SUSTAINABLE BUSINESS PERFORMANCE MODEL OF HALAL FOODS and BEVERAGES’ MSMES: THE MODERATING ROLE OF HALAL CERTIFICATION

Abstract

This research investigates how digital marketing, digital payment, and spiritual entrepreneurship contribute to sustainable business performance among halal food micro, small, and medium-sized enterprises (MSMEs), while considering halal certification as a moderating factor. Drawing on Dynamic Capabilities Theory (DCT), the study conceptualises digital competencies and spiritual principles as organisational capabilities that support sustained business performance. Survey responses collected from 509 halal food MSMEs in Indonesia were analysed using structural equation modelling (SEM). The findings indicate that digital marketing, digital payment, and spiritual entrepreneurship each have a positive effect on sustainable business performance. In addition, halal certification enhances the relationships between digital marketing and sustainable business performance, as well as between spiritual entrepreneurship and sustainable business performance. Overall, the results demonstrate that combining digital capabilities, ethical principles, and institutional legitimacy can strengthen sustainability within halal food MSMEs.