Effect of SME Food Entrepreneurs Knowledge on Halal Certification for Certified Awareness using Partial Least Square
DOI:
https://doi.org/10.22219/JTIUMM.Vol20.No2.140-151Keywords:
Partial Least Squares (PLS), Halal Certification, Structural Equation Model (SEM), Small Medium Enterprise (SME)Abstract
This study aims to predict the impact of the understanding of halal certification by Small Medium Enterprise (SME) entrepreneurs to conduct halal certification. This study was conducted in SMEs in Surakarta, Indonesia. The Halal Certification Comprehension Rate was assessed using three variables. We used knowledge of halal (PGT), perceived halal certification advantages (MNF), and perceived halal certification procedures (PROS). Structural Equation Model-Partial Least Squares (SEM-PLS) was used for data analysis. The results show that SMEs have a good knowledge of halal and agree that halal certification is beneficial to their businesses. We found, though, that the processes for handling Halal Certification are relatively complex. Based on the study, the perception of Halal Certification Benefits (MNF) is significantly affected by the intention of SMEs to conduct Halal Certification (NHL). The other two results show a positive correlation. However, they are not statistically significant.
Downloads
References
S. Cooper. (2017, 20 August). Global Halal Food Market Size, Share, 2014-2024 | Industry Report,” Halal Food Market Size and Forecast, By Application (Processed Food & Beverages, Bakery Products and Confectionary), and Trend Analysis, 2014 - 2024, 2017. Available: https://www.hexaresearch.com/research-report/global-halal-food-market
I. Giyanti and E. Indriastiningsih, "Pemetaan UKM Kuliner Kota Surakarta Berdasarkan Status Sertifikasi Halal," Jurnal Teknologi, vol. 11, pp. 87-91, 2018. https://doi.org/10.1108/JIMA-04-2014-0033.
Y. A. Aziz and N. V. Chok, "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, vol. 25, pp. 1-23, 2013. https://doi.org/10.1080/08974438.2013.723997.
A. Haque, A. Sarwar, F. Yasmin, A. K. Tarofder, and M. A. Hossain, "Non-Muslim consumers’ perception toward purchasing halal food products in Malaysia," Journal of Islamic Marketing, vol. 6, pp. 133-147, 2015. https://doi.org/10.1108/JIMA-04-2014-0033.
R. Golnaz, M. Zainalabidin, S. Mad Nasir, and F. Eddie Chiew, "Non-Muslims’ awareness of Halal principles and related food products in Malaysia," International Food Research Journal, vol. 17, pp. 667-674, 2010.
G. Rezai, Z. Mohamed, and M. Nasir Shamsudin, "Non-Muslim consumers' understanding of Halal principles in Malaysia," Journal of Islamic Marketing, vol. 3, pp. 35-46, 2012. https://doi.org/10.1108/17590831211206572.
V. N. Mathew, "Acceptance on halal food among non-Muslim consumers," Procedia-Social and Behavioral Sciences, vol. 121, pp. 262-271, 2014. https://doi.org/10.1016/j.sbspro.2014.01.1127.
F. Ismail and K. B. Nasiruddin, "Perception of Non-Muslim consumers towards Halal products in Malaysia," International Journal of Accounting and Business Management, vol. 2, pp. 128-133, 2014.
M. W. Wibowo and F. S. Ahmad, "Non-Muslim consumers’ halal food product acceptance model," Procedia Economics and Finance, vol. 37, pp. 276-283, 2016. https://doi.org/10.1016/S2212-5671(16)30125-3.
F. R. Azmi, H. Musa, H. Sihombing, and F. S. Fen, "Adoption factors of halal standards: The Malaysian perspectives," in Proceedings of the 3rd International Halal Conference (INHAC 2016), 2018, pp. 315-329. https://doi.org/10.1007/978-981-10-7257-4_29.
S. Zailani, K. Kanapathy, M. Iranmanesh, and M. Tieman, "Drivers of halal orientation strategy among halal food firms," British Food Journal, vol. 117, pp. 2143-2160, 2015. https://doi.org/10.1108/BFJ-01-2015-0027.
T. Maryati, R. Syarief, and R. Hasbullah, "Analisis Faktor Kendala dalam PengajuanSertifikat Halal.(Studi Kasus: Pelaku Usaha Mikro, Kecil dan Menengah Makanan Beku diJabodetabek)," Jurnal Ilmu Produksi dan Teknologi Peternakan, vol. 4, pp. 364-371, 2016. https://doi.org/10.29244/jipthp.4.3.364-371.
S. Prabowo, A. Abd Rahman, S. Ab Rahman, and A. A. Samah, "Revealing factors hindering halal certification in East Kalimantan Indonesia," Journal of Islamic Marketing, vol. 6, pp. 268-291, 2015. https://doi.org/10.1108/JIMA-05-2014-0040.
R. D. Kusumastuti and R. Rachmawati, "Motives and challenges of small businesses for halal certification: the case of Indonesia," World Journal of Social Sciences, vol. 7, pp. 136-146, 2017.
