TRANSPARENCY, SHARIA PERCEPTION, AND INTERNAL OVERSIGHT ON ZAKAT PRACTICE COMPLIANCE

Abstract

Purpose - This study aims to examine the effect of transparency, sharia perception, and internal oversight on zakat practice compliance at Dompet Dhuafa South Sulawesi.

Design/methods/approach - A quantitative approach using Partial Least Square-Structural Equation Modeling (PLS-SEM) was employed, involving 39 muzakki (zakat payers) as respondents. Data were collected via a Likert-scale questionnaire.

Findings - Transparency, sharia perception, and internal oversight each exert a significant positive effect on zakat practice compliance. The model explains 76.8% of variance (R² = 0.768). Sharia perception demonstrated the strongest influence (path coefficient = 0.420; T = 2.567; p = 0.010), followed by internal oversight (0.333; T = 1.820) and transparency (0.200; T = 1.283).

Research implications/limitations - The study is limited to 39 respondents from a single institution. Future research should expand the sample and include additional variables such as digital literacy and institutional trust.

Originality/value - This study offers a rare quantitative assessment of three simultaneous determinants of zakat compliance, contributing to Islamic finance governance literature and providing actionable guidance for zakat management bodies.