HALAL FOOD INDUSTRY IN INDONESIA: EVIDENCE OF EMPLOYEES PERFORMANCE

Authors

  • Hendri Hermawan Adinugraha State Islamic Institut of Pekalongan, Faculty of Islamic Business and Economics, Department of Islamic Economics, Jl. Kusuma Bangsa No.9, Panjang Baru, Pekalongan Utara, Kota Pekalongan,Jawa Tengah, Indonesia Author
  • Nanda Kumala Retno Sari Dian Nuswantoro University, Faculty of Business and Economics, Department of Management, Jl. Nakula No. 5-9, PendirikanKidul, Semarang, Jawa Tengah, Indonesia Author
  • Shinta Dewi Rismawati State Islamic Institut of Pekalongan, Faculty of Islamic Business and Economics, Department of Islamic Economics, Jl. Kusuma Bangsa No.9, Panjang Baru, Pekalongan Utara, Kota Pekalongan,Jawa Tengah, Indonesia Author
  • A.M. Hafidz Ma’shum State Islamic Institut of Pekalongan, Faculty of Islamic Business and Economics, Department of Islamic Economics, Jl. Kusuma Bangsa No.9, Panjang Baru, Pekalongan Utara, Kota Pekalongan,Jawa Tengah, Indonesia Author
  • Kuat Ismanto State Islamic Institut of Pekalongan, Faculty of Islamic Business and Economics, Department of Islamic Economics, Jl. Kusuma Bangsa No.9, Panjang Baru, Pekalongan Utara, Kota Pekalongan,Jawa Tengah, Indonesia Author
  • Agus Arwani State Islamic Institut of Pekalongan, Faculty of Islamic Business and Economics, Department of Islamic Economics, Jl. Kusuma Bangsa No.9, Panjang Baru, Pekalongan Utara, Kota Pekalongan,Jawa Tengah, Indonesia Author
  • Happy Sista Devy State Islamic Institut of Pekalongan, Faculty of Islamic Business and Economics, Department of Islamic Economics, Jl. Kusuma Bangsa No.9, Panjang Baru, Pekalongan Utara, Kota Pekalongan,Jawa Tengah, Indonesia Author
  • Ahmad Dzulfikar State Islamic Institut of Pekalongan, Faculty of Islamic Business and Economics, Department of Islamic Economics, Jl. Kusuma Bangsa No.9, Panjang Baru, Pekalongan Utara, Kota Pekalongan,Jawa Tengah, Indonesia Author
  • Farida Rohmah State Islamic Institut of Pekalongan, Faculty of Islamic Business and Economics, Department of Islamic Economics, Jl. Kusuma Bangsa No.9, Panjang Baru, Pekalongan Utara, Kota Pekalongan,Jawa Tengah, Indonesia Author
  • Mohammad Rosyada State Islamic Institut of Pekalongan, Faculty of Islamic Business and Economics, Department of Islamic Economics, Jl. Kusuma Bangsa No.9, Panjang Baru, Pekalongan Utara, Kota Pekalongan,Jawa Tengah, Indonesia Author
  • Tamamudin State Islamic Institut of Pekalongan, Faculty of Islamic Business and Economics, Department of Islamic Economics, Jl. Kusuma Bangsa No.9, Panjang Baru, Pekalongan Utara, Kota Pekalongan,Jawa Tengah, Indonesia Author

DOI:

https://doi.org/10.61841/rp570j92

Keywords:

leadership, compensation, motivation, teamwork, employee performance

Abstract

 This research is motivated by a decrease in the performance of human resources in the Halal
Food Industry in Indonesia, which indicates that the performance of the halal food industry in
Indonesia is not optimal. By looking at this problem, researchers are directed to analyze models
of improving employee performance through leadership, compensation, motivation and
teamwork in the halal food industry in Indonesia. In this study, using a census technique, namely
taking all X halal food company employees as representatives of the halal food industry in
Indonesia as many as 161 people, 28 questionnaires in this study were declared damaged and
unfit for testing, so in this study only 133 questionnaires were used. Questions are given using a
questionnaire consisting of closed questions. Respondents’ answers to closed questions about the
variables studied in this study were then analyzed using the SPSS program. The results showed
that the independent variables, namely leadership, compensation, motivation and teamwork have  the following effects: leadership has a positive and significant effect on employee performance;
compensation has a positive and significant effect on employee performance; motivation has a
positive and significant effect on employee performance; and teamwork has a positive and
significant effect on employee performance. 

