Halal food standard implementation: are Malaysian firms proactive or reactive?

Abstract

Purpose: The purpose of this paper is to investigate the reasons behind halal food standard (HFS) implementation among food manufacturers in Malaysia. Additionally, it examines whether firms in the Malaysian food manufacturing industry are proactive or reactive in implementing HFS. Design/methodology/approach: A field survey was conducted in 210 halal-certified food manufacturers. A partial least squares structural equation modeling technique was used to examine the relationships between the reasons and implementation of HFS. Findings: The empirical assessments revealed that organization’s commitment, operational improvement and marketing functions are the internal reasons. Meanwhile, government intervention and consumer pressure are the external reasons to implement HFS. Findings also indicated that Malaysian food manufacturers are proactive in implementing HFS. Practical implications: The knowledge from this research could encourage non-certified firms to implement HFS and entices halal-certified firms to remain certified. It guides managers toward adopting a better strategy, particularly in prioritizing the internal factors and resources for a more sustainable and positive implication. Originality/value: This research is among the few studies that scrutinized the rationale behind the rapid growth of halal food industry. It argues that the pursuit of HFS is not solely a religious obligation, but it is also driven by safety, quality and marketing motives.