Search results

The purpose of this research is to observe how the industry’s knowledge, attitude and sensitivity of the industry to the government’s current policy regarding the halal certification process influence the organization performance.

This study used a self-administered questionnaire with closed-ended questions to measure the human capital factors and the practice of halal requirements. The questionnaire was distributed to multinational companies and small and medium enterprises (SMEs) in Malaysia, of which 206 responses were usable for analysis. The respondents were halal committee members in the respective companies. Smart PLS version 2.0 was used to analyze the relationship of each construct using the structural equation modeling (SEM) approach. The outcome of this study showed a positive relationship between knowledge of and attitude and sensitivity toward government policies and organizational performance.

The outcome of this study showed a positive relationship between knowledge, attitude, sensitivity to government policy and organizational performance. The R² value for the main model is 0.419, indicating that 41.9 per cent of the variance in the extent of collaboration can be explained by knowledge, attitude and sensitivity to government policies. Result also showed that all the hypotheses were supported and were significant at p < 0.01. It also showed that the control of an organization’s internal resources through human factors ranging from knowledge, attitude and sensitivity to government policies should be emphasized, as it is a contributing factor and it strives to improve organizational performance.

There were a limited number of respondents. A larger number of respondents would reflect a more accurate study. Besides, this study only focused on the halal food industry operators, while the presence of halal now covers other schemes such as logistics, consumer products and others. Moreover, this study only focused on two main groups: multinational companies and SMEs.

This study has provided some major implications. First, on behalf of the state, the results of this study clearly show that the human capital factor should be prioritized. Second, on behalf of the industry, this study can fill the void that exists in strengthening the industry through efforts to improve internal controls related to organizations including attending halal food courses and applying values among members of the organization. Third, the implication to theory and literature that the research-based view is suitable for use even in the food industry has been proved.

The results of this study can increase consumer confidence in the management of an organization, especially in the halal food industry.

Halal’s rapid development has led many researchers to study halal. Till now, there is no research on three major areas of human capital aspects, namely, knowledge, attitude and sensitivity to governmental policies that involve internal halal committee members in the industry as subject of study in one model. Moreover, this research attempts to cover the latest acts, standards, procedures and guidelines provided by the government.

The purpose of this paper is to assess the level of knowledge, halal dietary quality assurance practices, and commitment among food industries in the implementation of halal in Malaysia. Besides, the study was based on two categories that are considered major contributors in the chain of halal food sector in Malaysia which are the multinational, and small medium enterprise (SME).

Two company’s categories related to halal food and beverage industry which are the multinational, and SME were chosen in this research based on the similarities in terms of functions and needs in the implementation of halal in Malaysia. Furthermore, both categories are the main groups in the halal food sector that support the growth of other categories. The sample of the study was comprised of 241 companies from halal certification holders (MNCs=69; SMEs=172).Cross-sectional study through random sampling and purposive sampling was used where the internal halal committee who have been specifically appointed in the organization were asked to fill in the questionnaire. Personally hand-delivered questionnaires in workplaces was used as a method of data collection. The data were analyzed using SPSS version 21.

Based on the analysis, it was found that the level of knowledge, halal quality assurance practices and commitment to be at a good level. Whereas the results of inference showed that there are significant differences for the three variables studied.

In the study there are some limitations, namely; first, the categories studied are focussed solely on halal food industry. Halal now been expanded to other products such as pharmaceutical, logistics, etc. Second, the standards used are the standard and guidelines on the handling of food. Finally, the limitations in obtaining more respondents as most industry in Malaysia is still concerned to provide feedback and view it as the secrecy of the company.

First, the implication of the theory and literature studies in which the research prevalence is associated with the ISO quality and quality management, integration of multiple disciplines and concepts is essential as a combination of elements of human capital and strategic management. Second, on behalf of the government or specially-appointed halal certification body, it can give a clear picture of the exposure and promotion related to the deed, procedures, and guidelines have gone through several changes and amendments. In addition, it is also able to evaluate the effectiveness of a number of conditions that are required such as internal halal appointment committee. Third for industry practitioners, focussing in delivering halal standards is not dependent on the system, working patterns, and technologies alone, but should also take into account the element of human capital and organizational responsibility in maintaining halal integrity and enhancing the knowledge and halal dietary management in accordance with the requirements of Islamic law and fatwa.

On behalf of the users, the confidence is there and in order to produce a halal product, it involves a fairly strict chain and has always been regulated by a special committee whose role are meeting the needs outlined halal standards.

The study is the starting point in discussing in detail about the halal knowledge, halal quality assurance, and commitment after the standardization and harmonization of halal certification in early 2012. Furthermore, there are a few revisions on the act, standards, and procedures by the halal certification body, which halal assurance should be implemented and considered still new.