Moderating role of leadership on factors influencing tax administration efficiency

Abobakr Al-Harethi; Saliza Abdul Aziz; Idawati Ibrahim

doi:http://dx.doi.org/10.21511/ppm.20(2).2022.32

Moderating role of leadership on factors influencing tax administration efficiency

Received February 19, 2022;

Accepted May 26, 2022;

Published June 14, 2022
Author(s)

Link to ORCID Index: https://orcid.org/0000-0002-0664-2712

Abobakr Al-Harethi
,

Link to ORCID Index: https://orcid.org/0000-0002-7664-2865

Saliza Abdul Aziz
, Idawati Ibrahim
DOI
http://dx.doi.org/10.21511/ppm.20(2).2022.32
Article Info
Volume 20 2022, Issue #2, pp. 389-401
TO CITE АНОТАЦІЯ
Cited by
1 articles

586 Views
273 Downloads

This work is licensed under a Creative Commons Attribution 4.0 International License

The current study targets to examine the relations between motivation, attitude, job satisfaction, and tax administration efficiency with leadership as a moderator from the tax employee’s perspective using the Yemeni environment. The questionnaires were distributed among 505 employees of the Yemeni Tax Authority as part of the survey technique, exactly from six governorates. As a result, 306 questionnaires were appropriated for further analysis. Respondent data were analyzed using SPSS.23 and PLS software. The analysis results manifest that motivation, attitude, and job satisfaction significantly influence tax administration efficiency. Whereas motivation presents about 40% of the influence, attitude is about 31% of the influence, and job satisfaction is about 15% of the influence on the efficiency of tax administration. Furthermore, for the influence of leadership as a moderating variable, it was found to moderate the impact of job satisfaction and attitude on tax administration efficiency (β = 0.157; P < .001; β = 0.105; P < .01). On the contrary, the findings also show that leadership cannot moderate the correlation between motivation and tax administration efficiency (β = –0.061; P > .05). The findings of this study are helpful for the tax administration in the context of Yemen.

Acknowledgments
It is our pleasure to thank Seiyun University and Universiti Utara Malaysia for their continuous support in the completion of this work. Appreciation also goes out to the anonymous reviewers, who had supplied excellent advice and comments.

view full abstract

Keywords
job satisfaction, leadership, motivation, tax administration efficiency, Yemen
JEL Classification (Paper profile tab)
H21, H83
References
87
Tables
7
Figures
1

- Figure 1. Conceptual framework

- Table 1. Probability sampling of employees for each governorate
- Table 2. Measurement model (convergent validity)
- Table 3. Fornell-Lacker discriminant validity analysis
- Table 4. Coefficients of determination (R²)
- Table 5. Path coefficient for the direct effect
- Table 6. Path coefficient for the indirect effect
- Table 7. Validated redundancy (Q²)

