Financial performance of Indonesian frozen food MSMEs: halal supply chain resilience, certification and competitive advantage

Purpose This study aims to investigate the relationship between halal certification and the financial performance of micro, small and medium enterprises (MSMEs) in Indonesia’s frozen food industry. It also explores how halal certification influences the resilience of the halal supply chain and competitive advantage. Design/methodology/approach The research used a survey method with random sampling to select Indonesian frozen food MSMEs holding halal certification. Data were gathered through a structured questionnaire and analyzed using structural equation modeling – partial least squares (SEM-PLS). Findings This study found that halal certification significantly and positively impacts the resilience of the halal supply chain, competitive advantage and financial performance of frozen food MSMEs. Both supply chain resilience and competitive advantage were identified as significant drivers of financial performance. In addition, competitive advantage was found to mediate the relationships between halal certification and financial performance, as well as between supply chain resilience and financial performance. Research limitations/implications The study’s scope is limited by its focus on Indonesian frozen food MSMEs with halal certification. Practical implications The findings highlight how halal certification can potentially enhance the financial performance of frozen food MSMEs by bolstering supply chain resilience and fostering competitive advantage. Originality/value This research provides fresh insights into the impact of halal certification on the financial performance of Indonesian frozen food MSMEs. Using the SEM-PLS method, it explores intricate relationships among variables, offering a substantial contribution to existing literature.