Purpose This study aims to examine the factors influencing the intention of Micro, Small and Medium Enterprises (MSMEs) in Indonesia to adopt halal certification for consumer goods products, focusing on the Technology, Organization and Environment (TOE) Framework. Design/methodology/approach This study used a quantitative method, using the partial least squares structural equation modeling approach, with data collected through surveys of 167 MSMEs. Variables analyzed included technology (TF), organization (ORG) and environment (ENT), management support (MS), organizational readiness (OR), halal integrity (HI), government support (GS), competitive pressure (CPP), market demand (MD) and intention (INT) of MSMEs to adopt halal certification. Statistical analysis explored their effects on adoption intention. Findings The organizational and environmental factors have a significant direct influence on MSMEs’ intention to adopt halal certification, with organizational factors demonstrating the most substantial effect. Furthermore, all indirect paths, such as those involving CPP, GS, MD, MS, OR and HI, also significantly influence intention through mediating variables. These results underscore the pivotal roles of internal preparedness and external drivers in shaping halal adoption behavior. However, technological factors did not show a significant effect on intention, suggesting that MSMEs may perceive halal certification more as a regulatory or institutional requirement than a technological innovation. Practical implications Policies should go beyond regulation by enhancing internal readiness through training, technical support and simplified procedures. Targeted programs like SEHATI (Sertifikasi Halal Gratis) or Free Halal Certification Program can improve participation and help MSMEs view halal certification as a strategic advantage. Social implications Promoting halal certification can improve consumer trust, enhance competitiveness and encourage ethical business practices among MSMEs. Originality/value This study confirms the relevance of the TOE framework in explaining the adoption of halal certification among Indonesian MSMEs. Unlike individual-level models, TOE captures key organizational and environmental drivers. Findings show that while organizational support and external pressures influence intention, technological factors remain insignificant, indicating a gap between compliance and strategic adoption.
Muhibbin et al. (Fri,) studied this question.
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