C.-L. Siaw and N. S. A. Rani, "A critical review on the regulatory and legislation challenges faced by halal start-up SMEs food manufacturers in Malaysia," Procedia-Social and Behavioral Sciences, vol. 57, pp. 541-548, 2012. https://doi.org/10.1016/j.sbspro.2012.09.1222.
M. S. Ab Talib, "Motivations and benefits of halal food safety certification," Journal of Islamic Marketing, vol. 8, pp. 605-624, 2017. https://doi.org/10.1108/JIMA-08-2015-0063.
M. S. Ab Talib, S. S. Md. Sawari, A. B. Abdul Hamid, and T. Ai Chin, "Emerging Halal food market: an Institutional Theory of Halal certificate implementation," Management Research Review, vol. 39, pp. 987-997, 2016. https://doi.org/10.1108/MRR-06-2015-0147.
W. Waluyo, "Pengaruh Pemahaman Agama, Motivasi Mendapatkan Profit Dan Tingkat Pendidikan Terhadap Kesadaran Sertifikasi Halal Bagi Produsen Makanan Di Kabupaten Sleman Dan Bantul," INFERENSI: Jurnal Penelitian Sosial Keagamaan, vol. 7, pp. 75-98, 2013. http://dx.doi.org/10.18326/infsl3.v7i1.75-98.
A. Rafiki and K. A. Wahab, "Influences of Islamic Practices on Small Firm Performance: A Study in North Sumatera, Indonesia," Islamic Management and Business, vol. 5, pp. 64-82, 2013.
M. Abdul, H. Ismail, and M. Mustapha, "Halal food certification: case of Malaysian SME entrepreneurs," China-USA Business Review, vol. 12, 2013.
P. R. Tahir, J. Hanaysha, and M. Sultana, "Level of success of halal small and medium entrepreneurs in Malaysia," Asian Journal of Scientific Research, vol. 9, pp. 214-218, 2016.
A. H. Ngah, Y. Zainuddin, and R. Thurasamy, "Modelling of Halal Warehouse Adoption Using Partial Least Squares (PLS)," Selangor Business Review (SBR), vol. 1, 2014.
LPPOM-MUI, "Panduan Umum Sistem Jaminan Halal LPPOM–MUI," ed: LPPOM-MUI 2008.
R. E. A. J. F. Hair, R. L. Tatham, and W. C. Black, Multivariate Data Analysis, 5 ed. Engelwood Cliffs: Prentice-Hall, 1998.
R. Indriartiningtias, "Validasi Model Transfer Pengetahuan Dari Perguruan Tinggi Ke Industri Kecil," Jurnal Teknik Industri, vol. 12, pp. 118-125, 2012. https://doi.org/10.22219/JTIUMM.Vol12.No2.118-125.
N. U. Handayani, H. Santoso, and A. I. Pratama, "Faktor-Faktor yang memengaruhi Peningkatan Daya Saing Klaster Mebel di Kabupaten Jepara," Jurnal teknik industri, vol. 13, pp. 22-30, 2012. https://doi.org/10.22219/JTIUMM.Vol13.No1.22-30.
W. W. Chin, "How to write up and report PLS analyses," in Handbook of partial least squares, ed: Springer, 2010, pp. 655-690.
M. Simanjuntak and M. M. Dewantara, "The Effects of Knowledge, Religiosity Value, and Attitude on Halal Label Reading Behavior of Undergraduate Students."
A. C. L. Ardial, "Pemahaman Pengusaha Bisnis Kuliner Terhadap Sertifikasi Halal Majelis Ulama Indonesia (MUI) Dalam Produk Makanan Di Yogyakarta," UIN Sunan Kalijaga, Yogyakarta, 2017.
M. S. Ab Talib, A. B. Abdul Hamid, and T. Ai Chin, "Motivations and limitations in implementing Halal food certification: a Pareto analysis," British Food Journal, vol. 117, pp. 2664-2705, 2015. https://doi.org/10.1108/BFJ-02-2015-0055.
N. M. Tawil, S. Ramlee, J. Jaafar, and F. M. Saat, "An overview of foodpreneur awareness among small and medium-sized enterprises (SME) of halal certification," Asian Social Science, vol. 11, p. 91, 2015. https://doi.org/10.5539/ass.v11n21p91.
M. S. Ab Talib, T. Ai Chin, and J. Fischer, "Linking Halal food certification and business performance," British Food Journal, vol. 119, pp. 1606-1618, 2017. https://doi.org/10.1108/BFJ-01-2017-0019.
A. H. Yusuf, S. Abdul Shukor, and U. Ahmad Bustamam, "Halal certification vs business growth of food industry in Malaysia," Journal of Economics, Business and Management, vol. 4, pp. 247-251, 2016. https://doi.org/10.7763/JOEBM.2016.V4.399.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2019 Ida Giyanti, Erna Indriastiningsih
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
