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Article

Marco Tieman

– The purpose of this study is to propose a halal cluster concept to better organise production and trade of halal food.

Abstract

Purpose

The purpose of this study is to propose a halal cluster concept to better organise production and trade of halal food.

Design/methodology/approach

This paper builds further on previous work published in the Journal of Islamic Marketing on halal food supply chains and value chains. A cluster analysis is conducted on the Malaysia and Dubai halal cluster to provide a better understanding of their halal cluster models and sustainability.

Findings

Food production and trade has been described as the weak link in the halal value chain. To guarantee availability of and access to halal food, a new paradigm is required in better organising the production and trade of halal food through halal clusters. A halal cluster model is proposed based on five pillars, namely, Muslim consumer, education and research, halal integrity network, halal supply chain and enablers.

Research limitations/implications

This conceptual paper proposes a halal cluster model to scale up the production of halal food for the world. However, more empirical research on halal purchasing, halal network development, halal trade and halal parks is needed to support the development of these halal clusters.

Practical implications

To better address today’s issues in the halal industries (ingredients, certification, logistics, etc.), there are evident benefits of producing in strong halal clusters, hereby providing easy access to halal ingredients and access to attractive Muslim markets.

Originality/value

As halal is going through an evolution, towards a halal supply chain and value chain, new business models are required. It is the first study investigating halal clusters.

Details

Journal of Islamic Marketing, vol. 6 no. 1
Type: Research Article
ISSN: 1759-0833

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Book part

Norkhazzaina Salahuddin, Nurul Riddhaina Salahuddin and Munirah Khamarudin

This chapter sneaks a glance over five decades of Malaysian experience in nurturing and commodifying the halal industry. The assessment is made possible via the…

Abstract

This chapter sneaks a glance over five decades of Malaysian experience in nurturing and commodifying the halal industry. The assessment is made possible via the application of the industry value chain (IVC) approach. IVC shows that firms with the ability to conduct their business activities in compliance with government policies pertaining to halal matters will enhance their market prospect. Circumscribed to halal-related policies required meticulous efforts, yet it is a must to participate in the Malaysian halal industry. The analysis finds that the three key business activities like logistics, marketing and sales, and operation are the aspects which need a realignment to halal policies. The interconnected nature of the halal industry brings great opportunity for the firm to attain formidable business strategies for survival in unrelenting business climates. The close-knitted relationship among global halal authorities also benefits industry players in a way to expand and promotes their halal venture beyond Malaysia through year-round global halal trade exposition. Although the halal market offers lucrative prospects, firms need to address and tread carefully around the constraints presented in the market. Cost of realignment to policies, risk of asymmetric information, and certification fraud are among major barriers that hinder starting an operation in a halal setting. The IVC approach creates a clear picture regarding the market outlook, constraint, and need of firms interested of venturing into the halal industry. The chapter, however, covers the only gist of IVC analysis where the calculation of IVC for every chain of activities is not included here.

Details

Modeling Economic Growth in Contemporary Malaysia
Type: Book
ISBN: 978-1-80043-806-4

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Article

Afshan Azam

This study aims to investigate the determinant factors that consumers may consider in buying halal packaged food produced by non-Muslim manufacturers.

Abstract

Purpose

This study aims to investigate the determinant factors that consumers may consider in buying halal packaged food produced by non-Muslim manufacturers.

Design/methodology/approach

This paper develops a seven-constructs-based model. Halal awareness, Islamic brand and product ingredients are used as the pre-determined factors for measuring consumer’s purchase intention.

Findings

The hypotheses which were tested using partial least squares have revealed that halal awareness and product ingredients have significantly influenced Muslims’ intention to buy halal packaged food that are produced by non-Muslim manufacturers. The findings show that the religious belief, exposure and certification/logo are potential sources of Muslim awareness about halal packaged food from non-Muslim manufacturers.

Research limitations/implications

This research is also not exempted from its limitations. The data collected for the current study investigate general purchase toward halal products. It would be interesting if future researchers examine consumers’ purchase intention toward specific halal products for specific product categories. A comparative study is also worthy of being steered, as such a study is beneficial for producers and marketers of the halal industry.

