IMPLEMENTATION AND IMPACT OF A HALAL FOOD STANDARD: AN EMPIRICAL STUDY OF MALAYSIA
Abstract
As a Malaysian halal food standard, MS1500 was established to strengthen the Malaysian role in the global halal market. This study aims to identify the factors affecting the implementation of MS1500, its positive impact, and the relationship between its implementation and impact. The food and beverages industry in Malaysia, which already has a halal certificate and halal logo, was chosen as the study population. The covariance-based structural equation modelling (CB-SEM) method was employed, with 212 sample companies. The results show that Perception-On-Implementation, Halal-Control-System-Activity and Owner-Management-Employee-Limitation were the factors affecting the implementation of MS1500. Four positive impacts of its implementation were also found: Trade & Free Movement, Innovation, Clean & Save Production-Process and Consumer & Corporate Image. In addition, it was discovered that the better the implementation of MS 1500, the greater the positive impact that could be achieved by the industry. It was also found that in Malaysia, finance and regulations were not the factors causing limitations in the implementation of the halal food standard. The findings of the study can be used as an input for Malaysian government in planning suitable programmes to promote the implementation of the standard. Moreover, the extent of the positive impacts of the implementation on the industry is expected to encourage all food sectors in Malaysia to apply and fully implement MS1500 in their daily operations.
References
Abdul, M., Ismail, H., Hashim, H. and Johari, J. (2008). SMEs and Halal Certification, In Thrusting Islam, Knowledge and Professionalism in ECER Development. ECER Regional Conference, 609-618
Abidin, N.A. (2016). Consumer Perception towards Halal Logo and Certification: A Study among the Students of Faculty Syariah and Law, Islamic Science University of Malaysia. Faculty of Syariah and Law, Universiti Sains Islam Malaysia. Nilai, Malaysia.
Ahmad, H. Wahid, and Kastin, S. (2007). PKS di Persada Dunia Melalui Tanda Halal: Kes Gelagat Pengguna. Penjenamaan Halal: Satu Paradigma Baru (in Malay), (Ed), 71-97.
Asa, R.S. (2017). Malaysian Halal Certification: Its Religious Significance and Economic Value. Shariah Journal, 25 (1), 137-156.
Atikah, N. (2016). Consumer Perception towards Halal Logo and Certification: A Study among the Students of Faculty Syariah and Law, Islamic Science University of Malaysia (Bachelor Thesis). Faculty of Syariah and Law, Universiti Sains Islam Malaysia. Nilai, Malaysia.
Aziz, Y.A. and Chok, N.V. (2013). The Role of Halal Awareness, Halal Certification and Marketing Components in Determining Halal Purchase Intention among Non-Muslim in Malaysia: A Structural Equation Modelling Approach. Journal of International Food and Agribusiness Marketing, 25(1), 1-23.
Bentler, P. M. & Chou, C. P. (1987). Practical Issues in Structural Modelling. Sociological Methods and Research, 16(1), 78-117.
Batu, A & Regenstein, J.M. (2014). Halal Food Certification Challenges and Their Implications for Muslim Societies Worldwide. Turkish Studies - International Periodical for the Languages, Literature and History of Turkish or Turkic, 9(11), 111-130.
Bellina, N., Bullock, C., Duffy, P., Ferrero, M.L., Faughnan, L., Gallagher, S., McDonnell, F., Nolan, J., O’hAlmhain, L., & Paterson, E. (2002). Study into the Impact of Standardization: Final Report to DG Enterprise. Impacts of Standards Users Group.
Blind, K. (2004). The Economics of Standards: Theory, Evidence, Policy. Edward Elgar Publishing.
Blind, K. (2013). The Impact of Standardization and Standards on Innovation: Compendium of Evidence on the Effectiveness of Innovation Policy Intervention. Manchester Institute of Innovation Research. Manchester Business School, University of Manchester, UK.
Bohari, A. M., Hin, C. W., & Fuad, N. (2013). The Competitiveness of Halal Food Industry in Malaysia: A SWOT - ICT analysis. Malaysia Journal of Society and Space, 9.
Brown, A.N. (2016). Differences between the Theory of Change and the Logic Model.
Burnham, K. P. and D. R. Anderson (2013). Model Selection and Inference: A Practical Information-Theoretic Approach. New York: Springer.
Byrne, B.M. (2016). Structural Equation Modelling With AMOS: Basic Concepts, Applications, and Programming. (3rd New Edition). Taylor & Francis Ltd.
Cheung, M. W. L. (2015). Meta-Analysis: A Structural Equation Modelling Approach. Chichester: Wiley.
Cheung, G. W. and R. S. Lau (2008). Testing mediation and suppression effects of latent variables: bootstrapping with structural equation models’, Organisational Research Methods, 11, pp. 296– 325.
