Chapter 11: Market-orientation and Islamic Business Practices in Malaysia
Raja Nerina Raja Yusof, André M. Everett and Malcolm H. Cone INTRODUCTION This chapter examines the influence of host country culture on the way foreign retail multinational enterprises (MNEs) operate their overseas subsidiaries. The focus is on how the market-orientation culture of foreign retail subsidiaries is influenced by Malaysian Islamic business practices, specifically those that relate to the halal and haram consumption practices within the Muslim community. As such, the study reported here significantly contributes to the knowledge relating to Islamic business practices within international business management. Islam is a comprehensive religion that permeates all aspects of life. The religion has been termed a ‘civilization’ (Huntington, 1993; Mitsuo, 2001), which means ‘an advanced stage or system of human social development’ (Soanes, 2001, p. 157). It has also been described as a culture in itself (Al-Faruqi, 1982). Thus it comes as no surprise that some of its values and principles influence and affect business organizations. One principle in Islam that has an impact on business firms, especially those in the food retailing industry, is the implementation of halal (permitted) and haram (forbidden) practices in trade and consumption. According to these practices, a Muslim will only consume foods and drinks that are halal, and sourced from animals that have been slaughtered according to sharia law (Islamic law). In addition, the practices forbid Muslims to consume haram items such as pork and alcohol or products that contain these items in their ingredients. Since food retailing is an industry that handles much of the...
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