Modelling the Significance of Global Mind-Set and Halal Brand Trust to Determine the Performance of Halal SMEs
DOI:
https://doi.org/10.33736/ijbs.4854.2022Keywords:
Global mind-set, halal brand trust, entrepreneurial competency, effectual logic, online food delivery, halal entrepreneurial performanceAbstract
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.
References
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. https://doi.org/10.1108/JIMA-03-2019-0063
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. https://doi.org/10.1007/s11187-012-9461-9
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. https://doi.org/10.1080/00913367.2013.834803
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. https://doi.org/10.1108/JSBED-04-2019-0139
Bank Indonesia. (2020). Laporan ekonomi dan keuangan syariah: Bersinergi membangun ekonomi dan keuangan syariah. https://www.bi.go.id/id/publikasi/laporan/Documents/LEKSI_20 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. https://doi.org/10.1016/j.jbusvent.2011.01.001
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. https://doi.org/10.1108/JKM-05-2018-0322
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. https://doi.org/10.1016/j.jbusvent.2009.10.006
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. https://doi.org/10.1177/147078530304500103
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. https://doi.org/10.1260/1757-2223.4.4.205
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. https://doi.org/10.1108/S1876-022820150000011009
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 https://doi.org/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. https://doi.org/10.1177/002224378101800104
G*Power - Universität Düsseldorf: Psychologies, Germany. (2009). Power and sample size calculators. http://powerandsamplesize.com/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. https://www.institutohalal.com/state-of-global-islamic-economy-report-2020-2021/
Indonesian Ministry of National Development Planning. (2019). The Indonesia Masterplan of Sharia Economy 2019-2024. https://knks.go.id/storage/upload/1560308022-Indonesia Islamic%20Economic%20Masterplan%202019-2024.pdf.
International Monetary Fund. (2018). IMF annual report 2018: Building a shared future. https://www.imf.org/external/pubs/ft/ar/2018/eng/assets/pdf/imf-annual-report-2018.pdf
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. http://www.mdsbeijing.com/Produc t_Photo/files/gmi-tech-report_0.pdf https://doi.org/10.1108/S1535-1203(2011)0000006005
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. https://doi.org/10.1108/S1535-1203(2011)0000006005
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. https://doi.org/10.1016/j.orgdyn.2013.03.008
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. https://doi.org/10.1016/j.schres.2011.10.001
Kotler, P. (2017). Philip Kotler: some of my adventures in marketing. Journal of Historical Research in Marketing, 9(2), 203-208. https://doi.org/10.1108/JHRM-11-2016-0027
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. https://doi.org/10.1016/j.tourman.2012.06.003
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. https://doi.org/10.1080/08276331.2008.10593424
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. https://doi.org/10.1016/j.tifs.2020.03.022
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. https://doi.org/10.1108/JMD-04-2019-0107
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. https://doi.org/10.1108/ITP-05-2017-0148
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. https://doi.org/10.1177/1094670504271156
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. https://doi.org/10.1002/smj.4250140303
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. https://doi.org/10.1108/IJBM-04-2015-0043
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. https://doi.org/10.21315/aamj2019.24.s1.13
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. https://doi.org/10.1108/IJPPM-04-2013-0065
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. https://doi.org/10.2991/aebmr.k.200108.015
Srinivas, K. M. (1995). Globalization of business and the Third World: Challenge of expanding the mindsets. Journal of Management Development, 14(3), 26-49. https://doi.org/10.1108/02621719510078957
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. https://doi.org/10.1108/APJML-04-2018-0150
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<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. https://doi.org/10.1002/smj.640
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. https://doi.org/10.1108/JEEE-10-2019-0156
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. https://doi.org/10.1108/S1876-066X20180000034001
Wenerfelt (1984). A resource based view on the firm. Strategic Management Journal, 5(2), 171-180. https://doi.org/10.1002/smj.4250050207
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. https://doi.org/10.1016/j.jretconser.2016.12.013
Downloads
Published
How to Cite
Issue
Section
License
Copyright Transfer Statement for Journal
1) In signing this statement, the author(s) grant UNIMAS Publisher an exclusive license to publish their original research papers. The author(s) also grant UNIMAS Publisher permission to reproduce, recreate, translate, extract or summarize, and to distribute and display in any forms, formats, and media. The author(s) can reuse their papers in their future printed work without first requiring permission from UNIMAS Publisher, provided that the author(s) acknowledge and reference publication in the Journal.
2) For open access articles, the author(s) agree that their articles published under UNIMAS Publisher are distributed under the terms of the CC-BY-NC-SA (Creative Commons Attribution-Non Commercial-Share Alike 4.0 International License) which permits unrestricted use, distribution, and reproduction in any medium, for non-commercial purposes, provided the original work of the author(s) is properly cited.
3) For subscription articles, the author(s) agree that UNIMAS Publisher holds copyright, or an exclusive license to publish. Readers or users may view, download, print, and copy the content, for academic purposes, subject to the following conditions of use: (a) any reuse of materials is subject to permission from UNIMAS Publisher; (b) archived materials may only be used for academic research; (c) archived materials may not be used for commercial purposes, which include but not limited to monetary compensation by means of sale, resale, license, transfer of copyright, loan, etc.; and (d) archived materials may not be re-published in any part, either in print or online.
4) The author(s) is/are responsible to ensure his or her or their submitted work is original and does not infringe any existing copyright, trademark, patent, statutory right, or propriety right of others. Corresponding author(s) has (have) obtained permission from all co-authors prior to submission to the journal. Upon submission of the manuscript, the author(s) agree that no similar work has been or will be submitted or published elsewhere in any language. If submitted manuscript includes materials from others, the authors have obtained the permission from the copyright owners.
5) In signing this statement, the author(s) declare(s) that the researches in which they have conducted are in compliance with the current laws of the respective country and UNIMAS Journal Publication Ethics Policy. Any experimentation or research involving human or the use of animal samples must obtain approval from Human or Animal Ethics Committee in their respective institutions. The author(s) agree and understand that UNIMAS Publisher is not responsible for any compensational claims or failure caused by the author(s) in fulfilling the above-mentioned requirements. The author(s) must accept the responsibility for releasing their materials upon request by Chief Editor or UNIMAS Publisher.
6) The author(s) should have participated sufficiently in the work and ensured the appropriateness of the content of the article. The author(s) should also agree that he or she has no commercial attachments (e.g. patent or license arrangement, equity interest, consultancies, etc.) that might pose any conflict of interest with the submitted manuscript. The author(s) also agree to make any relevant materials and data available upon request by the editor or UNIMAS Publisher.
