Halal-Sustainability Business Cognitive Drivers toward Sustainable Competitive Advantage and Performance of Surabaya Halal MSMEs: A PLS-SEM Study
DOI:
https://doi.org/10.24235/jiesbi.v3i2.589Keywords:
Business Model, Halal Literacy, MSMES Performance, Sustainability Literacy, Sustainable CompetitiveAbstract
This study examines the effect of halal–sustainability cognitive drivers on the competitive advantage and business performance of halal MSMEs in Surabaya. This topic is timely given the rapid growth of the global halal industry and the rise of sustainability in business. However, many halal MSMEs lack cognitive abilities and strategic direction, hindering competitiveness. The research explores how halal and sustainability literacy influence Sustainable Halal Business Model Innovation (SHBMI). It also assesses how SHBMI affects competitive advantage and business performance. This study proposes an integrative model linking these variables, an area largely unexplored, especially in developing countries like Indonesia. A quantitative cross-sectional approach collected data from 250 halal MSMEs and was analyzed using PLS-SEM in SmartPLS 4. Results show that halal and sustainability literacy positively affect SHBMI. SHBMI, in turn, boosts competitive advantage and business performance, directly and indirectly. In conclusion, SHBMI connects cognitive drivers with competitiveness and performance. Strengthening halal and sustainability literacy is key for MSMEs and policymakers to ensure long-term business sustainability.
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