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Abstract
Introduction
Halal certification is increasingly critical for Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, especially in the food and beverage sector. Despite its mandatory status under Halal Product Assurance Law, many MSMEs face challenges in achieving compliance due to limited knowledge, inadequate service support, and operational constraints.
Objectives
This study investigates the readiness of MSMEs in Magelang to implement halal certification. It analyzes the influence of knowledge, service quality, halal awareness, production processes, and human resource capabilities on MSME readiness while identifying the most significant factors affecting compliance.
Method
The research employs a quantitative cross-sectional approach, surveying 110 MSME operators in Magelang. Data were collected using structured questionnaires and analyzed using descriptive statistics, classical assumption tests, and multiple linear regression analysis.
Results
The findings reveal that knowledge, service quality, and halal awareness significantly influence MSME readiness for halal certification, with knowledge being the most dominant factor. Human resource capabilities also positively impact readiness, while production processes were found to be insignificant. The model explains 74% of the variance in readiness, emphasizing the importance of integrating these factors.
Implications
The study highlights the need for targeted educational initiatives, streamlined certification processes, and enhanced institutional support to improve MSME compliance. It provides actionable insights for policymakers, certification bodies, and MSME operators to foster a robust halal certification ecosystem.
Originality/Novelty
This research contributes to the understanding of halal certification readiness by offering a multidimensional analysis of critical factors, addressing gaps in existing literature, and proposing practical interventions to enhance MSME participation in the halal market.
Keywords
Article Details
Copyright (c) 2024 Akbar Dwikiwibowo Tuhuteru, Muhammad Iqbal
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References
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DOI: https://doi.org/10.1108/JIMA-04-2020-0095Ahmadova, E., & Aliyev, K. (2021). Determinants of attitudes towards Halal products: Empirical evidence from Azerbaijan. Journal of Islamic Marketing, 12(1), 55–69. https://doi.org/10.1108/JIMA-04-2019-0068
DOI: https://doi.org/10.1108/JIMA-04-2019-0068Ali, M. H., Zhan, Y., Alam, S. S., Tse, Y. K., & Tan, K. H. (2017). Food supply chain integrity: The need to go beyond certification. Industrial Management & Data Systems, 117(8), 1589–1611. https://doi.org/10.1108/IMDS-09-2016-0357
DOI: https://doi.org/10.1108/IMDS-09-2016-0357Alim, M. N., Yuliana, R., Sayidah, N., Alyana, N., J.M., P. N., & Q.L, R. (2024). The contributions and challenges of higher education on the value chain of Halal certification. BIO Web of Conferences, 146, 01001. https://doi.org/10.1051/bioconf/202414601001
DOI: https://doi.org/10.1051/bioconf/202414601001Al-Mahmood, O. A., & Fraser, A. M. (2023). Perceived challenges in implementing halal standards by halal certifying bodies in the United States. PLOS ONE, 18(8), e0290774. https://doi.org/10.1371/journal.pone.0290774
DOI: https://doi.org/10.1371/journal.pone.0290774A’yun, F. Q. (2023). Pengaruh pengetahuan, prospek bisnis dan kesadaran halal terhadap kepatuhan sertifikasi halal pengusaha kuliner Kecamatan Paciran Lamongan [The influence of knowledge, business prospects and halal awareness on halal certification compliance of culinary entrepreneurs in Paciran Lamongan District] [Bachelor’s thesis, Universitas Islam Malang]. http://repository.unisma.ac.id/handle/123456789/7505
De Boni, A., & Forleo, M. B. (2019). Italian halal food market development: Drivers and obstacles from experts’ opinions. Journal of Islamic Marketing, 10(4), 1245–1271. https://doi.org/10.1108/JIMA-05-2018-0087
DOI: https://doi.org/10.1108/JIMA-05-2018-0087Faishal, M., Mohamad, E., Asih, H. M., Rahman, A. A. A., Irawan, F., Adiyanto, O., & Linarti, U. (2024). Investigating factors of the purchase intention of slaughterhouses for Halal Certification in Yogyakarta, Indonesia. Multidisciplinary Science Journal, 6(12), 2024266. https://doi.org/10.31893/multiscience.2024266
DOI: https://doi.org/10.31893/multiscience.2024266Giyanti, I., Indrasari, A., Sutopo, W., & Liquiddanu, E. (2020). Measurement model of halal practice readiness among food manufacturing small medium enterprises. AIP Conference Proceedings, 2217(1), 030087. https://doi.org/10.1063/5.0000669
DOI: https://doi.org/10.1063/5.0000669Gojali, D., & Asih, V. S. (2020). Determinant factors of Indonesian muslim behavior in choosing halal products. Innovative Marketing, 16(4), 155–163. https://doi.org/10.21511/im.16(4).2020.14
DOI: https://doi.org/10.21511/im.16(4).2020.14Haleem, A., Khan, M. I., & Khan, S. (2019). Halal certification, the inadequacy of its adoption, modelling and strategising the efforts. Journal of Islamic Marketing, 11(2), 384–404. https://doi.org/10.1108/JIMA-05-2017-0062
DOI: https://doi.org/10.1108/JIMA-05-2017-0062Handani, N. D., & Kim, H.-S. (2023). Unlocking Customer Satisfaction of Halal Restaurant in South Korea through Online Review Analysis. Environment and Social Psychology, 7(2), 19–37. https://doi.org/10.18063/esp.v7.i2.1501
DOI: https://doi.org/10.18063/esp.v7.i2.1501Hanifasari, D., Masudin, I., Zulfikarijah, F., Rumijati, A., & Restuputri, D. P. (2024). Millennial generation awareness of Halal supply chain knowledge toward purchase intention for Halal meat products: Empirical evidence in Indonesia. Journal of Islamic Marketing, 15(7), 1847–1885. https://doi.org/10.1108/JIMA-01-2023-0012
DOI: https://doi.org/10.1108/JIMA-01-2023-0012Harbit, A. A., & Syafrida, I. (2022). Faktor-faktor yang mempengaruhi minat pelaku usaha untuk mengajukan sertifikasi halal produk UMKM di Kota Balikpapan [Factors affecting the interest of business actors to apply for halal certification of MSME products in Balikpapan City]. Seminar Nasional Akuntansi Dan Manajemen PNJ, 3(Desember), SNAM 2203147. https://prosiding-old.pnj.ac.id/index.php/snampnj/article/view/5818
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