Industries

Halaal Certification: What SME should know

Abstract

The receptions of Muslims consumers towards Halal certification are an opportunity for SME producers in competing in the globalized market. The objective of the research is to measure the factors contributing the consumers’ behaviors towards purchasing Halal certified products particularly in the food industry. The research tries to identify the factors that contribute to Halal certification using factor analysis and logistic regression. Consumers’ data were collected based on 1075 samples. The findings show that there are 11 factors that could contribute to Halal certification awareness. Further analysis using the logistic regression, there are only seven factors that contribute significantly to the importance of Halal certification. The factors are; attractive and quality, Halal certification, market demand, SME producers, Halal certification to Muslim companies, difference between Halal certified and non certified, and clean operation.

Complete paper here

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