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1 – 10 of 20Intan Osman, Theresa C.F. Ho and Maria Carmen Galang
The objective of this study is to gain more insight into Malaysian human resource management, in terms of its history and current HR practices. Also, this paper also intends to…
Abstract
Purpose
The objective of this study is to gain more insight into Malaysian human resource management, in terms of its history and current HR practices. Also, this paper also intends to examine the impact of implementing HR practices on the overall organization's performance based on a sample of 217 Malaysian based companies.
Design/methodology/approach
Data were collected via questionnaires from human resource managers and top executives responsible for the managing human resources in their respective organizations. A sample of 217 Malaysian firms participated in this study. Using SPSS, a regression analysis was used to measure the impact of human resource practices on organizational performance.
Findings
The key finding of this study is that HR practices do have a significant impact on the performance of Malaysian organizations. In a nutshell the results of this study suggest a positive association between HR practices and firm performance.
Originality/value
This study contributes to the understanding of how Malaysian companies perceive the importance of human resource practices on overall organizational performance. HR practitioners can use the findings to support the case for implementing HR practices in organizations.
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Ram Al Jaffri Saad, Aidi Ahmi, Norfaiezah Sawandi and Norazita Marina Abdul Aziz
This study aims to identify the inputs from zakat administrators and experts needed for more efficient and effective zakat revenue generation.
Abstract
Purpose
This study aims to identify the inputs from zakat administrators and experts needed for more efficient and effective zakat revenue generation.
Design/methodology/approach
Face-to-face interviews with zakat executives, administrators and experts are conducted to collect data.
Findings
The findings show three components of input required in the zakat transformation: environment, resources and history. The environmental component comprises five sub-components: companies, banks, zakat recipients, individual zakat payers and the legislative, while the resource sub-components comprise tangible and intangible resources. For history, two components, namely, achievements and challenges, need to be taken into account by the zakat administration.
Research limitations/implications
This study’s main implication is that the components proposed in this study can serve as the basis for developing new strategies for improving zakat collection and distribution management to achieve a more efficient and effective level.
Practical implications
This study will be helpful for policymakers, especially zakat authorities, on how to enhance their administration.
Originality/value
The model developed in this study will help the zakat administration to reform and enhance zakat compliance and zakat revenue generation.
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Saeed Awadh Bin-Nashwan, Hijattulah Abdul-Jabbar, Saliza Abdul Aziz and Adel Sarea
Although Zakah is the cornerstone of the social protection system in Muslim societies, providing relief to those in need and collecting funds from those who have access to money…
Abstract
Purpose
Although Zakah is the cornerstone of the social protection system in Muslim societies, providing relief to those in need and collecting funds from those who have access to money and property, many administrative and legal improvements need to be made to ensure that Zakah funds are managed effectively and efficiently in Muslim states. It is therefore important to recognize why some Muslims are not paying their Zakah through Zakah authorities. The purpose of this paper is to propose a viable and comprehensive research model, derived from an economic and socio-psychological perspective, to provide a richer understanding of Zakah payers’ compliance behaviour.
Design/methodology/approach
Drawing on extant literature, this study offers a conceptual framework for a better understanding of compliance behaviour by proposing an economic and socio-psychological model based on Fischer’s tax compliance model, which could be applied cautiously in an Islamic setting like Zakah.
Findings
The four main categories of the Fischer model are derived from socio-psychological and economic perspectives, namely, attitude and perception (system fairness, ethics and peer influence); Zakah system structure (Zakah law complexity and law enforcement); non-compliance opportunity (education level, wealth source and occupation); and demographic factors (age and gender). Each has much to offer in understanding Zakah payers’ compliance decisions. To suit the nature of Zakah, the influence of Islamic religiosity and the moderating effect of trust in the Zakah institution are incorporated into the model.