Dankers, C. (2003). Environmental and Social Standards, Certification and Labelling For Cash Crops. FAO. http://www.fao.org/docrep/006/y5136e/ y5136e00.htm
Department of Standards Malaysia (SIRIM). (2009). Malaysian Standard MS1500: 2009 Halal Food-Production, Preparation, Handling and Storage-General Guidelines (2nd Revision).
Din, R.C. and Daud, S. (2014). Critical Success Factors of MS 1500:2009 Implementation. Proceeding-Social and Behavioural Sciences, 121, 96-103.
Dunn, M., Glasgow, R., Handley, K., Kayondo, J.K., Kupfer, L., Khrisna, A., Sanchez, M., Smith, J., Tang, S., Thran, N., Vydelingum, N., & Werder, E. (2012). Fundamentals of Implementation Research. Measure Evaluation. U.S. Agency for International Development.
Escanciano, C. & Santos-Vijande, M.L. (2014b). Implementation of ISO-22000 in Spain: Obstacles and Key Benefits. British Food Journal, 116(10), 1581–1599.
Esmeilpour, M & Barjoei, S. (2016). The Effect of Corporate Image on Customer Satisfaction through Brand Equity. Journal of Advances in Management & Applied Economics, 6 (4), 95-109.
Fixsen, D.L., Naoom, S. F., Blase, K. A., Friedman, R. M., & Wallace, F. (2005). Implementation Research: A Synthesis of Literature. National Implementation Research Network.
Giovannucci, D., & Reardon, T. (2001). Understanding Grades and Standards and How to Apply Them. A Guide to Developing Agricultural Markets and Agro-Enterprises. The World Bank
Grewal, R., J. A. Cote and H. Baumgartner (2004). Multicollinearity and measurement error in structural equation models: implications for theory testing’, Marketing Science, 23, pp. 519– 529.
Hair, J.F., Black, W.C., Babin, B.J. & Anderson, R.E. (2010). Multivariate Data Analysis: A Global Perspective. (7th Edition). Pearson Education.
Hair, J.F.J., Hult, G.T.M., Ringle, C.M. and Sarstedt, M. (2014), A Primer on Partial Least Squares Structural Equation Modelling (PLS-SEM). Sage, Thousand Oaks, CA.
Hawkins, R., Blind, K., & Page, R. (2017). Handbook of Innovation and Standard. Edward Elgar Publishing Limited.
Herath, D. & Henson, S. (2010). Barriers to HACCP Implementation: Evidence from the Food Processing Sector in Ontario, Canada. Agribusiness, 26(2), 265–279.
Hoyle, R. H. and G. T. Smith (1994). Formulating clinical research hypotheses as structural equation models: a conceptual overview’, Journal of Consulting and Clinical Psychology, 62, pp. 429– 440.
International Standard Organization (ISO). (2004). ISO/IEC GUIDE 2:2004. Standardization and related activities — General vocabulary
Jais, A.S. (2019). Halal Related Malaysian Standards. Halal Note Series-Halal Common, 1.
Jungmittag, A., Blind, K., & Mangelsdorf, A. (2011). The Economic Benefits of Standardization. DIN, Germany
Kaur, M. (2016, September 1). Minister Suggest Easier Halal Certification for Muslim Firms. Free Malaysia Today.
Kline, R.B. (2011). Principles and Practice of Structural Equation Modelling. (3rd Ed). The Guilford Press, New York.
Kock, N & Lynn, G.S. (2012). Lateral Collinearity and Misleading Results in Variance-Based SEM: An Illustration and Recommendations. Journal of the Association for Information System, 13(7), 546-580.
Latief, I.A., Mohamed, Z., Sharifuddin, J., Abdullah, A.M. & Ismail, M.M. (2014). A Comparative Analysis of Global Halal Certification Requirements. Journal of Food Products Marketing, 20(sup1), 85–101.
Macheka, L., Manditsera, F.A., Ngadze, R.T., Mubaiwa, J. & Nyanga, L.K. (2013). Barriers, Benefits and Motivation Factors for the Implementation of Food Safety Management 28 System in the Food Sector in Harare Province, Zimbabwe. Food Control, 34(1), 126–131.
Malaysia International Trade and Industry. (2014). MITI Annual Report. https://www.miti.gov.my/miti/resources/MITI_Report_20141.pdf
Manders, B. (2015). Implementation and Impact of ISO 9001. Doctorate Thesis. Erasmus Research Institute of Management (ERIM). Erasmus University Rotterdam, Netherland.
Ministry of International Trade and Industry Malaysia. (2017). MITI Weekly Bulletin, 441.
Ministry of Economic Affair & Halal Development Corporation. (2020). Halal Industry Master Plan 2030. Executive Summary.
