Improving Halal Compliance in Malaysia
The Role of Motivation and Organisational Readiness for Change in Small and Micro-Firms
DOI:
https://doi.org/10.33102/jmifr.625Keywords:
Motivation for change, informational assessment, predictors for halal compliance, organisational change readiness, halal, small and micro-firmsAbstract
This preliminary study examines the effect of motivation for change, informational assessment and readiness for halal certification compliance (ROCHC) among small and micro food manufacturers in Malaysia. Employing a quantitative approach, data were collected from 104 respondents through structured questionnaires. Due to the non-normal distribution of the data, PLS-SEM analysis was conducted to test the hypotheses. The findings reveal that motivation for change significantly predicted ROCHC, while informational assessment did not substantially affect readiness. By identifying motivation for change as a key predictor, this study highlights gaps in understanding the specific drivers that influence small and micro-firms’ ROCHC. These gaps include the lack of empirical evidence on how motivations and informational assessment within the Organisational Readiness for Change (ORC) theory interact with organisational readiness mechanisms in sustaining long-term compliance. Addressing these gaps can help refine intervention strategies to better support businesses in enhancing their readiness for halal standards compliance. The findings offer practical implications for policymakers and industry stakeholders, highlighting the need for targeted interventions such as comprehensive training programs, financial incentives and streamlined regulatory processes. to enhance compliance readiness among small and micro-food enterprises (SMEs). These measures can strengthen compliance readiness among SMEs, ensuring a more sustainable and effective approach to halal certification adoption.
Downloads
References
Abd Rahman, A., Singhry, H. B., Hanafiah, M. H., & Abdul, M. (2017). Influence of perceived benefits and traceability system on the readiness for Halal Assurance System implementation among food manufacturers. Food Control, 73, 1318–1326. https://doi.org/10.1016/j.foodcont.2016.10.058
Abu Bakar, I. & Man, Sa’adan. (2023). Consumers’ knowledge and readiness in accepting the implementation of mandatory Malaysia Halal Certification Scheme (MHCS). In N. Y. Hazahari, N. Samsudin, H. B. Jaiyeoba, N. A. Nazmi (Eds.), Abstracts of the International Halal Science Conference 2023 (pp. 188–192). AIJR Books. https://books.aijr.org/index.php/press/catalog/book/155/chapter/2505
Abualoush, S., Bataineh, K., & Alrowwad, A. (2018). The role of knowledge management process and intellectual capital as intermediary variables between knowledge management infrastructure and organization performance. Interdisciplinary Journal of Information, Knowledge, and Management, 13, 279–309. https://www.ijikm.org/Volume13/IJIKMv13p279-309Abualoush4667.pdf
Anatan, L., & Nur. (2023). Micro, small, and medium enterprises’ readiness for digital transformation in Indonesia. Economies, 11(6), 1–21. https://doi.org/10.3390/economies11060156
Andespa, R., Yurni, Y., Aldiyanto, A., & Efendi, G. (2024). Challenges and strategies in halal supply chain management for MSEs in West Sumatra: A Participatory Action Research Study. International Journal of Safety and Security Engineering, 14(3), 907–921. https://doi.org/10.18280/ijsse.140322
Arif, S., Abdullah, N. L., Abu Bakar, N., Mat, Z., & Sulaiman, N. (2021). Obstacles in securing halal certification in Malaysia: A Ssudy on Home-Based Business (HBB). Journal of Social Science, 14(3), 1–19. http://eprints.utem.edu.my/id/eprint/25503/2/JOURNAL%20WALAILAK%20JOURNAL%202021.PDF
