Faktor penentu pembayaran zakat perniagaan di Kedah

Despite the continuous increase in annual zakat collection, the business zakat from Muslim entrepreneurs remains low. Among others, it is due to the doubtfulness on the zakat institution’s management of the funds. This study intended to determine the trust and commitment level of the Muslim sole-proprietors and partnerships towards the zakat institution based on four main objectives. First, to examine the factors that influences their commitment in paying zakat at the institution. Secondly, to determine the factors that influences their trust towards zakat institution. Thirdly, to test the effect of communication on the non-material benefits amongst the Muslim entrepreneurs. Finally, to ascertain the non-material benefits’ role as a mediating factor between trust and commitment. The discussion throughout was based on the commitment-trust theory. A total of 191 questionnaires were analyzed to test the hypotheses using the multivariate analysis and the PLS-SEM application. Trust was identified as
the sole factor that influences the commitment towards zakat payment at the zakat institution. Shared values, non-opportunistic behaviour, board of directors’ composition, zakat distribution perception and political tendency significantly influenced their trust of the zakat institution. However, communication did not significantly influence their non-material benefits. Finally, non-material benefit was confirmed as the partially mediating variable between trust and commitment of Muslim entrepreneurs’ zakat payment at the institution. This study contributes to the literature by enriching discussions on the trust and commitment towards the zakat institution. Thus, understanding of the trust and commitment towards the zakat institution can be improved since the findings are based on empirical evidence. The implications to the theory are in terms of the usage of the commitment-trust theory in the zakat environment. These findings also contribute by recommending significant factors in enhancing the trust and commitment of Muslim entrepreneurs in paying business zakat at the zakat institution.