This study aims to examine the influence of compatibility, halal knowledge, government support, consumer demand and competitive intensity on the intention of micro, small and medium enterprises (MSMEs) in Indonesia and Malaysia to pursue halal certification. Unlike previous studies, this research integrates the Technology–Organization–Environment (TOE) framework to provide a comprehensive cross-country analysis, offering novel insights into the regulatory and market-driven factors affecting halal certification adoption.
A quantitative research methodology was used, collecting primary data through structured questionnaires distributed to 132 MSME owners in the culinary sector across Indonesia and Malaysia. structural equation modeling using the partial least squares approach was applied, complemented by multi-group analysis (MGA) techniques to explore inter-country differences.
The results demonstrate that compatibility, government support and competitive intensity significantly influence MSMEs’ intention to obtain halal certification, whereas halal knowledge and consumer pressure have no significant effect. The non-significance of halal knowledge suggests that external regulatory and competitive factors play a more dominant role than internal understanding. The lack of impact from consumer pressure indicates that halal certification is perceived more as a compliance requirement than a market-driven necessity.
The findings emphasize the need for policymakers to enhance governmental support through targeted educational programs, streamlined certification processes and financial incentives. For businesses, obtaining halal certification should be viewed as a strategic advantage rather than mere regulatory compliance. Academics are encouraged to explore deeper interconnections between external pressures and firm-level decision-making in halal certification adoption.
This study contributes theoretically by extending the TOE framework to the halal certification context and methodologically by using cross-country MGA, revealing critical policy and managerial implications. It provides empirical evidence on the divergent certification dynamics in Indonesia and Malaysia, highlighting the interplay between institutional pressures and business competitiveness.
