Modelling the Significance of Global Mind-Set and Halal Brand Trust to Determine the Performance of Halal SMEs

  • Marvello Yang Department of Management, Faculty Economic and Bussiness, Widya Dharma University Pontianak, Indonesia
  • Norizan Jaafar Faculty of Economics and Business, University Malaysia Sarawak, Malaysia
  • Sin Kit Yeng Faculty of Economics and Business, University Malaysia Sarawak, Malaysia
  • Abdullah Al Mamun UKM Graduate School of Business, University Kebangsaan Malaysia, Malaysia
Keywords: Global mind-set, halal brand trust, entrepreneurial competency, effectual logic, online food delivery, halal entrepreneurial performance


This study investigated the impact of global mind-set (GM) and halal brand trust (HBT) on halal entrepreneurial performance (HEP). This study extends the entrepreneurship literature by adopting the dynamic capability theory (DCT) to assess HEP. Data were collected from 311 SMEs established in Indonesia using the simple random sampling method, whereas the variance-based partial least-square structural equation modelling (PLS-SEM) approach was used for test the proposed conceptual model. This study revealed the significant effect of GM and HBT upon HEP. Additionally, entrepreneurial competency (EC) and effectual logic (EL) displayed partially mediating effects. This study found that online food delivery (OFD) had strengthened the relationship between EC and HEP. Nevertheless, EC had no statistical impact on EL, while OFD negatively affected the GM-HEP link. Due to the limited scope of this study, the cross-sectional approach adopted in this study is viewed as a limitation. Besides, constriction in time had led this study to be conducted within a specified time-frame. As such, future studies may adopt the longitudinal approach over a period of three to five years in order to overcome the listed limitations. This study assessed the effect of GM and HBT on HEP as fresh insight to better comprehend the determinants of HEP in uncertain condition. This study has extended the theory of Teece et al. (1997) DCT within the context of HEP. Upon determining the effect of two new constructs (GM and HBT) through the lens of DCT and validating the proposed model, this study offers theoretical and contextual contributions to the overall body of knowledge with PLS-SEM.


Ali, A., Sherwani, M., Ali, A., Ali, Z., & Sherwani, M. (2020). Investigating the antecedents of halal brand product purchase intention: An empirical investigation. Journal of Islamic Marketing, 12(7), 1339-1362.

Arend, R. J. (2014). Entrepreneurship and dynamic capabilities: How firm age and size affect the "capability enhancement-SME performance" relationship. Small Business Economics, 42(1), 33-57.

Atkinson, L., & Rosenthal, S. (2014). Signalling the green sell: The influence of eco-label source, argument specificity, and product involvement on consumer trust. Journal of Advertising, 43(1), 33-45.

Baber, W. W., & Martinez, R. (2019). Effectuation logic in digital business model transformation Insights from Japanese high-tech innovators. Journal of Small Business and Enterprise Development, 26(6), 811-830.

Bank Indonesia. (2020). Laporan ekonomi dan keuangan syariah: Bersinergi membangun ekonomi dan keuangan syariah. 20_31032021.pdf

Brettel, M., Mauer, R., Engelen, A., & Küpper, D. (2012). Corporate effectuation: Entrepreneurial action and its impact on R&D project performance. Journal of Business Venturing, 27(2), 167-184.

Carrion, C., G., Cegarra-Navarro, J. G., & Cillo, V. (2019). Tips to use partial least squares structural equation modelling (PLS-SEM) in knowledge management. Journal of Knowledge Management, 23(1), 67-89.

Chandler, G. N., DeTienne, D. R., McKelvie, A., & Mumford, T. V. (2011). Causation and effectuation processes: A validation study. Journal of Business Venturing, 26(3), 375-390.

Cohen, J. (1988). Statistical power analysis for the behavioural sciences. Lawrence Earlbaum Associates.

Delgado-Ballester, E., Munuera-Aleman, J. L., & Yague-Guillen, M. J. (2003). Development and validation of a brand trust scale. International Journal of Market Research, 45(1), 1-18.

Duening, T., Shepherd, M., & Czaplewski, A. (2012). How entrepreneurs think: Why effectuation and effectual logic may be the key to successful enterprise entrepreneurship. International Journal of Innovation Science, 4(4), 205-216.

Englis, P. D., & Wakkee, I. (2015). Managerial mindset and the born global firm. In R. Oakey, A. Groen, P. van der Sijde, & G. Cook (Eds.), New technology-based firms in the new millennium (11th ed., pp. 9-27). Emerald Group Publishing Limited.

Evers, N., & Andersson, S. (2021). Predictive and effectual decision-making in high-tech international new ventures - A matter of sequential ambidexterity. International Business Review, 30(1), doi: 10.1016/j.ibusrev.2019.101655

Fisher, G. (2017). Personality, uncertainty and logic: Impact on entrepreneurial outcomes. Journal of Chemical Information and Modeling, 53(9), 1689-1699.

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.

G*Power - Universität Düsseldorf: Psychologies, Germany. (2009). Power and sample size calculators.

Hair, Jr., Joseph F., Black., W., C. Black; Babin., B., J., & Andreson., R., E. (2014). Multivariate data analysis (7th ed.). Pearson Press.

Halal Institution. (2021). State of global Islamic economy report 2020/2021.

Indonesian Ministry of National Development Planning. (2019). The Indonesia Masterplan of Sharia Economy 2019-2024. Islamic%20Economic%20Masterplan%202019-2024.pdf.

International Monetary Fund. (2018). IMF annual report 2018: Building a shared future.

Ismail, M., Mohamad, N., & Ahamat, A. (2019). Top management capabilities and performance of halal product. Innovation and Management Review, 17(4), 369-377.

