Muslim Diekola Akanmu, Mohamad Ghozali Hassan, Bahtiar Mohamad and Norshahrizan Nordin
The study aims to examine the connection between practices of total quality management (TQM) and sustainability in Malaysia food and beverages companies (FBC). Continuous process…
Abstract
Purpose
The study aims to examine the connection between practices of total quality management (TQM) and sustainability in Malaysia food and beverages companies (FBC). Continuous process improvement, benchmarking, management leadership, human resources management, quality assurance, service design and information and analysis as TQM practices are considered and their relationship, respectively, with sustainable performance.
Design/methodology/approach
A survey questionnaire is administered to gather responses from 303 FBC, while 98 responses are useable and subsequently analysed using partial least squares structural equation modelling.
Findings
The results reveal that effective implementation of continuous process improvement, benchmarking, quality assurance, service design and information and analysis have positive and significant effect on sustainability.
Research limitations/implications
The scope of the present study was limited to FBC in Malaysia, and a cross-sectional design was employed to examine the hypothesized relationships at a single point in time.
Practical implications
The proposed and developed model of this study can be employed by policy and decision makers in the industry. This model can be considered by practitioners in the industry to implement critical policies in the future.
Originality/value
The premises of the institutional and contingency theory are supported by re-affirming the importance of contingencies and institutions for any successful strategic practices to enhance sustainable performance by implementing TQM.
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Mohamad Ghozali Hassan, Muslim Diekola Akanmu, Pirabarkaran Ponniah, Kamal Imran Mohd Sharif, H.M. Belal and Adilah Othman
The aim of this study is to develop a framework for the implementation of a Supplier Kanban System.
Abstract
Purpose
The aim of this study is to develop a framework for the implementation of a Supplier Kanban System.
Design/methodology/approach
The research was conducted within a factory focusing on the warehousing and supplier-related operations using an action research methodology.
Findings
The study period spanning over six years was aimed to reduce the inventory and the manpower required to manage this inventory. This initiative led to a substantial average savings of more than 500,000 Malaysian ringgit annually.
Research limitations/implications
The focus of the study is on a framework for implementing a Supplier Kanban System in a small or medium-sized company within the automotive industry.
Practical implications
This framework is designed to be self-sufficient such that the members of the organisation can use it without the help of external experts or consultants.
Social implications
Reduction in inventory stored in the warehouse, the amount of redundant work carried out by the employees and other non-monetary improvements which are difficult to monetise resulted in a much better work environment and happier employees.
Originality/value
The change in the paradigm of the manufacturing value chain affects the Tier 1 and 2 suppliers in Malaysia. The lines and value chains posing challenges to the suppliers have brought the idea of the Supplier Kanban System. The Supplier Kanban System adopted the action research cycles and continuous learning cycles, and this process was documented and developed as the Framework for the Implementation of a Supplier Kanban System.
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Ririn Tri Ratnasari, Ulfa Fadilatul Ula and Raditya Sukmana
This study aims to investigate the effects of religiosity level on the shopping orientation and behavior of Muslim customers and how to store image moderates this relationship.
Abstract
Purpose
This study aims to investigate the effects of religiosity level on the shopping orientation and behavior of Muslim customers and how to store image moderates this relationship.
Design/methodology/approach
This study uses a positive approach and partial least square analysis technique on samples of Muslim customers in major cities in Indonesia, who have purchased products in the Syariah supermarket such as Sakinah Supermarket and 212 supermarkets at least twice within the past three months. The sampling method used in this study is convenience sampling, with a total of 117 respondents.
Findings
The results reveal that religiosity level significantly affects the Muslim customers’ shopping orientation subsequently impacts consumer shopping behavior. The result is in line with the rising trend by a society that begins to define successful businesses that touch upon the spiritual aspects of the shoppers. Customers with higher religiosity prefer higher quality products and customers who have lesser levels of religiosity establish different shopping characteristics and behavior. This eventually forms an orientation in shopping behavior. Furthermore, it is found that the store image significantly strengthens the influence of the impact of shopping orientations on Muslim customers’ behavior.
