KNOWLEDGE AND COMPLIANCE: THE INCREASING INTENTION OF MSME’s HALAL CERTIFICATION IN INDONESIA

Abstract

The obligation of halal certification has been promulgated since 2014. However, MSMEs that apply for halal certification are only 1%.  This study aims to analyze the effects of knowledge and compliance on the intention of MSME’s halal certification in Indonesia.  The study used a quantitative approach. The sample size was 100 respondents representing owners, managers, or leaders of MSMEs in several cities in Indonesia. Samples were taken by convenience sampling technique. Data processing using Smart-PLS.   The results showed that knowledge had an insignificant positive effect on the intention to implement halal certification directly. However, mediated by compliance, knowledge significantly affects the intention to implement halal certification. Compliance increases the intention of MSMEs to implement halal certification in Indonesia.   Compliance is a crucial factor in increasing the intention of MSMEs to implement halal certification both directly and in the role of mediators.