Exploring the impact of digital transformation on halal economic inclusion among Javanese Muslim MSMEs
Diyah Putriani, Herianto Herianto, Khotibul Umam, Ummu Salma Al Azizah, Heyvon HerdhayintaPurpose
This study aims to examine how digital transformation, particularly the adoption of artificial intelligence (AI), contributes to halal economic inclusion among Muslim-owned micro-, small- and medium-sized enterprises (MSMEs) in Java, Indonesia. Grounded in the Technology Acceptance Model and the AI-enabled Product and Service Acceptance Model, this study extends existing frameworks by incorporating Islamic value alignment as a normative dimension within the halal business ecosystem.
Design/methodology/approach
This study adopts a quantitative approach using survey data collected from Muslim MSME owners in Java, Indonesia. Partial Least Squares–Structural Equation Modeling is used to analyze the relationships among digital adaptation readiness, digital adaptation propensity, AI trust, actual AI usage, Islamic value alignment and halal economic inclusion.
Findings
The results reveal that digital adaptation readiness significantly enhances digital adaptation propensity, which emerges as the strongest predictor of actual AI usage. AI trust and actual AI usage positively and significantly influence halal economic inclusion, reflected in improved access to halal markets, Sharia-compliant financing and halal-oriented business transformation. Islamic value alignment strengthens digital adaptation propensity and halal economic inclusion; however, its moderating effect on the relationship between AI usage and halal economic inclusion is not supported.
Research limitations/implications
This study focuses on Muslim-owned MSMEs in Java, Indonesia, which may limit the generalizability of the findings. Nevertheless, it contributes to Islamic marketing and halal economy literature by integrating technology acceptance perspectives with Islamic value alignment.
Practical implications
The findings suggest that policymakers, Islamic financial institutions and digital technology providers should promote trusted and Sharia-compliant digital solutions to support inclusive and sustainable halal economic development.
Originality/value
This study offers original insights by positioning Islamic value alignment as a key normative driver in AI-enabled digital transformation for halal economic inclusion.