Readiness and Stakeholders Influence for Halal Logistics Practices Implementation towards Supply Chain Performance

Abstract

Halal industry is expanding worldwide, and it requires strong supply chain management to enhance halal business efficiency and preserve credibility through halal logistics process. However, studies on halal logistics remain limited and isolated. Thus, this study aimed to understand the impact of stakeholders on halal logistics practices among Malaysian halal-certified manufacturers. The primary objectives of this study are to examine the underlying dimensions of halal logistics practices, investigate the level of halal logistics practices, investigate the extent of stakeholders' influence on halal logistics practices, and explore the relationship of halal logistics practices towards supply chain performance. Based on the data collected through a questionnaires survey from 270 managers from halal-certified manufacturers, SPSS and SmartPLS were used to test the hypotheses. The findings of the study indicated that operational dimensions are the most practiced dimensions of halal logistics amongst firms. Meanwhile, competitors, government, NGOs, community media and society, and customers significantly influence the adoption of halal logistics practices. Importantly, halal logistics practices are positively related to supply chain performance. This study has extended the feasibility of stakeholder theory in the sense of halal logistics to the scope and comprehensiveness of stakeholders. The outcome of this study provides important implications to both academics and practitioners, particularly in the halal industry.