Analysis of The Influence of Product Quality, Promotion, and Business Identification Number on the Sale of Food and Beverage Products with Halal Labels As An Intervening Variable from The Perspective of MSME Actors in Pangkalpinang City

Abstract

This abstract presents a comprehensive overview of the influence of product quality, promotion, and Business Identification Number (NIB) on the sale of food and beverage products with halal labels as an intervening variable in Pangkalpinang City MSME actors. The research was conducted using a quantitative approach using Structural Equation Modeling–Partial Least Squares (SEM-PLS) on a sample of MSME actors in the food and beverage sector who have or do not have a halal certificate, with questionnaire instruments that have been tested for validity and reliability. Exogenous variables consist of product quality, promotion, and NIB; the intervening variable is the halal label; While the endogenous variable is the sale of halal products. The results of the study show that promotion has a significant effect on the sales of halal products, both in the direct and total effect pathways, thus confirming that promotional activities are the main determinant of increasing sales of food and beverage MSMEs in Pangkalpinang City. NIB has been shown to have a significant effect on halal labels, which indicates that business legality is an important prerequisite in the halal certification process, but the influence of NIB on sales, either directly or through halal labels, is not significant. All pathways involving product quality, both halal and sales labels (direct, indirect, and total effect), are not significant, as well as the influence of halal labels on sales, so that product quality and halal labels in the context of this study have not been the main drivers of sales increases. The findings also show that the mediating role of halal labels in the relationship between product quality, promotion, and NIB to sales is not significant, which means that halal labels have not functioned effectively as an intervening variable in this study model. Practically, these results indicate that halal MSME development policies and strategies in Pangkalpinang City need to emphasize the synergy between strengthening promotion, capacity building and literacy of business actors related to halal regulations, as well as optimizing the benefits of business legality and halal certification so that they can have a more real impact on sales performance.