Ethical Digitalization in Halal SMEs Restaurant in Malaysia: A Proposed Maqasid Shari’ah-Based Conceptual Framework

Abstract

Abstract

Digitalization is becoming increasingly crucial for small and medium-sized businesses (SMEs), such as halal eateries, which use digital platforms for marketing, customer engagement, ordering, payment, and operations. However, digital adoption brings ethical challenges such as openness, honesty, privacy, responsible advertising, and Shariah compliance. This paper investigates ethical digital practices in halal SME restaurants using a Maqasid al-Shari'ah lens and presents a conceptual framework to guide ethical digitalization. However, digital adoption brings ethical challenges such as openness, honesty, privacy, responsible advertising, and Shariah compliance. This paper investigates ethical digital practices in halal SME restaurants using a Maqasid al- Shari'ah lens and presents a conceptual framework to guide ethical digitalization. A qualitative research design was used, which included a study of relevant literature as well as semi-structured face-to-face interviews with nine halal SME restaurant owners and managers in Malaysia. Participants were chosen using purposive sampling. The interviews, which lasted about 9-11 minutes each, were recorded, transcribed, and analyzed thematically. Three topics emerged: (1) perceptions and applications of Maqasid al-Shari'ah and Islamic principles in restaurant and digital operations; (2) difficulties and opportunities related with digitalization; and (3) ethical and institutional factors establishing a Maqasid al-Shari'ah-based conceptual framework. The study found that participants connected ethical digital activities with honesty, openness, customer welfare, halal compliance, responsible advertising, privacy protection, and responsibility. At the same time, disparities in digital adoption, payment methods, digital aptitude, and worries about scams and Shariah compliance were discovered. Based on a review of the literature, Maqasid al-Shari'ah principles, and empirical data, the paper presents a conceptual framework for connecting Islamic objectives and ethical standards with digital practices in halal SME restaurants. The paradigm is conceptual and will require additional empirical validation in future study.