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Article
Publication date: 23 March 2020

Shahriar Kabir, Syed Shams and Roger Lawrey

The purpose of this paper is to investigate the link between trade diversion risk and new Halal market exploration.

Abstract

Purpose

The purpose of this paper is to investigate the link between trade diversion risk and new Halal market exploration.

Design/methodology/approach

This paper analyzes the Halal trade flows for Malaysia’s top 11 halal food/food-related commodities from 1967 to 2018 by relying on co-integration and auto-regression techniques.

Findings

This paper determines that the greater the country’s current comparative advantage in an exported good, the higher the risk of export diversion between the Halal and conventional markets. The diversion risk, however, disappears with a lower current comparative advantage.

Practical implications

To take advantage of the fast-emerging Halal market, a country should expand export of commodities with relatively low current comparative advantage but high demand in the target market, along with supportive trade policies to build competitiveness in the long term.

Originality/value

This study fills the gap in the literature by investigating if the theory of comparative advantage can predict the market diversification risk that may arise from the expansion of exports to the Halal market occurring alongside existing exports to the conventional market.

Details

Journal of Islamic Marketing, vol. 12 no. 4
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 6 June 2020

Mohammad Mominul Islam

This study aims to conceptualize the basic Islamic marketing (IM) process according to Shari’ah, addressing some of the queries raised by scholars on halal and marketing.

Abstract

Purpose

This study aims to conceptualize the basic Islamic marketing (IM) process according to Shari’ah, addressing some of the queries raised by scholars on halal and marketing.

Design/methodology/approach

A qualitative approach and content analysis have guided to shape segmentation, targeting and positioning (STP) with the help of secondary data from conventional and IM. Required Qur’anic verses and hadiths have been galvanized to shape STP in line with empirical evidence, showing potential marketing implications.

Findings

This study has accepted Islamic resources to segment markets, mentioning mankind, non-Muslims, Muslims, generic, halal and Islamic products. It has proposed to target mankind, non-Muslims markets with generic and halal products. Muslim marketers can target the pious Muslim consumers with Islamic products. For positioning, the halal certification has been suggested for the non-Muslim marketers and Islamization is for Muslim marketers. The whole process has been conceptualized in a single framework.

Practical implications

Marketers can have many product development ideas and basic guidelines and scholars may be able to sense some queries as to IM.

Social implications

This study has shown how inter-religious relationships can be harmonized with carrying out marketing functions to keep the social fabric following the Qur’anic verses.

Originality/value

This study has outlined the IM process as per Muslim and non-Muslim marketers’ needs under Shari’ah. Besides, it has answered some questions on halal and IM that has been hardly addressed before.

Details

Journal of Islamic Marketing, vol. 12 no. 7
Type: Research Article
ISSN: 1759-0833

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Book part
Publication date: 12 February 2021

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
Publication date: 22 November 2018

Normia Akmad Salindal

The purpose of this study is to identify the effect of halal certification on innovative and market business performance of halal-certified food companies in the…

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1002

Abstract

Purpose

The purpose of this study is to identify the effect of halal certification on innovative and market business performance of halal-certified food companies in the Philippines. Through this empirical study, halal-registered and about-to-register companies would have a wider perspective and a realistic view on what to expect from halal certification. The study also hopes to enrich halal certification literature and contribute further to the better understanding of the relationship between halal certification and the business performance.

Design/methodology/approach

This empirical study primarily uses a quantitative approach in analyzing the relationship between halal certification and the business performance in terms of innovative and market performance. The primary data are gathered through a survey involving 211 food companies (141 halal-certified and 70 non-halal-certified). The results are analyzed using confirmatory factor analysis, structural equation modeling and independent sample t-test.

Findings

First, the analysis highlights that halal certification significantly affects innovative performance of halal-certified food companies. Second, the improvements in innovative performance lead to market performance improvements. Third, innovative performance fully mediates the relationship between halal certification and market performance. Finally, halal-certified food companies and non-halal-certified food companies have significant difference in terms of innovative performance and market performance.

Research limitations/implications

First, the population of this study consisted of only food companies in the Philippines listed in the Bureau of Product and Standard. Second, only the respective quality management representatives of the responding companies were the main respondent. Third, the samples used are from Philippines only. Therefore, the ability to generalize the reported results to all types of industry is restricted. To generalize the results of this study, additional research is desired to test the suggested model in various countries where Muslims are minority.

