Linkage among halal quality standard certification and SME’s performance: Palestinian food halal certified SME’s context

Abstract

Purpose: The aim of this study is to study the relationship between halal certification and small and medium entreprise (SME) performance in a turbulent environment such as the Palestinian environment. Design/methodology/approach: In this study quantitative cross-sectional research design using questionnaires distributed over 51 certified SME’s used, and analysis was performed using partial least squares-structural equational modeling. Findings: The current study revealed that there is a positive relationship between certification and business performance of SME’s in terms of financial and operational performance, and operational performance can mediate the effect between certification and financial performance. It is recommended to conduct further research with larger sample sizes and conduct research using different research designs, such as the longitudinal research design. Practical implications: Certification of Halal also has a positive relationship with performance, even in a turbulent environment like Palestine. Accordingly, Palestinian food manufacturing firms are called to implement food safety standards like the Halal certificate to gain beside the good gained image the good financial performance. Originality/value: This study was conducted in one of the most turbulent environments, as well as in developing countries, enriching the literature with results from emerging/turbulence and developing countries.