Baharudin Othman, Sharifudin Md. Shaarani and Arsiah Bahron
The purpose of this research is to observe how the industry’s knowledge, attitude and sensitivity of the industry to the government’s current policy regarding the halal…
Abstract
Purpose
The purpose of this research is to observe how the industry’s knowledge, attitude and sensitivity of the industry to the government’s current policy regarding the halal certification process influence the organization performance.
Design/methodology/approach
This study used a self-administered questionnaire with closed-ended questions to measure the human capital factors and the practice of halal requirements. The questionnaire was distributed to multinational companies and small and medium enterprises (SMEs) in Malaysia, of which 206 responses were usable for analysis. The respondents were halal committee members in the respective companies. Smart PLS version 2.0 was used to analyze the relationship of each construct using the structural equation modeling (SEM) approach. The outcome of this study showed a positive relationship between knowledge of and attitude and sensitivity toward government policies and organizational performance.
Findings
The outcome of this study showed a positive relationship between knowledge, attitude, sensitivity to government policy and organizational performance. The R2 value for the main model is 0.419, indicating that 41.9 per cent of the variance in the extent of collaboration can be explained by knowledge, attitude and sensitivity to government policies. Result also showed that all the hypotheses were supported and were significant at p < 0.01. It also showed that the control of an organization’s internal resources through human factors ranging from knowledge, attitude and sensitivity to government policies should be emphasized, as it is a contributing factor and it strives to improve organizational performance.
Research limitations/implications
There were a limited number of respondents. A larger number of respondents would reflect a more accurate study. Besides, this study only focused on the halal food industry operators, while the presence of halal now covers other schemes such as logistics, consumer products and others. Moreover, this study only focused on two main groups: multinational companies and SMEs.
Practical implications
This study has provided some major implications. First, on behalf of the state, the results of this study clearly show that the human capital factor should be prioritized. Second, on behalf of the industry, this study can fill the void that exists in strengthening the industry through efforts to improve internal controls related to organizations including attending halal food courses and applying values among members of the organization. Third, the implication to theory and literature that the research-based view is suitable for use even in the food industry has been proved.
Social implications
The results of this study can increase consumer confidence in the management of an organization, especially in the halal food industry.
Originality/value
Halal’s rapid development has led many researchers to study halal. Till now, there is no research on three major areas of human capital aspects, namely, knowledge, attitude and sensitivity to governmental policies that involve internal halal committee members in the industry as subject of study in one model. Moreover, this research attempts to cover the latest acts, standards, procedures and guidelines provided by the government.
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Baharudin Othman and Nurul Hudani Md Nawi
The purpose of this study is to examine the effect of halal standards practices towards organizational performance. Additionally, the moderating role of organizational size on…
Abstract
Purpose
The purpose of this study is to examine the effect of halal standards practices towards organizational performance. Additionally, the moderating role of organizational size on this association is explored for Malaysian halal industry so that the halal management practice in the future is expected to run well.
Design/methodology/approach
Regression analyses technique via Statistical Package For Social Science 27.0 is used to analyses the results of a self-administered questionnaire completed by 241 internal halal committee officers of multinational corporations and small and medium enterprises (SMEs) in Malaysia.
Findings
The results showed that halal standards practices give an effect that indicates 13.2% of the performance. In more detail, it only demonstrates the significant contribution of the halal assurance predictor to organizational performance compared to the halal operations (HOs) predictor. Additionally, organizational size also acts as a moderator between the relationships between halal standard practices (HO) and organizational performance. Besides, the study findings also show that there was a significant difference in organizational performance for multinationals and SMEs. This encouraging outcome is the result of organizational performance is influenced by a chain that interacts with each other starting from input, which then translates into process and ultimately results that are also supported by internal control of the organization for Malaysian halal industry.
Research limitations/implications
This study only focused on the Malaysian halal industry such as certain number of factors and limited measurement was used in this study. Only a few halal standards practices and organization performance measurements were considered.
Practical implications
Halal food producers should engender greater commitment to Halal standard practice involving acts, standards, regulations and guidelines that can be used to comply halal requirements needed by halal certification bodies especially halal committee members to control internally. It also serves as a valuable resource for policymakers and practitioners aiming to identify effective practices for comprehensive halal standards management to enhance organizational performance, particularly for micro-scale enterprises within the Malaysian halal industry.
Originality/value
This study considerably advances the existing body of knowledge by applying standard halal practices model to explain their relationship, with organization size serving as a moderating to variable and provide direction for researchers in subsequent studies. They also offer valuable insights for practitioners seeking to continually enhance organizational performance through the implementation of effective halal standards management practices within the Malaysian halal industry.
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Baharudin Othman, Sharifudin Md Shaarani and Arsiah Bahron
The purpose of this paper is to assess the level of knowledge, halal dietary quality assurance practices, and commitment among food industries in the implementation of halal in…
Abstract
Purpose
The purpose of this paper is to assess the level of knowledge, halal dietary quality assurance practices, and commitment among food industries in the implementation of halal in Malaysia. Besides, the study was based on two categories that are considered major contributors in the chain of halal food sector in Malaysia which are the multinational, and small medium enterprise (SME).
