Mapping the barriers for implementing halal logistics in Indonesian food, beverage and ingredient companiesSusanty, Aries; Puspitasari, Nia Budi; Caterina, Avika Dian; Jati, Sumunar
2021 Journal of Islamic Marketing
doi: 10.1108/jima-11-2019-0244
This study aims to identify the barriers to halal logistics implementation; rank the barriers of halal logistics implementation in food, beverage and ingredient companies; and identify the relationship among the identified barriers of halal logistics implementation to derive key managerial insights.Design/methodology/approachThe paper first describes the concepts of halal logistics and discusses the barriers in implementing halal logistics from previous research studies. Then, on the basis of previous research, this study identifies 13 barriers to halal logistics implementation. The study uses interpretive structural modelling (ISM) methodology to find the rank of the barriers and also the direct or indirect relationship among those barriers. The study also uses a panel of experts consisting of the representative from Lembaga Pengkajian Pangan, Obat-obatan, dan Kosmetika Majelis Ulama Indonesia (The Assessment Institute for Foods, Drugs, and Cosmetics – The Indonesian Council of Ulama or LPPOM MUI) and the representatives from 23 food, beverage and ingredient companies to determine the rank of, and the relationship among, the 13 barriers.FindingsThe result of data processing with ISM methodology indicated that lack of support for logistic service providers and lack of customer demand and reluctance to pay for halal logistics occupied the topmost level. These barriers are affected at the lower level and have less influence than the remaining barriers. The result with ISM methodology also indicated that lack of commitment of management is the main barrier to implementing halal logistics. Moreover, according to the result of data processing with ISM methodology, this study suggests some managerial implications to overcome the barriers that hinder halal logistics implementation.Research limitations/implicationsThis study has several limitations. First, the scope of the study is limited to the barriers faced by Indonesian food, beverage and ingredient companies and overlooks other barriers to halal logistics encountered by other industries or other services as well as other regions or countries (i.e. other Muslim or non-Muslim countries). Future studies should attempt to uncover other industries or other services or a cross-industry comparison as well as other regions, other countries or a cross-region or cross-country comparison. The second limitation is related to the possibility of biased opinions from the experts, and the third limitation is that the identified barriers do not test in a real environment. To eliminate these limitations, future studies should involve more experts from different areas of the halal industry and should test the identified barriers to implement halal logistics in the real scenario.Practical implicationsThis study assists managers and policymakers in understanding the order in which these barriers must be tackled and adopts a strategy to successfully implement halal logistics.Social implicationsThe study has indicated that the barriers to implementing halal logistics can be mitigated because these barriers have the most influence on the system identified.Originality/valueThis study considers the application of ISM methodology to an empirical case of barriers so as to implement halal logistics. The study uniquely contributes to the field of halal logistics because it represents initial research that has analysed the barriers of halal logistics using ISM methodology.
Halal vaccination purchase intentionBukhari, Syeda Nazish Zahra; Isa, Salmi Mohd; Yen Nee, Goh
2021 Journal of Islamic Marketing
doi: 10.1108/jima-10-2019-0209
The purpose of this study is to empirically examine the determinants of purchase intention of Halal vaccination and compare the results between Muslim consumers in Malaysia and Pakistan. It focuses on analyzing the influence of various factors on the purchase intention of Halal vaccination and determining whether the relationships are significantly different in the two Muslim-majority countries.Design/methodology/approachThe study is based on the extended theory of planned behavior and self-congruity theory. The variable of religiosity was added with the three variables of the theory of planned behavior, i.e. attitude toward Halal vaccinations, subjective norms and perceived behavioral control. It shows the congruity between Muslim consumer and Islamic brands and proposes a wider range of determinants in the framework. The study’s sample size was 378, and the respondents were Muslim consumers in Malaysia and Pakistan. Purposive sampling technique was used to extract the sample from three cities in each country. Partial least square (PLS) was used to statistically analyze the data using PLS–structural equation modeling approach. The measurement model was analyzed, and invariance of the measurement model was established. Afterward, the hypotheses were tested, and multi-group analysis was performed through Henseler’s multi-group analysis (MGA) and Permutation test.FindingsThe results indicate a lack of significant relationships between the independent variables and the purchase intention of Halal vaccination except in the case of subjective norms. This construct has a significant but inverse relationship in the case of Pakistan’s Muslim consumers, which can be attributed to the presence of consumer skepticism regarding the issue of Halal vaccination. The MGA results reveal a statistically significant difference in the influence of religiosity on purchase intention between the two countries, depicting differences in the brand–self congruity perceptions of consumers in the two countries.Research limitations/implicationsThe sample size was relatively small due to the limited time duration.Originality/valueThe area of Halal vaccination has been given limited attention in academic literature. This study addresses this area that has limited research and is greatly attractive to a large number of brands targeting the Muslim consumer market. The results of the study can form a foundation for creating the branding strategy of this product category and assessing its demand in various Muslim markets.
