The Impact of Asnaf Entrepreneur’s Intention Towards Decision and the Movement of Zakat Collection

Abstract

Decision is an issue that needs to be explored in detail due to its relationship to an individual’s psychology. In the context of zakat that also acts as microfinancing (non-refundable fund), decision plays an important role in terms of collection and distribution. However, previous literature about zakat has not clarified this phenomenon especially in the context of Asnaf entrepreneurs. Asnaf entrepreneurs represent micro entrepreneurs who depend on zakat funds. Then, by benefiting the funds and getting support from the zakat institutions, Asnaf entrepreneurs become less dependent on the support and become zakat payers. Therefore, grounded by Theory of Planned Behaviour (TPB) framework, the purpose of this paper is to investigate the impact of Asnaf Intention’s towards decision as the zakat payers. A total of 274 Asnaf entrepreneurs from Kelantan and Selangor had participated in this study. Data were collected through self-administered survey questionnaires. The main statistical technique used in this study is Structural Equation Modelling (SEM) by using Analysis of Moment Structure (AMOS) version 23. The study has shown that subjective norms are found to be most dominant predictor towards decision closely followed by attitude, and perceived behavioural control. The above findings have added several implications towards theory, both practical and managerial. In general, the findings of the study are consistent with the theory of planned behaviour. Moreover, Asnaf entrepreneur’s intention gives the better impact towards decision and zakat collection.