Prioritizing important factors for the successful of halal food standard practice in Small Medium Enterprises

Abstract

The purpose of this research is to prioritize the factors that is important for the successful of halal food standard practice in food manufacturing small medium enterprises (SMEs). This study employed a non-probability convenience sampling method for collecting data. The main instrument for data collection is using a structured questionnaire. The respondents of this research is halal-certified SMEs in Solo Raya. A partial least square structural equation model (SEM-PLS) was applied to test the proposed structural model. Subsequently, the importance-performance map analysis (IPMA) was performed to prioritize the critical success factors that need special attention by SMEs’ managers intending to adopt halal standard in their daily food production. Finding of this research revealed that employee involvement has a positive and significance impact to the halal food standard practices in food SMEs. Another factors, namely management support and customer focus have also a positive impact but not statistically significant. Findings from IPMA indicate that SMEs should focus on the employee involvement. The findings of this study are beneficial not only for SME’s manager but also for government institution responsible to the development of SMEs.