Firm’s readiness for halal food standard adoption: assessing the importance of traceability system

Abstract

Purpose

This study aims to consider factors that play an important role in adopting the halal food standard (HFS) among food manufacturers in Pakistan and to investigate the role of the traceability system in the compliance of the halal assurance system (HAS).

Design/methodology/approach

Present study included data from a survey by 134 professionals/food technologists from the food industry, and partial least square-structural equation modeling was applied.

Findings

The results indicate that consumer pressure, industry competition, marketing functions, operational improvement and the organization’s commitment have a significant impact on HFS adoption, while government regulations have an insignificant impact. The results also indicate that the HFS’s adoption and lack of a traceability system significantly impact HAS.

Research limitations/implications

The current study’s findings are inconclusive. Hence, future researchers are suggested to further explore the studied phenomena, especially in other research settings.

Practical implications

For policymakers, the findings of this study offer valuable information as it not only benefits the industry but will also assist in providing better and safer halal food products to consumers.

Originality/value

This study highlights the importance of the adoption of HFS and compliance with HAS in a scenario where demand for Halal is increasing globally. Moreover, the findings of this study offer valuable information in motivating firms to implement HFS.

Citation

Najmi, A., Ahmed, W. and Jahangir, S. (2023), "Firm’s readiness for halal food standard adoption: assessing the importance of traceability system", Journal of Islamic Accounting and Business Research, Vol. 14 No. 8, pp. 1451-1473. https://doi.org/10.1108/JIABR-09-2020-0293