) Raden Intan Lampung, Indonesia, as well as the Head of the Doctoral Study Program (S3) in Islamic Communication and Broadcasting. She is active in multidisciplinary research that focuses on digital da'wah, Islamic philanthropy, and religious social communication. As a productive academic, Dr Rini has published a number of scientific articles in national and international reputable journals, indexed by Scopus and SINTA. Her commitment to scientific development is also reflected through her active role as a speaker in various scientific forums and cross-institutional research collaborations. His full academic profile can be accessed through ORCID 0009-0003-5129-5822, Google Scholar here, and Scopus ID: 57211377481.

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