Analyzing The Moderating Role Of Government Support In The Intention To Adopt Halal Practice
Evidence From MSMEs In Indonesia
DOI:
https://doi.org/10.32815/jibeka.v19i1.2204Keywords:
Government support, Micro Small and Medium Enterprises, Halal practicesAbstract
The purpose of the study is to determine the moderating role of government support on the intention to adopt halal, which is influenced by the following factors: religiosity, consumer demand, and expected revenue in MSMEs.This research used a quantitative approach with hypothesis testing. Data distribution using an online questionnaire by researchers directly and in stages with the assistance of surveyors from the cooperative office; the number of data that met the criteria was 194 MSME respondents in Malang City. To determine the influence of the moderating role of government support on the intention to adopt halal practices, this study used SEM-PLS analysis. This study found that government support does not moderate the intention in adopting halal practices, which is influenced by the following factors: consumer demand, and expected revenue. The findings of the direct influence that religiosity, consumer demand, expected revenue and government support affect the demand for adoption of halal practices.
References
Ab Talib, M. S., Abdul Hamid, A. B., & Ai Chin, T. (2015). Motivations and limitations in implementing Halal food certification: A Pareto analysis. British Food Journal, 117(11), 2664–2705. https://doi.org/10.1108/BFJ-02-2015-0055
Ab Talib, M. S., Ai Chin, T., & Fischer, J. (2017). Linking Halal food certification and business performance. British Food Journal, 119(7), 1606–1618. https://doi.org/10.1108/BFJ-01-2017-0019
Ahmad, A. N., Rahman, A. A., & Rahman, S. A. (2015). Assessing Knowledge and Religiosity on Consumer Behavior towards Halal Food and Cosmetic Products. International Journal of Social Science and Humanity, 5(1), 10–14. https://doi.org/10.7763/IJSSH.2015.V5.413
Alfarizi, M. (2023). Kinerja Berkelanjutan UMKM Kuliner Indonesia dalam Praktik Standar Halal: Investigasi Kapabilitas Internal-Tekanan Eksternal Bisnis. J-FINE JOURNAL OF FINANCE, BUSINESS AND ECONOMY, 1(1), 21–55.
Ambali, A. R., & Bakar, A. N. (2014). People’s Awareness on Halal Foods and Products: Potential Issues for Policy-makers. Procedia - Social and Behavioral Sciences, 121, 3–25. https://doi.org/10.1016/j.sbspro.2014.01.1104
Anam, M. S., Mochlasin, M., Yulianti, W., Afisa, I., & Safitri, N. A. (2021). Pengaruh Sikap, Norma Subjektif, Religiusitas, Pengetahuan Kewirausahaan, dan Faktor Demografi terhadap Minat Berwirausaha. Jurnal Ilmu Manajemen, 9(4), 1369–1382. https://doi.org/10.26740/jim.v9n4.p1369-1382
Aziz, Y. A., & Chok, N. V. (2013). The Role of Halal Awareness, Halal Certification, and Marketing Components in Determining Halal Purchase Intention Among Non-Muslims in Malaysia: A Structural Equation Modeling Approach. Journal of International Food & Agribusiness Marketing, 25(1), 1–23. https://doi.org/10.1080/08974438.2013.723997
Azmi, F. R., Abdullah, A., Yahaya, S. H., Woźniak, M., & Purnomo, M. R. A. (2019). ADOPTION OF HALAL STANDARD IN MALAYSIAN FOOD INDUSTRY: A CASE OF SMALL AND MEDIUM ENTERPRISES. 13(3).
Azmi, F. R., Musa, H., Sihombing, H., & Fen, F. S. (2018). Adoption Factors of Halal Standards: The Malaysian Perspectives. In N. Muhammad Hashim, N. N. Md Shariff, S. F. Mahamood, H. M. Fathullah Harun, M. S. Shahruddin, & A. Bhari (Eds.), Proceedings of the 3rd International Halal Conference (INHAC 2016) (pp. 315–329). Springer Singapore. https://doi.org/10.1007/978-981-10-7257-4_29
Chin, W. W. (1988). The partial least squares approach for structural equation modeling. In Modern methods for business research (pp. 295–336). Lawrence Erlbaum Associates Publishers.
Chin, W. W. (1998). The partial least squares approach for structural equation modeling. Modern Methods for Business Research, 295–336.
Dawam, K., Laela, S. F., Hendrasto, N., Rehman, H. M., & Hasan, M. K. (2023). Determinants of Micro and Small Enterprise’s Interest to Participate in Self-Declare Halal Certification. Journal of Digital Marketing and Halal Industry, 5(1), 1–22. https://doi.org/10.21580/jdmhi.2023.5.1.15041
Fitri, R., Sudarmiatin, S., & Zonna Lia, D. A. (2023). Urgency of Halal Certification on the Performance of MSMEs. Journal of Economics, Finance and Management Studies, 06(10), 1–9. https://doi.org/10.47191/jefms/v6-i10-12
Fornell, C., & Larcker, D.F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39.
