Urgency of Halal Certification on the Performance of MSMEs
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 10
Abstract
This research aims to explain the effect of halal certification on the financial performance of MSMEs, which is mediated by innovation performance. Halal certification is required for MSME food products along the supply chain, starting from providing ingredients, processing, storage, packaging, distribution, sales, and presentation of products. Currently, the awareness of MSME owners in Malang Regency regarding the importance of halal certification for the products produced is increasing, aiming to improve MSMEs' performance. This is also supported by a government program that provides assistance facilities for MSMEs in managing halal certification. This research uses quantitative methods accompanied by hypothesis testing. The research sample was 153 MSME food products registered with the Cooperative Service, which had received halal certification from LPPOM MUI. Questionnaires were distributed to MSMEs in five sub-districts in the Malang Regency area to obtain a representative sample. The sampling technique used was purposive sampling with primary data collection was carried out by field surveys of food product MSMEs using questionnaires and Likert scale measurement. The analysis technique used in this research is Structural Equation Modelling Partial Least Square (SEM-PLS) analysis to find out how halal certification affects the financial performance of MSMEs. The research results show that halal certification does not affect the financial performance of MSMEs in Malang Regency; on the contrary, halal certification has a positive and significant effect on innovative performance in MSMEs. This research also found that innovative performance positively affects financial performance. Apart from that, another finding from this research is that halal certification indirectly affects financial performance, which is mediated by innovative performance in MSMEs in Malang Regency.
Authors and Affiliations
Raisa Fitri, Sudarmiatin, Della Ayu Zonna Lia
Keywords
Related Articles
- EP ID EP727594
- DOI 10.47191/jefms/v6-i10-12
- Views 49
- Downloads 0
Employees' Perception of the Contributory Pension Scheme (CPS) and Its Implementation Effect in Malawi’s Shire Highlands Education Division.
There have been dynamics in the pension systems globally which have witnessed various countries embracing the pension reforms within their Pension Scheme arrangements in respective jurisdictions. This evolution compelled...
The Effect of Workload, Authoritarian Leadership, and Career Burnout on Work Loyalty and Employee Performance at PT Doran Sukses Indonesia
This study aims to examine the effect of workload, authoritarian leadership and career burnout on work loyalty and employee performance at PT Doran Sukses Indonesia, which has recently experienced an increase in employee...
Business Recovery Strategy after Covid-19 for Vietravel: The Role of Corporate Social Responsibility (CSR) Behaviors
This study analyzes the role of corporate social responsibility (CSR) in Vietravel's business recovery plan post-COVID-19. It aims to identify CSR elements, their importance in recovery strategies, and methods for touris...
The Influence of Principal Leadership, Teacher Performance, Role of School Committees and Organizational Culture on the Implementation of School-Based Management in High Schools and Vocational Schools in Ende Regency, East Nusa Tenggara Province
The aim of this research is to describe the Principal's Leadership, Teacher Performance, Principal's Role and SBM Implementation, analyze the influence of Principal Leadership, Teacher Performance and the Principal's rol...
Saving Behavior with Self Control as a Moderation Variable in Private Employees in Sidoarjo City
Financial literacy is important to be understood by everyone in order to be able to manage personal finances well. The study aims to determine the effect of financial literacy and income on saving behavior with self-cont...