Practical implications

As an overall implication, this study will provide a valuable and important information for non-Muslim halal packaged food manufacturers in identifying the appropriate strategy to fulfill the needs and wants of Muslim consumers at best. It is sufficed to suggest that the Muslim community has adopted halal food from non-Islamic brands as part of their lifestyle choice. Clearly, this gives implications to non-Muslim halal food producers. Thus, it is critical for food manufacturers to increase the level of awareness toward halal products by providing sufficient and interesting information, especially on halal certification. Hence, the manufacturer must take the opportunity to do intensive promotion to encourage more consumers to purchase their products.

Originality/value

This paper examines consumer purchase intention toward non-Muslim packed food manufactures in Saudi Arabia. It is critical for non-Muslim packed halal food manufacturers to increase the level of awareness toward halal products by providing sufficient and interesting information, especially on halal certification.

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Article

Syed Shah Alam and Nazura Mohamed Sayuti

In this study, Ajzen's Theory of Planned Behavior is used as a theoretical framework with the aim of extending prior research examining halal food purchasing behavior in Malaysia.

Abstract

Purpose

In this study, Ajzen's Theory of Planned Behavior is used as a theoretical framework with the aim of extending prior research examining halal food purchasing behavior in Malaysia.

Design/methodology/approach

Data are collected through self‐administered questionnaires. This paper uses multiple regression analysis to identify the factors affecting halal food purchasing behavior of Malaysian consumers.

Findings

The multiple regression analysis results indicate that all factors have positive and significant influence on halal food purchasing intention.

Research limitations/implications

Like other empirical studies, this study is not without its limitations. The sample size itself is relatively small. The study can be strengthened by increasing the sample size and including participants in other geographical areas. This study also considered only three antecedents of halal food purchasing among consumers in Malaysia. As Malaysia is actually trying to play for a bigger role in the halal industry, more research is needed to identify and address problematic aspects of consumption of halal food. Potential correlations between some of the independent variables (e.g. trust, moral obligation, habit, and self‐identity) need to be reported in a future study.

Originality/value

This study contributes to and extends our understanding of the halal food purchasing behavior, identifying the rationales for purchasing of halal foods. From a managerial viewpoint, the findings provide support for investment decisions and for decisions relating to the establishment of Malaysia as a halal hub that address and take the concerns and needs of businesses and Malaysian Government agencies into consideration.

Details

International Journal of Commerce and Management, vol. 21 no. 1
Type: Research Article
ISSN: 1056-9219

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Article

Shambavi Rajagopal, Sitalakshmi Ramanan, Ramanan Visvanathan and Subhadra Satapathy

The purpose of this paper is to introduce Halal certification as a new marketing paradigm which marketers can use to differentiate their products and services in the…

Abstract

Purpose

The purpose of this paper is to introduce Halal certification as a new marketing paradigm which marketers can use to differentiate their products and services in the current competitive environment.

Design/methodology/approach

In total, 151 questionnaires were distributed to the business student population from different universities in United Arab Emirates (UAE). The self‐administered questionnaire required the respondents to answer demographics questions on emirate of residence within UAE, gender, age and nationality, followed by specific questions to determine if respondents actively seek Halal certification for various products and services and if they were aware of brands offering certification. The questionnaire concluded with an open‐ended question to find out what Halal certification meant to the respondent.

Findings

The application of statistical tools indicated that, although the concept of Halal is familiar to the students, their awareness of whether products are Halal certified and their knowledge about Halal brands is extremely low.

Practical implications

This paper suggests a model for marketers to brand their products and services by seeking, highlighting and communicating Halal certification in the UAE and possibly extending to the world markets.

Originality/value

The paper suggests that consumers are not exposed enough to Halal certification and Halal brands through marketing communication and suggests the greater use of marketing and branding to promote and sell Halal products and services. It has immediate practical relevance to marketing practitioners and strategic planners.

Details

Journal of Islamic Marketing, vol. 2 no. 2
Type: Research Article
ISSN: 1759-0833

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Article

Noha M. El-Bassiouny

The purpose of this paper is to take the case of the United Arab Emirates (UAE) as a starting point for the analysis of the blend between the notions of halal and luxury…

Abstract

Purpose

The purpose of this paper is to take the case of the United Arab Emirates (UAE) as a starting point for the analysis of the blend between the notions of halal and luxury in the Arab region because the UAE presents an interesting multicultural yet Islamic blend, which has yet not been investigated. Scholarly calls for the assessment of the relationship between consumption and wellbeing have raised interest in conspicuous consumption research. The global phenomenon of luxury consumption has drawn researcher interest at recent times. Despite consumer affluence in the oil-rich Arabian Gulf, research into this phenomenon at this emerging region to-date is still lacking. As the Arabian Gulf is also particularly Islamic, a significant body of literature has addressed halal purchasing yet had failed to examine the intersections between luxury and halal consumption.