Downloads

Download data is not yet available.

References

Ab. Wahab, N., & Kamarubahrin, A. F. (2019). Halal Industry: Are The Businesses Fully

Awake? Journal of Fatwa Management and Research.

https://doi.org/10.33102/jfatwa.vol16no1.216

Abuhashesh, M., Al-Dmour, R., & Ed Masa’deh, R. ’. (2019). Factors that affect Employees Job

Satisfaction and Performance to Increase Customers’ Satisfactions. Journal of Human

Resources Management Research, 2019.

Ahmad, A., Tangngareng, T., Harun, A., & Masri, M. (2019). Halal Product: New Market

Opportunity in Challenging the Industrial Revolution 4.0. https://doi.org/10.4108/eai.2-5-

2019.2284751

Ahmad, I., & Manzoor, S. R. (2017). Effect of Teamwork, Employee Empowerment and

Training on Employee Performance. International Journal of Academic Research in

Business and Social Sciences, 7(11). https://doi.org/10.6007/ijarbss/v7-i11/3472

Anthonia. N, O., Okeke, M. N., & Ikechukwu, I. A. (2019). Compensation Management and

Employee Performance in Nigeria. International Journal of Academic Research in Business

and Social Sciences, 9(2). https://doi.org/10.6007/ijarbss/v9-i2/5552

Azam, M. S. E., & Abdullah, M. A. (2020). Global Halal Industry: Realities and Opportunities.

International Journal of Islamic Business Ethics, 5(1). https://doi.org/10.30659/ijibe.5.1.47-

59

Bakar, A. E., Rosslee, N. N., Ariff, A. M. M., Othman, M., & Hashim, P. (2017). Consumers ’

Trust and Values Towards Halal Cosmetics and Personal Care Products. Malaysian Journal

of Consumer and Family Economics.

Bäker, A., & Pull, K. (2017). Who is attracted by teamwork? Evidence of multidimensional

sorting from a real-effort experiment. German Journal of Human Resource Management:

Zeitschrift Für Personalforschung, 31(1). https://doi.org/10.1177/2397002216644571

Barakat Abuashour, A. M., & Hassan, Z. (2019). A Conceptual Framework for Enhancing Safety

Performance by Impact Cooperation Facilitation, Safety Communication and Work

Environment: Jordanian Hospitals. Sains Humanika, 11(2–2).

https://doi.org/10.11113/sh.v11n2-2.1659

Bashir, A. M. (2019). Awareness of purchasing halal food among non-Muslim consumers: An

explorative study with reference to Cape Town of South Africa. Journal of Islamic

Marketing, 11(6). https://doi.org/10.1108/JIMA-04-2018-0077

Brasilio, B. A., & Tridayanti, H. (2020). Effect of Direct and Indirect Compensation on

Performance of Employees PT. Terminal Petikemas Surabaya. Journal of World

Conference (JWC), 2(2). https://doi.org/10.29138/prd.v2i2.234

Candradewi, I., & Dewi, I. G. A. M. (2019). Effect of compensation on employee performance

towards motivation as mediation variable. International Research Journal of Management,

IT and Social Sciences, 6(5). https://doi.org/10.21744/irjmis.v6n5.711

Chelazzi, L., Perlato, A., Santandrea, E., & Della Libera, C. (2013). Rewards teach visual

selective attention. Vision Research, 85. https://doi.org/10.1016/j.visres.2012.12.005

Chen, J., Goergen, M., Leung, W. S., & Song, W. (2019). CEO and director compensation, CEO

turnover and institutional investors: Is there cronyism in the UK? Journal of Banking and

Finance, 103. https://doi.org/10.1016/j.jbankfin.2019.03.019

Chen, Y., Ning, R., Yang, T., Feng, S., & Yang, C. (2018). Is transformational leadership always

good for employee task performance? Examining curvilinear and moderated relationships.

