Elevating halal industry performance through inclusive HR practices and digital investment in the Indonesian context

Purpose This study examines the relationships among workforce diversity, inclusive HR practices, digital transformation investments, and organizational performance in the Indonesian halal industry. Additionally, it investigates the moderating influence of organizational culture on these relationships. Design/methodology/approach A quantitative survey of 254 halal-certified firms from diverse industries was used in the study. The poll used verified items from earlier research to measure workforce diversity, inclusive HR practices, digital transformation investment, and organizational success. The associations between these factors were examined using structural equation modeling. Findings Research shows that workforce diversity, inclusive HR policies, and digital transformation investments boost corporate success. Employee diversity and performance are highly moderated by organizational culture. While inclusive practices and digital transformation improve performance, corporate culture does not significantly attenuate these associations. These data imply that workforce diversity and inclusive HR practices improve performance, with corporate culture amplifying diversity's benefits. Research limitations/implications The study sample of 254 respondents may not fully represent the Indonesian halal industry. As such, the findings should be interpreted cautiously and may not apply to other industry segments. To better comprehend the factors driving performance, future research should employ larger sample sizes and examine additional moderating variables. The study highlights the critical role of organizational culture in leveraging diversity to enhance performance, which offers valuable insights for halal industry stakeholders despite the study's limitations. This expands the understanding of these relationships and provides guidance for industry progress strategies. Originality/value This study investigates the effect of inclusive human resource strategies and digital investment on the performance of the Indonesian halal business. The results could offer significant perspectives for industry players aiming to improve their competitiveness in this fast-growing market.