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 55
- Downloads 0
Evaluation of the Financial Reporting System of LKM Gapoktan Tani Manunggal Temanggung using Black Box Testing
This study employs Boundary Value Analysis (BVA), a kind of Black-Box Testing, to assess the financial information system of LKM Gapoktan Tani Manunggal Temanggung. Through testing the system's performance in a variety o...
Influence of Information Sharing on Performance of Manufacturing Firms in Kenya
Information has emerged as a key resource that improves manufacturing companies' performance and helps a company efficiently satisfy consumers' expectations. The goal of the study was to ascertain how information sharing...
When Service Quality Has a Greater Influence on Customer Satisfaction than Promotion: Empirical Study on Galvalum Companies
In the contemporary retail landscape, understanding the intricate relationships between promotional methods, service quality, and customer satisfaction is imperative for businesses striving to navigate a competitive envi...
Mediating Factors That Influence The Relation Between Budget Congruence and Managerial Performance in Public Services Universities in Indonesia
This study aimed to examine whether budget goal commitment, psychological capital, and management accounting system were able to play a role in mediating the relation between budget congruence and managerial performance...
What Drives Online Gaming Addiction? Loyalty Check and In-App Purchase Intention
Mobile gaming is known as a high and competitive growing industry of business. There have been lots of game released every day in the last two years. This study examines the relationship between online game addiction (wi...