The Influence of Religiosity on Zakat Compliance in Pakistan: An Examination of Behavioral Intentions and Social Norms

Abstract

Purpose: This study aims to explore the influence of religiosity on the compliance of Zakat among Muslims in Pakistan, particularly examining how behavioral intentions and social norms impact this religious practice. It seeks to understand the moderating role of religiosity on the relationship between subjective norms and Zakat compliance. Design/methodology/approach: Employing a quantitative research design, the study utilizes Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine complex model structures, including moderation effects. A structured questionnaire with 21 measurement items was distributed among a representative sample of the Muslim population in Pakistan. The data collected was then analyzed using PLS-SEM to determine the direct and moderated relationships. Findings: Results indicate that personal attitudes and subjective norms significantly influence the intention to pay Zakat. While the direct association between religiosity and the intention to pay Zakat is not fully supported, there is moderate evidence suggesting a relationship. Religiosity was found to have a significant moderating influence on the relationship between attitudes and the intention to pay Zakat, and it shows a moderate moderating effect on the relationship between subjective norms and the intention to pay Zakat. Practical implications: The results have profound implications for religious institutions and policymakers in Pakistan. Understanding the extent to which religiosity can bolster Zakat compliance can aid in developing targeted religious education programs and community initiatives that encourage greater adherence to this Islamic pillar. Originality/value: The study contributes to the scarce literature on the quantifiable impact of religiosity on financial religious observance, particularly within an Islamic context. It provides a unique empirical insight into the psychological and social factors that influence Zakat compliance, a key component of the Islamic social finance system.