Applying the TOE framework in the Halal warehouse adoption study

Abstract

PurposeThis study aims to identify the contributing factors to the adoption of Halal warehousing services among Malaysia Halal manufacturers.Design/methodology/approachA survey, based on the technology, organization and environment (TOE) framework, was distributed to 200 participants at the Malaysia International Halal Showcase 2013. Of these, 140 responses were complete, and the data were analyzed using structural equation modelling approach and SMART-PLS 2.0 software.FindingsPerceived benefits, cost, customer pressure and organizational readiness were found to have a significant relationship with Halal manufacturers’ intention to adopt Halal warehousing services. Perceived benefits, customer pressure and organizational readiness were the drivers of adoption, and cost was a barrier.Research limitations/implicationsThis paper examines the factors affecting Malaysian Halal manufacturers’ intention to adopt Halal warehousing services in three industries, food, pharmaceuticals and cosmetics.Practical implicationsThe results provide insights into the adoption of Halal warehousing among Malaysian Halal manufacturers. The government, Halal warehouse service providers and customers may use these findings to expand the adoption of Halal warehouse services.Originality/valueAdopting the TOE framework, this study investigates and develops a model for Halal warehouse adoption. The results indicate that the variables from the TOE framework have a significant relationship with the adoption of Halal warehousing activities.