Halal standards’ implementation in Palestinian food sector: its drivers and impact on performance

Abstract

Purpose

The purpose of this paper is to study the correlational and effect relationship between Halal standards and the performance of Halal-certified Palestinian Food Companies.

Design/methodology/approach

Quantitative method was used, using a questionnaire survey of 40 Halal-certified Palestinian organizations out of a total of 47 certified organizations, the analysis was done using the partial least squares structural equation modeling (PLS-SEM) and the literature review was conducted using a well-known systematic literature review methodology.

Findings

Halal implementation and certification had a positive impact on performance (operational, financial and marketing). The depth/intensity of implementation fully mediates operational performance and partially mediates marketing and financial performance.

Research limitations/implications

As the sample size is small, it is recommended to conduct the study using a larger sample size, once the number of Palestinian Halal-certified organizations increases. A longitudinal or panel study is recommended to capture data that are more accurate and avoid objectivity and bias issues using a cross-sectional research design method. Finally, the study recommends to conduct additional research in the field of Halal awareness for customers to gage their intention and welling to buy Halal products within the Middle East region.

Originality/value

The importance of this study exists in the lack of previous Halal-related studies in the Palestinian context and the previously described gap in the literature. Nevertheless, the quality management drivers and impact are limited in the Palestinian context compared with other contexts; the results of the previously published studies revealed mixed results such as the drivers of quality management are based on the type of business. Finally, this research gives small insights and directions toward conducting additional studies concerning customer awareness about Halal products.