Halal transportation adoption among pharmaceuticals and comestics manufacturers

Abstract

Purpose This study aims to identify the factors influencing the decision to the Halal transportation adoption among pharmaceuticals and cosmetics manufacturers. Design/methodology/approach Base on the technology-organization-environment (TOE) framework, applying the purposive sampling method, data were gathered from questionnaires distributed to the participants of Malaysia International Halal Showcase (MIHAS) and Halal festival (Halfest). Out of 110 questionnaires distributed, only 97 data from 102 respondents could be used for further analysis. SMART-PLS 3.2.7 was used to analyze the data for this study using a structural equation modeling approach. Findings Perceived benefits, competitive pressure (COMP) and customer pressure were found to have a significant relationship with the intention to adopt Halal warehousing services, the organizational readiness was found to be a not significant factor in the adoption of Halal transportation. Top management attitudes (TMAs) moderate the positive relationship between COMP and the intention to adopt Halal transportation services. Research limitations/implications This paper focuses on the Halal manufacturers in the pharmaceuticals and cosmetics industry who attended MIHAS and Halfest, which still not adopting Halal transportation activities. Practical implications The findings provide useful information to a better understanding of the factors influencing the adoption of Halal transportation among Malaysian Halal cosmetics and pharmaceutical manufacturers. Related parties such as the government, the Halal transport service providers and the customers could use these findings to plan further action to enhance the adoption of Halal transport adoption. Originality/value The study revealed the capability of the TOE framework to identify the factors influencing the decision to adopt Halal transportation among Malaysian Halal cosmetics and pharmaceutical manufacturers. TMA was found to have a moderation effect on the relationship between COMP and the intention to adopt Halal transportation.