Design/methodology/approach
Two company’s categories related to halal food and beverage industry which are the multinational, and SME were chosen in this research based on the similarities in terms of functions and needs in the implementation of halal in Malaysia. Furthermore, both categories are the main groups in the halal food sector that support the growth of other categories. The sample of the study was comprised of 241 companies from halal certification holders (MNCs=69; SMEs=172).Cross-sectional study through random sampling and purposive sampling was used where the internal halal committee who have been specifically appointed in the organization were asked to fill in the questionnaire. Personally hand-delivered questionnaires in workplaces was used as a method of data collection. The data were analyzed using SPSS version 21.
Findings
Based on the analysis, it was found that the level of knowledge, halal quality assurance practices and commitment to be at a good level. Whereas the results of inference showed that there are significant differences for the three variables studied.
Research limitations/implications
In the study there are some limitations, namely; first, the categories studied are focussed solely on halal food industry. Halal now been expanded to other products such as pharmaceutical, logistics, etc. Second, the standards used are the standard and guidelines on the handling of food. Finally, the limitations in obtaining more respondents as most industry in Malaysia is still concerned to provide feedback and view it as the secrecy of the company.
Practical implications
First, the implication of the theory and literature studies in which the research prevalence is associated with the ISO quality and quality management, integration of multiple disciplines and concepts is essential as a combination of elements of human capital and strategic management. Second, on behalf of the government or specially-appointed halal certification body, it can give a clear picture of the exposure and promotion related to the deed, procedures, and guidelines have gone through several changes and amendments. In addition, it is also able to evaluate the effectiveness of a number of conditions that are required such as internal halal appointment committee. Third for industry practitioners, focussing in delivering halal standards is not dependent on the system, working patterns, and technologies alone, but should also take into account the element of human capital and organizational responsibility in maintaining halal integrity and enhancing the knowledge and halal dietary management in accordance with the requirements of Islamic law and fatwa.
Social implications
On behalf of the users, the confidence is there and in order to produce a halal product, it involves a fairly strict chain and has always been regulated by a special committee whose role are meeting the needs outlined halal standards.
Originality/value
The study is the starting point in discussing in detail about the halal knowledge, halal quality assurance, and commitment after the standardization and harmonization of halal certification in early 2012. Furthermore, there are a few revisions on the act, standards, and procedures by the halal certification body, which halal assurance should be implemented and considered still new.
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Memiyanty Abdul Rahim, Nur ’Ain Syahirah Shaharuddin and Norazah Mohd Suki
The purpose of this study is to examine the level of Shariah governance disclosure among Islamic banks in Malaysia and the Gulf Cooperation Council (GCC) countries (i.e. Kuwait…
Abstract
Purpose
The purpose of this study is to examine the level of Shariah governance disclosure among Islamic banks in Malaysia and the Gulf Cooperation Council (GCC) countries (i.e. Kuwait, Bahrain, United Arab Emirates, Qatar, Oman and Saudi Arabia). On top of that, the effect of Shariah governance disclosure on Islamic banks financial performance is investigated.
Design/methodology/approach
Data underwent quantitative content analysis and a mean comparison of the Shariah governance disclosure mechanisms as well as multiple regression analysis. Shariah governance information is obtained from the Islamic banks' official websites and the Bursa Malaysia Exchange.
Findings
The results of the content analysis revealed that the level of Shariah governance disclosure among Malaysian Islamic banks has been more pronounced than in the GCC countries. Additionally, the multiple regression analysis results specified that of the five Shariah governance disclosure mechanisms, the Shariah committee emerged as the strongest determinant in the financial performance of the Islamic banks, followed by transparency and disclosure.
Practical implications
Islamic banks should emphasise publishing Shariah governance information in annual reports to reflect superior accounting practices as assessed by certified Shariah auditors with an effective monitoring system.
Originality/value
The empirical findings are vital for serving as a guideline for Islamic banks in Malaysia and the GCC countries to disclose their practice of Shariah governance and gain empirical insights into its effect on firms’ financial performance. Following that, Islamic banks would improve their accounting practices while adhering to Shariah principles, strengthen internal controls and boost their brand reputation.
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Melati Sumari, Dini Farhana Baharudin, Ida Hartina Ahmed Tharbe, Norsafatul Aznin A. Razak and Norfaezah Md Khalid
This study aims to explore the family experiences of delinquent adolescents and uses a descriptive phenomenological research design.
Abstract
Purpose
This study aims to explore the family experiences of delinquent adolescents and uses a descriptive phenomenological research design.
Design/methodology/approach
The study explores the family experiences of delinquent adolescents and uses a descriptive phenomenological research design. Eight adolescents that were under detainment in a rehabilitation centre in Malaysia participated in the study. Data were gathered through semi-structured interviews and reflective journals.
