Malaysian Halal Food Entrepreneurs Perspective Towards Globalization – A Conceptual Framework

8 Pages Posted: 23 Jun 2011 Last revised: 1 Jul 2011

See all articles by Rozailin Abdul Rahman

Rozailin Abdul Rahman

Department of Business Administration, KENMS, International Islamic University Malaysia

Zainalabidin Mohamed

University Putra Malaysia

Date Written: June 22, 2011

Abstract

The value of Halal food traded in the world has reached USD580 billion in 2003 and is showing an increasing trend over the year. Total of USD600 was amounted in 2010. Approximately, there is about 1.6 billion Muslim in the world in 2009 and there are 250 million Muslims in ASEAN countries alone (Che Man, 2004). Thus the growing of purchasing power among Muslims will surely increase the demand of Halal foods. However not many Malaysian International Halal Entrepreneurs are good in competing in the world market. According to MATRADE’s, out of 11,000 companies registered for food producing; only 30% are able to go to International Market which approximately consists about 3000 companies. The rest of the food companies feel comfortable to market their product at local arena. This study aims to discover and explore the factors that could enhance Malaysian International Halal Food Entrepreneurs to be successful in international platform. Many Malaysian Halal Product companies are probably not being informed on how to penetrate into international market although Malaysia has had a start in the global Halal markets and aim to be the “Global Halal Hub”. However the rate of penetration among the Malaysian manufactures in the world market is very slow and low. Being a nation of predominantly Muslim population, Malaysia industries are very suitable at churning out products and providing services that meet the requirement of Islamic tenets. Malaysian food manufactures are fully equipped with all the incentives and benefits including current policy, Department of Islamic Development Malaysia (JAKIM), Halal Development Corporation (HDC) and others, yet, Malaysian contribution of market size in the world Halal market still low which is 1.07% compared to another country in the world. The approach of the study will be based on gathering information on the readiness, the push and pull factors from Malaysian food manufactures via structured questionnaire on their involvement and intention toward making Malaysia as a successful Halal Hub and a role to play in the international Halal market. The questionnaire will be distributed to 500 Malaysian Halal food manufactures and 15 face to face interviews will be conducted among CEOs or any upper level management of Multinational and International Halal Food Entrepreneurs Company in Malaysia. The descriptive analysis, factor analysis, binary logistic and multinomial logit method will be applied to analyze the data. The expected outcome of this study is to add up the understanding of the determinants that influences entrepreneurs’ intention to success in global arena.

Suggested Citation

Rahman, Rozailin Abdul and Mohamed, Zainalabidin, Malaysian Halal Food Entrepreneurs Perspective Towards Globalization – A Conceptual Framework (June 22, 2011). SIBR, Available at SSRN: https://ssrn.com/abstract=1869683 or http://dx.doi.org/10.2139/ssrn.1869683

Rozailin Abdul Rahman (Contact Author)

Department of Business Administration, KENMS, International Islamic University Malaysia ( email )

53100 Gombak
Kuala Lumpur
Malaysia

Zainalabidin Mohamed

University Putra Malaysia ( email )

Selangor Darul Ehsan
Serdang, Selangor 43400
Malaysia

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