Proceedings of the 23rd International Academic Conference, Venice

THE EFFECT OF HALAL REQUIREMENT PRACTICES ON ORGANIZATION PERFORMANCE AMONG FOOD MANUFACTURES IN MALAYSIA

BAHARUDIN OTHMAN, SHARIFUDIN MD. SHAARANI, ARSIAH BAHRON

Abstract:

Halal management has grown rapidly including the production process and halal verification. Therefore, the aim of this study focused on the effects of halal practices on the organizational performance in Malaysian halal food industry. In this study, the halal requirement elements consisted of halal and thoyyib, internal process, halal assurance, and staff as the predictor of organizational performance. This study used a self-administered questionnaire with closed-ended questions. The questionnaire was distributed to multinational companies and small and medium enterprises (SME) in which 620 were applicable for analysis. The respondents were among the halal committee members in the respective companies. The data was analyzed using SPSS Version 21. The results showed that halal requirement practices have a positive relation to the dependent variables. Moreover, only halal and thoyyib aspects (β = 0.319, p<0.05) is significant determinant organizational performance. On the other hand, internal process, halal assurance and staff do not have impact on organizational performance.The implication of the study found that the internal assessment by internal halal committee through an instrument created based on act, standard, and guidelines on halal standards which have been adopted by the authority in halal certification affects the improvement of organizational performance.

Keywords: halal, halal requirement practices, organizational performance.

DOI: 10.20472/IAC.2016.023.073

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