Practical implications
Those Muslim communities that strive to have functional Zakah systems to search for solutions to the perennial problem of low Zakah funding and its damning consequences, are offered a compliance model for systematically assessing Muslims’ compliance behaviour with Zakah provisions. This framework is anticipated to offer invaluable input to policymakers in streaming and strategizing the minimization of losses of Zakah revenue to Zakah authorities.
Originality/value
Although behavioural models such as the theory of reasoned action and the theory of planned behaviour have been extensively used in Zakah compliance studies, to the best of the authors’ knowledge, this study is perhaps the first to apply a socio-psychological and economic framework, emerging from tax literature, in the Zakah environment to develop fully understanding of Zakah payers’ compliance decisions.
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Mouad Sadallah, Hijattulah Abdul-Jabbar and Saliza Abdul Aziz
This paper aims to explore the perception of business owners’ on zakat compliance by examining the influence of intention to pay zakat, attitude, subjective norm, perceived…
Abstract
Purpose
This paper aims to explore the perception of business owners’ on zakat compliance by examining the influence of intention to pay zakat, attitude, subjective norm, perceived behavioural controls and past behaviour.
Design/methodology/approach
A total of 575 self-administered questionnaires were distributed to active business owners in Algeria. The data were analysed using variance-based structural modelling (PLS-SEM) to examine the hypothesised relationships.
Findings
The results revealed that the relationships between attitude, subjective norm and perceived behavioural controls were positive and significant with the intention to comply with zakat, which significantly influences the compliance behaviour of zakat.
Research limitations/implications
In a country like Algeria with a high poverty rate, the current findings would benefit authorities in understanding zakat compliance and assist zakat administration in formulating and implementing strategies to promote compliance.
Originality/value
The present research extends the existing zakat knowledge from behavioural perspectives by using the extended theory of planned behaviour. In addition, it considers the mediating role of intention demonstrated in the zakat compliance setting.
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Mouad Sadallah, Hijattulah Abdul-Jabbar, Saeed Awadh Bin-Nashwan and Saliza Abdul Abdul Aziz
This research aims to explore the moderating role of alms tax (zakat) knowledge in the relationship between extrinsic and intrinsic motivations (i.e. political instability, trust…
Abstract
Purpose
This research aims to explore the moderating role of alms tax (zakat) knowledge in the relationship between extrinsic and intrinsic motivations (i.e. political instability, trust in institutions and service quality) and zakat compliance among businessmen in a Muslim developing country.
Design/methodology/approach
A final sample of 315 Algerian entrepreneurs randomly collected through a self-administered survey was analysed. Drawing on the social cognitive theory, estimation and analysis were done using structural equation modelling (Smart PLS).
Findings
The results indicate that all the hypothesised direct relationships are supported. Particularly, the knowledge-moderated interaction of political instability’s effect on entrepreneurs’ zakat compliance intention was significant, while its interactions with service quality and trust were not.
Practical implications
Findings that emerged from this study may serve as a reminder to zakat agencies and policymakers that varying degrees of knowledge about zakat can have a significant impact on shaping intentions to comply with zakat rules, particularly in an unstable political environment. Additionally, this work sheds light on the critical role of service quality delivered by zakat institutions and businessmen’s trust in such entities in shaping their zakat compliance intentions. Finally, it demonstrates how critical it is to strengthen the business sector’s social responsibility to support the zakat’s noble socioeconomic objectives.
Originality/value
This present work augments the scanty literature on zakat compliance because it validates a research model drawing on social cognitive perspectives. Additionally, the model blends the moderating role of knowledge into social cognitive perspectives of zakat compliance among businessmen.
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Saeed Awadh Bin-Nashwan, Hijattulah Abdul-Jabbar, Saliza Abdul Aziz and K. Kuperan Viswanathan
To provide a sound understanding of Zakah compliance behaviour, this paper aims to shed light on the relationships between Zakah system fairness, Zakah morale, peer influence and…
Abstract
Purpose
To provide a sound understanding of Zakah compliance behaviour, this paper aims to shed light on the relationships between Zakah system fairness, Zakah morale, peer influence and law enforcement with Zakah compliance behaviour among entrepreneurs.
