RELIGIOSITY AND BUSINESS COMPLIANCE: A STUDY OF HALAL CERTIFICATION ADOPTION IN THE FOOD PROCESSING INDUSTRY

Abstract

This study examines the influence of religiosity on the adoption of halal certification in Indonesia's food processing industry, with a focus on West Bangka Regency, a region rich in culinary heritage yet underrepresented in halal-certified businesses Utilizing the Theory of Planned Behavior (TPB) framework, this research incorporates religiosity, understanding, certification costs, and procedural complexity as explanatory variables.   Data were collected through a mixed-method approach, combining printed and online questionnaires from 62 respondents, and analyzed using multiple linear regression. The findings indicate that religiosity has a significant impact on business interest in halal certification, while understanding and certification costs show no significant effects. Simplified certification procedures also positively influence adoption rates, underscoring the importance of efficient processes in promoting compliance. Collectively, the variables explained 65.6% of the variance in business interest, demonstrating the critical interplay between religious motivations and institutional frameworks. The study offers practical implications for policymakers, halal certification bodies, and industry players by emphasizing the need to foster religiosity awareness and streamline certification processes.Future research should explore cross-sectoral comparisons or longitudinal studies to evaluate the sustained impact of these determinants on halal certification adoption. Expanding this approach to non-food industries could also provide broader insights into the dynamics of halal compliance across sectors