Halal standards practices in the food industry: The impact of halal assurance and operations

Baharudin Othman and Nurul Hudani Md Nawi (2025) Halal standards practices in the food industry: The impact of halal assurance and operations. Journal of Islamic Marketing, 16. pp. 1469-1492. ISSN 1759-0833

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Abstract

Purpose The purpose of this study is to examine the effect of halal standards practices towards organizational performance. Additionally, the moderating role of organizational size on this association is explored for Malaysian halal industry so that the halal management practice in the future is expected to run well. Design/methodology/approach Regression analyses technique via Statistical Package for Social Science 27.0 is used to analyses the results of a self-administered questionnaire completed by 241 internal halal committee officers of multinational corporations and small and medium enterprises (SMEs) in Malaysia. Findings The results showed that halal standards practices give an effect that indicates 13.2% of the performance. In more detail, it only demonstrates the significant contribution of the halal assurance predictor to organizational performance compared to the halal operations (HOs) predictor. Additionally, organizational size also acts as a moderator between the relationships between halal standard practices (HO) and organizational performance. Besides, the study findings also show that there was a significant difference in organizational performance for multinationals and SMEs. This encouraging outcome is the result of organizational performance is influenced by a chain that interacts with each other starting from input, which then translates into process and ultimately results that are also supported by internal control of the organization for Malaysian halal industry. Research limitations/implications This study only focused on the Malaysian halal industry such as certain number of factors and limited measurement was used in this study. Only a few halal standards practices and organization performance measurements were considered. Practical implications Halal food producers should engender greater commitment to Halal standard practice involving acts, standards, regulations and guidelines that can be used to comply halal requirements needed by halal certification bodies especially halal committee members to control internally. It also serves as a valuable resource for policymakers and practitioners aiming to identify effective practices for comprehensive halal standards management to enhance organizational performance, particularly for micro-scale enterprises within the Malaysian halal industry. Originality/value This study considerably advances the existing body of knowledge by applying standard halal practices model to explain their relationship, with organization size serving as a moderating to variable and provide direction for researchers in subsequent studies. They also offer valuable insights for practitioners seeking to continually enhance organizational performance through the implementation of effective halal standards management practices within the Malaysian halal industry.

Item Type:	Article
Keyword:	Organizational size, Halal standard practices, Organizational performance, Malaysia food halal industry
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28-9999 Industries. Land use. Labor > HD9000-9999 Special industries and trades > HD9000-9495 Agricultural industries H Social Sciences > HF Commerce > HF1-6182 Commerce > HF5001-6182 Business > HF5410-5417.5 Marketing. Distribution of products
Department:	FACULTY > Faculty of Psychology and Social Work
Depositing User:	SITI AZIZAH BINTI IDRIS -
Date Deposited:	05 Aug 2025 09:48
Last Modified:	05 Aug 2025 09:48
URI:	https://eprints.ums.edu.my/id/eprint/44748

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