INNOVATION PROCESS FOR HALAL PRODUCT DEVELOPMENT: AN EMPIRICAL ANALYSIS OF ITALIAN FIRMS

Abstract

The Halal global market is promising a rapid and sustained growth (Berry 2008; Sungkar et al., 2008). In fact, only for Halal food industry, the amount of international trade has exceeded 2.1 trillion USD in 2006 (Berry 2008; Riaz and Chaudry 2004). The reasons of the prompt growing are multiple, but mainly due to (1) the rapid spread of the Islamic faithful worldwide, (2) the increasing spending power of the Islamic people. Despite the importance this market has on the global scene, few studies are available, discussing in-depth the phenomenon from the managerial and innovation management perspectives. Inspired by this opportunity, we attempt to explore in depth the innovation process leading companies from Haram to Halal products in the food industry. A multiple case study of four Italian companies has been developed in order to explore their innovation process and to understand how it has been reviewed to fit the Islamic requirements. The specific product and process solutions adopted by the companies have been analyzed as well as the related managerial and organizational implications and innovation changes implemented. In Italy, so far, only few isolated initiatives shed a first light on the Halal theme and the landscape appears very embryonic.Halal, Islam, New Product Development.