RESOURCE-BASED AND STRATEGIC HRM PERSPECTIVES ON HALAL SMES: A SYSTEMATIC REVIEW OF INNOVATION, REGULATION, AND PERFORMANCE

Abstract

Human resource management (HRM), innovation, and regulation are widely acknowledged as critical determinants of small and medium-sized enterprise (SME) performance. Yet, their interplay in the context of halal-certified SMEs remains fragmented. This study systematically reviews empirical evidence to integrate the Resource-Based View (RBV) and Strategic Human Resource Management (SHRM) perspectives, examining how HRM practices, innovation, and regulatory compliance jointly shape halal SME performance. Following PRISMA 2020 guidelines, a Scopus-based search (2015–2025) identified 1,572 records. After screening and appraisal using JBI and CASP checklists, 106 studies were included for synthesis. A convergent approach combined descriptive statistics and thematic analysis. HRM practices grounded in the Ability–Motivation–Opportunity (AMO) framework and green HRM consistently foster innovative work behaviour and digital readiness. Innovation across products, processes, and business models enhances performance, while halal certification and broader regulations serve a dual role: creating compliance costs yet strengthening legitimacy and market trust. Evidence integrating the HRM–innovation–regulation triad remains scarce but reveals promising avenues for SME competitiveness. The findings highlight regulation as a strategic capability rather than a constraint. For halal SME managers, aligning HRM practices with digital innovation and regulatory compliance is essential for sustainable growth. For policymakers, designing enabling regulations is critical to strengthening SME resilience and legitimacy. This review is among the first to map the integrative mechanisms linking HRM, innovation, and regulation within halal SMEs, advancing RBV–SHRM scholarship and offering actionable insights for practice.