Moderating Role of Social Norms in the Relationship between Tax Knowledge, Quality of Tax Service, and Tax Compliance among MSMEs
Keywords:
Tax compliance, informal MSMEs, tax knowledge, tax service quality, social normsAbstract
This study addresses the persistent problem of low tax compliance among informal Micro, Small, and Medium Enterprises (MSMEs), which undermines fiscal stability and hampers economic development. The primary purpose of the research is to examine the direct effects of tax knowledge and the quality of tax service on tax compliance, as well as to assess whether social norms moderate these relationships among informal MSMEs. Employing a quantitative approach with a cross-sectional survey design, data was collected from owners and managers of informal MSMEs using structured questionnaires. The analysis was conducted using structural equation modeling (SEM) to test the hypothesized relationships and moderation effects. The results indicate that both tax knowledge and the quality of tax service have significant positive effects on tax compliance behavior among informal MSMEs. However, the moderating role of social norms was not supported, as social norms did not significantly influence the relationships between tax knowledge, service quality, and compliance. These findings imply that policy interventions to enhance tax compliance in the informal sector should prioritize educational initiatives and improvements in service quality, rather than relying primarily on social or communal influences. Despite offering important insights, this study is limited by its cross-sectional design, geographically constrained sample, and reliance on self-reported data, which may affect the generalizability and causality of the findings. Future research should consider broader samples, longitudinal approaches, and the inclusion of additional contextual or psychological factors to deepen the understanding of tax compliance behavior among informal MSMEs.
References
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Bobek, D. D., Hageman, A. M., & Kelliher, C. F. (2013). Analyzing the Role of Social Norms in Tax Compliance Behavior. Journal of Business Ethics, 115(3), 451–468. https://doi.org/10.1007/s10551-012-1390-7
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Bulutoding, L., Rahmah Sari, N., Jannah, R., Fadhilatunisa, D., Elfa Syariati, N., & Suhartono, S. (2024). Socialization Of Small Medium Enterprise (SME) Financial Management Accountability Based On Sharia Enterprise Theory In Kampung Moten Seremban Negeri Sembilan, Malaysia. International Journal Of Community Service, 4(1), 31–36. https://doi.org/10.51601/ijcs.v4i1.256
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Cahyonowati, N., Ratmono, D., & Juliarto, A. (2022). The Moderating Role of Social Norms on Tax Compliance Model: A Laboratory Experimental Evidence in Indonesia. Contemporary Economics, 16(4), 410–423. https://doi.org/10.5709/ce.1897-9254.491
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Fadhilatunisa, D., Fakhri, M. M., Rosidah, Radhiah, & Jannah Raodahtul. (2022). Analisis Aplikasi Pajak (E-Filling Dan E-Billing) Berbasis Technology Acceptance Model (Tam). Jurnal Ilmiah Akuntansi Peradaban, 1(1), 100–120. https://doi.org/10.24252/jiap.v8i1.28714
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Franke, G., & Sarstedt, M. (2019). Heuristics versus statistics in discriminant validity testing: a comparison of four procedures. Internet Research, 29(3), 430–447. https://doi.org/10.1108/IntR-12-2017-0515
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Hair, J. F., Howard, M. C., & Nitzl, C. (2020). Assessing measurement model quality in PLS-SEM using confirmatory composite analysis. Journal of Business Research, 109(August 2019), 101–110. https://doi.org/10.1016/j.jbusres.2019.11.069
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. https://doi.org/10.1108/EBR-11-2018-0203
Hair Jr., J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107. https://doi.org/10.1504/ijmda.2017.10008574
Ketchen, D. J. (2013). A Primer on Partial Least Squares Structural Equation Modeling. In Long Range Planning (Vol. 46, Issues 1–2, pp. 184–185). https://doi.org/10.1016/j.lrp.2013.01.002
