Determinant Factors Influencing Firm-s Entry in Halal Business – a case study in Taiwan
Y.D. Lestari (a)., F.A. Amalia (b)., G. Yudoko (a)., & T.M. Simatupang (a)
(a) School of Business and Management Bandung Institute of Technology, Bandung, West Java, Indonesia
(b) Dept. of Commerce Administration Bandung State Polytechnic, Bandung, West Java, Indonesia
Abstract
This study probes the factors that potentially influence the entrepreneur-s decision to address the global Halal market. It explores the direct effects of Halal perceived usefulness (HPU) towards firm-s practice in Halal business as well as its prerequisite factors (i.e. internal and external drivers). From 41 Halal certified-firms in Taiwan (Muslim minority country), this study employs partial least squares structural equation modeling for testing and examining relationships among factors. From the findings, HPU are the factors can influence the firm-s decision to perform Halal business directly, meanwhile, internal and external drivers are the prerequi-sites for firm-s entry in Halal business. In addition, the internal driver can mediate external driver on affecting Halal perceived usefulness generation.
Keywords: Halal business, firm-s entry, Muslim-minority country
Topic: Strategic Management, Entrepreneurship and Contemporary Issues