Benchmarking Practices of Business Excellence in the Halal Industry

Purpose of the study: The first objective of this research is to evaluate the overall situation of business excellence (BE) in Brunei Darussalam and Malaysia. The second objective is to assess the factors influencing business excellence among halal industry organizations in those two countries. The significance of this study is to identify the challenges faced by SMEs in achieving continuous improvement and performance excellence.
Methodology: The population of this study is organizations providing halal products and services in Brunei Darussalam and Malaysia. A total of 100 questionnaires inquiring the seven criteria of BE have been distributed to SME owners, regardless of their positions in the industry. Based on the responses received by the researchers, only 25 organizations in Brunei Darussalam and 41 in Malaysia offer a variety of products and services in the market. The collected data were analysed using situation analysis and multiple regressions to accomplish the research objectives. Main Findings: The research found that two companies were in the Intermediate Stage of Good Practice Achiever. However, both countries are still a long way from achieving BE, and even a longer way from reaching a mature stage. The research also found that BE practice was more prevalent in the halal industry of Malaysia than that in Brunei Darussalam. In Malaysia, ‘process’ had a positive and significant effect on competitive advantage, while Brunei Darussalam's strengths came from ‘information’ and ‘people’. Novelty of the study: This paper highlights the strengths of Brunei Darussalam and Malaysia in promoting BE in the halal industry. Through the measures, business excellence could potentially create greater added value and impact. The in both countries.