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Article
Publication date: 11 May 2020

Setiawan Budi Utomo, Ratih Sekaryuni, Agus Widarjono, Achmad Tohirin and Heri Sudarsono

The purpose of this study is to identify and explore the role of Islamic financing in supporting development of halal industry in Indonesia.

1533

Abstract

Purpose

The purpose of this study is to identify and explore the role of Islamic financing in supporting development of halal industry in Indonesia.

Design/methodology/approach

This research is divided into two studies. The first study uses survey-based quantitative method and the second study uses focus group discussion (FGD) method. Using a purposive and proportional sampling technique in the first study, this research collected 1,985 samples of Islamic financial products of business owners (demand-side) from all parts of Indonesia. The data were analyzed using the partial least square structural equation modeling approach. The authors also conducted FGDs, involving 35 participants from government, financial, social and education institutions (supply-side) as well as business owners (demand-side) in three separated times.

Findings

In the first study, it can be identified that literacy on Islamic finance, attitude and awareness strongly affect business owners’ intention to use Islamic financial products. It is also found that subjective norm significantly influences literacy, attitude and awareness. Interestingly, religiosity does not significantly affect attitude toward Islamic financial products. According to the FGD in the second study, this research generates several factors motivating business owners’ preference to choose conventional rather than Islamic financial products, including expensive pricing, less developed technology, bad service quality and the halal status of the products. The reason for insignificant results of religiosity on attitude in the first study is explained in the second study. Most users are utilitarians who mainly perceived the products based on the sought benefits provided by the products.

Practical implications

This research offers the government a road map showing the strategy to build Islamic financial ecosystem in Indonesia. The road map integrates supply-side, which includes government, financial industries, social and education institutions and scientific organizations, and demand-side, which includes business owners or entrepreneur associations.

Originality/value

This research provides a wide range of samples derived from business owners’ respondents of halal industry in all representative islands in Indonesia. Therefore, it gives more holistic and representative findings. In addition, the analysis in this research covers not only the demand-side but also the supply-side perspective. Lastly, this research provides an Islamic financial ecosystem model that integrates all stakeholders to improve halal industry performance as a whole.

Details

Journal of Islamic Marketing, vol. 12 no. 5
Type: Research Article
ISSN: 1759-0833

Keywords

Open Access
Article
Publication date: 28 December 2021

Rahmatina Awaliah Kasri, Abdillah Ahsan, Dono Widiatmoko and Sri Rahayu Hijrah Hati

Despite the importance of pharmaceutical products in everyday life, particularly after the coronavirus outbreak in early 2020, only a few studies have attempted to analyse…

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Abstract

Purpose

Despite the importance of pharmaceutical products in everyday life, particularly after the coronavirus outbreak in early 2020, only a few studies have attempted to analyse consumer behaviour with regard to halal pharmaceutical products. Therefore, this study aims to investigate the factors influencing purchase intention for halal pharmaceutical products among Indonesian Muslims.

Design/methodology/approach

This study uses a theory of planned behaviour approach, in which religiosity and knowledge of halal product variables are added to attitude, subjective norms and perceived behavioural control variables. Primary data were collected from 225 Indonesian Muslims in Jakarta, the capital city of Indonesia and analysed using structural equation modelling.

Findings

The study found that the intention to purchase halal pharmaceutical products is positively affected by attitude, religiosity, knowledge of halal products and perceived behavioural control. However, the influence of the subjective norm variable was found to be insignificant in this study.

Research limitations/implications

It is possible to improve the empirical model by including more explanatory variables and investigating the mediating effect of the variables. The study could also be scaled up to reach more respondents in different regions and countries. These additional aspects would provide better insights into the behaviour of consumers when considering halal pharmaceutical products.

Practical implications

The findings suggest the importance of designing and implementing appropriate strategies and campaigns to enhance knowledge of halal products, of positive attitudes and of better resources/opportunities to consume halal pharmaceutical products. The industry needs to highlight its products’ halal and tayyib aspects through proper branding and promotion strategies. The government and other stakeholders could also implement education campaigns to increase halal products and halal literacy knowledge. These are ultimately expected to enhance the effectiveness of halal regulations and meet Muslim consumer expectations in the country.

Originality/value

Despite the importance of halal pharmaceutical products, this area has received limited attention in the academic literature. Thus, this study attempts to elaborate on consumer behaviour in this niche area.