Kock, N. (2014). Advanced Mediating Effects Tests, Multi-Group Analyses, and Measurement Model Assessments in PLS-Based SEM. International Journal of E-Collaboration, 10(1), 1–13. https://doi.org/10.4018/ijec.2014010101
M. Ikhwan Mansyuri, Fahrul Mauzu, & Yuliana. (2022). the Influence of Service Quality and Tax Knowledge on the Compliance Level of Individual Taxpayers At the Dompu Tax Service, Counseling and Consultation Office (Kp2Kp). International Journal of Social Science, 2(2), 1321–1328. https://doi.org/10.53625/ijss.v2i2.3059
Mansur, F., Prasetyo, E., Brilliant, A. B., & Hernando, R. (2021). The effect of tax training and tax understanding on tax compliance. Jurnal Paradigma Ekonomika, 16(4), 647–658. https://doi.org/10.22437/jpe.v16i4.14301
Michael, M., & Widjaja, W. (2024). Tax Compliance in Indonesian MSMEs: Key Factors Explored. Jurnal Proaksi, 11(1), 152–166. https://doi.org/10.32534/jpk.v11i1.5519
Nguyen, T. H. (2022). The Impact of Non-Economic Factors on Voluntary Tax Compliance Behavior: A Case Study of Small and Medium Enterprises in Vietnam. Economies, 10(8). https://doi.org/10.3390/economies10080179
Patricia Aguilera-Hermida, A. (2020). College students’ use and acceptance of emergency online learning due to COVID-19. International Journal of Educational Research Open, 1, 100011. https://doi.org/10.1016/j.ijedro.2020.100011
Putra, D. A. (2024). Building a Culture of Compliance: The Influence of Tax Socialization and Inclusion on Indonesian Micro, Small, and Medium Enterprises (MSMEs) Taxpayers. Open Access Indonesia Journal of Social Sciences, 7(6), 1881–1893. https://doi.org/10.37275/oaijss.v7i6.277
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Adhikara*, M. A., Maslichah, M., Diana, N., & Basyir, M. (2022). Taxpayer Compliance Determinants: Perspective of Theory of Planned Behavior and Theory of Attribution. International Journal of Business and Applied Social Science, 34–42. https://doi.org/10.33642/ijbass.v8n1p4
Aji Ardhianto, R., Rangga Bawono, I., & Aryo Sudibyo, Y. (2022). The Role Of Trust In The Voluntary Compliance Of MSME Taxpayers. Jurnal Reviu Akuntansi Dan Keuangan, 12(1), 75–87. https://doi.org/10.22219/jrak.v12i1.18501
Anggraeni, W. A., Ningsih, W., & Romdhon, M. (2024a). Taxpayer Compliance based on Social Norm and Tax Moral. Jurnal Ilmu Keuangan Dan Perbankan (JIKA). https://doi.org/10.34010/jika.v13i1.11367
Anggraeni, W. A., Ningsih, W., & Romdhon, M. (2024b). Taxpayer Compliance based on Social Norm and Tax Moral. Jurnal Ilmu Keuangan Dan Perbankan (JIKA), 13(1), 177–184. https://doi.org/10.34010/jika.v13i1.11367
Anggraeni, W. A., Ningsih, W., & Romdhon, M. (2024c). Taxpayer Compliance based on Social Norm and Tax Moral. Jurnal Ilmu Keuangan Dan Perbankan (JIKA), 13(1), 177–184. https://doi.org/10.34010/jika.v13i1.11367
Bobek, D. D., Hageman, A. M., & Kelliher, C. F. (2013). Analyzing the Role of Social Norms in Tax Compliance Behavior. Journal of Business Ethics, 115(3), 451–468. https://doi.org/10.1007/s10551-012-1390-7
Bobek, D., Hageman, A., & Kelliher, C. (2012). Analyzing the Role of Social Norms in Tax Compliance Behavior. Journal of Business Ethics, 115, 451–468. https://doi.org/10.1007/s10551-012-1390-7
Bulutoding, L., Rahmah Sari, N., Jannah, R., Fadhilatunisa, D., Elfa Syariati, N., & Suhartono, S. (2024). Socialization Of Small Medium Enterprise (SME) Financial Management Accountability Based On Sharia Enterprise Theory In Kampung Moten Seremban Negeri Sembilan, Malaysia. International Journal Of Community Service, 4(1), 31–36. https://doi.org/10.51601/ijcs.v4i1.256
Cahyonowati, N. (2024). Bibliometric Analysis of Social Norms in Tax Compliance. Jurnal Proaksi. https://doi.org/10.32534/jpk.v11i4.6477
Cahyonowati, N., Ratmono, D., & Juliarto, A. (2022). The Moderating Role of Social Norms on Tax Compliance Model: A Laboratory Experimental Evidence in Indonesia. Contemporary Economics, 16(4), 410–423. https://doi.org/10.5709/ce.1897-9254.491
Cheh, S. (2022). Tech in Asia - Connecting Asia’s startup ecosystem. In Tech In Asia. https://www.techinasia.com/grab-leveling-playing-field-msmes-merchant-super-app
Cresswell, J. W. (2017). Planning, Conducting, and Evaluating Quantitative and Qualitative Research. In Knowledge and Power in the Global Economy: The Effects of School Reform in a Neoliberal/Neoconservative Age: Second Edition (4th ed., Vol. 4, Issue 1). Pearson Education, Inc.
