Abstract

This research aims to investigate the relationship between supply chain orientation (SCO) and firm performance (FP) in the context of halal-certified small and medium-sized enterprises (SMEs). The proposed SCO model incorporates three factors, namely top management support, commitment, and credibility, for the determination of firm performance. A total of 512 halal-certified SMEs was surveyed, in which 284 responses were received and analysed using structural equation modelling with partial least squares (SEM-PLS). The credibility of supply chain partners was shown to have a major effect on firm performance in the context of halal-certified SMEs. On the other hand, top management support and commitment demonstrated a lesser influence, despite having statistically significant effects on firm performance. This study provides a framework for halal practitioners to refine their business operations based on the implementation of SCO elements to improve firm performance.

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