China’s Halal Food Industry: The Link Between Knowledge Management Capacity, Supply Chain Practices, and Company Performance

Abstract

Aim/Purpose: The study attempts to analyse the influences of knowledge management capacity on company performance and supply chain practices. It also examines whether supply chain practices significantly and positively impact company performance. Background: Knowledge management capacity is an essential tactical resource that enables the integration and coordination among supply chain stakeholders, but research examining the link between knowledge management capacity and supply chain practices and their impacts on company performance remains scarce. Methodology: The study uses correlation analysis and factor analysis to confirm the theoretical framework’s validity and structural equation modelling to test hypotheses. The data are obtained from 115 halal food firms in China (with a response rate of 82.7%). Contribution: This study’s findings contribute to the Social Capital Theory by presenting the impacts of different supply chain practices on company performance. The findings also suggest the impact of intangible resources on enhancing company performance, contributing to the Resource-based View Theory. These results are a crucial contribution to both academicians and corporate managers working in the Halal food industry. Managers can apply these findings to discover and adopt knowledge management capacity with practical anticipation that these concepts will align with their company strategies. Also, the research motivates managers to concentrate their knowledge management on enhancing companies’ supply chain practices to achieve improved company performance. Findings: This study is an initial effort that provides empirical evidence regarding the relationships among supply chain, knowledge management, and company performance from the perspective of China’s halal food industry. The results prove that knowledge management capacity is the supply chains’ primary success determinant and influencer. Besides, knowledge management capacity positively influences company performance, and supply chain practices directly influence company performance. Recommendations for Practitioners: Managers can apply these study findings to determine and increase knowledge management capacity with practical anticipation that these concepts will align with their company strategies. Also, the research motivates managers to concentrate their knowledge management on enhancing companies’ supply chain practices to achieve improved company performance. Recommendation for Researchers: The study presents a new theoretical framework and empirical evidence for surveying halal food businesses in China. Impact on Society: These results are a significant contribution to the research field and industry focusing on halal foods. Future Research: First, this research focuses only on halal food businesses in China; thus, it is essential to re-examine the hypothesized relations between the constructs in other Chinese business segments and regions. Next, the effect of variables and practices on the theorized framework should be taken into account and examined in other industries and nations.

Halal-Thayyib, Food Products, and the Halal Industry: A Thematic Analysis on the Verses of the Qur'an

“…In the development of the halal food industry, the food supply chain management in the halal industry emphasizes the regulation of halal food (Ali & Sulaiman, 2018) and good halal governance (Nawawi et al, 2019). There is a strong relationship between knowledge management capacity, supply chain practices, and firm performance in the halal food industry (Usmanova et al, 2021). This is to realize halal integrity that strengthens the assurance of the integrity of the food supply chain itself such as halal traceability on the authenticity of halal food produced (Muhammad et al, 2020) and improving the performance of halal food quality (Ali et al, 2021).…”

Jaringan Rangkaian Organisasi dalam Memperkukuh Pembangunan Industri Halal Malaysia

“…Hal ini juga bertujuan memberi kepercayaan kepada setiap rangkaian organisasi untuk saling memerlukan dan terus bekerjasama bagi memaksimumkan pengeluaran produk dan perkhidmatan halal. Jaringan rangkaian organisasi dalam pembangunan industri halal boleh dilakukan melalui perkongsian pengetahuan, perkongsian risiko, dan kemahiran (Tan, Ramayah, & Popa, 2017;Mohamed, Rahim, & Ma'aram, 2020;Usmanova, Wang, Sumarliah, Mousa, & Maiga, 2021).…”

Forecasting blockchain adoption in supply chains based on machine learning: evidence from Palestinian food SMEs

“…"Halal" means "permitted"; "Halal product" signifies a product that is clean and safe to consume and is harvested/slaughtered according to Islamic law (Sumarliah et al, 2021a, b). The global Halal food industry has been reached US$ 1.7 trillion in 2020 and is expected to reach a value of $US 3.2 trillion by 2027, with an annual growth rate of 9.6% (Usmanova et al, 2021). The Halal food industry is amongst the largest industries in Palestine, which contributes to 23% of Palestine's exports and 25% of the entire business segment with a value of US$ 400 million and 17% of the country's employment (Hamdan et al, 2021).…”

“…, 2021a, b). The global Halal food industry has been reached US$ 1.7 trillion in 2020 and is expected to reach a value of $US 3.2 trillion by 2027, with an annual growth rate of 9.6% (Usmanova et al. , 2021).…”

“…For answering the abovementioned QSs, the paper employed a combined SEM and Bayesian network to test the hypotheses. The study collected data from Palestine's food industry because it is an information-concentrated sector elucidated by its short life cycles of goods, high customised product demand, enormous production value and extensive data input (Usmanova et al, 2021). The food industry in Palestine is the Halal industry, as most citizens are Muslims (PCBS, 2018).…”