HALAL CERTIFICATION CREDIBILITY AND EXPORT PERFORMANCE: INSTITUTIONAL LEGITIMACY IN THAI FOOD SMES

Abstract

The worldwide market of halal food is expanding, which brings food companies around the world with a lot of opportunities. However, small and medium-sized enterprises (SMEs) in emerging countries like Thailand encounter difficulties in linking halal certification with export performance. This research investigates the role of halal certification credibility and its impact on the export performance of Thai food SMEs, with the institutional legitimacy as a central mediator. A mixed-method approach was applied using a survey of 200 Thai food SMEs and interviews with 15 industry representative experts. Our results indicate that same as halal certification producers more export market power, its effect on exports depends upon the trustworthiness attributed to the certification. This article examines how institutional legitimacy, anticipated through third-party certification, affects foreign customers' trust and leads to export performance. We also explore boundary conditions where the effect of halal certification credibility differs: Cultural perception about the quality of the relevant certification and firm's market orientation. Our study extends understanding of how SMEs leverage certifications to gain institutional legitimacy and has several managerial implications for firms intending to access the global halal food market.

Keywords: Halal Certification, Export Performance, Institutional Legitimacy, Thai Food SMEs, Credibility, Managerial Strategy