HALAL HUMAN CAPITAL AND WAGE DETERMINATION IN THE HALAL INDUSTRY: AN INTERPRETIVE STUDY IN MATARAM CITY

Novi Yanti Sandra Dewi; Ahadiah Agustina; Imamuddin Imamuddin

doi:10.32500/jebe.v8i1.11061

Authors

Novi Yanti Sandra Dewi Universitas Muhammadiyah Mataram
Ahadiah Agustina Universitas Muhammadiyah Mataram
Imamuddin Imamuddin University of Malaya

DOI:

https://doi.org/10.32500/jebe.v8i1.11061

Keywords:

Halal Human Capital; Wage Structure; Halal Industry; Interpretive Study

Abstract

This study aims to examine how halal industry actors interpret the role of halal human capital in the wage structure of the halal industry in Mataram City. Adopting a qualitative approach with an interpretivist paradigm, the research explores perceptions, experiences, and practices regarding the value of halal competencies in determining employee remuneration. Data were collected from 20 informants, including halal business owners, employees, and industry practitioners, through direct observation, in-depth interviews, and document analysis. Data analysis followed Miles and Huberman’s interactive model, comprising data reduction, data display, and conclusion drawing. Findings indicate that halal human capital is recognized as a critical component of workforce competence, encompassing both technical production skills and understanding of halal standards, such as raw material knowledge, compliance with halal production procedures, and hygiene principles. However, these competencies are primarily acquired informally through daily work experience and guidance from business owners. Wage determination in halal enterprises largely follows MSME patterns, based on work experience, job type, and working hours, with halal competence not yet serving as a primary factor. The study highlights the need to formally recognize and integrate halal human capital into human resource management policies to strengthen the role of halal competencies in the industry.

References

Acemoglu, D., & Restrepo, P. (2018). Low-skill and high-skill automation. Journal of Human Capital, 12(2), 204–232.

Akbar, F., Mas, R., & Badriati, B. E. L. (2025). Pengaruh Kehalalan Produk , Skema Bonus , dan Kepercayaan terhadap Keputusan Bergabung Sebagai Member Halal Network International ( HNI ) Di Kota Mataram. 8, 542–552.

Alam, M. N., Hassan, M. M., Bowyer, D., & Reaz, M. (2020). The effects of wages and welfare facilities on employee productivity: Mediating role of employee work motivation. Australasian Accounting, Business and Finance Journal, 14(4), 38–60. https://doi.org/10.14453/aabfj.v14i4.4

Azalie, I. A. N. (2025). ASEAN’s Halal Production Networks: Towards Regional Integration and Effective Industrial Governing: A Brunei Case Study. In Brunei and the Future Transformation of Southeast Asia. https://doi.org/10.1007/978-981-96-7901-0_6

Basit, A., Sakti, R. A., Zahari, Y. K., Knight, O. W., & Prayuda, I. P. S. A. (2025). Halal Industry Potential in West Nusa Tenggara: Strengthening Islamic Economics in the Global Market. Likuid: Jurnal Ekonomi Industri Halal, 5(2), 20–33.

Dos Mohamed, A. M., Noor, M. A. M., Rahman, N. A. A., & Sarip, H. (2020). Halal Logistics and Supply Chain Management in Southeast Asia. In Training essentials for capacity building in the Halal industry: The importance of Halal logistics training (1st ed., pp. 175–186). Routledge.

El Balshy, S. A. E. M., & Ismael, M. (2023). Job evaluation as a mechanism for achieving the fairness of a wage structure in the administrative system: theoretical perspectives. Journal of Humanities and Applied Social Sciences, 5(1), 3–19. https://doi.org/10.1108/jhass-02-2021-0038

Fibrianti, N., Niravita, A., Rahayu, S. A. P., Damayanti, R., & Ningsih, A. S. (2023). Halal Certification Systems: A Comparison Between Indonesia and Turkey. Pandecta Research Law Journal, 18(2), 424–456. https://doi.org/10.15294/pandecta.v18i2.48095

Gojali, D., Setiawan, I., & Nurjaman, M. I. (2022). The Concept of Wages and Its Application: Analysis of the Ijarah and Ju’alah Contracts in Sharia Economic Institutions. Jurnal Hukum Islam, 20(2), 229–252.

Harahap, A. K. Z., Ramadhan, M., & Harahap, I. (2024). Enhancing human resource development as a strategic imperative for halal certification in food MSMEs. Al-Uqud: Journal of Islamic Economics, 8(2), 227–238.

Hashim, H. I. C., & Shariff, S. M. M. (2016). Halal supply chain management training: Issues and challenges. Procedia Economics and Finance, 37, 33–38.

Hasibuan, E., & Handayani, D. (2021). Pengaruh Qualification Mismatch terhadap Upah Tenaga Kerja Di Indonesia. Jurnal Ekonomi Dan Pembangunan, 29(1), 1–16. https://doi.org/10.14203/jep.29.1.2021.1-16

Isik, O. (2025). Qualitative Research Approaches and Data Collection Methods: Understanding Meaning and Experience. Journal of Humanities and Education Development. https://doi.org/10.22161/jhed.7.6.3

Konings, J., & Vanormelingen, S. (2015). The impact of training on productivity and wages: firm-level evidence. Review of Economics and Statistics, 97(2), 485–497.