Mitchell, R. J. (1992). Testing evolutionary and ecological hypotheses using path analysis and structural equation modelling’, Functional Ecology, 6, pp. 123– 129.
Mohamed, Z.A., Shamsudin, M.N., & Rezai, G. (2013). The Effect of Possessing Information about Halal Logo on Consumer Confidence in Malaysia. Journal of International Food and Agribusiness Marketing, 25(sup1), 73-86
Nawi, N.M. & Nasir, N.I.M. (2014). Consumers’ Attitude toward the Food Safety Certificate (FSC) in Malaysia. Journal of Food Products Marketing, 20(sup1), 140– 150.
Nguyen, N & Leblanc, G. (2001). Corporate Image and Corporate Reputation in Customers’ Retention Decisions in Services. Journal of Retailing and Consumer Services, 8(4), 227-236.
Peersman, G. (2015) Impact evaluation. Better Evaluation. http://www.betterevaluation.org/themes/impact_evaluation
Peters, D.H., Tran, N.T. & Adam, T. (2013). Implementation Research in Health: A Practical Guide. World Health Organization.
Pickering, L. (2015). The Truth about Halal Certification: Part 1 of 12 Parts Series. Pickering Post. http://www.pickeringpost.com/story/the-truth-about-halal-certification/4559
Prates, G.A., & Caraschi, J.C. (2014). Organizational Impacts due to ISO 9001 Certified Implementation on Brazilians Cardboard Companies. International Journal of Academic Research in Business and Social Sciences, 4 (5), 501-502.
Preedy, V. R., & Watson, R. R. (2009). Handbook of Disease Burdens and Quality of Life Measures. Springer.
Rafiki, A. (2019). Impact, Perception and Challenges Due to Halal Certification: The Case of Zulaikha Shop. Management of Shari’ah Compliant Businesses, 139-153.
Rezai, G., Mohamed, Z., & Shamsudin, M. N. (2012). Assessment of Consumers’ Confidence on Halal Labelled Manufactured Food in Malaysia. Pertanika Journal of Social Science & Humanity, 20(1), 33-42.
Shafie, S. & Othman, M. N. (2006). Halal Certification: An International Marketing Issues and Challenges. CTW Congress. http://www.ctwcongress.de/ifsam/download/track_13/pap0 0226.pdf.
State of the Global Islamic Economy (SGIE). (2019). Driving the Islamic Economy Revolution 4.0. The 7th Annual State of the Global Islamic Economy Report (2019/2020).
Sunarya, Firdausy, C.M, Busneti, I and Adinugroho, T.P. (2015). Manfaat Ekonomi Standar. Badan Standardisasi Nasional, Jakarta.
Tabachnick, B.G., & Fidell, L.S. (2012). Using Multivariate Statistics (6th Ed). Person Education.
Talib, M.S.A, Hamid, A.B.A & Chin, T.A. (2015). Motivation and Limitation in Implementing Halal Certification: a Pareto Analysis. British Food Journal. DOI: 10.1108/BFJ-02-2015-005
Talib, M.S.A., Sawari, S.S.M., Hamid, A.B.A., & Chin, T.A. (2016). Emerging Halal Food Market: An Institutional Theory of Halal Certificate Implementation. Emerald Group Publishing Limited. Management Research Review, 39(9). http://doi.org. 10.1108/MRR-06-2015-0147.
Tsiotras G., Gotzamani K. (1996). ISO 9000 as an Entry Key to TQM: The Case of Greek Industry. The International Journal of Quality & Reliability Management, 13(4), 64.
Verlag, B. (2000). Economic Benefit of Standardization. DIN German Institute for Standardization.
Weitzel, T, Beimborn, D & Konig, W. (2006). A Unified Economic Model of Standard Diffusion: The Impact of Standardization Cost, Network Effects and Network Topology. MIS Quarterly, 30 (Special Issue), 489-514
Weston, R., & Gore, P. A., Jr. (2006). A Brief Guide to Structural Equation Modelling. The Counselling Psychologist, 34(5), 719–751. https://doi.org/10.1177/0011000006286345
World Bank. (2004). Monitoring & Evaluation: Some Tools, Methods & Approaches. World Bank Operation Evaluation Department. http://documents.worldbank.org/curated/en/829171468180901329/pdf/246140UPDATED01s1methods1approaches.pdf.
World Health Organisation. (2014). Implementation Research Toolkit: Facilitator’s Guide. Training in Tropical Disease of Poverty. WHO Library.
Zhang, M.F, Dawson, J.F., & Kline, R.B. (2020). Evaluating the Use of Covariance-Based Structural Equation Modelling with Reflective Measurement in Organizational and Management Research: A Review and Recommendations for Best Practice. British Journal of Management, 32(2), 257-272.
Journal of Islamic Monetary Economics and Finance is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