Practical implications
Marketers can increase the image of Islamic stores by implementing the principle of a smile, greeting, address to every customer who shops, managing the cashier queue to prevent ikhtilath (meeting between men and women) and adding decorations and calligraphy ornaments. Marketers can create membership cards, posters or billboards about the products that are being discounted or promoted to increase customer numbers image enhancement.
Originality/value
This study used specific variables that represent religiosity in the retail sector. It offers an analysis of how Muslim customers’ religiosity can affect their shopping orientation and behavior. The study is conducted in Indonesia, where research on this topic is still limited.
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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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Susminingsih Susminingsih, Abdul Mujib, Anis Wahdati, Mochammad Achwan Baharuddin and Dian Sa'adillah Maylawati
This study aims to examine the factors that influence the increase in purchase intention toward green batik products with religiosity as an intervening variable.
Abstract
Purpose
This study aims to examine the factors that influence the increase in purchase intention toward green batik products with religiosity as an intervening variable.
Design/methodology/approach
The study used a survey method that involved a sample size of 185 participants selected through purposive and accidental sampling techniques. The analysis was conducted by using IBM SPSS AMOS 21 software. The collected data were subjected to path analysis using multiple linear regression models.
Findings
The result indicated that religiosity plays a mediating role in the association between factors and the intention to purchase green product (GPd) of the Indonesian natural dye batik product. This finding is in accordance with the construction of theory of planned behavior in understanding consumer purchase intentions. GPd, green brand and green price exhibited a positive correlation with green purchase intention (GPI). Interestingly, the price was found to no longer serve as the primary factor in GPI.
Research limitations/implications
The analysis would have been more compelling if it had used a mixed-method approach by introducing the variables of customer satisfaction and promotion.
Practical implications
This research postulates that increased prices are no longer a deterrent to the purchase of GPd. Instead, consumer consciousness regarding GPd plays a pivotal role in driving GPI. GPd have revolutionized individuals’ consumption patterns to contribute to environmental preservation. The use of green batik products is seen as advantageous in helping mitigate environmental degradation.
Originality/value
The present research assesses the impact of religiosity, as an intervening variable, on the augmentation of GPI by gauging its significance in enhancing ecological consciousness and moral values.
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Aries Susanty, Nia Budi Puspitasari, Sumunar Jati and Oktivia Selvina
The purpose of this paper is as follows: first, this study aims to identify the impact of internal and external factors on the implementation of halal logistics (IHL). Second…
Abstract
Purpose
The purpose of this paper is as follows: first, this study aims to identify the impact of internal and external factors on the implementation of halal logistics (IHL). Second, this study aims to investigate the impact of internal factors on the IHL through competitive pressure (COP) as a moderating variable.
Design/methodology/approach
This study used primary data that were collected through offline questionnaires. The questionnaires were intended to identify the internal and external conditions of a company and the level of the IHL. The internal condition consists of five factors, namely corporate image and reputation (CRE), entrepreneurial intensity, social responsibility (SRE), expected business benefit and halal integrity (HIN). The external factors consist of demand or customer pressure (DCP), government support (GOV), market share expansion and COP. This study considered the factors belonged to internal and external companies on the basis of the conceptual model from Ab Talib et al. (2015), Zailaini et al. (2015) and Ab Talib and Chin (2018) as they have clearly distinguished the important factors for the implementation of the concept of halal into internal and external groups and most of those factors are frequently stated by the other researchers.
Findings
There were 148 questionnaires administrated, 84.5% of which were properly filled in, completed and returned. For internal factors, the result of the study confirms that CRE, SRE and HIN have a positive significant impact on the IHL. For external factors, the result of the study confirms that DCP, GOV and COP have a positive significant impact on the IHL. Then, the result of the study also confirms that COP can make the impact of good CRE on the IHL stronger. This condition did not happen for the other internal factors.
