Perspective of Covid-19: The Mediating Effect of Intention on Zakat Compliance Behaviour

Abstract

Malaysia ranks among the top five countries capable of managing COVID-19. The Malaysian government consistently contributes to update the daily cases. The society was informed about the disease and advised to take precautions based on the updated news. Besides, zakat institutions have supported the government in tackling COVID-19’s economic effects by offering financial and food aid, supplying medical resources, and establishing shelters for the homeless. Zakat collection is crucial for closing the disparity between the wealthy and the impoverished, decrease poverty rates, and enhance the overall national economy. Additionally, technology had a major impact during the COVID-19 pandemic in enabling society to fulfill their zakat obligations via an internet platform. Perceived corporate credibility towards zakat institutions is also important to enhance zakat compliance behaviour when paying zakat. Hence, the purpose of this study was to examine the mediating effect of intention on the link between technology, perceived corporate credibility and zakat compliance behaviour on employment income. A total of 307 respondents from the Northern Region of Malaysia involved in the data collection of this study. The relationship was examined by using Partial Least Square Structural Equation Modelling (PLS-SEM). The findings of this research revealed that intention serves as a mediator in the connection between technology, perceived corporate credibility, and zakat compliance behaviour. This research adds to the existing zakat literature and give an idea for zakat institutions to develop strategies for increasing zakat collection in the future. This research concluded with a discussion of its limitations and recommendations for future research.