Della Fadhilatunisa, & Andi Naila Quin Azisah Alisyahbana. (2024). Enhancing Tax Compliance Intentions: Analyzing the Influence of Awareness, Attention, and Persuasion Among Future Taxpayers. Journal of Economic Education and Entrepreneurship Studies, 5(1), 165–177. https://doi.org/10.62794/je3s.v5i1.3280
Dwianika, A., Wahyuni, P. D., & Roza, F. (2023). The Impact of Tax Reform, Subjective Norms and Social Norms on SME’s Tax Compliance during the Covid-19 Pandemic. Widyakala Journal : Journal of Pembangunan Jaya University, 10(1). https://doi.org/10.36262/widyakala.v10i1.711
Eliana, Widayani, H., & Isma, A. (2023). The Impact of Digital Economy Development and Its Effect on the Income of Micro, Small and Medium Enterprises Actors. Indonesian Journal of Business and Entrepreneurship Research, 1(3), 140–146. https://doi.org/10.62794/ijober.v1i3.530
Fadhilatunisa, D., Fakhri, M. M., Rosidah, Radhiah, & Jannah Raodahtul. (2022). Analisis Aplikasi Pajak (E-Filling Dan E-Billing) Berbasis Technology Acceptance Model (Tam). Jurnal Ilmiah Akuntansi Peradaban, 1(1), 100–120. https://doi.org/10.24252/jiap.v8i1.28714
Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39. https://doi.org/10.2307/3151312
Franke, G., & Sarstedt, M. (2019). Heuristics versus statistics in discriminant validity testing: a comparison of four procedures. Internet Research, 29(3), 430–447. https://doi.org/10.1108/IntR-12-2017-0515
Gangl, K., Hofmann, E., & Kirchler, E. (2015). Tax authorities’ interaction with taxpayers: A conception of compliance in social dilemmas by power and trust. New Ideas in Psychology, 37, 13–23. https://doi.org/10.1016/j.newideapsych.2014.12.001
Hadiwibowo, I., Jufri, A., & Lusiyana, D. (2023). The Influence of Tax Service Quality and Tax Rate on Taxpayer Compliance among SMEs in Indonesia. Maksimum, 13(1), 103. https://doi.org/10.26714/mki.13.1.2023.103-113
Hair, J., Black, W., Babin, B., & Anderson, R. (2010). Multivariate Data Analysis: A Global Perspective. In Multivariate Data Analysis: A Global Perspective (Vol. 7th). Pearson.
Hair, J. F., Howard, M. C., & Nitzl, C. (2020). Assessing measurement model quality in PLS-SEM using confirmatory composite analysis. Journal of Business Research, 109(August 2019), 101–110. https://doi.org/10.1016/j.jbusres.2019.11.069
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. https://doi.org/10.1108/EBR-11-2018-0203
Hair Jr., J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107. https://doi.org/10.1504/ijmda.2017.10008574
Ketchen, D. J. (2013). A Primer on Partial Least Squares Structural Equation Modeling. In Long Range Planning (Vol. 46, Issues 1–2, pp. 184–185). https://doi.org/10.1016/j.lrp.2013.01.002
Kock, N. (2014). Advanced Mediating Effects Tests, Multi-Group Analyses, and Measurement Model Assessments in PLS-Based SEM. International Journal of E-Collaboration, 10(1), 1–13. https://doi.org/10.4018/ijec.2014010101
M. Ikhwan Mansyuri, Fahrul Mauzu, & Yuliana. (2022). the Influence of Service Quality and Tax Knowledge on the Compliance Level of Individual Taxpayers At the Dompu Tax Service, Counseling and Consultation Office (Kp2Kp). International Journal of Social Science, 2(2), 1321–1328. https://doi.org/10.53625/ijss.v2i2.3059
Mansur, F., Prasetyo, E., Brilliant, A. B., & Hernando, R. (2021). The effect of tax training and tax understanding on tax compliance. Jurnal Paradigma Ekonomika, 16(4), 647–658. https://doi.org/10.22437/jpe.v16i4.14301
Michael, M., & Widjaja, W. (2024). Tax Compliance in Indonesian MSMEs: Key Factors Explored. Jurnal Proaksi, 11(1), 152–166. https://doi.org/10.32534/jpk.v11i1.5519
Nguyen, T. H. (2022). The Impact of Non-Economic Factors on Voluntary Tax Compliance Behavior: A Case Study of Small and Medium Enterprises in Vietnam. Economies, 10(8). https://doi.org/10.3390/economies10080179
Patricia Aguilera-Hermida, A. (2020). College students’ use and acceptance of emergency online learning due to COVID-19. International Journal of Educational Research Open, 1, 100011. https://doi.org/10.1016/j.ijedro.2020.100011
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