Frontiers of Business Research in China, 12(1). https://doi.org/10.1186/s11782-018-0044-8

Cheng, M., Lin, B., & Wei, M. (2015). Executive compensation in family firms: The effect of

multiple family members. Journal of Corporate Finance, 32.

https://doi.org/10.1016/j.jcorpfin.2014.10.014

Damit, D. H. D. A., Harun, A., Martin, D., Othman, B. J., Othman, B., & Ahmad, H. (2019).

What makes a non-muslim purchase halal food in a muslim country? An application of

theory of planned behaviour. Management Science Letters, 9(12).

https://doi.org/10.5267/j.msl.2019.7.003

Darmawan, D., Mardikaningsih, R., Sinambela, E. A., Arifin, S., Putra, A. R., Hariani, M., Irfan,

M., & Hakim, Y. R. Al. (2020). The quality of human resources, job performance and

employee loyalty. International Journal of Psychosocial Rehabilitation, 24(3).

https://doi.org/10.37200/IJPR/V24I3/PR201903

DinarStandard. (2020). 2020/2021 State of the Global Islamic Economy Report: Thriving in

Uncertainty. Dubai Capital of the Islamic Economy DinarStandard.

Efendi, R., Rifa’i, M. N., Bahrun, K., Milla, H., & Suharmi. (2020). The Mediation Of Work

Motivation On The Effects Of Work Discipline and Compensation On Performance Batik

Msmes Employees in Yogyakarta City, Indonesia. International Journal of Multicultural

and Multireligious Understanding, 7(1).

Elseidi, R. I. (2018). Determinants of halal purchasing intentions: evidences from UK. Journal of

Islamic Marketing, 9(1). https://doi.org/10.1108/JIMA-02-2016-0013

Faizah, Putu Agung, A. A., & Widnyana, I. W. (2020). The Effect of Career Development and

Servant Leadership on Employee Performance with Work Motivation as an Intervening

Variable in the Employment Agency and Human Resources Development Denpasar City.

International Journal of Contemporary Research and Review, 11(01).

https://doi.org/10.15520/ijcrr.v11i01.785

Faridah, H. D. (2019). Halal certification in Indonesia; history, development, and

implementation. Journal of Halal Product and Research, 2(2).

https://doi.org/10.20473/jhpr.vol.2-issue.2.68-78

Ferreras Méndez, J. L., Sanz Valle, R., Alegre, J., Tsang, T., Co Nguyen Trong, Van Huong Vu,

Francesca Bartolacci, Zealand, N., Nguyen, D., Nguyen, H., Nguyen, K. S., Voeten, J.,

Mita, G. O., Kinyuira, D., Galindo-rueda, F., Van Cruysen, A., Al Mamun, A., Kumar, N.,

Ibrahim, M. D., … Aktaş, E. (2017). Influence of Generic Strategies on Performance of

Metal Works Sme Businesses in Naivasha Town. Procedia - Social and BehavioralSciences, 6(2).

Ghozali, I. (2013). Ghozali, Imam (2013). Aplikasi Analisis Multivariate Dengan Program IBM

SPSS 21Update PLS Regresi. Semarang: Badan Penerbit Universitas Diponegoro.

Green, C., & Heywood, J. S. (2008). Does performance pay increase job satisfaction?

Economica, 75(300). https://doi.org/10.1111/j.1468-0335.2007.00649.x

Hamdan, H., Issa, Z. M., Abu, N., & Jusoff, K. (2013). Purchasing Decisions among Muslim

Consumers of Processed Halal Food Products. Journal of Food Products Marketing, 19(1).

https://doi.org/10.1080/10454446.2013.724365

Haque, A., Sarwar, A., Yasmin, F., Tarofder, A. K., & Hossain, M. A. (2015). Non-muslim

consumers’ perception toward purchasing halal food products in malaysia. Journal of