Article
Publication date: 7 January 2021

Aries Susanty, Nia Budi Puspitasari, Sumunar Jati and Oktivia Selvina

The purpose of this paper is as follows: first, this study aims to identify the impact of internal and external factors on the implementation of halal logistics (IHL). Second…

1245

Abstract

Purpose

The purpose of this paper is as follows: first, this study aims to identify the impact of internal and external factors on the implementation of halal logistics (IHL). Second, this study aims to investigate the impact of internal factors on the IHL through competitive pressure (COP) as a moderating variable.

Design/methodology/approach

This study used primary data that were collected through offline questionnaires. The questionnaires were intended to identify the internal and external conditions of a company and the level of the IHL. The internal condition consists of five factors, namely corporate image and reputation (CRE), entrepreneurial intensity, social responsibility (SRE), expected business benefit and halal integrity (HIN). The external factors consist of demand or customer pressure (DCP), government support (GOV), market share expansion and COP. This study considered the factors belonged to internal and external companies on the basis of the conceptual model from Ab Talib et al. (2015), Zailaini et al. (2015) and Ab Talib and Chin (2018) as they have clearly distinguished the important factors for the implementation of the concept of halal into internal and external groups and most of those factors are frequently stated by the other researchers.

Findings

There were 148 questionnaires administrated, 84.5% of which were properly filled in, completed and returned. For internal factors, the result of the study confirms that CRE, SRE and HIN have a positive significant impact on the IHL. For external factors, the result of the study confirms that DCP, GOV and COP have a positive significant impact on the IHL. Then, the result of the study also confirms that COP can make the impact of good CRE on the IHL stronger. This condition did not happen for the other internal factors.

Research limitations/implications

First, it is debatable that internal and external factors and the IHL are only measured by the Likert scales. Future research may take the benefits of inducing qualitative approaches to better measure the condition of internal and external factors and the level of IHL practices through observation and probing. Second, this study was limited to the respondents from companies in Indonesia, which is a Muslim-dominant country and this study does not take into account the differences in the target market and the company’s owner, size of operation and financial capacity. Future research should test the conceptual model in a non-Muslim country and should include controlling for variables to generate a more conducive finding. Third, this study only uses the limited variable as the internal and external factors. Therefore, as many variables represent technological, organisational and environmental factors, they could be included in the future research framework.

Practical implications

This study practically contributes to the halal concept implementation body of knowledge by identifying the relationships between the internal and external factors and the IHL. Understanding this relationship will help the management of food, beverage and ingredient companies, as well as the government or policymakers in making better decisions and strategies to strengthen the IHL.

Social implications

The IHL may help the food, beverage and ingredient companies to be competitive and achieve organisational improvements.

Originality/value

This study is among the few studies that scrutinized the rationale behind the IHL by Indonesian companies. Although halal logistics plays a key role in protecting the halal status of any given product, this topic is still rarely explored, especially with the case study of Indonesian companies.

Details

Journal of Islamic Marketing, vol. 13 no. 5
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 19 September 2023

Ambara Purusottama, Yos Sunitiyoso and Togar Mangihut Simatupang

Blockchain technology has encouraged more transparent transactions process through decentralized protocols and has identified multi-dimensional benefits. However, value…

Abstract

Purpose

Blockchain technology has encouraged more transparent transactions process through decentralized protocols and has identified multi-dimensional benefits. However, value innovation–based blockchain for the particular industry requires further elaboration since there appears to be a vague understanding. Therefore, this study aims to provide a profound perspective of value innovation based blockchain, which has the potential to be applied in the halal industry.

Design/methodology/approach

This study developed a typology model that describes a profound understanding of blockchain adoption for value innovation. Empirical research was conducted using multiple case studies to justify the model. The case selection in this study was based on the halal industry in Indonesia. This study employed few sources to derive sufficient data through in-depth interviews, direct observations, and archival records. In particular, this study drew upon specific theories to elaborate on the blockchain-enable value innovation.

Findings

A blockchain is identified as having the opportunity to promote value innovation in the halal industry through its features. This study defines a typology model of value innovation-based blockchain for the halal industry that takes place on a particular spectrum. The model built in this study classifies blockchain adoption for the halal industry from specific dimensions: the degree of blockchain-based system complexity and the intensity of value innovation. Then, this study finds that these cases have different classifications and are evenly distributed in the quadrants of the model.

