THE INFLUENCES OF ISLAMIC BUSINESS ETHIC AND INTERNAL FACTORS TOWARD THE PERFORMANCE MICRO SMALL AND MEDIUM ENTERPRISES OF HALAL FOOD BUSINESS
Abstract
The aim of this research is to study the influence of Islamic business ethic
including responsibility, free will and justice to internal factors including
management, human resource and capital toward the performance of halal food
business. Data analysis of this study used descriptive analyses and structural
equation modeling (SEM) with partial least square (PLS) approachment using
smartPLS 3. Primary data type distributed by questionnaire and use purposive
sampling technique were applied.
The result from this research was the existence of influence from Islamic
business ethic 49,9% and internal factor 37,3% toward the performance of halal
food business. So, the result of hypothesis test was accepted the H1 (the influence
of Islamic business ethic toward performance of halal food business) as 3,706 and
H2 (the influence of internal factor toward the performance of halal food
business) as 0,152. The conclusion was Islamic business ethic influence to
performance of MSME halal food business, however Internal factor had no effect
toward the performance. Overall, independent variables had positive impact
toward performance of MSME halal food business.