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

Abstract

Background: This paper discusses halal awareness of MSE food producers 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, despite Islam being the religion of most Indonesians, most food sold in the market lacks a halal certificate due to a lack of awareness among food producers about the importance of selling halal-certified foods. Methods: This study aims at measuring the level of halal awareness and the intention of MSE food producers to register halal certification. Halal awareness is assumed to be influenced by knowledge of halal and the food producers’ perception of the benefits of halal certificates. Furthermore, halal awareness, attitudes, and perception of the 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. Partial Least Square - Structural Equation Modelling (PLS-SEM) 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 perception of its benefits. Moreover, halal awareness influences positively the intention to obtain a halal certificate, but the intention is not significantly affected by attitudes to produce halal foods and perception of procedures for obtaining halal certification. This shows that halal awareness will increase the intention to register halal certification. However, misconceptions about the procedures for obtaining halal certificates keep them from registering. Conclusions: MSE food producers in West Java Province, Indonesia have a good level of awareness about halal food. However, their products are not halal-certified due to the perception of the procedures for obtaining halal certificates are relatively complicated and costly for them.