Purpose
The purpose of this paper is to analyze the impact of the halal value chains (HVCs) in the Islamic boarding schools (IBSs) for the food and fashion industry on socio-economic transformation, focusing on changes in entrepreneurial attitudes, quality of life and social inclusion. The study also incorporates HVCs as a mediating variable to assess the indirect influence of Sharia financial inclusion and economic digitalization on socio-economic transformation.
Design/methodology/approach
This research uses a quantitative approach using primary data collected through surveys. The population consists of IBSs registered in the Independence Program of the Ministry of Religious Affairs of the Republic of Indonesia. The research sample was selected using purposive sampling, and the research model was tested using partial least squares structural equation modeling with WarpPLS 8.0 software.
Findings
The results of the direct analysis indicate that halal value chain (HVC) has a positive and significant effect on socio-economic transformation. The indirect analysis reveals that HVC plays a strategic role in facilitating the impact of Sharia financial inclusion and digital economy adoption on changes in entrepreneurial attitudes, quality of life and social inclusion. The findings are further validated through multigroup analysis, demonstrating the robustness of the result.
Practical implications
The results highlight two key points. First, the positive characteristics of the IBS-HVCs, enabled by Sharia financial inclusion, will drive the continuous development of new services, products, networks, collaborations and capital support, leading to the expansion of a financially inclusive and equitable HVC system from the IBSs to the broader community, with significant social and economic impacts nationally and internationally. Second, the adoption of economic digitalization within IBSs will enhance productivity and efficiency for business management, fostering expanded business models and facilitating upward social mobility.
Originality/value
To the best of the authors’ knowledge, this study is the first to explore the role of HVC in socio-economic transformation. Additionally, it uses HVC as a mediating variable to explain the relationship between Sharia financial inclusion, digital economy and socio-economic transformation. A robustness test through multigroup analysis further strengthens the study’s contributions.