- Abate, A. A. (2019). Factors affecting presumptive tax collection in Ethiopia. Journal of Tax Administration, 5(2), 74-96.
- Ahmad, H., Ahmad, K., & Ali Shah, I. (2010). Relationship between job satisfaction, job performance attitude towards work and organizational commitment. European Journal of Social Sciences, 18(2), 257-267.
- Alghazo, A. M., & Al-Anazi, M. (2016). The impact of leadership style on employee’s motivation. International Journal of Economics and Business Administration, 2(5), 37-44.
- Alrazehi, H. A. A. W., Amirah, N. A., Emam, A. S. M., & Hashmi, A. R. (2021). Proposed model for entrepreneurship, organizational culture and job satisfaction towards organizational performance in International Bank of Yemen. International Journal of Management and Human Science (IJMHS), 5(1), 1-9.
- Al-Saadi, M. S. (2014). Interview with the Minister of Planning and International Cooperation. Al-Thawra official Journal.
- Al-Sharabi, & Al-Slehi. (2015). Taxes bitter harvest basket. Alrai Press.
- Amanuel, M. (2021). Determinants of Tax Administration Efficiency in Addis Ababa Revenue Authority: In the Case of Selected Small Taxpayer’s Branch Offices. St. Mary’s University.
- Asghar, S., & Oino, D. (2017). Leadership styles and job satisfaction. Market Forces, 13(1), 1-13.
- Aziz, S. A., & Al-Harethi, A. R. S. (2018). Factors determining tax administration efficiency in Hadhramout, Yemen: Perception from individual taxpayers. 5th International Conference on Accounting Studies (ICAS 2018). Penang, Malaysia.
- Babbie, E. (2015). Observing ourselves: Essays in social research. Waveland Press.
- Barclay, D., Higgins, C., & Thompson, R. (1995). The Partial Least Squares (PLS) Approach to Casual Modeling: Personal Computer Adoption And Use as an Illustration. Technology Studies, 2(2), 285-309.
- Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of personality and social psychology, 51(6), 1173-1182.
- Bass, B. M. (1985). Leadership and performance beyond expectations. Collier Macmillan.
- Bass, B. M., & Avolio, B. J. (1994). Improving organizational effectiveness through transformational leadership. Sage.
- Baye, M. (2017). Factors Affecting Tax Revenue in Ethiopia (Thesis). Addis Ababa University.
- Bellingham, R. (2004). Job Satisfaction Survey. The Wellness Council of America.
- Bennett, J. A. (2000). Mediator and moderator variables in nursing research: Conceptual and statistical differences. Research in nursing & health, 23(5), 415-420.
- Berson, Y., & Linton, J. D. (2005). An examination of the relationships between leadership style, quality, and employee satisfaction in R&D versus administrative environments. R&D Management, 35(1), 51-60.
- Bird, R. M. (2015). Improving Tax administration in developing Countries. Journal of Tax Administration, 1(1), 23-45.
- Bird, R. M., & Oldman, O. (1967). Readings on taxation in developing countries (rev. ed.). Baltimore, USA: The John Hopkins Press.
- Bothma, R. (2015). The relationship between job satisfaction and job performance in a manufacturing firm in the Vaal Triangle (Thesis). North-West University.
- Brewer, G. A. (2005). In the eye of storm, frontline supervisors and federal agency performance. Journal of Public Administration Research and Theory, 15(4), 505-527.
- Burns, J. M. (1978). Leadership. New York: Harper & Row.
- Central Organization of Control and Audit (COAC). (2014). Annual report.
- Chin, W. W. (1998). Commentary: Issues and Opinion on Structural Equation Modeling. MIS Quarterly, 22(1), vii-xvi.
- Chin, W. W. (2010). Bootstrap Cross-Validation Indices for PLS Path Model Assessment. In V. Esposito Vinzi, W. Chin, J. Henseler, & H. Wang (Eds.), Handbook of Partial Least Squares (pp. 83-97). Springer.
- Duarte, P. A. O., & Raposo, M. L. B. (2010). A PLS model to study brand preference: An application to the mobile phone market. In V. Esposito Vinzi, W. Chin, J. Henseler, & H. Wang (Eds.), Handbook of Partial Least Squares (pp. 449-485). Springer.
- Etzioni, A. (1961). Complex organizations: A sociological reader. Holt, Rinehart & Winston.
- Fadila Diana, Z. (2017). Relationship between training and development, pay and benefits, transformational leadership and workplace environment with job satisfaction (Thesis). Universiti Utara Malaysia.
- Fernandez, S., & Pitts, D. (2011). Understanding employee motivation to innovate: Evidence from front line employees in United States Federal Agencies. Australian Journal of Public Administration, 70(2), 202-222.
- Fiaz, M., Su, Q., & Saqib, A. (2017). Leadership styles and employees’ motivation: Perspective from an emerging economy. The Journal of Developing Areas, 51(4), 143-156.
- Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing, 18(1), 39-50.
- Gajem, Y. M., Warrick, A. W., & Myers, D. E. (1981). Spatial dependence of physical properties of a topic torrifluvent soil. Soil Science Society of America Journal, 45(4), 709-715.
- Griffin, R. W., & Moorhead, G. (2012). Human behavior in organization. Cengage Learning Asia Pte Limited.
- Hair Jr, J. F., Sarstedt, M., Matthews, L. M., & Ringle, C. M. (2016). Identifying and treating unobserved heterogeneity with FIMIX-PLS: part I – method. European Business Review, 28(1), 63-76.
- Hair, J. F., Andersen, R. E., & Tatham, R. L. (2010). Multivariate data analysis (7th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
- Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A Prima on Partial Least Squares Structural Equation Modeling (PLS-SEM) (1st ed.). Los Angeles: Sage.
- Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European business review, 31(1), 2-24.
- Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the Academy of Marketing Science, 40(3), 414-433.
- Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43(1), 115-135.
- Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. In R. R. Sinkovics & P. N. Ghauri (Eds.), New Challenges to International Marketing Advances in International Marketing, 20 (pp. 277-319). Emerald Group Publishing Limited.
- Herman, H., & Chiu, W. C. (2014). Transformational leadership and job performance: A social identity perspective. Journal of Business Research, 67(1), 2827-2835.
- Hossan, D., Dato’Mansor, Z. B., Aktar, M. F., & Roy, S. (2020). The role of Motivational Factors on Employee Engagement at Readymade Garments Industry, with Leadership as Moderator. Journal of Xi’an University of Architecture & Technology, 12(4), 5220-5234.
- James, S., Svetalekth, T., & Wright, B. (2006). Tax officials’ attitudes and perceptions: Performance indicators and the efficiency of tax collection (Working Paper). University of Exeter.
- Jones, M. D. (2006). Which is a better predictor of job performance: Job satisfaction or life satisfaction? Journal of behavioural and applied management, 8(1), 20-42.
- Kanungo, R. N. (1982). Measurement of job and work involvement. Journal of Applied Psychology, 67(3), 341-349.
