INTEGRATING ISLAMIC HUMAN RESOURCE GOVERNANCE WITH HALAL PRODUCT MANAGEMENT FOR SUSTAINABLE SME DEVELOPMENT IN NORTH SUMATRA
DOI:
https://doi.org/10.47652/ijsbea.v1i1.895Keywords:
Human Resource Management, Halal Product Management, Competitive Advantage, Strategic Collaboration, Halal SMEs.Abstract
This study investigates the integration of Islamic Human Resource Governance (IHRG) and Halal Product Management (HPM) in fostering sustainable development among Small and Medium Enterprises (SMEs) in North Sumatra, Indonesia. Employing a sequential mixed-methods approach, the research combines quantitative analysis of 312 halal-certified SMEs using Structural Equation Modeling with qualitative insights from 24 in-depth case studies. The findings reveal that Islamic Human Resource Governance encompassing sharia-compliant governance structures, ethical oversight mechanisms, and stakeholder accountability frameworks significantly enhances both halal product management capabilities (β = 0.461, p < 0.001) and sustainable SME development outcomes (β = 0.387, p < 0.001). The integration between IHRG and HPM creates synergistic effects on sustainability performance, explaining 76.8% of variance in triple bottom line outcomes (economic viability, social welfare, environmental stewardship). Four critical mediating pathways are identified: Islamic organizational justice, employee spiritual well-being, halal ecosystem collaboration, and community embeddedness. Results demonstrate that SMEs implementing comprehensive IHRG-HPM integration achieve 47% higher sustainability scores, 39% better long-term business resilience, and 52% stronger community impact compared to those with fragmented approaches. These findings contribute to Islamic governance theory, halal management literature, and sustainable development scholarship by demonstrating that religious principles can serve as foundational frameworks for holistic business sustainability. The research provides actionable insights for SME practitioners, Islamic scholars, policymakers, and development agencies seeking to leverage Indonesia's Islamic heritage for inclusive, sustainable economic growth aligned with UN Sustainable Development Goals and Islamic maqasid al-shariah
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