Practical implications

Understanding the impact of halal certification and its business value through empirical study should provide “about to be registered organizations” a wider perspective and a realistic view on what to expect after halal certification. It will provide factual evidences that may aid halal-certified companies in decision-making with respect to halal certification and whether it complicates or compliments their organizations’ business.

Originality/value

To the best of the author’s knowledge, no research has yet been conducted to investigate the impact of halal certification on business performance in the Philippines. This study, therefore, fills the gap in the research area. Through this empirical study, halal-registered and about-to-register organizations would have a wider perspective and a realistic view on what to expect from halal certification.

Details

Journal of Islamic Marketing, vol. 10 no. 2
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 29 May 2019

Annalisa De Boni and Maria Bonaventura Forleo

The purpose of this paper is to investigate the trends and prospects for the development of the halal market for Italian foods, with a focus on pasta production as one of…

Abstract

Purpose

The purpose of this paper is to investigate the trends and prospects for the development of the halal market for Italian foods, with a focus on pasta production as one of the most valued products of the Made in Italy brand. The analysis takes into consideration drivers and obstacles for developing halal orientation strategies in world and internal markets and opportunities and threats for Italian food firms.

Design/methodology/approach

Market dynamics were investigated by a forecasting tool, the Delphi method, which aims to explore future market trends and give suggestions for firm strategies and policy intervention. Besides firms, other experts involved in the Italian halal food sector were interviewed. Answers were organised according to the level of importance given to the different issues and to the level of agreement between the opinions of the experts. These findings were then discussed in relation to the contexts, both external and internal to companies, that had given rise to such opinions.

Findings

The halal food market represents a good opportunity for enlarging the overseas markets for Italian products and producers. Several external and internal factors related to the demographic, the institutional, the market and the firm contexts, emerged. The challenges that non-Islamic countries, markets and firms face in the adoption of halal strategies are mainly due to the institutional context, to the scarce awareness of halal principles and practices, and to some suspicion of Islamic food and culture that does not yet seem well-known and accepted on the domestic market.

Originality/value

The Islamic food market has still to be fully explored in Italy, this is despite strongly emerging demand and a growing number of firms showing interest in implementing halal certification and entering new Islamic markets. The paper findings contribute to the scarce empirical literature about the halal market in Italy and give some recommendations both for supporting further studies, identifying preliminary implications and suggesting policy measures.

Details

Journal of Islamic Marketing, vol. 10 no. 4
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 13 November 2017

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…

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2006

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.

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Article
Publication date: 20 June 2013

Asmat‐Nizam Abdul‐Talib and Ili‐Salsabila Abd‐Razak

The purpose of this paper is to highlight the development of global halal marketing by assessing its current status, challenges and issues within and measures taken to…

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2331

Abstract

Purpose

The purpose of this paper is to highlight the development of global halal marketing by assessing its current status, challenges and issues within and measures taken to improve it. Strategic marketing conception from the perspective of export market orientation behaviors is offered to help foster industrial innovation to create a halal economy.

Design/methodology/approach

The development of a global halal market is first assessed and its current status is highlighted. The issues and challenges within are identified and explored, followed by a consideration of measures already taken to rectify and improve the situation. Strategic export market orientation behaviors perspective is offered to encourage industrial innovation within the complex global halal market, to ultimately establish a halal economy. This is done by going through the relevant scholarly discussions in various international conferences and available published literatures.

Findings

The paper identifies three major issues and challenges in global halal marketing and what has been done and can been done to rectify and improve the situation, particularly from the perspective of strategic export market orientation behaviors.

Research limitations/implications

The discussion is limited to its conceptual boundaries and in the long run requires empirical research to enhance its applicability.

Practical implications

The discussion offered in the paper is expected to be valuable for global halal marketers seeking strategic marketing design in undertaking the complex market structure and confronting the issues identified.

Originality/value

The paper discusses issues and challenges for halal marketing and how to address the issues through the perspective of strategic export market orientation behaviors, for an industrial innovation to form a halal economy.

Details

Journal of Islamic Marketing, vol. 4 no. 2
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 11 February 2021

Syed Adil Shah, Maqsood Hussain Bhutto and Sarwar M. Azhar

The purpose of this study is to integrate and synthesize the Islamic marketing literature, understand the phenomenon and related concepts and provide suggestions for…

Abstract

Purpose

The purpose of this study is to integrate and synthesize the Islamic marketing literature, understand the phenomenon and related concepts and provide suggestions for future research.

