Objective: This study aims to examine the effect of halal awareness and human resource practices on MSME performance, with innovative work behavior as a mediating variable and regulation as a moderating variable in halal-certified food and beverage MSMEs in East Java. Method: This study used a quantitative approach with a survey method. Data were collected through structured questionnaires distributed to 384 halal-certified food and beverage MSME actors in Surabaya, Gresik, and Sidoarjo. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS. Results: The findings show that halal awareness and human resource practices have positive and significant effects on MSME performance and innovative work behavior. Innovative work behavior also has a positive and significant effect on MSME performance and mediates the relationship between halal awareness, human resource practices, and MSME performance. In addition, regulation strengthens the effect of halal awareness and human resource practices on MSME performance. Novelty: This study offers a comprehensive model by integrating halal awareness, human resource practices, innovative work behavior, and regulation in explaining MSME performance. The novelty lies in positioning innovative work behavior as a transformation mechanism and regulation as an external strengthening factor in halal-certified MSMEs.
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