Islamic Financial Ecosystem Integration and Halal Value Chain Performance of Certified MSMEs in Indonesia

Abstract

Introduction/Main Objectives: This study examines how Islamic financial ecosystem integration affects halal value chain (HVC) performance among BPJPH-certified MSMEs in Indonesia. Research Methods: A sequential explanatory mixed-method design was used. Survey data from 312 MSMEs were analysed using PLS-SEM, followed by thematic analysis of interviews with 27 informants. Finding/Results: Sharia bank financing, BMT financing, and sharia fintech significantly improved HVC performance, with fintech and BMT showing relatively stronger effects. Digital technology adoption partially mediated these relationships, while regulation significantly moderated them. The qualitative findings identified certification complexity, collateral requirements, documentation barriers, and limited subsidies as key causes of low financial inclusion. Conclusion: Integrating Islamic finance, digital adoption, and supportive regulation can strengthen HVC performance and expand financial inclusion among certified MSMEs.