Business networks in halal food industries in Malaysia

The processed halal food industry has been identified as a potentially economically important export industry in Malaysia, but the production of a final product is still at the infant stage compared to developed countries. A business network is one of the aspects that firms need to focus upon to e...

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Main Author:	Nor Aini Haji Idris
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2013
Online Access:	http://journalarticle.ukm.my/8092/ http://journalarticle.ukm.my/8092/ http://journalarticle.ukm.my/8092/1/5575-13417-1-SM.pdf

id	ukm-8092
recordtype	eprints
spelling	ukm-80922016-12-14T06:46:11Z http://journalarticle.ukm.my/8092/ Business networks in halal food industries in Malaysia Nor Aini Haji Idris, The processed halal food industry has been identified as a potentially economically important export industry in Malaysia, but the production of a final product is still at the infant stage compared to developed countries. A business network is one of the aspects that firms need to focus upon to ensure such a product can be successfully marketed. Utilizing 220 samples of halal firms from Peninsular Malaysia, the present study analyses the role of networking in expanding export of halal products at the global market. The discussion of the present paper focuses upon the effectiveness of firms’ competitiveness, especially in relation to business networks which was based upon the strategic alliances concept. The underlying logic of alliance formation is premised upon strategic needs and opportunities. When engaging in strategic alliances, firms combine their assets and capabilities in a cooperative policy to achieve competitive advantages. Several factors are identified that affect success when building entrepreneur networks, such as trust, commitment, selection choices, information technology, intermediary support, and the conduciveness of the external environment. The study finds that halal food firms in Malaysia are still weak in forming business networks, especially marketing networks, in order to penetrate the global market. This is due to problems faced by entrepreneurs, including the lack of trustworthiness and commitment; the lack of information technology; socialization problems; the failure to identify or select of business networks; and the role of agencies, such as institutions and the governmental sector. In order to fulfill the ambition of the Malaysian government to emerge as the regional halal hub, the present research suggests policies to increase firm’s competitiveness through the establishment of effective business networks. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8092/1/5575-13417-1-SM.pdf Nor Aini Haji Idris, (2013) Business networks in halal food industries in Malaysia. Jurnal Ekonomi Malaysia, 47 (1). pp. 87-98. ISSN 0127-1962 http://ejournal.ukm.my/jem/index
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	The processed halal food industry has been identified as a potentially economically important export industry in Malaysia, but the production of a final product is still at the infant stage compared to developed countries. A business network is one of the aspects that firms need to focus upon to ensure such a product can be successfully marketed. Utilizing 220 samples of halal firms from Peninsular Malaysia, the present study analyses the role of networking in expanding export of halal products at the global market. The discussion of the present paper focuses upon the effectiveness of firms’ competitiveness, especially in relation to business networks which was based upon the strategic alliances concept. The underlying logic of alliance formation is premised upon strategic needs and opportunities. When engaging in strategic alliances, firms combine their assets and capabilities in a cooperative policy to achieve competitive advantages. Several factors are identified that affect success when building entrepreneur networks, such as trust, commitment, selection choices, information technology, intermediary support, and the conduciveness of the external environment. The study finds that halal food firms in Malaysia are still weak in forming business networks, especially marketing networks, in order to penetrate the global market. This is due to problems faced by entrepreneurs, including the lack of trustworthiness and commitment; the lack of information technology; socialization problems; the failure to identify or select of business networks; and the role of agencies, such as institutions and the governmental sector. In order to fulfill the ambition of the Malaysian government to emerge as the regional halal hub, the present research suggests policies to increase firm’s competitiveness through the establishment of effective business networks.
format	Article
author	Nor Aini Haji Idris,
spellingShingle	Nor Aini Haji Idris, Business networks in halal food industries in Malaysia
author_facet	Nor Aini Haji Idris,
author_sort	Nor Aini Haji Idris,
title	Business networks in halal food industries in Malaysia
title_short	Business networks in halal food industries in Malaysia
title_full	Business networks in halal food industries in Malaysia
title_fullStr	Business networks in halal food industries in Malaysia
title_full_unstemmed	Business networks in halal food industries in Malaysia
title_sort	business networks in halal food industries in malaysia
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2013
url	http://journalarticle.ukm.my/8092/ http://journalarticle.ukm.my/8092/ http://journalarticle.ukm.my/8092/1/5575-13417-1-SM.pdf
first_indexed	2023-09-18T19:51:30Z
last_indexed	2023-09-18T19:51:30Z
_version_	1777406249812361216

Business networks in halal food industries in Malaysia

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