Armenakis, A. A., Harris, S. G., & Mossholder, K. W. (1993). Creating readiness for organizational change. Human Relations, 46(6), 681–703. https://doi.org/10.1177/001872679304600601
Assagaf, A. A., Sumardi, J., & Sitorus, W. (2022). The effect of cost determination in the provision of halal certificates on traded products in Makassar City. Khazanah Hukum, 4(3), 192–201. https://doi.org/10.15575/kh.v4i3.19945
Basir, N. S. A., Chik, C. T., Bachok, S., Baba, N., Hamid, R., & Salleh, M. M. (2018). Motivational factors for halal certification adoption among small and micro enterprises in Malaysia. International Journal of Supply Chain Management, 7(4), 391–396. https://ojs.excelingtech.co.uk/index.php/IJSCM/article/view/2060
Becker, J.-M., Klein, K., & Wetzels, M. (2012). Hierarchical latent variable models in PLS-SEM: Guidelines for using reflective-formative type models. Long Range Planning, 45(5–6), 359–394. https://doi.org/10.1016/j.lrp.2012.10.001
Bidin, R., Razak, M. N. F., Mohamad, B., Osman, M. N., Bakar, M. S. A., Tham, J. S., Atan, R., Handayati, P., & Utaberta, N. (2021). Halal industry’s organizational performance factors: A systematic literature review. Pertanika Journal of Social Sciences and Humanities, 29(4), 2545–2568. https://doi.org/10.47836/pjssh.29.4.25
Billsten, J., Fridell, M., Holmberg, R., & Ivarsson, A. (2018). Organizational readiness for change (ORC) test used in the implementation of assessment instruments and treatment methods in a Swedish national study. Journal of Substance Abuse Treatment, 84, 9–16. https://doi.org/10.1016/j.jsat.2017.10.004
Bohari, A. M, Wei Hin, C., & Fuad, N. (2013). The competitiveness of halal food industry in Malaysia: A SWOT-ICT analysis. Malaysian Journal of Society and Space, 9(1), 1–9. https://www.researchgate.net/publication/288008662_The_competitiveness_of_halal_food_industry_in_Malaysia_A_SWOT-ICT_analysis
Bouckenooghe, D. (2010). Positioning change recipients’ attitudes toward change in the organizational change literature. The Journal of Applied Behavioral Science, 46(4), 500–531. https://doi.org/10.1177/0021886310367944
Djunaidi, M., Oktavia, C. B. A., Fitriadi, R., & Setiawan, E. (2021). Perception and consumer behavior of halal product toward purchase decision in Indonesia. Jurnal Teknik Industri, 22(2), 171–184. https://ejournal.umm.ac.id/index.php/industri/article/view/16714
Eby, L. T., Adams, D. M., Russell, J. E. A., & Gaby, S. H. (2000). Perceptions of organizational readiness for change: Factors related to employees’ reactions to the implementation of team-based selling. Human Relations, 53(3), 419–442. https://doi.org/10.1177/0018726700533006
Effendi, J. (2023). human resources readiness of small medium enterprises (smes) for halal product in Indonesia. Global Review of Islamic Economics and Business, 10(2), 83–95. https://doi.org/10.14421/grieb.2022.102-08
Elias, E. M., Nawi, M. N. M., Pozin, M. A. A., Yaakob, M., Ahmad, M. F., & Mahidin, N. (2019). The impact of entrepreneurial orientation and halal orientation toward organizational performance of micro-sized enterprises. International Journal of Supply Chain Management, 8(1), 916–923. https://ojs.excelingtech.co.uk/index.php/IJSCM/article/view/2902
Hair Jr., J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate Data Analysis (8th ed.). Cengage Learning EMEA. https://eli.johogo.com/Class/CCU/SEM/_Multivariate%20Data%20Analysis_Hair.pdf
Hair Jr., J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: Updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107–123. https://doi.org/10.1504/IJMDA.2017.087624
Hannon, P. A., Helfrich, C. D., Chan, K. G., Allen, C. L., Hammerback, K., Kohn, M. J., Parrish, A. T., Weiner, B. J., & Harris, J. R. (2017). Development and pilot test of the workplace readiness questionnaire, a theory-based instrument to measure small workplaces’ readiness to implement wellness programs. American Journal of Health Promotion, 31(1), 67–75. https://doi.org/10.4278/ajhp.141204-QUAN-604