Research limitations/implications
First, it is debatable that internal and external factors and the IHL are only measured by the Likert scales. Future research may take the benefits of inducing qualitative approaches to better measure the condition of internal and external factors and the level of IHL practices through observation and probing. Second, this study was limited to the respondents from companies in Indonesia, which is a Muslim-dominant country and this study does not take into account the differences in the target market and the company’s owner, size of operation and financial capacity. Future research should test the conceptual model in a non-Muslim country and should include controlling for variables to generate a more conducive finding. Third, this study only uses the limited variable as the internal and external factors. Therefore, as many variables represent technological, organisational and environmental factors, they could be included in the future research framework.
Practical implications
This study practically contributes to the halal concept implementation body of knowledge by identifying the relationships between the internal and external factors and the IHL. Understanding this relationship will help the management of food, beverage and ingredient companies, as well as the government or policymakers in making better decisions and strategies to strengthen the IHL.
Social implications
The IHL may help the food, beverage and ingredient companies to be competitive and achieve organisational improvements.
Originality/value
This study is among the few studies that scrutinized the rationale behind the IHL by Indonesian companies. Although halal logistics plays a key role in protecting the halal status of any given product, this topic is still rarely explored, especially with the case study of Indonesian companies.
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Muhammad Bahrul Ilmi, Muslim Har Sani Mohamad and Ros Aniza Mohd. Shariff
This study aims to investigate the growth of Indonesian Islamic banks and explores organisational growth determinants from different perspectives, namely, organisational climate…
Abstract
Purpose
This study aims to investigate the growth of Indonesian Islamic banks and explores organisational growth determinants from different perspectives, namely, organisational climate, intellectual capital (IC) and organisational service orientation. The study also attempts to develop a model to measure the growth of Islamic banks and uncovers the root causes of the stagnancy in Indonesian Islamic banking.
Design/methodology/approach
The study used survey questionnaires distributed to Islamic bank managers, who were considered representative experts in the field of Islamic banking. The data collected were analysed using the Statistical Package for Social Sciences (SPSS Version 21.0), and two analyses were performed with different strategies to build the regression model, namely, multiple linear regression and automatic linear regression.
Findings
The study found that IC significantly affected Islamic banks’ growth in Indonesia; however, organisational climate and service orientation did not predict such growth. Concerning service orientation as a mediating model, climate or IC had no indirect effect on growth.
Research limitations/implications
This study’s results contribute to fill the gap by analysing the growth of Islamic banks. Hence, the study results will be especially practical and helpful for Islamic bank managers and policymakers to help develop mechanisms for Islamic banks in Indonesia.
Originality/value
By combining the aspects of organisational climate, IC and service orientation from earlier studies and categorising them by organisational growth, together with a comprehensive literature review, the study proposes a model specific to Islamic banks. It also offers new insight and discussion for determining organisational growth in Indonesian Islamic banks.
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Erny Arianty, Tuti S.B. Utami, Syanni Yustiani and Rizqi Haniyah
This study aims to analyze the effectiveness of the spin-off policy which includes clarity of objectives and criteria, implementation and monitoring and evaluation functions.
Abstract
Purpose
This study aims to analyze the effectiveness of the spin-off policy which includes clarity of objectives and criteria, implementation and monitoring and evaluation functions.
Design/methodology/approach
The method used is a qualitative method with a theme approach and the analytical hierarchy process (AHP). Data were obtained from the results of focus group discussions and AHP questionnaires with informants from Indonesian Sharia Insurance Association (AASI), the sharia life and general insurance industry, the Sharia Supervisory Board, the government and regulators.
Findings
The results of the research are the effectiveness of the clarity of goals and criteria has not been realized optimally, the effectiveness of increasing profitability has not been realized, and the effectiveness of the monitoring and evaluation functions by the government and regulators has been realized. The supporting factor that has the highest level of importance is the role of the government and regulator.
