Search results

Managing trust recovery in case of violation of halal products should be seen in light of the severity of violation as perceived by the consumer. This study aims to investigate how the severity of violation on halal directly impact negative consumer behavior (avoidance, boycott and revenge), and its moderating effect on the relationship between trust recovery and avoidance, boycott and revenge.

In total, 212 questionnaires were distributed amongst customers who were aware and/or had experienced the violation of a halal product in Klang Valley, Malaysia – each of whom were selected using convenience sampling methods. Data were analyzed using descriptive statistics and structural equation modelling techniques, were partial least squares (PLS) software was used to measure the direct and indirect relationships between the variables.

The results of this investigation showed that trust recovery and negative consumer behavior are negatively related; severity is positively related to avoidance, boycott and revenge; and severity moderates the relationship between trust recovery and avoidance.

Empirically, it was found that severity and trust recovery are a significant component that influence negative consumption behavior. This study has significant implications alongside research implications despite some limitations.

In a severe violation case, a company needs to ensure that the strategy to fix the problem is genuine and trustworthy, as consumer trust on the recovery action by company is significance to influence customer avoidance in consuming the company’s product.

The uniqueness of this study exists in the fact that it is the first known one to concentrate on halal violation and examine the moderating effect of severity of halal violation on the relationship between trust recovery and negative consumer behaviors (avoidance, boycott and revenge).

The purpose of this paper is to examine how Halal entrepreneurs perceive success and accordingly develop a novel scale to measure Halal entrepreneurship success.

A sequential mixed methodology was used to develop the Halal entrepreneurship success scale (HESS). The qualitative phase began with a literature review to gain insights into (Halal) entrepreneurship success and identify gaps. Ten respondents were then interviewed to understand how they perceive success. The scale items were then generated based on insights from the literature and the interview findings. The quantitative phase was carried out in two cycles. In the first cycle, a questionnaire was developed and pilot data were collected from a representative sample of 100 respondents. In the second cycle, the revised scale was tested on 300 respondents to confirm its final items and dimensions. Exploratory factor analysis and confirmatory factor analysis were used in the quantitative phase.

The final HESS scale contains 24 items divided into four dimensions: Islamic success (seven items), economic success (six items), social success (five items) and environmental success (six items).

This scale is perhaps the first to measure entrepreneurial success in its association with religion. It is expected to be a useful contribution to entrepreneurship theory and the Halal industry. The paper presents a foundation for future works on how to define the measures of success of Halal entrepreneurs.