The role of halal integrity and competitive intelligence in enhancing halalan tayyiban performance of halal hotels in Indonesia

Purpose – This study aims to examine the effects of halal integrity (HIN) and competitive intelligence (CIN) on halalan tayyiban performance (HTP) in halal hotels in Indonesia. It further investigates the mediating role of halal orientation (HOS) as a strategic capability that integrates value-based and knowledge-based resources into sustainable HTP. Design/methodology/approach – An explanatory quantitative research design was used using survey data collected from managers, owners and employees of halal and Muslim-friendly hotels in Indonesia. A total of 271 valid responses were analyzed using partial least squares structural equation modeling. The analysis involved assessing the measurement model for validity and reliability, followed by testing the structural relationships and mediation effects. Findings – The results reveal that both HIN and CIN have positive and significant effects on HTP. In addition, HIN and CIN significantly influence HOS, which in turn positively affects HTP. The mediation analysis confirms that HOS partially mediates the relationships between HIN and HTP as well as between CIN and HTP. These findings indicate that HTP is not merely the outcome of halal compliance or market intelligence in isolation, but the result of their strategic integration through a strong HOS. Research limitations/implications – This study is limited to halal and Muslim-friendly hotels in Indonesia and relies on cross-sectional data, which may restrict the generalizability and causal inference of the findings. Future research is encouraged to apply longitudinal designs, incorporate objective performance indicators and test the proposed model in different national or cultural contexts. Practical implications – The findings suggest that hotel managers should move beyond a certification-centric approach by strengthening HIN governance while developing CIN systems aligned with sharia values. Integrating these elements through a clear HOS can enhance service quality, sustainability and long-term competitiveness of halal hotels. Social implications – By promoting halalan tayyiban practices, halal hotels can contribute to higher ethical standards, consumer trust and well-being of Muslim travelers, while supporting the broader development of a sustainable and value-driven halal tourism ecosystem. Originality/value – This study contributes to the halal hospitality literature by extending the resource-based view through a capability-based perspective, positioning HOS as a strategic capability that orchestrates HIN and CIN into HTP. It offers novel empirical evidence from an emerging halal tourism market.