Design/methodology/approach

The research takes a qualitative methodological approach utilizing unstructured observation and content analysis of 138 visuals collected from prominent shopping malls in Dubai and Abu-Dhabi during the occasion of the minor Islamic Eid following Ramadan.

Findings

The results show that the UAE consumer culture combines authenticity with modernity portraying highly savvy cosmopolitan consumers sharing the global values of urbanization within the halal parameters.

Research limitations/implications

The limitations relate to the utilization of the qualitative methodological approach; hence, the research findings need to be generalized with caution to relevant contexts. This research should be regarded as a critical starting point in analyzing the syllogisms between the notions of halal and affluence.

Practical implications

The findings are relevant to consumer culture research which looks at the implications of modern consumption within the boundaries of halal. The research presents a critical approach and questioning of the overlaps between halal consumption, responsible consumption and luxury consumption in a unique multicultural and affluent setting which is the UAE.

Social implications

The present paper invites academics and practitioners to introspect into the dimensions of responsible consumption, luxury consumption and halal consumption. It asks the critical metaphorical question of whether halal and luxury consumption are two faces of the same coin.

Originality/value

The research concludes with raising critical questions around the boundaries of luxury consumption from an Islamic perspective, thereby combining elements of religion and cultural approaches to Islamic marketing.

Details

Journal of Islamic Marketing, vol. 8 no. 4
Type: Research Article
ISSN: 1759-0833

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Article

Kasim Randeree

The purpose of this paper is to investigate challenges in balancing interoperability, food quality and customer satisfaction in halal food supply chains.

Abstract

Purpose

The purpose of this paper is to investigate challenges in balancing interoperability, food quality and customer satisfaction in halal food supply chains.

Design/methodology/approach

The study employed ethnography and grounded theory research methodologies. Research methods were ethnographic content analysis and document content analysis. The research framework encompassed a range of stakeholder groups connected with the halal food supply chain in the United Arab Emirates (UAE), focussing on Islamic jurisprudence, halal food sector analysis, import regulation compliance, halal food certification (HFC), food production, retailing and consumption.

Findings

The research found that supply chain intermediaries are challenged in balancing interoperability issues around non-unified global certification standards. Consequent variability in customer confidence in halal standards was found.

Research limitations/implications

This research focussed on the internal supply chain in the UAE, with future scope in HFC systems among external supplier nations and wider market research on customer perceptions of halal food integrity.

Practical implications

Transferability of the findings is high; to other halal food markets in particular, as well as supply chain systems for halal products across other Islamic economy sectors, notably halal pharmaceuticals and cosmetics. Aligning the halal ecosystem with trends in healthy eating and environmentalism is also considered.

Originality/value

The paper uniquely explores the halal food sector from the perspective of variant stakeholder disciplines in halal sector governance and operation. It exposes vulnerabilities in halal supply chains in a nation with one of the most demanding and diverse agri-food supply systems in the world.

Details

British Food Journal, vol. 121 no. 5
Type: Research Article
ISSN: 0007-070X

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Article

Umayal Kasi and Junaina Muhammad

This paper aims to compare and analyse the aspects of Shariah screening methodologies within the selected Gulf Cooperation Council (GCC) countries as well as comparing the…

Abstract

Purpose

This paper aims to compare and analyse the aspects of Shariah screening methodologies within the selected Gulf Cooperation Council (GCC) countries as well as comparing the methodologies with the USA, and to examine how Shariah screening methodologies affect financing and investing activities of a firm.

Design/methodology/approach

Shariah screening methodologies within the selected GCC countries and between the GCC countries and the USA are compared on the basis of the data collected from secondary sources.

Findings

Design, qualification and Shariah governance set the Shariah screening methodologies within the GCC countries apart. Feasibility, duration, economic viability and funds required differentiate these Shariah screening methodologies between the GCC countries and the USA. Shariah screening methodologies implied in the USA is more stringent than in the GCC countries.

