A Study of Integration of Operational Strategy and Competitive Priorities for Halal Food Industry in Malaysia

Abstract

Halal products in Malaysia are essential element for consumption in Muslims society but the trend living in multiple religion and ethic (Non-Muslim) allow to buy usual food with ‘Halal’ product. Muslim customers today have paid more attention to their foods in respect to the word ‘halal’. Therefore, the purpose of this article is to examine the influence of operational strategies and competitive priorities on performance of Halal food industry in Malaysia. The structure presented the first step towards a more systematic and theoretical approach to understanding the halal food industry in Malaysia. A total number of 242 questionnaires were derived as the sample size via Krejice and Mogan (1970) method. Furthermore, 185 questionnaires were completed and returned representing 76.5% of the total questionnaire distribution to both managers and owners of Halal food business in Kuala Lumpur and its environs. Out of which, only 164 questionnaires were usable for the analysis after data screening. Partial Least Square-Structural Equation Modelling (PLS-SEM) was used to analyse as a popularly accepted model to justify the theory with the observation data. Results have shown that production quality and cost; food certification and packaging honesty; government support; and intensity of entrepreneur, have a positive effect on performance of Halal food industry in Malaysia. This result of the study will benefit decision makers and food companies consider the external and internal generators in aspect of competitive priorities and operational strategy, which will effectively encourage the introduction of halal food industry in Malaysia. In addition, future research may also examine the effects on the Malaysian Halal Food Industry on the integration of the operational strategy and the strategic goals 'before and after Halal Certification.