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Empowerment of SME’s sustainability in halal cosmetics’ ecosystem by diagnosing growth constraints

Empowerment of SME’s sustainability in halal cosmetics’ ecosystem by diagnosing growth constraints This study aims to identify and examine the growth constraints of the halal cosmetics ecosystem in which SMEs are operating in, with special focus on the situation in Malaysia.Design/methodology/approachThe study adopted a qualitative methodology consisting of a systematic literature review and interviews with selected consumers and policymakers. The instruments were developed based on cybernetics and a systems-based approach, which allows for the understanding of the dynamics of growth variables in the halal cosmetics ecosystem. Based on data gathered, their relationships were mapped and major growth constraints were identified.FindingsCybernetics and systems approach coupled with growth diagnostics framework has enabled identification of comprehensive growth constraint variables for halal cosmetics ecosystem and mapping of growth constraints (variables) in a relationships network. The study found that the enforcement activities of the National Pharmaceutical Research Agency (Cosmetics Unit) directly affect five growth constraints and is associated with three other growth constraint variables; subsequently the most binding growth constraint. The relationship network derived from the mapping of the growth constraints indicated that changes in the behaviour of any element will affect the overall operations of the ecosystem.Research limitations/implicationsWhile the cosmetics industry is large and varied, this study is centred on halal colour cosmetics only. The growth constraint variables studied are those chosen by researchers and other growth constraints could be studied to guide policymakers. Future research can revolve around other halal cosmetics business sectors; impact of IR4.0 technology, COVID-19 pandemic impact; crisis and risk management issues, in the halal cosmetics industry.Practical implicationsThe results derived from the cybernetics analysis affirms the “outside-in” marketing perspective, thus stakeholders should continuously monitor changes in the halal cosmetics ecosystem to ensure to ensure sustainability and profitability. Small and medium enterprises (SMEs) and policymakers can initiate pre-emptive actions by conducting simulations of various situations on the halal ecosystem.Social implicationsEnabled to simulate the effect of changes to the halal cosmetics ecosystem, stakeholders are able to take intervention initiatives, safeguard accessibility to halal cosmetics and make the halal cosmetics industry sustainable.Originality/valueTo the best of the authors’ knowledge, this is the first comprehensive research to identify the growth constraints of the halal cosmetics industry in Malaysia that focusses on three groups of stakeholders (consumers, SMEs and government institutions) concurrently. The growth constraints relationship network of the halal cosmetics ecosystem can be further used to simulate the impact of changes within the system. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Islamic Marketing Emerald Publishing

Empowerment of SME’s sustainability in halal cosmetics’ ecosystem by diagnosing growth constraints

Journal of Islamic Marketing , Volume 14 (2): 23 – Jan 26, 2023

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References (55)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1759-0833
eISSN
1759-0833
DOI
10.1108/jima-12-2020-0371
Publisher site
See Article on Publisher Site

Abstract

This study aims to identify and examine the growth constraints of the halal cosmetics ecosystem in which SMEs are operating in, with special focus on the situation in Malaysia.Design/methodology/approachThe study adopted a qualitative methodology consisting of a systematic literature review and interviews with selected consumers and policymakers. The instruments were developed based on cybernetics and a systems-based approach, which allows for the understanding of the dynamics of growth variables in the halal cosmetics ecosystem. Based on data gathered, their relationships were mapped and major growth constraints were identified.FindingsCybernetics and systems approach coupled with growth diagnostics framework has enabled identification of comprehensive growth constraint variables for halal cosmetics ecosystem and mapping of growth constraints (variables) in a relationships network. The study found that the enforcement activities of the National Pharmaceutical Research Agency (Cosmetics Unit) directly affect five growth constraints and is associated with three other growth constraint variables; subsequently the most binding growth constraint. The relationship network derived from the mapping of the growth constraints indicated that changes in the behaviour of any element will affect the overall operations of the ecosystem.Research limitations/implicationsWhile the cosmetics industry is large and varied, this study is centred on halal colour cosmetics only. The growth constraint variables studied are those chosen by researchers and other growth constraints could be studied to guide policymakers. Future research can revolve around other halal cosmetics business sectors; impact of IR4.0 technology, COVID-19 pandemic impact; crisis and risk management issues, in the halal cosmetics industry.Practical implicationsThe results derived from the cybernetics analysis affirms the “outside-in” marketing perspective, thus stakeholders should continuously monitor changes in the halal cosmetics ecosystem to ensure to ensure sustainability and profitability. Small and medium enterprises (SMEs) and policymakers can initiate pre-emptive actions by conducting simulations of various situations on the halal ecosystem.Social implicationsEnabled to simulate the effect of changes to the halal cosmetics ecosystem, stakeholders are able to take intervention initiatives, safeguard accessibility to halal cosmetics and make the halal cosmetics industry sustainable.Originality/valueTo the best of the authors’ knowledge, this is the first comprehensive research to identify the growth constraints of the halal cosmetics industry in Malaysia that focusses on three groups of stakeholders (consumers, SMEs and government institutions) concurrently. The growth constraints relationship network of the halal cosmetics ecosystem can be further used to simulate the impact of changes within the system.

Journal

Journal of Islamic MarketingEmerald Publishing

Published: Jan 26, 2023

Keywords: Growth constraints; Halal cosmetics; Cybernetics analysis; Sustainability; Outside-in; COVID-19

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