Applying the TOE framework in the Halal warehouse adoption study

Abstract

Purpose This study aims to identify the contributing factors to the adoption of Halal warehousing services among Malaysia Halal manufacturers. Design/methodology/approach A survey, based on the technology, organization and environment (TOE) framework, was distributed to 200 participants at the Malaysia International Halal Showcase 2013. Of these, 140 responses were complete, and the data were analyzed using structural equation modelling approach and SMART-PLS 2.0 software. Findings Perceived benefits, cost, customer pressure and organizational readiness were found to have a significant relationship with Halal manufacturers’ intention to adopt Halal warehousing services. Perceived benefits, customer pressure and organizational readiness were the drivers of adoption, and cost was a barrier. Research limitations/implications This paper examines the factors affecting Malaysian Halal manufacturers’ intention to adopt Halal warehousing services in three industries, food, pharmaceuticals and cosmetics. Practical implications The results provide insights into the adoption of Halal warehousing among Malaysian Halal manufacturers. The government, Halal warehouse service providers and customers may use these findings to expand the adoption of Halal warehouse services. Originality/value Adopting the TOE framework, this study investigates and develops a model for Halal warehouse adoption. The results indicate that the variables from the TOE framework have a significant relationship with the adoption of Halal warehousing activities.

The adoption of halal food supply chain towards the performance of food manufacturing in Malaysia

“…However, entrepreneurs do not seriously picture the significance of halal and its power to attract consumers in which even MATRADE encourages halal entrepreneurs to utilize technology to enhance productivity and quality (Bernama, 2017;Jari, 2014). Moreover, most of them are still reluctant to apply for halal certification (Jari, 2014) due to effort and cost of certified halal, it could motivate players not to adopt halal supply chain (Ngah et al 2017). Additionally, Talib et al (2015) identified critical success factors in halal supply chain; however the study did not evaluate organizational performance.…”

“…A study by Ngah et al (2017) found that customer pressure, organizational readiness and perceived benefits were associated with intention to adopt halal warehousing services and those factors were recognized as the drivers of adoption. Moreover, Azmi et al (2018) identified halal standards adoption factors in perspective Malaysia's practices whereby technological context contained of compatibility and perceived benefits, organizational context contained of supporting management, halal integrity, halal awareness, expected business benefits and organisational readiness.…”

“…Fig. 1 shows adaptive theoretical framework from Ngah et al (2017) and Azmi et al (2018) studies. Azmi et al (2018) and Ngah et al (2017) Moreover, in terms of measurements of the performance, the study selects appropriate indicators, which focus on food industry.…”

“…Although non probability sampling was applied in this research, the researcher observed every response online, hence, the number of responses for each characteristic were closely monitored. The study used e-mail survey as suggested by Ngah et al (2017). In this case, the most convenient way to find the sampling unit was to visit HDC directory website to obtain data such as full address, the name of the company, type of industry, email address, telephone number and contact person.…”

“…1 shows adaptive theoretical framework from Ngah et al (2017) and Azmi et al (2018) studies. Azmi et al (2018) and Ngah et al (2017) Moreover, in terms of measurements of the performance, the study selects appropriate indicators, which focus on food industry. Bakar et al (2014) and Ambali and Bakar (2014) proposed that business performance can be measured by growth of sales in the enterprises.…”