The Influence of Perception Towards Promotion and Self-Efficacy on Intention and Compliance Behavior of Income Zakat in Kedah, Malaysia

Abstract

Zakat is not only a religious obligation which must be complied by all eligible Muslims but also plays a very important role in Islamic fiscal system, specifically as a major source of income and could be used as an instrument to finance certain programs in order to achieve social, political and economic development among Muslim communities. However, the issue which arises is that zakat collection including income zakat is still low which hinders the effectiveness of zakat in playing a more significant role in the state of Kedah. Therefore, this study attempts to examine the influence of perceptions towards promotional exposure and self-efficacy on the intention and compliance behavior of income zakat. The sample size used in this study is 372 based on Krejcie & Morgan (1970).This study uses PLS-SEM bootstrap and blindfolding technique in order to examine the relationship of the variables of the study. This studyreveals that perception towards promotional exposure and self-efficacy have significant relationships and positive influence on intention.Moreover, this study provides evidence that intention has a significant relationship on compliance behavior.The findings of this study have important implications not only for knowledge but also to zakatinstitutions. The important contribution of this study is that the factors identified as significant determinants of compliance behavior of income zakat such asperception towards promotional exposure and self-efficacy could be useful as a guide for relevant authorities and policy makers to formulate suitable strategies to increase zakat collection in the future.