Halal certification and logistics business performance: The role of institutional pressure, organizational readiness, and cost-benefit perception

Abstract

This study aims to examine the effects of institutional pressure, organizational readiness, and cost-benefit perception on halal certification implementation and to investigate the mediating role of halal certification implementation in improving the business performance of logistics service companies in Indonesia. A quantitative research design was employed using a survey of 215 managerial-level respondents from food logistics, cold chain, and distribution warehouse companies. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine both direct and indirect relationships among the proposed constructs. The findings indicate that institutional pressure, organizational readiness, and cost-benefit perception have positive and significant effects on halal certification implementation, with organizational readiness emerging as the strongest predictor. Furthermore, halal certification implementation has a positive and significant effect on business performance and partially mediates the relationships between the three antecedent variables and business performance. These findings suggest that the organizational benefits of halal certification are more likely to be realized when companies possess strong managerial commitment, adequate organizational readiness, and integrated operational systems that support consistent implementation. This study extends the application of Institutional Theory and Organizational Readiness Theory within the context of halal logistics services by demonstrating that halal certification implementation functions as a strategic mechanism linking external institutional pressures, internal organizational capabilities, and managerial cost-benefit evaluations to business performance. The findings also provide practical implications for logistics companies and policymakers in strengthening halal certification implementation as a strategic approach to enhancing organizational performance and supporting the development of Indonesia’s halal logistics ecosystem.