Hendayani, R., Sifatul, A., & Ganesan, Y. (2019). Factor analysis of the hindering factors in halal certification for the SMEs. In C. T. Haw, C. Richardson, & F. Johara (Eds.). European Proceedings of Social and Behavioural Sciences (pp. 722–730). European Proceedings. https://doi.org/10.15405/epsbs.2019.08.73
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43, 115-135. https://doi.org/10.1007/s11747-014-0403-8
Holt, D. T., & Vardaman, J. M. (2013). Toward a comprehensive understanding of readiness for change: The case for an expanded conceptualization. Journal of Change Management, 13(1), 9–18. https://doi.org/10.1080/14697017.2013.768426
Holt, D. T., Armenakis, A. A., Feild, H. S., & Harris, S. G. (2007). Readiness for organizational change: The systematic development of a scale. Journal of Applied Behavioral Science, 43(2), 232–255. https://doi.org/10.1177/0021886306295295
Hussain, M., & Papastathopoulos, A. (2022). Organizational readiness for digital financial innovation and financial resilience. International Journal of Production Economics, 243, 1–15. https://doi.org/10.1016/j.ijpe.2021.108326
Iberahim, H., Mustapha, N., Kamaruddin, R., Hamid, N. A., & Samah, M. A. A. (2016). Halal compliance decisions by food suppliers based on analytic hierarchy process. Advanced Science Letters, 22(12), 4509–4513. https://doi.org/10.1166/asl.2016.8205
Ismail, N. A., Shah, A. A., Atan, N. A., & Omar, I. (2021). Solution to Malaysia halal certification premises issue through waqf commercial building: A preliminary study. In N. N. Md Shariff, N. Lateh, N. F. Zarmani, Z. S. Hamidi, Z. A. A. Aghwan, N. D. H. Mahalle, H. H. Yaacob, T. Hisao (Eds.), Enhancing Halal Sustainability (pp. 203–214). Springer. https://doi.org/10.1007/978-981-33-4854-7_18
Jamai, K., Gellynckb, X., Abidarc, A., & De Steurb, H. (2022). Organisational readiness to participate in a labelled product service cluster: A structural equation model analysis. International Food and Agribusiness Management Review, 25(3), 509–529. https://doi.org/10.22434/IFAMR2021.0124
Jaramillo, J. A., Sossa, J. W. Z., & Mendoza, G. L. O. (2019). Barriers to sustainability for small and medium enterprises in the framework of sustainable development-Literature review. Business Strategy and the Environment, 28(4), 512–524. https://doi.org/10.1002/bse.2261
Jo, Y., & Hong, A. J. (2023). Development and validation of a readiness for organizational change scale. SAGE Open, 13(4), 1–14. https://doi.org/10.1177/215824402312077
Kabukye, J. K., de Keizer, N., & Cornet, R. (2020). Assessment of organizational readiness to implement an electronic health record system in a low-resource settings cancer hospital: A cross-sectional survey. PloS One, 15(6), 1–17. https://doi.org/10.1371/journal.pone.0234711
Kashif, M., De Run, E. C., Abdul Rehman, M., & Ting, H. (2015). Bringing Islamic tradition back to management development: A new Islamic Dawah based framework to foster workplace ethics. Journal of Islamic Marketing, 6(3), 429–446. https://doi.org/10.1108/JIMA-12-2013-0086
Khuhro, A. S., Humayon, A. A., Sajjad, M., Khuhro, R. A., & Irfan, M. (2019). Readiness for organizational change through dynamic capabilities and routinization: A study of three industrial estates. International Transaction Journal of Engineering Management & Applied Sciences & Technologies, 10(12), 1–13. https://tuengr.com/V10A/10A12A.pdf
Kurniati, Y., Jafar, N., Hasan, N. ., Amalia, M., Hasan, N., & Rosdiana, R. (2024). Education on the halal certification process of food and beverage products at village-owned enterprises. Sociality: Journal of Public Health Service , 3(2), 122–130. https://doi.org/10.24252/sociality.v3i2.49453