Research limitations/implications

The suggestions in this study include using a longer research timeline, examining many more number of countries’ Shariah screening methodologies and exploring other types of Shariah screening methodologies.

Practical implications

The possibility of generalising the implementation of strict and uniform Shariah screening methodologies across all the country-specific Shariah indices amongst Muslim nations, globally, is likely to benefit all the Muslim countries, by strengthening the understanding, interaction and economic co-operation amongst these countries.

Social implications

People’s needs can be tended to if Maqasid Al-Shariah (objectives of Shariah) is achieved through flexibility, dynamism and creativity within the social policy.

Originality/value

Aspects of Shariah screening methodologies are compared and contrasted within the selected GCC countries as well as between the GCC countries and the United States and the role of Shariah screening methodologies is examined in order to determine the extent of what is Shariah-Compliant and what is Non-Shariah Compliant for a firm.

Details

Qualitative Research in Financial Markets, vol. 10 no. 2
Type: Research Article
ISSN: 1755-4179

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Article

Carrie Amani Annabi and Olufunbi Olajumoke Ibidapo-Obe

The aim of this paper is to investigate the role that halal certification organisations (HCOs) play in the UK in assuring quality in halal cosmetics.

Abstract

Purpose

The aim of this paper is to investigate the role that halal certification organisations (HCOs) play in the UK in assuring quality in halal cosmetics.

Design/methodology/approach

The study evaluates whether halal certification assures the quality of halal cosmetic products. This research evaluated the quality assurance systems of major UK HCOs, using a hypothetical product as a test vehicle. The investigation considered whether these organisations differ in their definition of “halal” and “halal cosmetics” and also considered how effectively their certification signals quality assurance.

Findings

The study indicated that there is a failure to adopt holistic halal terminology which implies that within the UK halal cosmetics industry, manufacturers may not be working within agreed standards for halal product integrity.

Research limitations/implications

This study focussed on UK certification for halal cosmetics by three HCOs and disregarded other forms of halal businesses. The literature review is based solely on literature available in the English language. The study lacks generalisability, as only one hypothetical product was tested; therefore, it was not possible to reach an understanding of all the costs involved in UK HCO certification.

Practical implications

This study undertook a comprehensive literature review on halal certification to produce a comparison of halal sanctioning laws, certification processes and the level of supply chain verification by UK HCOs.

Originality/value

This study adds value to the knowledge on UK halal certification.

Details

Journal of Islamic Marketing, vol. 8 no. 1
Type: Research Article
ISSN: 1759-0833

Keywords

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Article

Muhammad Mohsin Butt, Susan Rose, Stephen Wilkins and Junaid Ul Haq

Multinational corporations (MNCs) that want to compete in markets worldwide should not underestimate the influences of religion on consumer demand. Almost one quarter of…

Abstract

Purpose

Multinational corporations (MNCs) that want to compete in markets worldwide should not underestimate the influences of religion on consumer demand. Almost one quarter of the world’s population is Muslim so it is important for MNCs to get into the Muslim mind set when operating in countries where Islam has a large influence. The purpose of this paper is to assess the extent to which consumer-based brand equity in a religious market results from the psychological and behavioural characteristics of consumers rather than from product characteristics.

Design/methodology/approach

A quantitative survey method was adopted, using a total sample of 551 Muslim consumers in Malaysia and Pakistan. A holistic model conceptualising three potential psychological and behavioural predictors of consumer-based halal brand equity (CBHBE) was created and then tested using structural equation modelling.

Findings

The strength of an individual’s religious identity was found to be a strong predictor of consumer halal choice behaviour and perceived self-expressive religious benefits. Consumers’ halal choice behaviour and perceived self-expressive benefits directly predict CBHBE. Moreover, consumer halal choice behaviour partially mediates the relationship between self-expressive benefits and CBHBE.

Practical implications

The authors conclude that firms targeting Muslim consumers can maximise CBHBE by focussing their marketing strategies on the three psychological and behavioural constructs identified in the model. For example, by using halal certification logos and providing convincing information about the halalness of their brand, businesses can facilitate Muslim consumers’ search processes in relation to their choice behaviour.

Originality/value

The study contributes to the existing international branding literature in two main ways. First, it introduces and defines the concept of CBHBE. Second, it identifies and empirically validates the important psychological and behavioural predictors of CBHBE.

1 – 10 of 236