Awareness and intention to register halal certification of micro and small-scale food enterprises.

Hirawati Oemar,Anis Septiani,Endang Prasetyaningsih,Djamaludin Djamaludin,Siti Zakiah Abu Bakar

doi:10.12688/f1000research.75968.1

Hirawati Oemar, Anis Septiani + Show 3 more

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https://doi.org/10.12688/f1000research.75968.1

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Abstract

Background: This paper discusses halal awareness of food micro and small-scale enterprises (food MSEs) in West Java Province, Indonesia. Halal awareness is the first step toward obtaining halal certificates, which confirm that the product is lawful according to Islamic Sharia. Unfortunately, most of the food sold on the market do not have halal certificates due to a lack of halal awareness and intention on the part of the entrepreneurs. Methods: This study aims at measuring the level of halal awareness and the intention of food MSE entrepreneurs to register halal certification. Halal awareness is assumed to be influenced by knowledge of halal and MSEs' entrepreneurial perceptions of the benefits of halal certificates. Furthermore, halal awareness, attitudes, and perceptions of ease of procedures will encourage the intention to register halal certification. An electronic Google Form with a cover letter and a set of questionnaires was distributed to collect data. Structural Equation Modelling - Partial Least Square (SEM-PLS) was chosen to evaluate the adopted theoretical models in the exploratory research. Results: The results show that halal awareness is influenced by knowledge of halal and perceptions of benefits. Moreover, halal awareness influences positively the intention to obtain a halal certificate, but the intention is not significantly affected by attitudes and perceptions of procedures for obtaining halal certification. This shows that halal awareness will increase the intention to register halal certification. However, it does not impact attitudes/actions to register for halal certification due to the misconceptions about the procedures for obtaining halal certificates. Conclusions: Micro and small entrepreneurs in West Java Province, Indonesia have a good level of awareness about halal food. However, their products are not halal-certified due to the perceptions of the procedures for obtaining halal certificates, which are relatively complicated and costly for micro and small-scale businesses.

Highlights

The halal industry is a fast-growing market globally with a growth rate of 20% per year due to the average growth of the global Muslim population of 1.8%.1 There are approximately 1.6 billion Muslims in the world's population, who live in over 100 countries, and this figure is expected to rise to 2.2 billion by 2030.2The globalization of the halal industry provides an opportunity for local micro and small-scale enterprises (MSEs) to sell halal products
Referring to Giyanti and Indriastiningsih,[14] Waluyo,[19] and Lee and Shin,[37] and the Planned Behavior Theory,[32] this study identifies that the variables are knowledge of halal (KH), perception of benefits (PB), perception of procedures (PP), halal awareness (HA), attitude to produce halal product (AHC) and intention to register a halal certificate
It can be concluded that micro and small entrepreneurs in West Java Province, Indonesia have a good level of awareness about halal food even though they do not have a halal certificate

Summary

Introduction

The halal industry is a fast-growing market globally with a growth rate of 20% per year due to the average growth of the global Muslim population of 1.8%.1 There are approximately 1.6 billion Muslims in the world's population, who live in over 100 countries, and this figure is expected to rise to 2.2 billion by 2030.2The globalization of the halal industry provides an opportunity for local micro and small-scale enterprises (MSEs) to sell halal products. This paper discusses halal awareness of food micro and small-scale enterprises (food MSEs) in West Java Province, Indonesia. Methods: This study aims at measuring the level of halal awareness and the intention of food MSE entrepreneurs to register halal certification. Halal awareness influences positively the intention to obtain a halal certificate, but the intention is not significantly affected by attitudes and perceptions of procedures for obtaining halal certification. Conclusions: Micro and small entrepreneurs in West Java Province, Indonesia have a good level of awareness about halal food. Their products are not halal-certified due to the perceptions of the version 1

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