DOI: 10.14458/utcc.the.2023.32
title: Factor influencing the adoption of CICOT halal certification with Thai halal entrepreneurs institutional theory

description: This research applies institutional theory to understand why food processors and other firms in Thailand seek Central Islamic Council of Thailand (CICOT) halal certification. CICOT halal certification ensures that food carrying the label was produced under the principles of halal, making it safe to consume under traditional Muslim dietary guidelines. CICOT halal certification is voluntary for food producers, but could be advantageous for firms supplying Muslim customer bases. The study relies on new institutional theory, which argues in brief that organizations that perform similar functions take similar forms due to isomorphic pressures that shape their objectives, processes, functions and so on; however, they differ because they have available to them different strategic responses to these isomorphic pressures, which are envisioned as regulatory, normative, and cognitive forces. The conceptual framework developed for the study incorporates these isomorphic pressures, forces, and resulting strategic decisions into a conceptual framework that proposed a total of five hypotheses. These hypotheses investigated the relationship of mimetic isomorphism, cognitive isomorphism, and normative isomorphism on the level of CICOT halal certification, along with mean differences in the level of CICOT halal certification between firms operating in different product categories and of different sizes. The research surveyed firms that had begun the certification process (n = 350). The survey addressed a total of 15 possible factors that could influence the level of halal certification pursued by firms. This survey was distributed using a self-administered online questionnaire. Responding firms were selected using two rounds of sampling, with the first round of participants (n = 219) drawn using simple random sampling from a CICOT-maintained list of current certification holders and the second round of participants (n = 131) selected from the same list using convenience sampling. Confirmatory factor analysis was used to investigate the factor structure, including internal consistency and convergent validity, of the factors, which were assigned to clusters of mimetic, coercive, and normative isomorphic forces. The results indicated adequate internal consistency and convergent validity. Multiple regression analysis was used to evaluate the effects of isomorphic forces. The results showed that mimetic isomorphism and coercive isomorphism had significant and positive effects on level of CICOT halal certification., with much higher effects of mimetic isomorphism than coercive isomorphism. While the effect of normative isomorphism was significant, it was also negative, contrary to expectations. One-way ANOVA was used to investigate group differences in mean levels of CICOT halal certification. The results indicated that the Consumer Products category had lower levels of CICOT halal certification than other categories, which was significant in seven of the nine other categories. However, there were no significant mean differences in levels of CICOT halal certification between firms of different sizes. The study concluded that it is mimetic isomorphism, which encompasses the pressure to compete and adoption of competitor strategies, that is the main influence on the level of CICOT halal certification. The main implications of the study were discussed