Design/methodology/approach

The study uses an integrative review method that emphasizes summarizing and synthesizing the previous literature related to a phenomenon.

Findings

The findings indicate the emergence of five major themes, namely, Islamic marketing and its perspectives, activities in Islamic marketing, opportunities, controversies and challenges in Islamic marketing, Islamic principles and determinants of consumers’ behavior and awareness toward Islamic products. Each of the major themes consists of sub-themes discussed in detail in the results and discussion sections.

Research limitations/implications

Like other studies, this integrative literature review has some limitations. These include the methodology undertaken, the lack of explanation of inter-relationship among themes and lack of Islamic theory-based review. These limitations lead to future research directions.

Practical implications

Marketing managers need a thorough understanding of the Islamic standards and need to develop strategies. Further, there are inter-differences among Muslims, which need to be thoroughly understood by managers. Moreover, marketers can effectively use advertising in creating awareness and increasing demand of halal products.

Originality/value

This study provides an integrative review of the literature and synthesizes the Islamic marketing literature, which has not been done before.

Details

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

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Article
Publication date: 15 September 2020

Md. Yunus Ali, Puteri Zahrah Aminan Abdul Ghaffar, Shahriar Kabir and Sa'adiah Munir

The gravity theory of trade explains the potential for trade between nations, but its application to trade in halal food has been questioned by previous studies. This…

Abstract

Purpose

The gravity theory of trade explains the potential for trade between nations, but its application to trade in halal food has been questioned by previous studies. This study aims to investigate this issue and the role of trading partners’ economic strength and their distance from one another to identify Malaysia’s potential to export food to key halal markets.

Design/methodology/approach

The gravity theory of trade was used to examine Malaysia’s top 10 food exports to key halal markets from 2000–2017. The gravity panels were estimated using the Hausman-Taylor modelling technique to control for endogeneity within the model.

Findings

The application of the gravity theory of trade to a halal market context provides mixed results. Although the high economic strength (gross domestic product) of the trading partners enhances halal trade, the distance between the partners does not affect the volume of halal food exports. Moreover, the study identifies Malaysia’s potential to export only a few food commodities to key halal markets.

Originality/value

This study challenges the applicability of the gravity theory of trade to the halal food market. The study extends the model with additional controls for behavioural aspects and applies it to commodity-specific segregated trade in halal food. The findings underscore the need to extend the theory beyond its current focus when explaining trade opportunities in halal markets.

Details

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

Keywords

Content available
Article
Publication date: 20 June 2019

Osama Sam Al-Kwifi, Allam Abu Farha and Zafar U. Ahmed

Since Islamic markets are growing substantially, there is an urgent need to gain a better understanding of how Muslim consumers perceive products from a religious…

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4897

Abstract

Purpose

Since Islamic markets are growing substantially, there is an urgent need to gain a better understanding of how Muslim consumers perceive products from a religious perspective. The purpose of this paper is to investigate the brain responses of Muslim consumers to Halal and non-Halal products using a functional magnetic resonance imaging (fMRI) technology.

Design/methodology/approach

The research model is a simplified version of the theory of planned behavior. The initial experiment began by asking participants to divide a set of images into two groups: Halal and non-Halal products. The fMRI experiment uses a blocked design approach to capture brain activities resulting from presenting the two groups of images to participants, and to record the strength of their attitudes toward purchasing the products.

Findings

Across all participants, the level of brain activation in the ventromedial prefrontal cortex increased significantly when Halal images were presented to them. The same results emerged when the Halal images showed raw and cooked meat. The variations in the results may be due to the high emotional sensitivity of Muslim consumers to using religious products.

Research limitations/implications

This study uses a unique approach to monitor brain activity to confirm that consumers from specific market segments respond differently to market products based on their internal beliefs. Findings from this study provide evidence that marketing managers targeting Muslim markets should consider the sensitivity of presenting products in ways that reflect religious principles, in order to gain higher acceptance in this market segment.

Originality/value

Although the literature reports considerable research on Muslim consumers’ behavior, most of the previous studies utilize conventional data collection approaches to target broad segments of consumers by using traditional products. This paper is the first to track the reactions of the Muslim consumer segment to specific types of market products.

Details

International Journal of Emerging Markets, vol. 14 no. 4
Type: Research Article
ISSN: 1746-8809

Keywords

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