Islamic Marketing, 6(1). https://doi.org/10.1108/JIMA-04-2014-0033

Hartati, T. (2020). Analysis of Influence of Motivation, Competence, Compensation toward

Performance of Employee. Budapest International Research and Critics Institute (BIRCIJournal): Humanities and Social Sciences, 3(2). https://doi.org/10.33258/birci.v3i2.933

Hashim, H. I. C., & Shariff, S. M. M. (2016). Halal Supply Chain Management Training: Issues

and Challenges. Procedia Economics and Finance, 37. https://doi.org/10.1016/s2212-

5671(16)30089-2

Hashim, J. (2009). Islamic revival in human resource management practices among selected

Islamic organisations in Malaysia. International Journal of Islamic and Middle Eastern

Finance and Management, 2(3). https://doi.org/10.1108/17538390910986362

Hoegl, M., & Parboteeah, K. P. (2007). Creativity in innovative projects: How teamwork

matters. Journal of Engineering and Technology Management - JET-M, 24(1–2).

https://doi.org/10.1016/j.jengtecman.2007.01.008

Holtz, K., Castella, V. O., Abad, A. Z., & González-Anta, B. (2020). Virtual team functioning:

Modeling the affective and cognitive effects of an emotional management intervention.

Group Dynamics, 24(3). https://doi.org/10.1037/gdn0000141

Ibrahim, Z., Rahman, N. R. A., & Johar, M. G. M. (2019). To understand the team cohesiveness,teamwork quality and team performance in employee performance in university.

International Journal of Recent Technology and Engineering, 8(2 Special Issue 9).

https://doi.org/10.35940/ijrte.B1176.0982S919

Ingsih, K., Astuti, S. D., & Asri, D. I. P. (2017). Compensation as the most important factor in

improving employee’s Performance. International Journal of Economic Research, 14(6).

Irwan, A., Mahfudnurnajamuddin, M., Nujum, S., & Mangkona, S. (2020). The Effect of

Leadership Style, Work Motivation and Organizational Culture on Employee Performance

Mediated by Job Satisfaction. International Journal of Multicultural and Multireligious

Understanding, 7(8). https://doi.org/10.18415/ijmmu.v7i8.2007

Jamal, A., Budiyanto, & Agustedi. (2021). The role of religiosity in moderating the influence of

servant leadership on job satisfaction. Accounting, 7(4).

https://doi.org/10.5267/j.ac.2021.1.011

Jamaludin, M. A., Amin, A., Fadzlillah, N. A., Kartika, B., Othman, R., Sani, S., & Ramli, A.

(2017). Study on physiochemical properties and the halalness of commercially marketed

vinegar in Malaysia. International Food Research Journal, 24.

Jusmin, A., Said, S., Jobhaar Bima, M., & Alam, R. (2016). Specific Determinants of Work

Motivation, Competence, Organizational Climate, Job Satisfaction and Individual

Performance: A Study among Lecturers. Journal of Business and Management Sciences,

4(3).

Khan, G., & Khan, F. (2019). Ascertaining the “Halalness” of restaurants – scale development

and validation. Journal of Islamic Marketing, 10(2). https://doi.org/10.1108/JIMA-04-2018-

0067

Komite Nasional Keuangan Syariah. (2018). Masterplan Ekonomi Syariah Indonesia 2019-2024.

Kementerian Perencanaan Pembangunan Nasional/ Badan Perencanaan Pembangunan

Nasional.

Law, C. C. H. (2016). Using bonus and awards for motivating project employees. Human

Resource Management International Digest, 24(7). https://doi.org/10.1108/HRMID-05-

2016-0073Lim, Y. H., Lada, S., Ullah, R., & Abdul Adis, A. A. (2020). Non-Muslim consumers’ intention

to purchase halal food products in Malaysia. Journal of Islamic Marketing.

https://doi.org/10.1108/JIMA-06-2020-0172

Lubis, A. S. (2019). The influence of adversity quotient and job stress on employee performance

through work motivation as an intervening variable (Study of conventional taxi drivers in

Medan City). Management and Economics Journal (MEC-J), 3(2).

https://doi.org/10.18860/mec-j.v3i2.6312

MadencI, A. B., Bayramoglu, Z., Türker, S., Agizan, K., & EyIz, V. (2020). Determination of

Consumer’s Willingness to Pay for Halal Food. Journal of Tekirdag Agricultural Faculty,

17(3). https://doi.org/10.33462/jotaf.681421

Mariana, U. (2016). Team and teamwork in modern European HR management. Economic

Processes Management, 2.