Trade diversion risk for halal food exportsKabir, Shahriar; Shams, Syed; Lawrey, Roger
2021 Journal of Islamic Marketing
doi: 10.1108/jima-07-2019-0145
The purpose of this paper is to investigate the link between trade diversion risk and new Halal market exploration.Design/methodology/approachThis 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.FindingsThis 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 implicationsTo 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/valueThis 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.
Determinants and outcome of Islamic corporate social responsibility (ICSR) adoption in Islamic banking industry of PakistanBukhari, Syed Asim Ali; Hashim, Fathyah; Amran, Azlan Bin
2021 Journal of Islamic Marketing
doi: 10.1108/jima-11-2019-0226
The purpose of this study is to empirically examine the determinants and outcomes of Islamic corporate social responsibility (ICSR) adoption in Islamic bank branches in Pakistan. The research framework examines the influence of stakeholder’s pressure on ICSR adoption. It also analyses the relationship between ICSR adoption and intangible outcomes achieved by the Islamic bank branch.Design/methodology/approachA total of 400 questionnaires were distributed through a mail survey to Islamic bank branches in Pakistan. The respondents of the study were the branch manager of Islamic bank branches in Pakistan. A simple random sampling technique was used and resulted in the collection of 293 usable questionnaires. SMART PLS was used to statistically analyse the data using partial least squares structural equation modelling approach. The measurement and structural models were analysed.FindingsThe results indicate a significant and positive relationship between Shariah supervisory board pressure, competitor pressure and ICSR adoption in Islamic bank branches. A moderate strength positive relationship was found out between top management pressure and ICSR adoption. Results reveal that customer pressure and community pressure have an insignificant influence on ICSR adoption. Data analysis shows that the adoption of ICSR practices have a significant and positive influence on an Islamic bank branch’s Intangible outcomes.Research limitations/implicationsThe sample size was relatively small because of the limited time duration.Originality/valueThe construct of ICSR has not been extensively researched upon especially through empirical studies. Limited research exists in the area of factors than can influence Islamic bank branches to adopt ICSR practices and currently no empirical research has focussed on the intangible outcomes that can be achieved through ICSR adoption by an Islamic bank branch. The limited study exists in the Pakistan context as well, which is a rapidly growing Islamic banking industry.
The impact of religiosity on luxury brand consumption: the case of Saudi consumersAbalkhail, Tagreed Saleh
2021 Journal of Islamic Marketing
doi: 10.1108/jima-11-2016-0091
The purpose of this study was to examine the impact of religiosity on luxury brand consumption among Muslim women.Design/methodology/approachA total of 322 women were surveyed. Data was collected in the capital city of Saudi Arabia and assessed using SEM.FindingsThe findings revealed that religion impacts consumers’ attitudes towards luxury brand consumption. A positive relationship was found between attitude towards luxury and luxury consumption. Also, attitude towards luxury mediated the relation between religiosity and luxury consumption.Originality/valueThe study’s findings serve to remind the retailers in Islamic countries to keep in mind the importance of religion in consumers’ preferences and selections.
Halal six sigma framework for defects reductionVanany, Iwan; Hua Tan, Kim; Siswanto, Nurhadi; Arvitrida, Niniet Indah; Pahlawan, Firman Mega
2021 Journal of Islamic Marketing
doi: 10.1108/jima-11-2019-0232
In recent years, halal food industries are facing a high level of competition. The growing demand for halal food means firms are working hard to improve quality and reduce halal food defects. The purpose of this study is to propose a halal-based six sigma (SS) framework that could be used to reduce halal food defects and improve compliance.Design/methodology/approachThe proposed halal six sigma (HSS) framework has five phases based on the define-measure-analyse-improve-control (DMAIC) approach. The proposed framework also integrates halal assurance system requirements into HSS to ensure compliance. Tools used in the proposed model include SIPOC tools, Pareto diagram, root cause analysis and the improvement process flows. A case study in a chicken meat company is used to test and validate the proposed framework. In case of study research, brainstorming was used to review an initial proposed framework and focus group discussions were used to determine feasible improvement actions.FindingsThe results showed that the proposed HSS framework could be effective to detect and reduce the halal defects and lower the halal defect costs. By adopting the framework, the case firm was able to lower halal defect costs significantly and increase the SS level.Practical implicationsSS approach can be designed and adapted to specific food industry. HSS framework could provide a systematic approach to reduce halal food defects and sustain the improvement efforts. The proposed HSS framework is also easy to use to understand halal critical points and improve halal compliance.Originality/valueThis study proposed a HSS framework that can be adopted to reduce halal food defects and costs. This proposed framework will benefit the halal food industry intending to realize zero halal food defects and lower production costs. The limited number of publications in the research theme of halal food defects show that there is a significant gap in the existing body of knowledge.