Ghozali, I., & Latan, H. (2015). Partial Least Squares Konsep Teknik dan Aplikasi dengan Program Smart PLS 3.0. Semarang: Universitas Diponegoro Semarang.
Giyanti, I., Indrasari, A., Sutopo, W., & Liquiddanu, E. (2021). Halal standard implementation in food manufacturing SMEs: Its drivers and impact on performance. Journal of Islamic Marketing, 12(8), 1577–1602. https://doi.org/10.1108/JIMA-11-2019-0243
Golnaz, R., Zainalabidin, M., Nasir, M., & Chiew, E. (2010). Non-Muslims’ awareness of Halal principles and related food products in Malaysia. International Food Research Journal, 17, 667–674.
Gursoy, D., Altinay, L., & Kenebayeva, A. (2017). Religiosity and entrepreneurship behaviours. International Journal of Hospitality Management, 67, 87–94. https://doi.org/10.1016/j.ijhm.2017.08.005
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis. 7th Edition. Pearson, New York.
Hakim, L. (2021). Potensi UMKM Dalam Membangun Perekonomian Yang Terdampak Pandemi. INSIGHT : Islamic Economy Bulletin, 14–15.
Haryono, S. (2017). Metode SEM Untuk Penelitian Manajemen Amos Lisrel PLS. https://openlibrary.telkomuniversity.ac.id/pustaka/136193/metode-sem-untuk-penelitian-manajemen-amos-lisrel-pls.htm
Ishardini, C., Junaedi, D., & Salistia, F. (2022). Minat Beli Masyarakat Nonmuslim terhadap Produk Makanan Halal. Reslaj: Religion Education Social Laa Roiba Journal, 4(1), 14–35.
Joseph F. Hair, Jr. ; G. T. M. H. C. M. R. M. S. (2021). A primer on partial least squares structural equation modeling (PLS-SEM)-Third Edition.
Khalek, A. A. (2014). Young Consumers’ Attitude towards Halal Food Outlets and JAKIM’s Halal Certification in Malaysia. Procedia - Social and Behavioral Sciences, 121, 26–34. https://doi.org/10.1016/j.sbspro.2014.01.1105
Kubota, S., Kono, H., & Chiba, T. (2016). Possibility of exporting halal-certificated food in Hokkaido, Japan: Acceptance by Malaysian consumers. International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, 20(3). https://doi.org/10.22004/AG.ECON.264230
Malik, R. F., Hermawan, A., & Asnawi, Y. H. (2019). THE EFFECT OF HALAL AWARENESS, HALAL CERTIFICATION AND HALAL MARKETING TOWARD HALAL PURCHASE INTENTION OF FAST FOOD AMONG MUSLIM MILLENIALS GENERATION. Russian Journal of Agricultural and Socio-Economic Sciences, 90(6), 76–83. https://doi.org/10.18551/rjoas.2019-06.11
Margarena, A. N., & Ikhwan Setiawan, A. (2022). THE EFFECT OF PERCEIVED VALUE OF ECONOMIC BENEFITS TOWARDS SMES HALAL CERTIFICATION INTENTION MODERATED BY GOVERNMENT POLICY REGULATION. International Journal of Education and Social Science Research, 05(02), 308–320. https://doi.org/10.37500/IJESSR.2022.5219
Maryati, T., Syarief, R., Bogor Agricultural University, Hasbullah, R., & Bogor Agricultural University. (2016). Analisis Faktor Kendala dalam PengajuanSertifikat Halal. (Studi Kasus: Pelaku Usaha Mikro, Kecil dan Menengah Makanan Beku diJabodetabek). Jurnal Ilmu Produksi Dan Teknologi Hasil Peternakan, 4(3), 364–371. https://doi.org/10.29244/jipthp.4.3.364-371
Muslichah, M., Abdullah, R., & Abdul Razak, L. (2020). The effect of halal foods awareness on purchase decision with religiosity as a moderating variable: A study among university students in Brunei Darussalam. Journal of Islamic Marketing, 11(5), 1091–1104. https://doi.org/10.1108/JIMA-09-2017-0102
Mutmainah, L. (2018). The Role of Religiosity, Halal Awareness, Halal Certification, and Food Ingredients on Purchase Intention of Halal Food. Ihtifaz: Journal of Islamic Economics, Finance, and Banking, 1(1), 33. https://doi.org/10.12928/ijiefb.v1i1.284
Ngah, A. H., Zainuddin, Y., & Thurasamy, R. (2014). Barriers and enablers in adopting Halal transportation services: A study of Malaysian Halal Manufacturers.
