Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in enhancing economic growth and public welfare. Amid increasingly fierce business competition, MSME players are required to innovate in order to maintain and improve their competitiveness. This study aims to analyze halal product innovation as a strategy to increase MSME competitiveness from an Islamic economic perspective. The research employs a qualitative method using a literature review approach. Data were obtained from various relevant scientific journals, books, and articles concerning product innovation, halal products, MSME competitiveness, and Islamic economics, which were then analyzed descriptively. The findings indicate that halal product innovation does not only focus on fulfilling halal certification, but also encompasses improving product quality, product variation, packaging design, utilizing digital technology, and ensuring transparency in the production process in accordance with sharia principles. The application of such innovation can increase consumer trust, strengthen competitive advantage, expand market share, and improve MSME performance. From the perspective of Islamic economics, innovation must be carried out while consistently upholding the values of honesty, justice, public benefit (maslahah), and maintaining product halalness throughout the entire production to distribution process. Thus, halal product innovation serves as an effective strategy to enhance MSME competitiveness while supporting the development of the halal industry in Indonesia.
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Muslimah Muslimah (2026) studied this question.
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