Utilization of Business Analytics by SMEs In Halal Supply Chain Management Transactions

Abstract

Halal supply chain management has transformed beyond food and beverage certification. However, extant literature shows that Halal transaction management still has much to improve in terms of transaction permissibility, with the main gap in understanding Halal businesses and their transactions limited to a system that separately defines e-commerce and financial technology data into its IT business environment. This study aims to demonstrate the usefulness of managing Halal transactions and its permissibility analysis through a proposed Halal Supply Chain Management Transactions (HSCMT) model and prototype by applying a business analytic approach to integrate both e-commerce and financial technology data. The study uses literature analysis to ensure the correct structure of the integrated datasets, before modeling the transaction's permissibility and prototyping its analytics into decision-making analytics. The developed HSCMT prototype uses a payment gateway that can be embedded into a Halal SME owners' e-commerce site. This creates a holistic Halal Financial technology (FinTech) transaction permissibility dashboard, increasing the effectiveness of HSCMT for Malaysia Halal SME Owners (MHSO) by an average usability score of 83.67%. Results also indicate that the key basic mechanisms to verify transactional permissibility are the source of the transaction, the use of the transaction, transaction flow, and transaction agreement. Furthermore, its mechanisms must be mapped onto a submodule post-transformation and modeling of the transaction dataset. Further improvements in multisource data points can be further considered, as this research only focuses on local data points from one payment gateway service. This is due to restrictions in data policy when involving overseas supply chain and transaction documentation. This research utilizes available data in business through data management, optimization, mining, and visualization to measure performance and drive a company's growth. The competency of business analytics can be beneficial to Halal SMEs players because it can provide them with insights into the permissibility decision-making process.

Digital Technology 4.0 on Halal Supply Chain: A Systematic Review

“…Reduce the cost of product removal from the market Preventing the occurrence of product recalls, especially in terms of halal assurance, will lead to the level of customer trust and confidence in the integrity of the halal industry [42] x Shariah Fintech x x…”

“…However, the financial commitment can challenge family business proprietors, particularly in the halal food sector. The prototype of Halal Supply Chain Management Transactions (HSCMT) with halal financial technology (FinTech) can improve the effectiveness of halal supply chain management for Malaysian Halal SME Owners (MHSO) [42]. Meanwhile, big data technology can improve companies' ability to become more sustainable in the halal food chain process [48].…”

“…Overall, technologies such as blockchain, FinTech, Big Data, and RFID have a positive impact on the effectiveness and transparency of the halal supply chain. However, significant financial and investment challenges remain a concern for companies adopting them [24,42,48,51]. Furthermore, to enhance their success prospects in Muslim markets, marketing managers of multinational companies should employ advertising messages emphasizing the ethical aspects of their products and utilizing cognitive appeals rather than emotional ones using functional magnetic resonance imaging (fMRI) technology [68,70,73].…”

Ranking and rating halal-certified restaurants in Malaysia: an application of AHP

“…Criteria include online reviews, feedback from customers and online presence on halal platforms (Hossain et al, 2023;Mursid and Wu, 2022;Shafiee et al, 2017;Sorooshian and Dahan, 2013;Wardi et al, 2022); Legal requirements (LR): A major requirement in MS1500:2019, LR encompass licensing, anti-typhoid vaccination, maintaining halal documents, displaying the halal logo and complying with halal regulations; Green practice and sustainability (GPS): Introduced as part of the best practice of halal compliance rating (BPHCR) model, this component considers eco-friendly practices and sustainability in halal-certified restaurants, including sourcing local and organic ingredients, adopting green practices and reducing environmental impact (Kamisah et al, 2018;Razalli et al, 2012); and Halal supply chain (HSC): Recognizing the significance of the supply chain, this component ensures adherence to halal guidelines and standards in sourcing and handling ingredients. Robust systems are essential to track and verify compliance at every stage of the supply chain (Ahmad et al, 2022;Marjudi et al, 2023;Rusydiana et al, 2023;Fernando et al, 2021;Indarti et al, 2020;Tieman, 2020).…”

“…Robust systems are essential to track and verify compliance at every stage of the supply chain (Ahmad et al. , 2022; Marjudi et al. , 2023; Rusydiana et al.…”