- Kinicki, A., & Kreitner, R. (2008). Organization behavior: Key concepts, skills & practices. New York, NY: McGraw-Hill.
- Mangan, M. (2013). The drama, theatre and performance companion. Macmillan International Higher Education.
- Mansor, M. (2010). Performance management for a tax administration: Integrating organisational diagnosis to achieve systemic congruence. Journal of the Australasian Tax Teachers Association, 5, 137.
- Manzoor, Q. A. (2012). Impact of employee’s motivation on organizational effectiveness. Business Management and Strategy, 3(1), 1-12.
- Marsden, D., & Richardson, R. (1992). Motivation and performance related pay in the public sector: A case study of the Inland Revenue (Discussion paper 75). Centre of economic performance, London School of Economics.
- Mascarenhas, F. (2012). Megaeventos esportivos e educação física: alerta de tsunami. Revista movimento, 18(1), 39-67. (In Portuguese).
- Mester, C., Visser, D., Roodt, G., & Kellerman, R. (2003). Leadership style and its relation to employee attitudes and behaviour. SA Journal of Industrial Psychology, 29(2), 72-82.
- Ministry of Planning & International Cooperation MPIC. (2014). Annual report.
- Mitu, N. E. (2016). Taxpayer behaviour: typologies and influence factors. Revista de Științe Politice. Revue des Sciences Politiques, 49, 77-87.
- Mohammadi, P., & Dahgan, M. (2016). Local Marketing and Its Role on Organizational Performance: A Case Study of Tehran Tax Administration. The Turkish Online Journal of Design, Art and Communication.
- Moya, M., Nabafu, R., Maiga, G., & Mayoka, K. (2016). Attitude and behavioral intention as mediators in adoption of e-tax services in Ura, Uganda. ORSEA JOURNAL, 6(1).
- Muaen, M. A. (2016). Determinants of tax administration efficiency in Libya (Master’s Thesis). Universiti Utara Malaysia.
- Nidadhavolu, A. (2018). Impact of leadership styles on employee job satisfaction and organizational commitment – A study in the construction sector in India (Master’s Thesis). Western Kentucky University.
- Nurmanah, E. E. M. (2009). Influence of organizational culture competence against officers and organization Efektiviti general secretariat of civil service bureau (Master’s Thesis). University of Indonesia.
- Ogbonna, E., & Harris, L. (2000). Leadership style, organizational culture and performance: Empirical evidence from UK companies. International Journal of Human Resources Management, 11(4), 766-788.
- Ogbonna, G. N., & Appah, E. (2012). Impact of tax reforms and economic growth of Nigeria: A time series analysis. Current Research Journal of Social Sciences 4(1), 62-68.
- Olorunsola, E. O. (2010). Job satisfaction and gender factor of administrative staff in South West Nigeria universities. Contemporary Issues in Education Research, 3(10), 51-56.
- Pantamee, A. A., & Mansor, M. B. (2016). A modernize tax administration model for revenue generation. International Journal of Economics and Financial Issues, 6(7S), 192-196.
- Purvanova, R. K., Bono, J. E., & Dzieweczynski, J. (2006). Transformational leadership, job characteristics, and organizational citizenship performance. Human Performance, 19(1), 1-22.
- Rafferty, A. E., & Griffin, M. A. (2004). Dimensions of transformational leadership: Conceptual and empirical extensions. The leadership quarterly, 15(3), 329-354.
- Rahimi, G. R., Khezri, S., & Niknafs, S. (2016). Investigation the relationship of Leadership Styles on managers on productivity Staff Tax Administration of West Azerbaijan province. International academic Journal of Business Management, 3(2), 13-17.
- Riaz, T., Akram, M. U., & Ijaz, H. (2011). Impact of transformational leadership style on affective employees’ commitment: An empirical study of banking sector in Islamabad (Pakistan). The Journal of Commerce, 3(1), 43-51.
- Rop, J. J., & Amuhaya, I. M. (2013). Effects of Attitude on Individual Employee Performance in Organization: A Case Study of Rift Valley Bottlers Limited. International Journal of Innovative Research and Development, 2(7).
- Rothman, S., & Coetzer, E. P. (2002). The relationship between personality dimensions and job satisfaction. Business Dynamics, 11(1), 29-42.
- Rovai, A. (2006). Analysis of factors affecting organizations in body effectivity national unity and community protection central java province (Master’s Thesis). University of Diponegoro, Semarang.
- Satyendra. (2015, February 10). Importance of Leadership for Organizational Excellence. Ispat Guru.
- Seijts, G. H., & Crim, D. (2006). What engages employees the most or, the ten C’s of employee engagement. Ivey Business Journal, 70(4), 1-5.
- Sekaran, U., & Bougie, R. (2010). Research methods for business: A skill building approach (5th ed.). Chichester: John Willey & Sons Ltd.
- Shagari, S. L. (2014). Determinants of tax administration efficiency: A study of Bauchi State, Nigeria. Universiti Utara Malaysia.
- Shagari, S. L., & Saad, N. (2015). The impact of board autonomy and information and communication technology on tax administration efficiency: Evidence from Nigeria. Advanced Science Letters, 21(6), 2042-2045.
- Shin, S. J., & Zhou, J. (2003). Transformational leadership, conservation, and creativity: Evidence from Korea. Academy of Management Journal, 46(6), 703-714.
- Singh, S. K., & Tiwari, V. (2020). Relationship between motivation and job satisfaction of the white-collar employees: A case study. Management insight, 7(2), 31-39.
- Solomon, O., Hashim, N. H., Mehdi, Z. B., & Ajagbe, A. M. (2012). Employee motivation and organizational performance in multinational companies: A study of Cadbury Nigeria Plc. IRACST-International Journal of Research in Management & Technology (IJRMT), 2(3), 303-312.
- Stanley, T. L. (2001). The joy of working: A new look at job satisfaction. Supervision, 62(9), 3-4.
- Sudjati. (2014). Peran Budaya Organisasi Dan Kepemimpinan Transformasional Kepala Sekolah Memoderasi Pengaruh Motivasi Kerja Terhadap Kinerja Guru Studi Pada Guru Smp Negeri Sub Rayor 05 Kota Semarang. Jurnal Mahasiswa Pasca Sarjana. (In Indonesian).
- Sutrisno, E. (2010). Organizational Culture. Jakarta: Kencana Publisher.
- Usman, M. N., & Abubakar, I. (2020). Determinants of Tax Administration Efficiency in Nigeria: Perception from Corporate Taxpayers. Fudma Journal Of Management Sciences, 1(1), 491-508.
- Walsh, K. (2012). Understanding taxpayer behaviour – new opportunities for tax administration. The Economic and Social Review, 43(3), 451-475.
- Wang, H., Law, K. S., Hackett, R. D., Wang, D., & Chen, Z. (2005). Leader-member exchange as a mediator of the relationship between transformational leadership and followers’ performance and organizational citizenship behavior. Academy of Management Journal, 48(3), 420-432.
- Yemen Tax Authority. (2018). Annual report of the Yemen Tax Authority, Department of Employee’s Affairs. Sanaa, Yemen.
- Zhou, J., & George, J. M. (2001). When job dissatisfaction leads to creativity: encouraging the expression of voice. The Academy of Management Journal, 44(4), 682-696.

