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

Abstract

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 R 0 908 Religiosity emerged as the strongest predictor 0 421 followed by the administrative and regulatory system 0 375 trust 0 302 awareness 0 271 and zakat as a tax deduction 0 248 These results confirm the multidimensional nature of compliance and its significant role in enhancing Economic efficiency transparency and strategic effectiveness