Design/methodology/approach
The underpinning model used in this paper is the socio-economic theory of regulatory compliance for assessing the probable determinants shaping Zakah payers' compliance behaviour. Based on a survey of active entrepreneurs in a typical Islamic situation like Yemen, a total of 500 self-administered instruments were distributed to the respondents. Partial least squares-structural equation modelling (PLS-SEM) was used to estimate the compliance model.
Findings
All the variables included in the compliance model are statistically significant, except for law enforcement. Zakah compliance of entrepreneurs is significantly influenced by Zakah system fairness, Zakah morale and peer influence.
Practical implications
Zakah institutions and agencies in Muslim-majority countries may use the results of this work to focus attention on appropriate proactive policies to formulate a fair Zakah system, inculcating moral responsibility among Zakah payers, embarking on sensitisation programmes in society as a whole, and being more proactive in educating Muslims in the importance of paying Zakah to the respective Zakah agencies.
Originality/value
This paper complements the limited literature on Zakah by examining both tangible and intangible motivations affecting Zakah payers' compliance decision.
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Nadira Binti Ahzahar, Siti Zubaidah Binti Hashim, Intan Bayani Bin Zakaria, Norehan Norlida Mohd Noor and Nur Anis Bt Abdul Rahman
Malaysia is still very much lacking behind in green building developments as compared to other countries such as Australia, Japan, and Singapore. Nevertheless, in order to…
Abstract
Malaysia is still very much lacking behind in green building developments as compared to other countries such as Australia, Japan, and Singapore. Nevertheless, in order to strengthen the development of green building in Malaysia, government has provided and offers several initiatives to the construction key players in implementing green building such as investment tax allowance for the purchase of green technology equipment and income tax exemption on the use of green technology services and system, etc. Despite of all the incentives introduce, the implementation of green building construction still does not boast as expected and still relatively low. Therefore, this study will identify barriers, issues, and challenges faced by construction key players in implementing green building concepts especially related to green building incentives in their project. The opinions and views of related parties in building industry were obtained from structured interviews and questionnaires to key personnel in construction industry to give a clearer picture of the current situation. This study is succeeded in identifying the barriers and challenges, which mainly categorised into financial incentives, fiscal incentives, and structural incentives. The main issues identified are excessive cost of construction, tax exemption is limited and only for qualified person and legislative challenges. Nonetheless, this study also suggests various ways to overcome the barriers in promoting green building concept in Malaysia towards greener environment.
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Saeed Awadh Bin-Nashwan, Hijattulah Abdul-Jabbar, Saliza Abdul Aziz and Alhassan Haladu
As one of the constituted main pillars of Islam, Zakah compliance (ZC) is mandated upon Muslims from all studies of life. Taking the disappointingly low compliance level in…
Abstract
Purpose
As one of the constituted main pillars of Islam, Zakah compliance (ZC) is mandated upon Muslims from all studies of life. Taking the disappointingly low compliance level in developing countries, including Yemen, as its backdrop, the purpose of this study is to investigate ZC behavior among entrepreneurs, drawing on the economic approach perspective.
Design/methodology/approach
The study adopted a cross-sectional design based on a survey of entrepreneurs in Yemen. It used primary data collected via self-administered questionnaires, involving a sample of 500 participants. A variance-based structural modeling equation-partial least squares were used to measure the instruments and assess the hypothesized relationships.
Findings
The findings affirmed the suitability of the economic factors approaches in the context of ZC in a developing country. Specifically, the study demonstrated that Zakah law complexity has a significant negative influence on ZC of entrepreneurs. It also found a significant positive relationship between religiosity and ZC among the study sample, whereas the study revealed that law enforcement has no influence on compliance behavior.
