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Article
Publication date: 22 January 2021

Sahat Aditua Fandhitya Silalahi, Fachrurazi Fachrurazi and Achmad Muchaddam Fahham

This study aims to investigate the effect of religiosity, government support, consumer demand, the expectation for higher revenue and competition intensity on Indonesian small and…

Abstract

Purpose

This study aims to investigate the effect of religiosity, government support, consumer demand, the expectation for higher revenue and competition intensity on Indonesian small and medium-sized enterprises’ (SMEs) intention to adopt halal practices.

Design/methodology/approach

This study used a quantitative approach and surveyed 228 SME owners through electronic media and direct contact. The study then applied the structural equation modeling to evaluate the relationship between constructs. This study also conducted some modifications on the hypotheses structured to obtain the best model.

Findings

This study found that religiosity, government support and expectation for higher revenue have positive and significant effects on SMEs’ intention to adopt halal practices; conversely, consumer demand and competition intensity do not have significant effects.

Originality/value

While in Indonesia, many studies have been conducted on consumers as subjects concerning halal awareness and they revealed a positive effect on the intention to consume the products, still, to the best of the authors’ knowledge, there are no studies targeting producers, especially SMEs, as the research subjects. This study had fulfilled some gaps on contributing factors that encourage the adoption of halal practices on the producers’ side, especially on SMEs. Therefore, this study provided insights into how to bridge the producers’ and consumers’ interests regarding halal fulfillment. The findings also provided input on the policy formulation at the early stage of halal policy implementation.

Details

Journal of Islamic Marketing, vol. 13 no. 6
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 5 August 2022

Fachrurazi Fachrurazi, Sahat Aditua Fandhitya Silalahi, Hariyadi Hariyadi and Achmad Muchaddam Fahham

This present study aims to investigate the effect of electronic word of mouth (e-WoM) behavior in Muslim social media on building a halal brand image (HBI) and its influence on…

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Abstract

Purpose

This present study aims to investigate the effect of electronic word of mouth (e-WoM) behavior in Muslim social media on building a halal brand image (HBI) and its influence on purchase intention (PI). Also, Muslims’ altruism (ALT) and moral obligation (MO) were hypothesized as motivators to engage in e-WoM behavior.

Design/methodology/approach

A survey involving 320 members of a Muslim halal forum was conducted. Further, structural equation modeling was used to assess the proposed hypotheses.

Findings

It is found that ALT and MO positively influence e-WoM behavior. Furthermore, E-WoM also significantly affects HBI and PI. Meanwhile, HBI has a positive effect on PI.

Practical implications

Indonesian halal marketers face difficulties developing a halal image as a critical differentiator, mainly due to the upsurging number of halal certifications and the consumer’s perception that all products available in the market are halal. This present study offers an alternative strategy for Indonesian marketers to strengthen the HBI through Muslim social media amidst the cluttering halal brands in the market.

Social implications

The development of HBI combined with social media interactions will accelerate the halal brand awareness and usage among society, especially in Indonesia, a Major Muslim country.

Originality/value

This present study provides empirical evidence that social media e-WoM, despite its lack of physical interaction and opportunity to scrutinize the halal features, effectively creates HBI and influences PI among Muslims.

Details

Journal of Islamic Marketing, vol. 14 no. 8
Type: Research Article
ISSN: 1759-0833

Keywords

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