Halal Certification and Revenue Performance of Culinary Small and Medium Enterprises in Pamekasan Regency, Madura, Indonesia
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This study investigates the implementation, stakeholder responses, and economic implications of halal certification among culinary small and medium enterprises (SMEs) in Pamekasan Regency, Madura, Indonesia. Grounded in signalling theory (Spence, 1973), the study adopts a qualitative-dominant mixed-methods design that integrates structured questionnaire instruments with in-depth interview protocols. Primary data were gathered from 12 purposively selected SME proprietors representing micro, small, and medium enterprise classifications, supplemented by key informant interviews with representatives of five institutional stakeholders. Thematic analysis of qualitative data was triangulated with non-parametric statistical testing applied to the subsample of certified enterprises (n = 5). The findings reveal that despite high awareness of halal certification obligations and active governmental facilitation, substantive structural and behavioral barriers impede certification uptake. The most critical structural barrier is the systemic absence of BPJPH-certified slaughterhouses in the region, which disrupts upstream supply chain compliance for meat-based culinary operators. Contrary to signalling theory predictions, halal certification did not produce a statistically significant improvement in enterprise revenue. This study proposes the construct of cultural halal trust to account for this divergence, whereby the culturally embedded presumption of product halalness among Muslim consumers in predominantly Islamic localities attenuates the informational signal value of formal certification. These findings contribute to the growing literature on halal assurance systems by delineating the socio-cultural boundary conditions of signalling theory in local Muslim-majority market contexts, and they offer actionable insights for policymakers and certification bodies operating in high-trust cultural environments.
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