Practical implications
Policies and programs focused on Zakah laws and regulations could be formulated to make them less complex and simpler for acceptable levels of ZC. The result is further relevant to policymakers in Muslim communities to strengthen the religious faith of Zakah payers toward compliance with one of the fundamental religious obligations such as Zakah.
Originality/value
This study enriches the limited previous studies on actual ZC from the perspective of developing communities, especially Yemen. Most importantly, the value was added to the limited literature internationally from an economic aspect.
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Hijattulah Abdul-Jabbar and Saeed Awadh Bin-Nashwan
Government seeks to realize its economic objectives and eventually its social objectives as well through taxation. In a Muslim-majority economy, besides many types of taxation…
Abstract
Purpose
Government seeks to realize its economic objectives and eventually its social objectives as well through taxation. In a Muslim-majority economy, besides many types of taxation imposed, some government also legally enforced an alms tax (Zakat) via specific authority. The purpose of this study is to examine the role of enforcement in Zakat compliance and how it can enhance the effect of social motivations, namely perceived institutional credibility and social pressure, on zakat payers' compliance decisions.
Design/methodology/approach
This research is underpinned by economic deterrence theory and employed data collected through a cross-sectional approach. A total of 274 Yemeni entrepreneurs responded to the questionnaire and analysed using SmartPLS version 3.2.9.
Findings
The study finds that social pressure and institutional credibility are significantly related to entrepreneurs' compliance with Zakat. Importantly, enforcement-moderated interactions of social pressure and perceived credibility on Zakat payers' compliance are statistically significant.
Practical implications
Some signals emerged from the results which could be used by governments throughout the Muslim-majority state to mitigate Zakat evasion amongst entrepreneurs. Furthermore, the study can provide information to Zakat authorities and policymakers on how to restore public trustworthiness and increase Zakat collection from entrepreneurs as well as cautioning such authorities that social pressure may possess an unfavourable attitude towards Zakat laws, influencing Zakat payers to do this action itself.
Originality/value
This study provides a shred of unique evidence by suggesting a new approach to the Zakat literature and linking the deterrence-based enforcement and social motivation with practice, which contributes to strengthening compliance levels amongst entrepreneurs and ultimately enhancing Zakat funds.
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Saeed Awadh Bin-Nashwan, Hijattulah Abdul-Jabbar and Saliza Abdul Aziz
Although zakat is a principal way to redistribute wealth, a unique practice designed to achieve a sustainable Islamic economic and social system, zakat institutions and agencies…
Abstract
Purpose
Although zakat is a principal way to redistribute wealth, a unique practice designed to achieve a sustainable Islamic economic and social system, zakat institutions and agencies in most Muslim countries still suffer from the perplexing issue of low zakat collections, ascribing this to the level of compliance among zakat payers. To provide more insight into this lacuna, this study aims to examine the role of trust in zakat institution through the relationship between socio-economic determinants (i.e. religiosity, moral reasoning, peer influence and system fairness) and zakat compliance decisions.
Design/methodology/approach
From a typical Islamic country, Yemen, a random sample of 274 entrepreneurs was drawn for a self-administered survey. To estimate and analyze the compliance model, SmartPLS structural equation modeling was used.
Findings
The results show that all hypothesized direct relationships are supported. Importantly, the trust-moderated interactions of religiosity, moral reasoning and peer influence on zakat compliance are significant, although its interaction with zakat system fairness is not.
Practical implications
The results should be helpful for policymakers and responsible institutions in Muslim communities to understand how different levels of trust can play an important role in Zakat payers’ compliance to boost or erode zakat funds. This research also contributes important inferences for managers about the necessity of inculcating religious and moral values among zakat payers, formulating a fair system and embarking on sensitization programs in society.
Originality/value
The research enriches the scanty literature by validating a viable compliance model drawing on the socio-economic theory of regulatory compliance. Moreover, the model integrates the moderating role of trust in socio-economic perspectives of zakat compliance.
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