Can halal certification influence logistics performance?

Abstract

Purpose The purpose of this paper is to establish the halal certification–logistics performance relationship by means of developing a theoretical model and to suggest areas for future research undertakings. The relationship between various forms of certification and logistics performance has been reported in many logistics literature. However, there is paucity in research concerning the relationship between halal certification and logistics performance. Design/methodology/approach The literature representing the concept of halal, halal logistics, institutional support and logistics performance are synthesised to develop a framework. Two distinguished management theories, namely, the resource-based view (RBV) and institutional theory, set the foundation of the proposed theoretical framework. Findings The paper suggests that proper application of resources, in this case halal certification, could positively influence logistics performance. The paper asserts that governmental factors act as the moderator between the halal certification–logistics performance relationship, or could directly influence logistics performance. Research limitations/implications The paper presents a synthesis of previously unconnected variables of halal certification and logistics performance, and integrates the RBV and institutional theories as the basis for a theoretical framework. However, the proposed theoretical framework requires further validation through the supports of additional empirical research. Practical implications Apart from implementing halal certification as a tool to gain business legitimacy, the paper offers insights to logistics service provider as to how halal certification can be used as a mechanism to improve organisational performance, particularly logistics performance. Originality/value This paper is one of the first to establish the relation between halal certification and logistics performance and highlights the prominent role of government support as an independent and moderating factor. It constitutes a preliminary argument that entices research within the halal certification and halal logistics spectrum.

Linking Halal food certification and business performance

“…To support the argument, evidence from past research indicated that firms utilised various types of certification as an instrument to achieve desired business outcomes (Talib et al, 2016b;Fikru, 2014;Kafetzopoulos and Gotzamani, 2014;Sampaio et al, 2009;Chow-Chua et al, 2003;Sum et al, 2001). Likewise, Talib et al (2016b, p. 470) explained that "apart from implementing Halal certification as a tool to gain business legitimacy, industry practitioners use Halal certification as a mechanism to improve organisational performance".…”

Halal Certification Among the SMEs in Kinabalu, Sabah

“…"[Halal food certificate] food companies have the potential to improve the productivity and standardizing internal operations." Business performance Increase productivity Standardizing products Ab Talib, Abdul Hamid, and Chin (2016) "[Halal certification] will affect the growth of the consumer's base, increase the numbers of consumers and also increase the revenue of the firms." Based on the mentioned studies, the Halal industry can increase the income and quality of people's life through trade, investment, service provision and employment opportunities.…”

Application of multi-based quality function deployment (QFD) model to improve halal meat industry

“…Similarly, the procedures and Matrix 3 assisted the processing plant to prioritise and allocate resources accordingly. Ab Talib et al (2016) suggested that proper application of resources could influence halal food production and halal logistics performance. Improving employees' capacity was identified as the top priority in Matrix 3.…”