Factors determining behavioral intentions to use Islamic financial technology, Darmansyah; Fianto, Bayu Arie; Hendratmi, Achsania; Aziz, Primandanu Febriyan
2021 Journal of Islamic Marketing
doi: 10.1108/jima-12-2019-0252
The purpose of this paper is to investigate the influential factors on behavioral intentions toward Islamic financial technology (FinTech) use in Indonesia, for all types of FinTech services as follows: payments, peer to peer lending and crowdfunding.Design/methodology/approachThis study adopted structural equation modeling using the partial least squares approach to test the hypotheses. Based on purposive sampling, the questionnaire was distributed through an online survey and received 1,262 responses.FindingsThe results demonstrate that the latent variables, planned behavior, acceptance model and use of technology, have a significant impact on encouraging behavioral intentions to use Islamic FinTech. The “acceptance model” latent variable is the most influential factor.Research limitations/implicationsThis study was conducted only in Indonesia; therefore, the results cannot be generalized to other countries. However, the study provides important strategic guidelines for policymakers in designing a framework to enhance the development of Islamic FinTech and to achieve financial inclusion. It is suggested that future studies include samples from FinTech users in different countries.Originality/valueThis study adds to the literature especially on the factors affecting behavioral intentions to use Islamic FinTech. There are limited studies concerning this topic, especially for Indonesia. The unique feature of this study is the use of a large primary data set that covers most provinces in Indonesia. Furthermore, this study focuses on three types of Islamic FinTech, namely, payments, peer to peer lending and crowdfunding.
Resource-capability of halal logistics services, its extent and impact on performanceNoorliza, K.
2021 Journal of Islamic Marketing
doi: 10.1108/jima-12-2019-0255
The purpose of this paper is to examine the extent of emergent resource-capability, its configurations and its impacts on customer service innovation and cost advantages in the context of the halal dynamic environment.Design/methodology/approachThe study performed a cluster analysis on a sample of 123 Malaysian halal-based third-party logistics (3PL) providers.FindingsThe findings reveal that the emergent resource-capability comprising physical, technology, knowledge, relational and organizational is advanced uniformly into low, medium and high level. The high resource-capability is significantly different with the medium and low resource-capability, while the medium resource-capability is significantly different with the low resource-capability. The extent of emergent resource-capability has a significantly positive effect on customer service innovation and cost advantage. Especially, high and medium resource-capabilities have enhanced greater customer service innovation and cost advantage significantly, indicating the higher the extent of resource-capability, the greater the enhancement of performance.Practical implications3PL providers or logistician professionals should understand the extent of emergent resource-capability to empower the competitiveness of service innovation and cost in the dynamic environment.Originality/valueThe study expands the knowledge with regard to resource-capability complexities which clarify the uniform extent of five emergent resource-capability naturally and provides empirical evidence on the emergent resource-capability of halal logistics services that can empower a successful halal logistics services and competitiveness.
Relationship dynamics in customer loyalty to online banking servicesGarepasha, Akram; Aali, Samad; Bafandeh Zendeh, Ali Reza; Iranzadeh, Soleyman
2021 Journal of Islamic Marketing
doi: 10.1108/jima-09-2019-0183
The purpose of this paper is to investigate the effect of service quality and relationship quality on customer loyalty in different stages of the relationship life cycle in online banking services.Design/methodology/approachA total of 651 Iranian online banking customers participated in the research by completing questionnaires. The research hypotheses were tested using structural modeling technique.FindingsThe results showed that the relationship quality on customer loyalty in online banking services is affected by the relationship life cycle. The results also showed that online service quality, in the form of Utilitarian quality and Hedonic quality, has a positive effect both directly and indirectly on customer loyalty through online relationship quality.Research limitations/implicationsIn this paper, the relationship dynamics was achieved through adding the relationship life cycle variable to the model. However, the study was a cross-sectional research and different results might be obtained if data was collected longitudinally.Practical implicationsIn an online banking service, the role of relationship quality in the prediction of customer loyalty is reduced as the relationship ages. Therefore, marketers need to consider other marketing actions to continue their relationship with the customer in the long run.Originality/valueThis paper examines customer loyalty to online banking services from dynamic perspective by introducing relationship life cycle as a moderating variable for the first time. Therefore, the main contribution of this paper is to develop the relationship marketing literature in the field of relationship dynamics and to challenge the effectiveness of relationship marketing in the long run.