Examining the link between Halal supply chain management and sustainability

Abstract

PurposeHalal supply chain management (HSCM) is an emerging research area and is in the early stage of evolution. This study aims to identify 11 critical factors towards effective management of a Halal supply chain (HSC) and provides a framework for the HSCM by evaluating Halal practices' impact on sustainability performance measures empirically.Design/methodology/approachA structured questionnaire-based survey has been carried out to collect data for analysis. The statistical analysis is accomplished by exploiting merits of factor analysis and structural equation modelling (SEM).FindingsThe results imply that out of 11 critical factors, nine factors on effective management of the HSC are statistically significant, and impacts of two critical factors are positive but statistically insignificant. In the structural model, the path coefficient of all success indicators are positive and statistically significant. In terms of the path coefficient of sustainable performance measures of HSC, all three dimensions, economic, environmental and social, are positive and statistically significant.Research limitations/implicationsThe research extends Halal and supply chain management's literature by proposing Halal as a standard quality control system, as it focuses on wholesome consumption. Effective management of the HSC is positively related to the firms' sustainable performance, thus helping managers make the organisation sustainable in the long term.Practical implicationsThe research extends the literature of Halal and supply chain management by proposing Halal as a standard quality control system, which focuses on wholesome consumption. Effective management of the HSC is positively related to the sustainable performance of the firms, thus helps managers in making the organisation sustainable in the long term.Originality/valueThe result of the study underlines that sustainable performance measures are embedded in HSCM. This research develops a new paradigm in the research of HSCM and sustainability.