Pivotal stimulants to halal certified firms: a case study of Taiwan

Abstract

Purpose This study aims to investigate the drivers of halal-certified firms in Taiwan, a Muslim minority country, to provide halal products or services. Design/methodology/approach This study used a quantitative method by spreading offline and online surveys toward halal-certified firms in Taiwan. Data were obtained from 41 responses and were analyzed using partial least square structural equation modeling. Findings This study discovers that firms in Taiwan practice halal business as they possess halal perceived value and innovation orientation. In addition, the interplays of the antecedents, the internal and external drivers, also play an excellent role in shaping the firms’ practices on halal business. Research limitations/implications Despite the implications, this study was built under several limitations that are potentially addressed by future research. The limitations lay in the low response rate, indistinctive analysis based on the firms’ market orientations (domestic or international) and the exclusion of other relevant variables to the conceptual model. Practical implications Practically, this study clarifies that firms in a Muslim minority country can be encouraged to engage in halal business in several ways. Those with a good understanding of halal usefulness are oriented to innovation, exposed to external pressures about halal business and equipped with specific internal settings that can translate the halal business phenomenon as an opportunity, not a threat. Originality/value To the best of the authors’ knowledge, this study is the first to unveil the drivers of halal business practices of firms in a Muslim minority country.