ADOPTION OF HALAL STANDARD IN MALAYSIAN FOOD INDUSTRY: A CASE OF SMALL AND MEDIUM ENTERPRISES
Keywords:
Halal, Small and Medium Enterprises, Exploratory Factor Analysis
Abstract
The Halal industry has now expanded well beyond the food sector, further widening the economic potentials for Halal products. However, most of the SMEs are still reluctant to apply Halal standard (HS) and not seriously picture significance the power of Halal to gain competitive in the market. Thus, the aim of this study is to identify and analyse the adoption factors that motivate food manufacturers to adopt HS. A total 183 food manufactures certified by Halal take the survey of the study. The survey data were recorded using 5-points questionnaire. By conducting exploratory factor analysis, the findings yield that compatibility and perceived benefits are two factors grouped by technological factor. Halal integrity, Halal awareness, top management support, expected business benefits, understanding the practices and organisation readiness are six factors grouped by organisational factor. Lastly, Halal market demand, consumer pressure, competitive pressure and government support are four factors grouped by environmental factors. The paper includes implications for the halal food industry, whereby the adoption of HS will contribute to the business benefits to create a more competitive advantage to the industry.
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References
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[5] A. Haleem, M. I. Khan, S. Khan, and A. H. Ngah, “Assessing barriers to adopting and implementing halal practices in logistics operations”, IOP Conference Series: Materials Science and Engineering, vol. 404, pp. 1–7, 2018.
[6] M. Iskandar, I. Tan, R. N. Razali, and Z. J. Husny, “The adoption of halal transportations technologies for halal logistics service providers in Malaysia”, World Academy of Science, Engineering and Technology, vol. 6, no. 3, pp. 737-744.
[7] A. H. Ngah, Y. Zainuddin, and R. Thurasamy, “Barriers and enablers in adopting halal transportation services: A study of Malaysian halal manufacturers”, International Journal of Business and Management, vol. 2, no. 2, pp. 49–70, 2014.
[8] Y. Fernando, H. H. Ng, and T. Walters, “Regulatory incentives as a moderator of determinants for the adoption of Malaysian food safety system”, British Food Journal, vol. 117, no. 4, pp. 1336–1353, 2015.
[9] H. A. Tarmizi, N. H. Kamarulzaman, I. A. Latiff, and A. A. Rahman, “Factors behind third-party logistics providers readiness towards halal logistics”, International Journal of Supply Chain Management, vol. 3, no. 2, pp. 53–62, 2014.
[10] S. Z. S. Marzuki, C. M. Hall, and P. W. Ballantine, “Restaurant managers’ perspectives on halal certification”, Journal of Islamic Marketing, vol. 3, no. 1, pp. 47–58, 2012.
[11] S. Shah Alam and N. Mohamed Sayuti, “Applying the theory of planned behavior (TPB) in halal food purchasing”, International Journal of Commerce and Management, vol. 21, no. 1, pp. 8–20, 2011.
[12] S. Zailani, K. Kanapathy, M. Iranmanesh, and M. Tieman, “Drivers of halal orientation strategy among halal food firms”, British Food Journal, vol. 117, no. 8, pp. 2143–2160, 2015.
[13] C. B. Dobni, “Measuring innovation culture in organizations: The development of a generalized innovation culture construct using exploratory factor analysis”, European Journal of Innovation Management, vol. 11, no. 4, pp. 539–559, 2008.
[14] B. Williams, A. Onsman, and T. Brown, “Exploratory factor analysis: A five-step guide for novices”, Australasian Journal of Paramedicine, vol. 8, no. 3, pp. 1–13, 2010.
[15] J. F. Hair, R. E. Anderson, R. L. Tatham, and W. C. Black, Multivariate Data Analyses with Readings. Englewood Cliffs, NJ: Pearson Education, 1995.
[16] B. G. Tabachnick and L. S. Fidell, Using Multivariate Statistics. Hudson Street, NY: Pearson Education, 2007.
[17] R. Bagozzi, Principles of Marketing Research. Malden, MA: Blackwell Business, 1994.
[18] R. K. Henson and J. K. Roberts, “Use of exploratory factor analysis in published research common errors and some comment on improved practice”, Educational and Psychological Measurement, vol. 66, no. 3, pp. 393–416, 2006.
[19] B. Thompson, Exploratory and Confirmatory Factor Analysis: Understanding Concepts and Applications. Washington, DC: American Psychological Association, 2004.
[20] S. Karamizadeh, S. M. Abdullah, A. A. Manaf, M. Zamani, and A. Hooman, “An overview of principal component analysis”, Journal of Signal and Information Processing, vol. 4, no. 3, pp. 173–175, 2013.
[21] M. A. Pett, N. R. Nancy, R. Lackey, and J. J. Sullivan, Making Sense of Factor Analysis : The Use of Factor Analysis for Instrument Development in Health Care Research. Thousand Oaks, CA: Sage Publications, 2003.
[22] A. B. Costello and J. W. Osborne, “Best practices in exploratory factor analysis: four recommendations for getting the most from your analysis”, Practical Assessment, Research and Evaluation, vol. 10, no. 7, pp. 1-9, 2005.
Published
2019-12-31
How to Cite
Azmi, F., Abdullah, A., Yahaya, S., Woźniak, M., & Purnomo, M. (2019). ADOPTION OF HALAL STANDARD IN MALAYSIAN FOOD INDUSTRY: A CASE OF SMALL AND MEDIUM ENTERPRISES. Journal of Advanced Manufacturing Technology (JAMT), 13(3). Retrieved from https://jamt.utem.edu.my/jamt/article/view/5736
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