Exploring the Dynamic of Halal Food Certification Adoption: Necessity or Opportunity?

Retty Ikawati, Boyke R Purnomo

Abstract


As the largest Muslim population in the world, Indonesia has become a prospective landscape in the development of the halal gastronomic industry. Halal food certification is not only promising sharia safety for Muslim consumers but also increases the competitiveness of the producers. Despite suggesting various benefits, the adoption rate of halal food certification in Indonesia is still very low, around 10 percent. Moreover, the literature also discusses little how food manufacturers adopt halal accreditation. This paper aims to explore the dynamics of the adoption process of halal food certification. To fulfill this objective, a mixed-method approach is used. Initially, the researchers conducted a survey to forty-eight Yogyakarta-based SMEs to identify their entrepreneurial orientation and intention to adopt halal food certification, then it continued with in-depth interviews with eight informants to explore the motives and patterns of the adoption of halal certification. This study found that entrepreneurial motives are in line with the mode of adoption of halal certification. Moreover, the decision to apply for halal assurance certification was directed by a necessity reason. The study also concludes that underlying assumptions of SMEs related to administrative readiness, financial support, and limited access to information are becoming critical issues for the decision to apply for a halal certificate.

Keywords


Halal certification, Halal food, Necessity Entrepreneurship, Opportunity Entrepreneurship

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References


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