Al-Ulum
Vol. 24 No. 1 (2024): Al-Ulum

Halal Certification for MSMEs: what Drives the Interest of MSMES in Indonesia and Malaysia?

Suryaningsih, Sri Abidah (Unknown)
Indrarini, Rachma (Unknown)
Nurafini, Fira (Unknown)
Munir, Maryam Bte Badrul (Unknown)
Binti Zakaria, Zalina (Unknown)
Nurillah, Shinta Lintang (Unknown)



Article Info

Publish Date
01 Jun 2024

Abstract

This study explores the factors influencing interest in halal certification, focusing on certification fees, government involvement, and the certification process, particularly for halal MSMEs (Micro, Small, and Medium Enterprises). A survey of 65 respondents from businesses in Indonesia and Malaysia was analyzed using Smart PLS 3.0, a tool for Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that certification fees (p-value = 0.226) and government involvement (p-value = 0.966) do not significantly affect interest, while the certification process (p-value = 0.009) has a significant impact. These findings suggest that simplifying the certification procedure could increase participation, especially for MSMEs facing challenges related to cost and understanding the process. The study’s practical implication is that certification bodies should prioritize simplifying the process to encourage more MSMEs to pursue halal certification. This research provides valuable insights for academic research, industry practices, and MSME empowerment.

Copyrights © 2024






Journal Info

Abbrev

au

Publisher

Subject

Religion Economics, Econometrics & Finance

Description

Al-Ulum adalah jurnal yang terbit berkala pada bulan Juni dan Desember, ditelaah dan direview oleh para ahli dalam bidangnya, diterbitkan oleh lembaga Penelitian dan Pengabdian pada Masyarakat Institut Agama Islam Negeri (IAIN) Sultan Amai Gorontalo, Indonesia ISSN 1412-0534 E-ISSN 2442-8213 Al-Ulum ...