Journal of Digital Marketing and Halal Industry
Vol 5, No 1 (2023)

Determinants of Micro and Small Enterprise’s Interest to Participate in Self-Declare Halal Certification

Khaerud Dawam (Institut Agama Islam Tazkia)
Sugiyarti Fatma Laela ((Scopus ID 57202717799) Institut Agama Islam Tazkia)
Nur Hendrasto (Institut Agama Islam Tazkia)
Hafiz Mudassir Rehman ((Scopus ID 57221933646) University of Johannesburg)
M. Kabir Hasan ((Scopus ID 58076530500) University of New Orleans)



Article Info

Publish Date
30 Jul 2023

Abstract

The Micro and Small Enterprises (MSEs) market share is expected to increase with the halal certification of their products and services. However, MSEs have limited resources. In response, the Government introduced a self-declare halal certification program in 2022. From the total number of MSEs, which reached 8.7 million units as of March 2023, only about 79 thousand have self-declare halal certificates. Therefore, this study aims to analyze internal and external factors that influence the interest of  MSEs towards halal certification through a self-declare scheme. The study involves 86 MSEs respondents from Bogor, West Java. Using Partially Least Square (PLS) with a second-order approach. The findings reveal that internal factors marginally affect MSE's interest to pursue self-declare halal certification. The three strongest indicators of internal factors are: (1) improving human resource performance, (2) increasing efficiency and financial returns, and (3) awareness of religiosity. Interestingly, external factors do not influence the interest of MSEs to obtain self-declare halal certification, except for government policy, which significantly impact the intention in the first-order test. The main implication of this research is the importance of more substantial government support to help MSEs obtaining halal certification such as socialization, training as well as mentoring Halal Self Declare Certification at an affordable cost.

Copyrights © 2023






Journal Info

Abbrev

JDMHI

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Digital Marketing and Halal Industry is a scientific journal in the field of Digital Marketing, consumer behavior, marketing research, integrated marketing, internet marketing, e-commerce, persuasive strategies, relationship marketing, marketing and business ethics, distribution ...