Originality/value

The typology model in this study can be a reference for decision-making when considering blockchain to leverage a value innovation in particular systems. Although blockchain technology can potentially be applied in vast areas, the decision-makers should understand that technology adoption should provide distinct values to its stakeholders, notably in multi-dimensional areas such as the halal industry. Thus, this study contributes significantly to blockchain technology usage for the halal industry.

Details

Business Process Management Journal, vol. 29 no. 7
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 1 February 2022

Mohamad Rahmawan Arifin, Bayu Sindhu Raharja and Arif Nugroho

With a substantial Muslim population in the world, Indonesia has economic potential in halal products’ consumption. However, as new products develop, halal products need a…

1784

Abstract

Purpose

With a substantial Muslim population in the world, Indonesia has economic potential in halal products’ consumption. However, as new products develop, halal products need a specific marketing strategy since the consumers of this industry have unique characteristics. This study aims to examine consumer behavior toward halal products by examining how content quality, religious consciousness and brand awareness affect consumer buying behavior and consumer loyalty.

Design/methodology/approach

This research uses a quantitative approach by surveying 1,429 young Muslim students in Indonesia. This research uses a structural equation model analysis to prove the relationship among the variables of this study.

Findings

The results revealed that religious consciousness and content quality have a direct positive significant influence on consumer buying behavior. The indirect significant effect is also exhibited by brand awareness as a mediating variable. This paper also found empirical evidence that consumer buying behavior has a significant positive relationship with consumer loyalty. Besides, the significant positive relationship between consumer buying behavior and consumer loyalty is moderated by consumers’ gender.

Research limitations/implications

This study is restricted in young Muslim community from Islamic universities in Yogyakarta and Central Java, Indonesia. Besides that, this research is further restricted regarding the involved variables that is tested in proposed model. This concerns the involvement of content quality, religious consciousness, brand awareness, consumer buying behavior and consumer loyalty.

Practical implications

The result would give an insight to marketing practitioners on formulating marketing strategy to attract much consumers on purchasing halal products and then expanding their business. This study further profound that religious-based products’ consumers have seem characteristics to conventional-based products, they need to be induced through rational approaches of appropriate content marketing strategy.

Originality/value

This study gives an empirical proof to extended of stimuli-organism-respond model, which is held by many scholars as the primary theory in spelling out the consumer behavior. To the best of the authors’ knowledge, this research is the first study that attempts the using of such theory to capture the consumer behavior in halal industry. Besides, this study further serves a breakthrough on how does content marketing determine young Muslim consumers’ behavior.

Details

Journal of Islamic Marketing, vol. 14 no. 4
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 17 March 2023

Nila Armelia Windasari, Ni Putu Desinthya Ayu Azhari and Ilham Fauzan Putra

This study aims to examine customer preferences toward Sharia hospitals and to provide a new viewpoint by looking at consumers’ perspectives on choosing health-care services…

Abstract

Purpose

This study aims to examine customer preferences toward Sharia hospitals and to provide a new viewpoint by looking at consumers’ perspectives on choosing health-care services. Despite the growing demand for halal products, halal services, particularly hospital and Sharia-based health-care services, receive very little attention in the literature compared to other Sharia-type services such as Sharia banking, insurance or even hospitality. Previous research on health care discussed under the Sharia perspective mainly focused on service quality, directing discussions to the service providers’ perspectives.

Design/methodology/approach

This study uses choice-based conjoint analysis to examine customer preferences toward Sharia health-care service. There are five attributes with three levels each. To reduce respondent fatigue, the authors used SPSS Orthoplan to generate an orthogonal factorial design, which resulted in 21 choice cards. Cross-sectional data were collected from an online survey using a platform from Populix, an independent panel survey provider, to ensure no sample selection bias. A total of 270 responses were obtained to represent Muslim populations across Indonesia.

Findings

The results showed that the highest preference is highly rated to the familiarity and certification of the hospital brand that implies trust and guarantees to add value with the existence of halal certification for hospitals. In addition, this study revealed that Sharia services have higher positive signals over the physical infrastructure in determining preferences. On the other hand, add-on components that support the integration of other halal industries, such as halal culinary tourism, halal tourism and integration with transportation and halal accommodation, are still minor in the current preference.