Latiff, J. A. B. (2020). Halal certification procedure in Malaysia and Indonesia: A Study on criteria for determination of halal pharmaceutical products. PETITA, 5(2), 121–132. https://doi.org/10.22373/petita.v5i2.102
Majid, M. A. A., Abidin, I. H. Z., Majid, H. A. M. A., & Chik, C. T. (2015). Issues of halal food implementation in Malaysia. Journal of Applied Environmental and Biological Sciences, 5(6), 50–56. https://www.researchgate.net/profile/Mohd-Aliff-Abdul-Majid/publication/305815043_Issues_of_Halal_Food_Implementation_in_Malaysia/links/57a3166d08aef3c1a7b334fa/Issues-of-Halal-Food-Implementation-in-Malaysia.pdf
Masudin, I., Jie, F., Djajadikerta, H., & Widayat, W. (2021). The effect of halal retail and manufacturing technology readiness on halal meat logistics performance. International Journal of Logistics Systems and Management, 40(1), 1–27. https://doi.org/10.1504/IJLSM.2021.117688
Mathur, M., Kapoor, T., & Swami, S. (2023). Readiness for organizational change: the effects of individual and organizational factors. Journal of Advances in Management Research, 20(4), 730–757. https://doi.org/10.1108/JAMR-02-2023-0032
Md Rodzi, Z., Amin, F. A. M., Jamiatun, N., Qaiyyum, A., Al-Sharqi, F., Zaharudin, Z. A., & Khair, M. H. M. (2023). Integrated single-valued neutrosophic normalized weighted bonferroni mean (SVNNWBM)-DEMATEL for analyzing the key barriers to halal certification adoption in Malaysia. International Journal of Neutrosophic Science, 21(3), 106–114. https://doi.org/10.54216/IJNS.210310
Muranganwa, I., & Naidoo, R. (2023). Assessing organisations’ readiness to adopt green information technology: the case of a south african information technology services vendor. The South African Journal of Industrial Engineering, 34(2), 79–91. https://doi.org/10.7166/34-2-2881
Muttaqin, P. S., Setyawan, E. B., & Novitasari, N. (2023). Factors influencing readiness towards halal logistics among food and beverages industry in the era of e-commerce in Indonesia. JOIV: International Journal on Informatics Visualization, 7(3), 781-787. http://dx.doi.org/10.30630/joiv.7.3.2055
Ngah, A. H., Hassan, M. F. A., Yiaw, M. T. B., Salleh, N. H. M., & Jeevan, J. (2023). Cold warehousing services from the perspectives of logistics providers: The mediating role of cost and organizational readiness. Acta Logistica, 10(3), 453–462. https://doi.org/10.22306/AL.V10I3.417
Nguyen, X.-A., Luong, D., Le, T., Hoang, T., & Tran, T.-G. (2022). Readiness of Vietnamese high schools for digital transformation and its influencing factors: A quantitative study. Asian Research Journal of Arts & Social Sciences, 18(3), 157–171. https://doi.org/10.9734/arjass/2022/v18i330351
Noor, W. N. B. W. M., Razak, S. N. A. A., Jusoh, Y. H. M., Hasan, S. J., & Ariffin, M. Z. (2022). Analysing accounting professionals’ readiness for digital economy using the theory of organisational readiness for change. International Journal of Academic Research in Business and Social Sciences, 12(11), 1652 – 1672. https://doi.org/10.6007/ijarbss/v12-i11/15338
Nordin, A., Azhar, A. H., Fadilah, N. A. M. S., Zakaria, Z., & Zain, M. S. M. (2022). Halal certificate readiness assessment (HaCeRa) tool: Towards automation of the halal application process. International Journal on Perceptive and Cognitive Computing, 8(1), 11–18. https://journals.iium.edu.my/kict/index.php/IJPCC/article/view/262
Oemar, H., Prasetyaningsih, E., Bakar, S. Z. A., Djamaludin, D., & Septiani, A. (2022). Awareness and intention to register halal certification of micro and small-scale food enterprises. F1000Research, 11(170), 1–36. https://doi.org/10.12688/f1000research.75968.1
