Beyond Compliance: Factors Influencing Halal Certification Success for Small- Medium Food Enterprises in Penang, Malaysia

Championed by both Multi-National Companies (MNCs) and Small-Medium Enterprises (SMEs), Malaysia’s Halal industry is thriving and have contributed billions (RM) to Malaysia’s economy, justifying its worth to be further developed. Alas, unlike MNCs, most of the Small-Medium Food Enterprises (SMFEs) faced various quandaries in the pursuit for Halal certification. Consequently, this research attempted to explore the predicaments encountered by SMFEs who successfully attained their Halal certification. Adopting qualitative approach, in-depth, face-to-face interview was conducted, using semi-structured questionnaire and audio recorders as primary instruments. Focusing on Penang state, the population of Halal-accredited SMFEs was obtained from, and screened by Jabatan Agama Islam Pulau Pinang (JAIPP), producing a vetted list of 25 potential respondents. Only 12 respondents were interviewed before the responses reached the point of saturation. The recorded audio data were transcribed, and the transcripts were entered into ATLAS.ti software for qualitative analysis. Frequency analyses were conducted for the demographics, and thematic analysis was conducted for transcribed data. A collection of 5 codes emerged, and together with the supporting quotations, they were represented by a theme and a network of the same name, “Factors Encouraging Halal Certification†. In the end, this research proved to be a worthy vantage point in effort to; (i) comprehend domestic issues hindering the progress of Malaysia’s Halal industry, and (ii) understand the success factors of Halal accredited firms, for the lesson and inspiration by other aspiring SMFEs.