Originality/value

Previous research on health care discussed under the Sharia perspective mainly focused on service quality, which directs the discussions to the service providers’ perspectives. This study provides a new point of view by looking at consumers’ perspectives about their preferences and decisions to choose a Sharia hospital.

Details

Journal of Islamic Marketing, vol. 15 no. 1
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 4 February 2021

Hanif Adinugroho Widyanto and Imaduena Aesa Tibela Sitohang

This paper aims to investigate the antecedents of Muslim millennial’s purchase intention for halal-certified cosmetics and pharmaceutical products by expanding the theory of…

3094

Abstract

Purpose

This paper aims to investigate the antecedents of Muslim millennial’s purchase intention for halal-certified cosmetics and pharmaceutical products by expanding the theory of reasoned action (TRA) through the inclusion of religiousity (RG), halal knowledge and halal certification as the exogenous constructs in addition to TRA’s subjective norm, with attitude as the mediating variable.

Design/methodology/approach

A sample of 403 Muslim millennial customers of cosmetics and pharmaceutical products from the Greater Jakarta area, Indonesia. The data were analysed using partial least squares method.

Findings

Based on the study, attitude fully and/or partially mediates all the exogenous variables. RG and subjective norm are found to have no direct and significant relationship to purchase intention, but they indirectly affect the latter through attitude. Finally, both halal knowledge and halal certification have partial mediation with purchase intention through attitude as the mediating variable.

Practical implications

By understanding the relationships between the latent constructs, halal players in the industry could use the findings to better comprehend the urgency and importance of the halal aspects of their products, particularly halal certification, with regards to the Muslim millennials, and devise appropriate policies and strategies to capture the increasingly potential slice of the market.

Originality/value

The extant literature on halal products has mostly examined the food industry, and little attention has been given to the halal cosmetics and pharmaceutical products, inspite of its growing importance in Indonesia as the world’s largest halal market. Unlike earlier studies on the topic, this study also limits its focus on the Muslim millennial consumers, which is arguably the most potential and lucrative share of the halal market.

Details

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

Keywords

Article
Publication date: 22 September 2021

Izra Berakon, Muhammad Ghafur Wibowo, Achmad Nurdany and Hendy Mustiko Aji

The increasing number of tourists in the Muslim world every year has encouraged digital business developers and the Sharia banking industry to integrate halal product and service…

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Abstract

Purpose

The increasing number of tourists in the Muslim world every year has encouraged digital business developers and the Sharia banking industry to integrate halal product and service apps with the Sharia mobile banking system. The fourth wave of the industrial revolution has changed the consumer paradigm, creating a young generation that uses digital service transaction systems in their daily lives. This paper aims to investigate the factors that determine intention to use halal tourism apps amongst Muslim tourists to provide insights promoting the development of halal tourism in Indonesia.

Design/methodology/approach

The research was conducted using an online survey approach. The sample comprised 205 Muslim Millennial and Generation Z travellers. The data collected were analysed using partial least square structural equation modelling. There were three analysis stages: evaluation of the measurement model, assessment of the structural model and hypothesis testing.

Findings

The findings indicated that trust mediated the relationship between perceived ease of use and perceived usefulness on individual intentions and that halal knowledge positively and significantly impacted individual intentions. In contrast, religiosity was not a significant influence on individual intentions.

Originality/value

The paper expanded the technology acceptance model by incorporating the key constructs of halal knowledge, religiosity and trust into an integrated research framework; this represented a novel step, especially in the context of halal tourism. The finding that trust mediated the relationship between perceived ease of use and perceived usefulness fills a gap in previous research, which has rarely included the trust construct in technology acceptance models.

Details

Journal of Islamic Marketing, vol. 14 no. 1
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 26 May 2022

Aries Susanty, Nia Budi Puspitasari, Silviannisa Silviannisa and Sumunar Jati

This study aims to identify the suitable indicators and their scale for measuring the level of logistic halal implementation and then develops the measurement system based on…

Abstract

Purpose

This study aims to identify the suitable indicators and their scale for measuring the level of logistic halal implementation and then develops the measurement system based on those indicators and scales. Moreover, this research also applies the measurement system in food, beverage, and ingredient companies.

