Technology as a driver to achieve the performance of family businesses supply chain

Abstract

PurposeThe purpose of this study is to investigate the relationship between technology and efficiency and effectiveness in the performance of family business halal supply chains.Design/methodology/approachMethodology used in this research is a quantitative method. The research's type is explanatory research with multivariate data analysis methods using partial least square (PLS). Samples used in this research are 100 family halal food businesses in Indonesia.FindingsThe result shows that there is a positive and significant relationship between each technology and effectiveness. Technology can be used to ensure that all supply chain processes follow Sharia procedures effectively in the family halal food business, but on other hand the technology does not show a positive effect on family halal food business efficiency.Research limitations/implicationsFurther research can be done by applying the model provided in this study for other industries. And investigating the model in a big company to prove the technology may also show a positive relationship to the efficiency.Practical implicationsThe contribution of this research is that the family halal food business can guarantee that technology they use can improve the effectiveness of their supply chain.Social implicationsThe improvement of halal supply chain effectiveness through the technology can improve the product's quality and fulfill the customers' requirements. Also, the family business can assure the society about their halal product.Originality/valueThis research proves that the family business can improve their halal supply chain effectiveness through technology, although lowering their efficiency, which is empirically proven.