Nordin, D., Husain, R., Yulia, A., Basar, S. A., & Salleh, M. F. (2016). THE EFFECT OF HALAL CERTIFICATION ON FINANCIAL PERFOR- MANCE OF HALAL FOOD COMPANIES IN MALAYSIA. PROCEEDINGS OF UNISEL BESTARI RESEARCH PROJECTS (UBRP).
Perdana, F. F. P., Jan, M. T., Altunişik, R., Jaswir, I., & Kartika, B. (2018). A RESEARCH FRAMEWORK OF THE HALAL CERTIFICATION ROLE IN PURCHASE INTENTION OF MUSLIM CONSUMERS ON THE FOOD PRODUCTS FROM MUSLIM MAJORITY COUNTRIES IN THE MIDDLE EAST AND NORTH AFRICA. International Journal Of Modern Trends in Business Research, 1(2), 15–28.
Prabowo, S., Abd Rahman, A., Ab Rahman, S., & Samah, A. A. (2015). Revealing factors hindering halal certification in East Kalimantan Indonesia. Journal of Islamic Marketing, 6(2), 268–291. https://doi.org/10.1108/JIMA-05-2014-0040
Rezai, G., Mohamed, Z., & Nasir Shamsudin, M. (2012). Non‐Muslim consumers’ understanding of Halal principles in Malaysia. Journal of Islamic Marketing, 3(1), 35–46. https://doi.org/10.1108/17590831211206572
Salindal, & Akmad, N. (2019). Halal certification compliance and its effects on companies’ innovative and market performance. Journal of Islamic Marketing, 10(2), 589–605. https://doi.org/10.1108/JIMA-04-2018-0080
Santosa, C. W., Fahma, F., & Damayanti, R. W. (2022). Effect of Halal Certification on Logistic Performance and Financial Performance. Jurnal Teknik Industri, 24(2), 117–128. https://doi.org/10.9744/jti.24.2.117-128
Shariff, S. M., & Lah, N. A. A. (2014). Halal Certification on Chocolate Products: A Case Study. Procedia - Social and Behavioral Sciences, 121, 104–112. https://doi.org/10.1016/j.sbspro.2014.01.1112
Siaw, C.-L., & Rani, N. S. A. (2012). A Critical Review on the Regulatory and Legislation Challenges Faced by Halal Start-up SMEs Food Manufacturers in Malaysia. Procedia - Social and Behavioral Sciences, 57, 541–548. https://doi.org/10.1016/j.sbspro.2012.09.1222
Silalahi, S. A. F., Fachrurazi, F., & Fahham, A. M. (2022a). Factors affecting intention to adopt halal practices: Case study of Indonesian small and medium enterprises. Journal of Islamic Marketing, 13(6), 1244–1263. https://doi.org/10.1108/JIMA-05-2020-0152
Silalahi, S. A. F., Fachrurazi, F., & Fahham, A. M. (2022b). Factors affecting intention to adopt halal practices: Case study of Indonesian small and medium enterprises. Journal of Islamic Marketing, 13(6), 1244–1263. https://doi.org/10.1108/JIMA-05-2020-0152
Singh, R. K., Garg, S. K., & Deshmukh, S. G. (2008). Strategy development by SMEs for competitiveness: A review. Benchmarking: An International Journal, 15(5), 525–547. https://doi.org/10.1108/14635770810903132
Soesilawati, E. S., & Yuliana, C. I. (2013). A comparison of consumers’ behavior in Muslim majority and minority areas. Jurnal Ekonomi Dan Pembangunan, 21(2), 167–178.
Straub, D. W. (1989). Validating Instruments in MIS Research. MIS Quarteryly, 13(2), 147–169.
Talib, M., Chin, T. A., & Fischer, J. (2017). Linking halal food certification and business performance. British Food Journal, 119(7), 1606–1618.
Viverita, Kusumastuti, R. D., & Rachmawati, R. (2017). Motives and Challenges of Small Businesses for Halal Certification: The Case of Indonesia. World Journal of Social Sciences, 7(1), 136–146.
Yusuf, A. H., Shukor, S. A., & Bustamam, U. S. A. (2016). Halal Certification vs Business Growth of Food Industry in Malaysia. Journal of Economics, Business and Management, 4(3), 247–.
Zailani, S., Kanapathy, K., Iranmanesh, M., & Tieman, M. (2015). Drivers of halal orientation strategy among halal food firms. British Food Journal, 117(8), 2143–2160. https://doi.org/10.1108/BFJ-01-2015-0027
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Raisa Fitri
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Creative Commons Attribution-ShareAlike 4.0 International Public License