Pratikto, H., Agustina, Y., & Kiranawati, T. M. (2023). The influence of various factors on MSME halal certification behavior: An analysis with intention as an intervening variable. International Journal of Professional Business Review, 8(9), 1–18. https://doi.org/10.26668/businessreview/2023.v8i9.3444
Rafiki, A., & Abdul Wahab, K. (2016). The human capital and the obtainment of halal certification. Journal of Islamic Marketing, 7(2), 134–147. https://doi.org/10.1108/JIMA-03-2014-0020
Rahi, S., & Ahmad, S. (2020, April 16 – 17). Investigating the role of employee readiness to change on effective organizational change implementation: a theoretical perspective. In El. P. da Costa, M. d. R. Anjos, & M. Przygoda (Eds.), Economic and Social Development (Book of Proceedings), 52nd International Scientific Conference on Economic and Social Development (pp. 579–591). file:///C:/Users/USER/Downloads/Book_of_Proceedings_esdPorto2020_Online.pdf
Rajendran, S. D. & Kamarulzaman (2019). The influences of Islamic practices on halal supply chain integrity: A study from the perspective of herbal food SMEs in Malaysia. International Journal of Supply Chain Management, Vol 8(3), 827-832. https://ojs.excelingtech.co.uk/index.php/IJSCM/article/view/2414
Razalli, M. R. (2018). Managing halal certification supply chain: Determinants success factors framework for a hotel performance. International Journal of Supply Chain Management, 7(1), 149–154. https://ijis-scm.bsne.ch/ojs.excelingtech.co.uk/index.php/IJSCM/article/view/2010/0
Rejeb, A., Rejeb, K., Zailani, S., & Kayikci, Y. (2023). Knowledge diffusion of halal food research: a main path analysis. Journal of Islamic Marketing, 14(7), 1715–1743. https://doi.org/10.1108/JIMA-07-2021-0229
Saiman, M. Z., & Yusma, N. S. (2022). Issues and challenges of promotion halal certification for muslim entrepreneurs in Malaysia. Al-Qanatir: International Journal of Islamic Studies, 28(2), 116–128. https://al-qanatir.com/aq/article/view/575
Santoso, S., Alfarisah, S., Fatmawati, A. A., & Ubaidillah, R. (2021). Correlation analysis of the halal certification process and perceptions of the cost of halal certification with the intentions of food and beverage SMEs actors. Religious: Jurnal Studi Agama-Agama Dan Lintas Budaya, 5(2), 297–308. https://doi.org/10.15575/rjsalb.v5i2.11627
Sharma, N., Herrnschmidt, J., Claes, V., Bachnick, S., De Geest, S., Simon, M., & Group, M. (2018). Organizational readiness for implementing change in acute care hospitals: An analysis of a cross‐sectional, multicentre study. Journal of Advanced Nursing, 74(12), 2798–2808. https://doi.org/10.1111/jan.13801
Shea, C. M., Jacobs, S. R., Esserman, D. A., Bruce, K., & Weiner, B. J. (2014). Organizational readiness for implementing change: A psychometric assessment of a new measure. Implementation Science, 9(7), 1–15. https://doi.org/10.1186/1748-5908-9-7
Storkholm, M. H., Mazzocato, P., Tessma, M. K., & Savage, C. (2018). Assessing the reliability and validity of the Danish version of organizational readiness for implementing change (ORIC). Implementation Science, 13(78), 1–7. https://doi.org/10.1186/s13012-018-0769-y
Sudarmiatin, S., Khoirul Anam, F., & Wafaretta, V. (2020). The Intention of halal certification by micro business. KnE Social Sciences, 141–155. https://doi.org/10.18502/kss.v4i9.7322
Sukoso, Al Huda, P. T., Muyasyaroh, H., Susanti, Y. A. D., & Adila, L. H. (2022). Quality and halal certification of micro and small enterprises fishery products in Sidoarjo, East Java, Indonesia. IOP Conference Series: Earth and Environmental Science, 1036(1). https://doi.org/10.1088/1755-1315/1036/1/012017
Susanto, A. B. (2008). Organizational readiness for change: A case study on change readiness in a manufacturing company in Indonesia. International Journal of Management Persepectives, 2(1), 50–61. https://e-tarjome.com/storage/btn_uploaded/2019-10-02/1569990183_10177-etarjome-English.pdf
