Mapping the barriers for implementing halal logistics in Indonesian food, beverage and ingredient companies

Abstract

Purpose This study aims to identify the barriers to halal logistics implementation; rank the barriers of halal logistics implementation in food, beverage and ingredient companies; and identify the relationship among the identified barriers of halal logistics implementation to derive key managerial insights. Design/methodology/approach The paper first describes the concepts of halal logistics and discusses the barriers in implementing halal logistics from previous research studies. Then, on the basis of previous research, this study identifies 13 barriers to halal logistics implementation. The study uses interpretive structural modelling (ISM) methodology to find the rank of the barriers and also the direct or indirect relationship among those barriers. The study also uses a panel of experts consisting of the representative from Lembaga Pengkajian Pangan, Obat-obatan, dan Kosmetika Majelis Ulama Indonesia (The Assessment Institute for Foods, Drugs, and Cosmetics – The Indonesian Council of Ulama or LPPOM MUI) and the representatives from 23 food, beverage and ingredient companies to determine the rank of, and the relationship among, the 13 barriers. Findings The result of data processing with ISM methodology indicated that lack of support for logistic service providers and lack of customer demand and reluctance to pay for halal logistics occupied the topmost level. These barriers are affected at the lower level and have less influence than the remaining barriers. The result with ISM methodology also indicated that lack of commitment of management is the main barrier to implementing halal logistics. Moreover, according to the result of data processing with ISM methodology, this study suggests some managerial implications to overcome the barriers that hinder halal logistics implementation. Research limitations/implications This study has several limitations. First, the scope of the study is limited to the barriers faced by Indonesian food, beverage and ingredient companies and overlooks other barriers to halal logistics encountered by other industries or other services as well as other regions or countries (i.e. other Muslim or non-Muslim countries). Future studies should attempt to uncover other industries or other services or a cross-industry comparison as well as other regions, other countries or a cross-region or cross-country comparison. The second limitation is related to the possibility of biased opinions from the experts, and the third limitation is that the identified barriers do not test in a real environment. To eliminate these limitations, future studies should involve more experts from different areas of the halal industry and should test the identified barriers to implement halal logistics in the real scenario. Practical implications This study assists managers and policymakers in understanding the order in which these barriers must be tackled and adopts a strategy to successfully implement halal logistics. Social implications The study has indicated that the barriers to implementing halal logistics can be mitigated because these barriers have the most influence on the system identified. Originality/value This study considers the application of ISM methodology to an empirical case of barriers so as to implement halal logistics. The study uniquely contributes to the field of halal logistics because it represents initial research that has analysed the barriers of halal logistics using ISM methodology.

Halal standards’ implementation in Palestinian food sector: its drivers and impact on performance

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How education level polarizes halal food purchase decision of Indonesian millennials

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