THE INFLUENCE OF DIGITAL PLATFORMS ADOPTION BY HALAL SMES ON CONSUMER PURCHASING DECISIONS: THE MEDIATING ROLE OF PERCEIVED TRUST

Abstract

The rapid adoption of digital platforms has transformed the way small and medium enterprises (SMEs) engage with consumers, particularly within the halal industry where trust, authenticity, and religious compliance are critical. This study examines the influence of halal SMEs’ digital platforms adoption on consumer purchasing decisions in Malaysia, with a specific focus on the mediating role of perceived trust. Grounded in Trust Theory, the research investigates four key digital platforms, including social media, e-commerce, e-wallets, and e-hailing food services, to address gaps in existing literature that have largely overlooked halal-specific contexts and the psychological mechanisms underlying digital consumption behaviour. A quantitative research design was employed, using a structured questionnaire to collect data from consumers of halal products in Malaysia. The data collected were analysed using Structural Equation Modelling (SEM), preceded by Exploratory Factor Analysis (EFA), reliability analysis, and Confirmatory Factor Analysis (CFA) to ensure the robustness of the measurement model. The findings reveal that social media and e-hailing food services have positive and significant effects on consumer purchasing decisions, while e-commerce and e-wallet platforms exhibit significant but negative effects. Furthermore, perceived trust was found to partially mediate the relationships between social media, e-commerce, and e-hailing platforms and consumer purchasing decisions, while no mediating effect was observed for e-wallet usage. The study contributes to theory by extending Trust Theory into the halal digital commerce domain and highlighting the conditional role of trust in shaping consumer behaviour. Practically, the findings provide valuable insights for halal SMEs, policymakers, and industry stakeholders by demonstrating that digital adoption alone is insufficient without effective trust-building strategies.