The Impact of Zakat Compliance Among Taxpayers on Enhancing Institutional Performance: An Applied Study Using Structural Equation Modeling (SEM) at the General Authority for Zakat – Sanaa, Yemen
This study examined the causal impact of zakat compliance on the institutional performance of Yemen’s General Authority for Zakat. It employs a novel integrated theoretical framework that combines the Theory of Planned Behavior, Social Exchange Theory, and Organizational Legitimacy Theory- a comprehensive approach not previously applied in the context of zakat institutions with this level of comprehensiveness. A quantitative research design was adopted, and data were collected from 398 managerial staff members using a validated electronic questionnaire. The relationships among five dimensions of zakat compliance-religiosity, trust, awareness, zakat as a tax deduction, and the administrative and regulatory system- were examined using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that zakat compliance has a substantial effect on institutional performance, explaining 90.8% of its variance (R² = 0.908). Religiosity emerged as the strongest predictor (β = 0.421), followed by the administrative and regulatory system (β = 0.375), trust (β = 0.302), awareness (β = 0.271), and zakat as a tax deduction (β = 0.248). These results confirm the multidimensional nature of compliance and its significant role in enhancing Economic efficiency, transparency, and strategic effectiveness.
