International Business Management

Year: 2009
Volume: 3
Issue: 4
Page No. 80 - 84

The Effect of Institutional Pressures in the Malaysian Halal Food Industry

Authors : Rosly Othman, Zainal Ariffin Ahmad and Suhaiza Zailani

Abstract: It is argued that regulatory, social and cultural pressures that have been imposed on organizations play significant roles in determining the internal practices and structures. These mechanisms created and spread common set of values, norms as well as rules, which produced similar practices and structures across organizations that shared similar field. The elements of institutional isomorphism within the halal food industry started to emerge, when the Malaysian government decided to regulate the industry. This need to be done in order to ensure the quality of halal food products is maintained. Due to the increment in the adoption of halal logo, authorities should have a clear understanding of the underlying reasons behind such interest. Therefore, the objectives of this small-scale study are to provide greater understanding of the current situation related to the effect of institutional pressures on the inter-organizational imitation within the halal food industry. Findings showed that respondents perceived their companies to face high mimetic (m = 3.783) as well as normative pressures (m = 3.733). This implied that respondents seemed to believe that institutional pressures do exist within the Malaysian halal food industry.

How to cite this article:

Rosly Othman, Zainal Ariffin Ahmad and Suhaiza Zailani, 2009. The Effect of Institutional Pressures in the Malaysian Halal Food Industry. International Business Management, 3: 80-84.

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