DOING HALAL BUSINESS IN TAIWAN: THE ENABLER FACTOR FROM FIRM’S PERSPECTIVE

• Main Author: Artadita, Sherly
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/41885
• Institution: Institut Teknologi Bandung

The growing number of Muslim populations giving opportunities for industry around the world to engage in halal business. “Halal” as requirement for Muslim consumption, which is not only restricted to food but non-food and service, become undeniable potential market size. Regardless the knowledge level about Muslim, both countries with majority and minority Muslims are competing to engage with Halal industries, including Taiwan. This phenomenon attracts academia interest to conduct halal research. Unfortunately, the perspective of entrepreneur (i.e. the stakeholder to provide the Halal product and service for the market) which acts as a key point to address the market demands of halal is still scarce. This study uses Taiwan as the research subject to investigate the factors from entrepreneurs to engage with Halal business. A conceptual model is developed to be consisting of seven latent variables - firm’s resource, firm’s resource (FR), firm’s external environment (FEE), perceived benefit (PB), perceived risk (PR), intention to adopt (IA), innovativeness (IN), and halal business adoption (HBA). This study was conducted by spreading the questionnaire survey to firms in Taiwan and using PLS-SEM for data analysis. From 41 responds obtained from firms in halal product and service, the finding shows that FR and FEE directly affect IN and PB; FR directly affect PR; PB and PR affect IA; and the end both IN and IA affect HBA. This study then brings two recommendations for managerial implication. First, the importance of firm’s resource to shape the innovativeness and firm’s intention adopt halal business which lead into halal business adoption. Second, the importance of perceived benefit as the key factor to enhance the firm’s intention to adopt halal business.