Developing a model for halal food supply chain implementation

The global demand for halal food products continues to grow as the Muslim population increases and spreads throughout the world. Malaysia has taken the initiative to position itself as a global halal food hub and the Malaysian government has developed strategies to support this objective. Since an efficient distribution system is required to fulfil the global demand for halal food, the focus of halal food management has shifted from an organisation-centred perspective to a supply chain perspective. Despite this shift in perspective, a review of the existing supply chain literature suggests that limited comprehensive research has been conducted on the halal food supply chain to date. Through a systematic literature review, we propose a conceptual model for studying the dimensions of halal food supply chain implementation as a second order construct and investigating the relationship between halal food supply chain implementation and organisational performance. To collect data, a survey was conducted amongst 600 halal certified processed food and beverage organisations in Malaysia. A total of 240 organisations participated in this study. A two-stage approach of structural equation modelling (SEM) was employed to analyse the data and test the hypothesised relationships. The findings of this thesis largely support the hypothesised relationships proposed in the conceptual model. The results of the SEM revealed that nine out of eleven dimensions are crucial and significantly define halal food supply chain implementation as a second order construct. The findings also support the hypothesis that halal food supply chain implementation can positively affect an organisation’s marketing and financial performance. Finally, the results revealed that an organisation’s financial performance is impacted by its marketing performance. This thesis has made a significant contribution to theoretical, practical and methodological knowledge by developing the first comprehensive model of halal food supply chain implementation by identifying the dimensions of the model. Furthermore, the relationship between halal food supply chain implementation and organisational performance suggests to manufacturers that the model is particularly capable of increasing the marketing performance and financial performance within the context of the halal food industry. Moreover, these findings imply the need for halal food organisations in general, and halal processed food and beverage organisations in particular, to strategically lever on the nine dimensions of the halal food supply chain implementation model. This should not go unnoticed either by practitioners or academia. Finally, this study can be used as a comprehensive reference model by manufacturers and policy-makers in the halal food industry