Masudin, I., Jie, F., & Widayat, W. (2020). Impact of halal supplier service quality and staff

readiness to adopt halal technology on halal logistics performance: A study of Indonesian

halal meat supply chain. International Journal of Agile Systems and Management, 13(3).

https://doi.org/10.1504/IJASM.2020.109258

Mathew, V. N., Abdullah, A. M. R. binti A., & Ismail, S. N. binti M. (2014). Acceptance on

Halal Food among Non-Muslim Consumers. Procedia - Social and Behavioral Sciences,

121. https://doi.org/10.1016/j.sbspro.2014.01.1127

Nur Iman, A. K., Najiyah, F., & Asshiddiqi, M. (2021). Unfolding the possibility to develop

share-waqf in Indonesia through the concepts, opportunities & challenges. Journal of

Islamic Economic Laws, 4(1). https://doi.org/10.23917/jisel.v4i1.12510

Nurhayati, M., Pramudito, O., & Ermawati, E. (2018). The importance of teamwork on business

restaurant in medicating effect of work discipline on mployee performance. European

Journal of Business and Management, 10(18).

Omar, S. R., & Omar, S. N. (2019). Reviving the Authenticity of Prophetic (Sunnah) Drinks in

Beverage Industry in Malaysia: A Review. Journal of Fatwa Management and Research.

https://doi.org/10.33102/jfatwa.vol13no1.188https://doi.org/10.31838/srp.2020.9.45

Wibowo, M. W., & Ahmad, F. S. (2016). Non-Muslim Consumers’ Halal Food Product

Acceptance Model. Procedia Economics and Finance, 37. https://doi.org/10.1016/s2212-

5671(16)30125-3

Wibowo, M. W., Permana, D., Hanafiah, A., Ahmad, F. S., & Ting, H. (2020). Halal food

credence: do the Malaysian non-Muslim consumers hesitate? Journal of Islamic Marketing.

https://doi.org/10.1108/JIMA-01-2020-0013

Yama, A., Jermsittiparsert, K., & Saregar, A. (2019). Impact of halal food certification on

restaurant business in Indonesia: The mediating role of ethical compliance. International

Journal of Innovation, Creativity and Change, 9(7).

Yeganegi, K., & Zadeh, A. M. (2020). A Review of New Leadership Theories and Its

Components. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3602594

Yunarsih, N., Rahayu, S., Fatoni, Asra, Sustiyono, A., Anwar, T., Sri, N., & Purwanto, A.

(2020). Develop leadership style model for nurse in Indonesian hospital. Systematic

Reviews in Pharmacy, 11(8). https://doi.org/10.31838/srp.2020.8.53

Yuniawan, A., Filatrovi, E. W., & Attiq, K. (2020). Finding Ways to Improve Employee

Performance in Banking Sector. Media Ekonomi Dan Manajemen, 35(2).

https://doi.org/10.24856/mem.v35i2.1521

Zainuddin, N., Saifudin, A. M., Deraman, N., & Osman, A. A. (2020). The effect of halal

traceability system on halal supply chain performance. International Journal of Supply

Chain Management, 9(1).

Downloads

Published

25.09.2024

How to Cite

Hermawan Adinugraha, H., Kumala Retno Sari, N., Dewi Rismawati, S., Hafidz Ma’shum, A., Ismanto, K., Arwani, A., Sista Devy, H., Dzulfikar, A., Rohmah, F., Rosyada, M., & Tamamudin. (2024). HALAL FOOD INDUSTRY IN INDONESIA: EVIDENCE OF EMPLOYEES PERFORMANCE. International Journal of Psychosocial Rehabilitation, 25(2), 526-550. https://doi.org/10.61841/rp570j92