The Consumer Loyalty in Halal MSMEs: Trust and Sustainability Perspectives

Abstract

This study investigates the influence of Islamic Business Ethics on Consumer Loyalty in halal food Micro, Small, and Medium Enterprises (MSMEs), with Consumer Trust serving as a mediating variable and Sustainability Awareness acting as a moderating variable. The study employs a quantitative research design using a survey method involving 290 consumers of halal food MSMEs in Indonesia. Data were collected through a structured questionnaire and analyzed using Structural Equation Modeling (SEM) with AMOS. The findings reveal that Islamic Business Ethics has a positive and significant effect on both Consumer Trust and Consumer Loyalty. Consumer Trust also significantly influences Consumer Loyalty and partially mediates the relationship between Islamic Business Ethics and Consumer Loyalty. Furthermore, the multi-group analysis demonstrates that Sustainability Awareness strengthens the positive effect of Islamic Business Ethics on Consumer Loyalty. Consumers with higher sustainability awareness exhibit stronger trust and loyalty responses toward halal MSMEs that implement ethical business practices. These findings highlight that ethical business conduct based on Islamic principles, including honesty, fairness, transparency, and responsibility, constitutes a strategic resource for building long-term customer relationships. The study contributes to the halal marketing and consumer behavior literature by integrating ethical, relational, and sustainability perspectives into a single framework. Practically, the results suggest that halal MSMEs should reinforce ethical values and sustainability initiatives to enhance consumer trust, loyalty, and long-term competitiveness.