Factor Analysis of The Hindering Factors in Halal Certification for The SMEs

Every halal industry in the world especially such small-medium enterprise (SMEs) should face a regulation, customers, suppliers, and condition of the halal industry itself before competing with other companies in its country. The small-medium enterprise, which becomes the first and is already aware of halal industry, is the food and beverage companies. The objective of this study is to investigate what the most inhibiting factor for the SMEs in applying halal certification. It combines stakeholder theory and/with resource based theory. This research is an exploratory study using non-probability sampling. The sampling of this study is 396 food and beverage small-medium enterprises in one of the big cities in West Java. The result of this study is known that the most inhibiting factor of the seven factors is employee with factor loading 0.805, and then followed by government. For the future research is suggested that it can investigate the factors in this study in another area and another small-medium enterprises of halal industry such a pharmacy. However, this study has implication in which the stakeholders theory and resource based views can be adopted by the previous research factors and resulted a new factor from the small-medium enterprise’s point of view.