The impact of external integration on halal food integrity

Abstract

Purpose Much has been written about the importance of external integration for the integrity of food products. To achieve food integrity, all actors along the supply chain have to be fully integrated and comply with an assurance system or process. The more complex the supply chain operations are, the greater will be the need for integration. This research paper investigates the impact of external integration on compliance with halal standards, as an example of product integrity within the food industry. Design/methodology/approach A survey of 1,000 food manufacturers was conducted. Partial least squares structural equation modelling was used to test the effect of external integration on compliance with halal standards. Findings The results showed that there were links between halal assurance system and external integration. Nevertheless, it was discovered that only customer integration mediated the relationship between the halal assurance system and product quality and production cost. Practical implications The practical implications of the findings extend to managers in the food industry who might pursue supply chain integration as a structure to achieve excellence. The findings suggested that the deployment of a halal assurance system has a positive effect on operational performance. Furthermore, the results show that managers who wish to implement the halal assurance system should carefully invest in an external integration strategy, depending upon the operational performance improvement intended. Originality/value This research is one of the first studies to investigate the effects of external integration on halal food in general and is the first empirical investigation of the effect of safeguarding halal integrity on operational performance.

The Role of Ambidexterity, Strategic Orientation and Supply Chain Integration on Firm Performance: Case Study of SMEs in Traditional Market

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Risk Assessment in the Islamic Clothing Supply Chain Management Using Best-Worst Method

“…First, (Ali, Tan, Pawar, & Makhbul, 2014) confirm Halal-integrity risks in the Islamic product supply chain and categorize them into six groups: raw-material risk, outsourcing risk, manufacturing risk, logistics risk, service risk, and product-safety risk, where supply chain integration is the effective risk management. Second, (Tan, Ali, Makhbul, & Ismail, 2017) examine the effect of external integration on Halal values and recommend that an externalintegration approach is vital in adopting a Halal guarantee scheme. Next, Tieman (2011) finds that the market and product features are significant factors influencing the Halal supply chain.…”

Food safety and halal food in the supply chain: Review and bibliometric analysis

“…Ali et al (2017b) investigated the relationships between supply chain integration and halal food supply chain integrity and the impact of halal food supply integrity on the firm's performance. Tan, Ali, Makhbul and Ismail (2017) studied the impact of external integration on compliance with halal standards, as an example of product integrity, within the food industries. Ali et al (2017a) and Ali et al (2017b) highlighted the fully-integrated supply chain investigation in halal food integrity for future research.…”