Strategic Leadership and Innovation Capability in Halal Industry Development

Abstract

The global halal industry is experiencing rapid growth and is projected to reach a value exceeding USD 3 trillion in the next few years. As a country with the largest Muslim population, Indonesia has significant potential to become a global hub for the halal industry. However, the competitiveness of the national halal industry still lags behind that of other countries, such as Malaysia and the UAE. One of the keys to the development of this industry lies in the synergy between strategic leadership and innovation capacity in halal companies. This research aims to examine the relationship between strategic leadership style and the company's innovative ability to drive the development of the halal industry in Indonesia, as well as identify best practices and challenges faced in building a sustainable innovation ecosystem. This study employs a qualitative approach with an exploratory case study design, examining five halal companies across the food, pharmaceutical, and cosmetics sectors. Data were collected through in-depth interviews, field observations, and document analysis, and then analyzed with thematic techniques. The results of the study show that companies with collaborative and visionary-participatory leadership styles tend to have higher innovation capacity and faster market growth. Factors such as external collaboration, the presence of innovation units, and strategically oriented leaders have been shown to have a significant impact on the performance of the halal industry. The findings of this study have practical implications for policymakers and industry leaders, suggesting the creation of supportive regulatory frameworks to strengthen Indonesia’s position in the global halal market.