This study aims to test the Theory of Reasoned Goal Pursuit (TRGP) to predict tax compliance behavior among Indonesian micro, small and medium-sized enterprises (MSMEs).
The study employs a quantitative approach and a cross-sectional survey design to collect data from 837 MSME owners and managers in Indonesia.
The results confirmed most hypotheses, with the model accounting for 84.7% of the variance in motivation, 54.1% in intention and 64.4% in tax compliance. Procurement and approval goals moderated pathways as predicted, supporting the TRGP framework.
By integrating goal-driven motivation into behavioral models, this study offers practical insights for designing targeted tax interventions. The results indicate that policies emphasizing personal benefits and social expectations can encourage tax compliance.
This study offers a novel application of TRGP to tax compliance research by introducing procurement and approval goals as motivational drivers among MSMEs. It adds to the literature by empirically demonstrating that motivation works as a separate mental step between setting a goal and forming an intention. It also shows that different types of goals can affect how motivation leads to intention and behavior. This study is one of the first to apply the TRGP framework to tax compliance, particularly examining the behavior of strategic taxpayers in emerging economies.
