Halal product supply chain and sharia banking support for halal product commerce and its implications for halal product sharia economic growth in Indonesia

Abstract

The objective of this study is to analyze the influence of the Halal Product Supply Chain and Sharia Banking Support on the economic growth of Halal Products in Indonesia. The study also considers the role of Halal Product Commerce as an intervening variable. The research was carried out in eight districts/cities located within Banten, Indonesia. The study employed the Stratified random sampling technique, using a sample size of 250 respondents. The data collected from the surveys was further analyzed utilizing Structural Equation Modeling-Partial Least Squares (SEM-PLS). The research findings and data analysis demonstrate that the Halal Product Supply Chain has a direct and substantial influence on Halal Product Commerce. In the same vein, the endorsement of Sharia Banking likewise exerts a direct and substantial impact on the commerce of Halal Products. Moreover, the Halal Product Supply Chain exerts a direct and favorable impact on the Sharia Economic Growth of Halal Products. In addition, governmental endorsement of Sharia Banking directly and positively influences the growth of the Sharia Economy, particularly in the production of Halal Products. Ultimately, the Halal Product Trading System exerts a direct and substantial impact on the Sharia Economic Growth of Halal Products. Halal Product Commerce supports the Halal Product Supply Chain and offers Sharia Banking Assistance to foster the development of the Halal Product Sharia Economy in Indonesia.