Tarmizi, H. A., Kamarulzaman, N. H., & Latiff, I. A. (2014). Factors behind third-party logistics providers readiness towards halal logistics. International Journal of Supply Chain Management 3(2), 53–62. https://ojs.excelingtech.co.uk/index.php/IJSCM/article/view/923
Thorley, J., Garza-reyes, J. A., & Anosike, A. (2022). Circular economy: a conceptual model to measure readiness for manufacturing SMEs. Benchmarking: An International Journal, 29(4), 1362–1390. https://doi.org/10.1108/BIJ-03-2021-0161
Trenerry, B., Chng, S., Wang, Y., Suhaila, Z. S., Lim, S. S., Lu, H. Y., & Oh, P. H. (2021). Preparing workplaces for digital transformation: An integrative review and framework of multi-level factors. Frontiers in Psychology, 12, 1–24. https://doi.org/10.3389/fpsyg.2021.620766
Utami, C. B., Hazmi, F., Aulia, R., & Zahro, B. M. (2022). Antecedent of knowledge, awareness and willingness of SMEs actors to register for halal self declare certification. Iqtishodia: Jurnal Ekonomi Syariah, 7(2), 29–35. https://doi.org/10.35897/iqtishodia.v7i2.846
Vakola, M. (2013). Multilevel readiness to organizational change: A conceptual approach. Journal of Change Management, 13(1), 96–109. https://doi.org/10.1080/14697017.2013.768436
Viverita, & Kusumastuti, R. D. (2017). Awareness of halal certification of micro and small enterprises in Jakarta. International Journal of Economics and Management, 11(S2), 459–471. https://openurl.ebsco.com/EPDB%3Agcd%3A10%3A12469402/detailv2?sid=ebsco%3Aplink%3Ascholar&id=ebsco%3Agcd%3A133418465&crl=c&link_origin=scholar.google.com
Wahyuni, D. (2021). Analysis of readiness toward halal certification in Sumatera Utara (A case study in food manufacturer). Proceedings of the Second Asia Pacific International Conference on Industrial Engineering and Operations Management, 556–564. https://ieomsociety.org/proceedings/2021indonesia/87.pdf
Wannasupchue, W., Mohamad, S. F., Ishak, F. A. C., & Ungku Zainal Abidin, U. F. (2023). Challenges to obtain halal certification among restaurants in northeast Thailand. Journal of Islamic Marketing, 14(2), 607–621. https://doi.org/10.1108/JIMA-04-2021-0124
Weiner, B. J. (2009). A theory of organizational readiness for change. Implementation Science, 4(67), 1–9. https://doi.org/10.1186/1748-5908-4-67
Weiner, B. J. (2020). A theory of organizational readiness for change. In P. Nilsen and S. A. Birken (Eds.), Handbook on implementation science (pp. 215–232). Edward Elgar Publishing. https://doi.org/10.4337/9781788975995.00015
Weiner, B. J., Amick, H., & Lee, S.-Y. D. (2008). Review: Conceptualization and measurement of organizational readiness for change: A review of the literature in health services research and other fields. Medical Care Research and Review, 65(4), 379–436. https://doi.org/10.1177/1077558708317802
Wozir, A. E., & Luo, F. (2020). Transformation leadership, employees’ motivation and behavioral support for organizational change. proceedings of the Second International Symposium on Management and Social Sciences (ISMSS 2020), 152–158. https://doi.org/10.2991/assehr.k.201202.110
Ying, Q., Hassan, H., & Ahmad, H. (2019). The role of a manager’s intangible capabilities in resource acquisition and sustainable competitive performance. Sustainability, 11(2), 1–20. https://doi.org/10.3390/su11020527
Zakaria, Z., Kamaludin, M. A., & Author, C. (2022). Issues and challenges of micro food entrepreneurs in Dungun, Terengganu. Jurnal Intelek, 17(1), 104–115. https://doi.org/10.24191/ji.v17i1.15883
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Asiah Alkharib Shah, Elistina Abu Bakar, Afida Mastura Muhammad Arif, Shamsul Azahari Zainal Badari
This work is licensed under a Creative Commons Attribution 4.0 International License.
