Examining retailers’ behaviour in managing critical points in Halal meat handling: a PLS analysis

Abstract

Purpose– This research aims to examine the casual relationship between normative belief (NB), subjective norms (SN), retailer’s behavioural belief (RBB), retailer’s attitude (RATT), retailer’s behaviour intention (RBI), retailer’s actual behaviour (RAB) and retail performance (RetailP). Managing Halal meat becomes an issue for retailers due to consumers’ concerns for their religious belief. Design/methodology/approach– A total of 230 questionnaires were distributed among Malaysian meat retailers of which 178 useful questionnaires were collected to empirically test the proposed seven critical points in Halal meat handling. Partial least squares, a structural equation modelling approach was used to examine simultaneously the structural components of both the measurement and causal model for reflective and formative constructs. Findings– RBI and RAB are positively related to NB, SN, RBB and RATT in which motivate retailers for high RetailP and critical points in Halal meat handling. The empirical assessment supports the proposed hypotheses and supports RetailP as a formative construct measured by sales revenue, market share and customer satisfaction. Research limitations/implications– Empirically it was found that theory of reasoned actions (TRA) can be used to predict RetailP in addition to RAB. This study has significant policy implications alongside research implications despite some limitations. Practical implications– The current literature and stated policies are focussing solely on consumers to understand the issues in Halal market which may not reach the strategic standpoint for firms and the state in general. The Malaysian Government should appreciate the importance of the Halal business markets in which NB, SN, RBB and RATT are influenced by certain elements discussed in this study. Originality/value– This study is among the first few attempts towards “Islamic Retailing”. Prior literature applied TRA in a customer market verses this study examine the attitude and behaviour of businesses market (retailers) in Malaysia. This study explores retailers’ behaviour towards Halal value chain by integrating TRA and critical points in Halal meat handling.