Effects of competitive intelligence and halal integrity on Halalan Tayyiban implementation strategy in Indonesian MSMEs: the mediating role of halal orientation strategy

Abstract

Purpose Indonesia is a leading producer and consumer of halal products globally. Micro, small and medium enterprises (MSMEs) play a vital role in this market; however, ensuring the integrity and effectiveness of their halal practices remains a concern. This study aims to investigate the interplay among competitive intelligence (CI), halal integrity (HI), halal orientation strategy (HOS) and Halalan Tayyiban implementation strategy (HTIS) within Indonesian MSMEs. Design/methodology/approach A total of 250 questionnaires were administered to Indonesian MSMEs, and 210 valid responses were analyzed using SmartPLS. Findings The HOS mediates the relationship between CI/HI and HTIS in Indonesian MSMEs by ensuring that CI gathered by MSMEs aligns with HI requirements, leading to successful HTIS. This integrated approach enhances the MSMEs’ market competitiveness and ensures that their products comply with Islamic principles and quality standards. Research limitations/implications Future studies could examine the impact of a robust HOS on CI use, how HOS moderates the relationship between HI and resource allocation for HTIS and how HTIS affects performance outcomes. Practical implications Indonesian MSMEs should update their strategies based on CI insights and changes in HI requirements. Investigating how these findings translate across diverse regions with significant Muslim populations (Southeast Asia and the Middle East) can provide insights into the influence of cultural variations on the relationships among HOS, CI, HI and HTIS. Social implications By emphasizing HI throughout operations, MSMEs build trust and ensure products adhere to ethical and religious principles. The emphasis on maintaining high halal integrity throughout business operations reinforces ethical and religious principles within the halal market. By adhering to strict halal standards and certification processes, businesses uphold the integrity of their products and services, contributing to the preservation of religious values and ethical practices within society. Originality/value The findings provide a roadmap for successful strategy formulation and implementation in the halal industry.