- Conceptualization
  Abobakr Al-Harethi
- Data curation
  Abobakr Al-Harethi
- Formal Analysis
  Abobakr Al-Harethi
- Methodology
  Abobakr Al-Harethi
- Resources
  Abobakr Al-Harethi
- Writing – original draft
  Abobakr Al-Harethi
- Funding acquisition
  Saliza Abdul Aziz
- Project administration
  Saliza Abdul Aziz
- Supervision
  Saliza Abdul Aziz, Idawati Ibrahim
- Validation
  Saliza Abdul Aziz
- Writing – review & editing
  Saliza Abdul Aziz, Idawati Ibrahim
- Visualization
  Idawati Ibrahim

< Prev Next >

Download Preview

Problems and Perspectives in Management

Please specify your request here

Moderating role of leadership on factors influencing tax administration efficiency

COOKIES
The cookie settings on this website are set to 'allow all cookies' to give you the best experience.

Please specify your request here

Moderating role of leadership on factors influencing tax administration efficiency

The growth strategies of a global pharmaceutical company: a case study of Aspen Pharmacare Holdings Limited

The relationship between employee well-being and organizational trust in the context of sustainable human resource management

The impact of inclusive leadership behaviors on innovative workplace behavior with an emphasis on the mediating role of work engagement

COOKIES The cookie settings on this website are set to 'allow all cookies' to give you the best experience.

COOKIES
The cookie settings on this website are set to 'allow all cookies' to give you the best experience.