Research limitations/implications
The limitation of this research is that it has not used a wider range of profitability test tools and projections. The theoretical implication of this research is as a reference for robust research in identifying spin-off success factors because this study uses a mixed method where qualitative methods are used in the study using data from theory and expert informants from three parties: regulatory parties, associations (AASI) and the insurance company (life insurance and general insurance). These results form the basis for compiling a questionnaire with a quantitative method so that the data is become relevant based on theory (design) and practical side.
Practical implications
Practical implication of the study is that the Islamic insurance industry has to prepare to achieve condition of Tabarru funds and the investment reaches 50% of the main insurance fund. AASI, as the sharia insurance industry organization, continues innovating the most suitable form of spin-off that can be achieved by the Sharia business unit and also continues to coordinate with regulators to discuss existing problems. The government and regulators also support the implementation of the spin-off by providing convenience in various aspects such as spin-off period relaxation and government incentive and relaxation to enhance sharia insurance industry.
Originality/value
The contribution of the results of this research for the government and regulatory agencies is as input in setting policies and regulations related to spin-offs, for the industry is expected to be more prepared in terms of resources, commitment and strategy.
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Tarjo Tarjo, Alexander Anggono, Zakik Zakik, Shahrina Md Nordin and Unggul Priyadi
This study aims to empirically examine the influence of Islamic corporate social responsibility (ICSR) on social welfare moderated by financial fraud.
Abstract
Purpose
This study aims to empirically examine the influence of Islamic corporate social responsibility (ICSR) on social welfare moderated by financial fraud.
Design/methodology/approach
The method used was the mix method. The number of respondents was 410. They combined the moderate regression analysis with PROCESS Andrew F Hayes to test the research hypothesis. After conducting the survey, it was continued by conducting interviews with the village community and the head of the village.
Findings
The first finding of this study is that ICSR has a significant positive effect on social welfare. The second finding is that financial fraud weakens the influence of ICSR on social welfare. The results of the interviews also confirmed the two findings of this study.
Research limitations/implications
The high level of bias in answering the questions is due to the low public knowledge of ICSR. In addition, the interviews still needed to involve the oil and gas companies and government.
Practical implications
The main implication is improving social welfare, especially for those affected by offshore oil drilling. Furthermore, stakeholders are more sensitive to the adverse effects of financial fraud. Finally, to make drilling companies more transparent and on target in implementing ICSR.
Originality/value
The main novelty in this research is using of the mixed method. In addition, applying financial fraud as a moderating variable is rarely studied empirically.
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Achmad Sani and Vivin Maharani Ekowati
This study aims to determine the direct and indirect effects of Islamic spirituality on organizational citizenship behavior (OCB) Islamic perspective (OCBIP), identifying the role…
Abstract
Purpose
This study aims to determine the direct and indirect effects of Islamic spirituality on organizational citizenship behavior (OCB) Islamic perspective (OCBIP), identifying the role of spiritual and marketing strategy at work and organizational commitment to mediate the effect of Islamic spirituality on OCBIP.
Design/methodology/approach
The research population is all employees of Sidoarjo BRI Syari'ah Branch Office. Total sample involves 130 fulltime employees. Proportional random sampling technique is a selected technique. Data is collected directly from respondents. The analysis used in this study uses Partial Least Square.
Findings
The research results show that Islamic spirituality has no direct effect on OCBIP. Spiritual at work mediates the effect of Islamic spirituality on OCBIP; organizational commitment mediates the effect of Islamic spirituality on OCBIP.
Originality/value
The OCBIP variable is used as the originality in this study. Another finding in this research is the marketing strategy of sharia-based companies. There has not been a comprehensive examination of the influence of Islamic spirituality and marketing strategies on OCB with spirituality at work and organizational commitment as a mediating variable. This Islamic perspective is very important considering the majority of Indonesian citizens are Muslims.