Mapping the barrier and strategic solutions of halal supply chain implementation in small and medium enterprises

Abstract

PurposeThis study aims to identify the challenges, promote respective solutions and construct strategies for the implementation of the halal supply chain in Indonesia’s small and medium-sized enterprises (SMEs).Design/methodology/approachThis research used the analytic network process in nine respondents categorised into three groups of relevant stakeholders: government, academia and industry.FindingsSeven essential criteria for the implementation of a halal supply chain in SMEs were identified, namely, the process, packaging, storage, transportation, fundamental aspects, supporting policy and technology. Notably, the high cost of adopting blockchain technology was the most crucial issue, particularly in SMEs.Practical implicationsThrough the findings, several critical factors to consider in the implementation of halal supply chains for SMEs were identified. The investment in halal supply chain technology, which incurs a high cost carried by entrepreneurs, is a burden for SMEs. For this reason, further studies are required to formulate and develop cost-effective halal supply chain technology for SMEs.Originality/valueTo the best of the authors’ knowledge, this research is the first attempt of comprehensively mapping the barriers and developing strategic solutions to implement the halal supply chain by Indonesia’s SMEs.