Javidan, M., Hough, L., & Bullough, A. (2010). Conceptualizing and measuring global mindset®: Development of the global mindset inventory. Thunderbird School of Global Management, Thunderbird Global Mindset Institute. t_Photo/files/gmi-tech-report_0.pdf

Javidan, M. & Teagarden, M. B. (2011). Conceptualizing and measuring global mindset. In W. H. Mobley, M. Li, & L. Wang (Eds.), Advances in global leadership (Vol. 6, pp. 13-39). Emerald Group Publishing Limited.

Javidan, M., & Bowen, D. (2013). The "global mindset" of managers: What it is, why it matters, and how to develop it. Organizational Dynamics, 42(2), 145-155.

Kline, E., Wilson, C., Ereshefsky, S., Tsuji, T., Schiffman, J., Pitts, S., & Reeves, G. (2011). Convergent and discriminant validity of attenuated psychosis screening tools. Schizophrenia Research, 134(1), 49-53.

Kotler, P. (2017). Philip Kotler: some of my adventures in marketing. Journal of Historical Research in Marketing, 9(2), 203-208.

Leonidou, L. C., Leonidou, C. N., Fotiadis, T. A., & Zeriti, A. (2013). Resources and capabilities as drivers of hotel environmental marketing strategy: Implications for competitive advantage and performance. Tourism Management, 35, 94-110.

Man, T. W. Y., Lau, T., & Snape, E. (2008). Entrepreneurial competencies and the performance of small and medium enterprises: An investigation through a framework of competitiveness. Journal of Small Business and Entrepreneurship, 21(3), 257-276.

Mostafa, M. M. (2020). A knowledge domain visualization review of thirty years of halal food research: Themes, trends and knowledge structure. Trends in Food Science and Technology, 99, 660-677.

Naeem, M. (2019). Understanding the role of social networking platforms in addressing the challenges of Islamic banks. Journal of Management Development, 38(8), 664-680.

Nylén, D., & Holmström, J. (2019). Digital innovation in context: Exploring serendipitous and unbounded digital innovation at the church of Sweden. Information Technology and People, 32(3), 696-714.

Parasuraman, A., Zeithami, V., A., & Malthotra, A. (2005). ES-QUAL: A multiple-item scale for assessing electronic service quality. Journal of Service Research, 7(3), 213-233.

Penrose, E. T. (2009). The theory of the growth of the firm (4th Ed.). Oxford University Press.

Peteraf, M., A. (1993). The Cornerstones of Competitive Advantage: A Resource-Based View. Strategic Management Journal, 14(3), 179-191.

Pinar, M., Girard, T., Trapp, P., & Eser, Z. (2016). Services branding triangle: Examining the triadic service brand promises for creating a strong brand in banking industry. International Journal of Bank Marketing, 34(4), 529-549.

Sajilan, S., & Tehseen, S. (2019). Network competence and firm performance : the mediating role of entrepreneurial innovativeness among malaysian chinese. Asian Academic of Management Journal, 24(1), 187-201.

Saunila, M., Pekkola, S., & Ukko, J. (2014). The relationship between innovation capability and performance: The moderating effect of measurement. International Journal of Productivity and Performance Management, 63(2), 234-249.

Sen, R., Yu, H.-F., & Dhillon, I. (2019). Think globally, act locally: A deep neural network approach to high-dimensional time series forecasting. Proceedings of the Conference on Neural Information Processing Systems, 1-10.

Solihin, A. D., & Syaroni, D. A. W. (2020). Effect of manager competency on innovation in small and medium enterprises. Proceedings of the International Conference on Business, Economic, Social Science, and Humanities - Economics, Business and Management Track, 112, 52-55.

Srinivas, K. M. (1995). Globalization of business and the Third World: Challenge of expanding the mindsets. Journal of Management Development, 14(3), 26-49.

Sunil, M. G. (2020). Global Perspectives of Leadership. Studies in Indian Place Names, 40(60), 2928-2938.

Tariq, A., Wang, C., Tanveer, Y., Akram, U., & Akram, Z. (2019). Organic food consumerism through social commerce in China. Asia Pacific Journal of Marketing and Logistics, 31(1), 202-222.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.<509::AID-SMJ882>3.0.CO;2-Z

Teece, J., D. (2007). Explicating dynamic capabilities: The nature and microfoundation of (sustainable) enterprise performance. Strategic Management Journal, 28, 1319-1350.

Tehseen, S., & Anderson, A. R. (2020). Cultures and entrepreneurial competencies; ethnic propensities and performance in Malaysia. Journal of Entrepreneurship in Emerging Economies, 12(5), 643-666.

Torkkeli, L., Nummela, N., & Saarenketo, S. (2018). A global mindset - Still a prerequisite for successful SME internationalization? In N. Dominguez & U. Mayrhofer (Eds.), Key success factors of SME internationalization: A cross-country perspective (International business and management, Vol. 34, pp. 7-24). Emerald Publishing Limited.

Wenerfelt (1984). A resource based view on the firm. Strategic Management Journal, 5(2), 171-180.

Yeo, V. C. S., Goh, S. K., & Rezaei, S. (2017). Consumer experiences, attitude and behavioral intention toward online food delivery (OFD) services. Journal of Retailing and Consumer Services, 35(C), 150-162.

How to Cite
Marvello Yang, Norizan Jaafar, Sin Kit Yeng, & Abdullah Al Mamun. (2022). Modelling the Significance of Global Mind-Set and Halal Brand Trust to Determine the Performance of Halal SMEs . International Journal of Business and Society, 23(2), 987-1004.