Open Conference Systems, INTERNATIONAL MULTIDISCIPLINARY CONFERENCE (IMC 2017) PROGRAM

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THE MEDIATING ROLE OF TRUST BETWEEN HALAL PRACTICES INTEGRITY AND BUSINESS PERFORMANCE
Kamisah Supian

Last modified: 2017-01-03

Abstract


Trust is an essential prerequisite in the business especially dealing with halal food. Likewise, Muslim consumers must follow strict dietary laws affirmed in the holy Quran and consume the food with a proper food description of its halal status. However, the intensifying number of food safety scandals and withdrawal of halal certification during current years has driven to increased uncertainty about food consumption choices. The uncertainty of halal food may affect the image and reputation of halal integrity as Muslim consumers believe that halal is part of a belief system and moral code of conduct in Islam. Hence, this study attempts to examine the mediating role of trust between halal practices integrity and business performance. A survey was carried out by distributing a structured questionnaire to the halal food manufacturers during the halal food events and festivals in Malaysia. 180 usable data have been analyzed using Partial Least Square Structural Equation Modelling (PLS-SEM). The findings show halal practices integrity has a positive influence on halal trust, and halal trust has a positive influence on business performance. Halal trust mediates the relationship between halal practices integrity and business performance. Additionally, the halal trust serves as an underpinning for more efficient halal food processes and practices in sustaining the Malaysia halal food manufacturing. The findings of the research contribute to the body of knowledge on halal food business performance, which helps managers to react accordingly by ensuring and providing a safe halal food as well as sustaining their halal food integrity.


Keywords


Halal practices integrity, trust, business performance, food industry

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