New Islamic supply chain model

The integrity of conventional supply chain practices to support Halal Food Industry has been argued and doubted due to many reported scandals on food adulteration, food safety, fake labeling, false branding and fraud packaging. To counter these issues, an Islamic approach called Halal Supply Chain has been introduced. Therefore, this study is aimed to explore what are the component practices or operations that made up a Halal Supply Chain management, determine its performance, and ultimately establish a new model named Islamic Supply Chain Model. Based on existing literature's from Halal Supply Chain and Halal Industry disciplines, four common practices are derived namely; Halal Certification and Labeling Process, Halal Food Quality, Halal Facilities Segregation, and Halal Trace ability System. These practices are then verified through a cross-sectional survey among halal food manufacturers and series of interviews with Halal Food Supply Chain stakeholders in Malaysia. Using partial least square structural equation modelling (PLS-SEM) techniques, the survey data is analysed to predict the significance of these practices upon Halal Supply Chain performance. The finding from survey data confirms that all identified practices have significant impact on Halal Supply Chain Performance. This finding is then further explained and supported by gathering qualitative views from five different groups of Halal Food Supply Chain stakeholders (i.e. government agencies, NGOs, trade associations, halal ingredients suppliers and Halal Logistics service providers) through a series of interview. Qualitative finding reveals that all stakeholders are involved (in their own scope of authority) in all four identified practices. Overall, every stakeholder group has their own roles in preserving halal integrity throughout entire supply chain. Besides developing a new model for practicing supply chain management in Islamic way (i.e. Shariah-compliant), this study also contributes to the supply chain management body of knowledge by emphasizing on halal business requirement. In addition, this study provides the audience (i.e. readers) with a comprehensive knowledge on Halal Food Supply Chain business, since perspective from all stakeholders (except end customer) are compiled and presented in this study