Kudus, N., Bin Ismail, I. A., Abu Hassan, M., Mohamed, S., & Abdullah, F. (2025). Digital Transformation and Halal Human Resource Development: Leveraging Technology for Ethical Workforce Enhancement: A Literature Review. International Journal of Academic Research in Business and Social Sciences, 15(2), 1394–1404. https://doi.org/10.6007/ijarbss/v15-i2/24641

Leoni, R., & Gritti, P. (2017). Institutional Wage Setting, Distinctive Competencies and Wage Premia: Empirical Evidence on Italian Employees. Italian Economic Journal, 3(1), 71–111.

Maihendra, R., Syukur, I., & Aji, G. B. P. (2026). Review of Sharia Economic Law on the Workers ’ Wage System. Jurnal Dinamika Ekonomi Syariah, 13(1), 1–14.

Noor Azalie, I. A., & Haji Samad, N. F. (2022). Brunei as a Global Halal Food Hub: Production Network and Strategic Relations in Halal Food Production. Journal of Contemporary Islamic Studies. https://doi.org/10.24191/jcis.v8i3.1

Nur’Aini Ihsan, D., Ashuri, R. K., Al Arif, M. N. R., & Zulpawati. (2022). the Relationship Between Human Capital, Halalpreneurs’ Desire, and Halal Awareness: Empirical Evidence From Indonesia’S Micro-Entrepreneurs. Asian Economic and Financial Review, 12(7), 450–458. https://doi.org/10.55493/5002.V12I7.4524

Olafsen, A. H., Halvari, H., Forest, J., & Deci, E. L. (2015). Show them the money? The role of pay, managerial need support, and justice in a self‐determination theory model of intrinsic work motivation. Scandinavian Journal of Psychology, 56(4), 447–457.

Pervin, N., & Mokhtar, M. (2022). The Interpretivist Research Paradigm: A Subjective Notion of a Social Context. International Journal of Academic Research in Progressive Education and Development. https://doi.org/10.6007/ijarped/v11-i2/12938

Prayogi, M. A., Asmuni, A., & Nasution, Y. S. J. (2023). Islamic Work Ethic in Mediation Influence Spirituality at Workplace, Organizational Changes, Work Ability on Organizational Commitment in Sharia Bank Employees in Medan City. Ikonomika: Jurnal Ekonomi Dan Bisnis Islam, 8(1), 123–150. https://doi.org/10.24042/febi.v8i1.16296

Qomaruddin, Q., & Sa’diyah, H. (2024). Kajian Teoritis tentang Teknik Analisis Data dalam Penelitian Kualitatif: Perspektif Spradley, Miles dan Huberman. Journal of Management, Accounting, and Administration. https://doi.org/10.52620/jomaa.v1i2.93

Riofita, H., & Iqbal, M. A. (2022). Enhancing Islamic Higher Education Image as the Halal Industry Driving Indonesian Halal Industries. Journal of Digital Marketing and Halal Industry, 4(1), 77–90. https://doi.org/10.21580/jdmhi.2022.4.1.12439

Rizki, D., Hamzah, M., Fakhiroh, Z., & Hendri, D. (2023). Best Practice Halal Integrity Management In The Logistic Chain Scheme: Analysis Of Opportunities And Challenges. Journal of Islamic Economic Laws. https://doi.org/10.23917/jisel.v6i1.19867

Rizkitama, G. Y. E., Fatwa, N., & Muttaqin, M. I. (2025). The Development of the Halal Industry in Indonesia: An Analysis of Innovation and Export Potential. Enrichment: Journal of Multidisciplinary Research and Development, 3(8), 3327–3343. https://doi.org/10.55324/enrichment.v3i8.526

Rosli, N. M., N R, H., FH, A. F., Hashim, Y. Y., & Ahmad, A. N. (2022). A conceptual core competency model for halal executives in food manufacturing companies. Journal of Halal Science and Technology, 1(1), 1–14.

Sutarman, A. (2022). Mediation Role of Organizational Commitment Between Work Competency and Increased Employee Productivity. Journal of Applied Management (JAM), 20(2), 316–327. https://doi.org/10.21776/ub.jam.2022.020.02.09

Talib, A., Paturochman, I. R., Ansyori, A., & Al-Amin, A. A. (2024). Challenges and opportunities in implementing sharia principles in business management. International Journal of Sharia Business Management, 3(1), 1–8.

Tukiran, N. A., Abidin, N. F. A. F., & Ahmad, A. N. (2025). Identifying Gaps In Halal Talent Development And Management In Malaysia: A Systematic Literature Review. Al-Qanatir: International Journal of Islamic Studies, 34(01), 78–81.

Voak, A., Brian, F., & Wahyuni, H. C. (2023). Halal Supply Chain Competencies: A Framework for Human Capability Development. Journal of Resilient Economies, 3(2), 13–23. https://doi.org/10.25120/jre.3.2.2023.4021

Xomidjonov, U. (2026). Theoretical and Methodological Analysis of the Interrelation Between the Education System and the Concept of Human Capital. American Journal of Social Science, 4(1), 96–101. https://doi.org/doi.org/10.2689/zenodo.18327964 Umidjon

Yasmeen, K. (2023). Justice in the Workplace: Islamic Principles for Wage Determination. Islamic Economic Studies, 31(1/2), 43–87. https://doi.org/10.1108/ies-03-2023-0011