Design/methodology/approach

This study collected data through web-based closed questionnaires and short telephone interviews. This study succeeded in obtaining seven valid data sets from filling out validation and analytical hierarchy process questionnaires by a panel of experts. This study also obtained 97 valid data sets from filling out the questionnaire about the current condition of each indicator related to halal logistics (HL) implementation. Then, the framework for measuring HL implementation was designed based on the multi-attribute value theory approach.

Findings

The aggregate value of HL implementation in ingredient companies belongs to the excellent implementation category. In contrast, the aggregate value of HL implementation in food and beverage companies only belongs to the good implementation category. Then, according to the size of the company, the large-sized companies have the higher means of the aggregate value of HL implementation for preferred indicators than small- and medium-sized companies. However, all size companies belong to the good implementation category.

Research limitations/implications

This research has several limitations. The preferred indicators are only measured by the Likert scales. Future research may benefit from inducing the qualitative approaches to measure the condition of each indicator better. Secondly, this research only consisted of 97 food, beverages and ingredients companies. Thirdly, this research only measured the HL implementations to a particular sector or industry. Future research could benefit from replicating the work in similar and dissimilar contexts, adding the sample size and comparing the level of HL implementation between Muslim and non-Muslim companies, and moreover, enhance the measurement of HL implementation by including consumers and other actors involved, such as the government.

Practical implications

This research provided a basis for helping the government and policymakers understand and evaluate non-performing indicators in HL implementation before formulating several actions.

Social implications

Understanding the current HL implementation conditions could facilitate a more effective response in designing some appropriate alternative actions.

Originality/value

This research contributed to measuring HL implementation with a new indicator, a new scale and a new object in an empirical case of food, beverages and ingredient companies in Indonesia.

Details

Journal of Islamic Marketing, vol. 14 no. 7
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 21 July 2022

Muhammad Sholihin, Nurus Shalihin, Mega Ilhamiwati and Hendrianto Hendrianto

This study aims to gain new insight into how a set of maqasid-based consumption intelligence variables mediates exogenous variables (i.e. religiosity, Islamic university role and…

Abstract

Purpose

This study aims to gain new insight into how a set of maqasid-based consumption intelligence variables mediates exogenous variables (i.e. religiosity, Islamic university role and normative belief) and halal purchase intention as an endogenous variable.

Design/methodology/approach

The research model is empirically tested with a data set of 370 responses retrieved from the students of the millennial generation from the cross Islamic state university in Indonesia. Data were analysed with Partial Least Square Structural Equation Modelling (PLS-SEM). The sample size of this study is computed with preliminary power analysis.

Findings

The SEM finding revealed that two maqasid-based consumption intelligence variables had mediated the exogenous and endogenous variables, i.e. halal purchase intention. These variables mediating the exogenous and endogenous variables have explained 63.5 R2 variances in halal purchase intention. Concerning individual impact size of cognition and motivation as a component of maqasid-based consumption intelligence has shown medium-level effect size (f2) in mediating the halal purchase intention. Interestingly, the exogenous variable does not directly affect halal purchase intention but must be mediated with maqasid-based consumption intelligence variables. However, before including variables of maqasid-based consumption intelligence, the R2 was relatively small. It is just 30.4% in R2 that explains the variance of halal purchase intention.

Research limitations/implications

This study explores maqasid-based consumption intelligence as a relatively new model to explain the variable halal purchase intention. Therefore, it takes many types of exogenous variables to test how relevant maqasid-based consumption intelligence variables can define endogenous variables. Notwithstanding, this study does not do that because it only limits three exogenous variables (i.e. religiosity, Islamic university role and normative belief). Therefore, in further research, these limitations seem to be perfected by other scholars concerned about halal purchase intention.

Practical implications

The findings of this study allow Islamic universities to mainstream halal issues as a subject of learning, especially concerning consumption ethics. In addition, the empirical results of this study encourage the industry to pay attention to the essential components in determining the halal quality of the products offered because the millennial generation is now very aware of the importance of halal products.

Originality/value

This study contributes to the existing literature on halal purchase intention by testing maqasid-based consumption intelligence variables as mediators. Moreover, this is a pioneer study to consider and construct maqasid-based consumption intelligence as a model that explains halal purchase intention.

Details

International Journal of Ethics and Systems, vol. 39 no. 2
Type: Research Article
ISSN: 2514-9369

Keywords

1 – 10 of over 1000