Findings
Five themes common to the participants’ experience were inductively identified from the analysis. These were: life without guidance, alienation and isolation, conflict on how the family is managed; I am still a little child and prisoners at home.
Originality/value
Despite many studies on delinquent adolescents were conducted in Malaysia, no study has been conducted so far to explore and understand the experience of female adolescents in their families.
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Ala' Omar Dandis, Mohammad Badi’ Al Haj Eid, Robin Robin and Nathalie Wierdak
The main objective of this paper is to investigate the factors affecting customer lifetime value (CLV) for Internet service providers in Jordan, namely, technical quality…
Abstract
Purpose
The main objective of this paper is to investigate the factors affecting customer lifetime value (CLV) for Internet service providers in Jordan, namely, technical quality, functional quality, brand credibility, confidence benefits, special treatment benefits, customer satisfaction and commitment.
Design/methodology/approach
An online survey was conducted involving a sample of 481 respondents. SPSS was used to analyse the data and test the proposed relationships, while SmartPLS was used to examine the robustness of our results.
Findings
Results showed that confidence benefits, special treatment benefits and brand credibility had a significant and positive impact on customer satisfaction and commitment, with brand credibility appearing as the most influential factor leading to customer satisfaction and commitment, and ultimately CLV. Furthermore, research reveals an insignificant relationship between functional quality, technical quality and customer satisfaction.
Practical implications
Services' providers seeking to increase CLV need to build strong and sustainable relationships with their customers.
Originality/value
This study incorporates a set of crucial customer relationship management strategies that could be universally applied to enhance customers benefits and business performance. This is also the first study of its kind conducted in the Middle East, particularly in Jordan.
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Tawida Elgattani and Khaled Hussainey
The purpose of this study is to investigate the influence of corporate governance mechanisms on Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI…
Abstract
Purpose
The purpose of this study is to investigate the influence of corporate governance mechanisms on Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) governance disclosure in Islamic Banks.
Design/methodology/approach
To test the research hypotheses, the authors created a comprehensive AAOIFI governance disclosure index and used regression analysis for a sample of Islamic banks for the financial years within the period 2013-2015.
Findings
The authors found that audit committee size is the main determinant of the AAOIFI governance disclosure.
Research limitations/implications
This study has a number of limitations that could be taken as avenues for a future study such as, the study used the six variables of CG and the four variables of firm characteristics, based on available data. This research is limited to just Islamic banks.
Originality/value
The research contributes to Islamic accounting literature by identifying the driver for the AAOIFI governance disclosure for Islamic banks that mandatorily adopt AAOIFI standards.
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Tawida Elgattani and Khaled Hussainey
This study aims to investigate the impact of the accounting and auditing organisation for Islamic financial institution (AAOIFI) governance disclosure on the performance of…
Abstract
Purpose
This study aims to investigate the impact of the accounting and auditing organisation for Islamic financial institution (AAOIFI) governance disclosure on the performance of Islamic banks (IBs).
Design/methodology/approach
The ordinary least squares regression model was used to test the impact of AAOIFI governance disclosure on the performance of 126 IBs from 8 countries that mandatorily adopt the AAOIFI standards for three years (2013–2015). In this regression model, return on asset (ROA) and return on equity (ROE) are the dependent variables, while AAOIFI governance disclosure is the independent variable. Corporate governance mechanisms, firm characteristics, year dummy and country dummy are used as control variables.
Findings
This paper found an insignificant relationship between AAOIFI governance disclosure and IBs performance.
Research limitations/implications
This study highlighted the implication that the current research may help IBs and encourage them to disclose more information in annual reports, especially those related to AAOIFI governance standards because following good corporate governance leads to good financial performance. The major limitation of the paper is that it is only focussed on two measurements of bank performance – ROA and ROE; it would be good to use other firm performance measures, such as profit margin.
Originality/value
This study provides new empirical evidence on the impact of AAOIFI governance disclosure on IBs performance.
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Yuthana Autsadee, Jagan Jeevan, Nurul Haqimin Mohd Salleh and Mohamad Rosni Othman
The maritime industry, a linchpin of global trade, has embarked on a transformative journey catalysed by the relentless advance of digitalisation. There is a discernible gap in…
Abstract
Purpose
The maritime industry, a linchpin of global trade, has embarked on a transformative journey catalysed by the relentless advance of digitalisation. There is a discernible gap in the literature concerning the specific consequences of digitalisation within the maritime sector. This research aims to examine the current body of literature on the influence of digitalisation in human resource development (HRD) on the competitive advantage of organisations and its potential within the maritime industry.
Design/methodology/approach
This research paper conducts a comprehensive bibliometric analysis.
Findings
The findings of this research explore the literature landscape encompassing digitalisation in HRD, its influence on HR operations, learning and development, performance management, employee experience and strategic alignment within maritime organisations.
Originality/value
This research provides valuable recommendations for maritime organisations and HRD practitioners seeking to leverage digitalisation to gain a competitive edge. Thus, the maritime industry can adopt digital HRD practices to streamline operations, improve performance and align HR strategies with broader organisational goals.