The blockchain-based Halal traceability systems: a hype or reality?

Abstract

Purpose

Given the emerging nature of integrating blockchain into food traceability systems, this study aims to investigate the intention to participate in a blockchain-based Halal traceability system through a united model that consists of Halal orientation strategy, institutional theory and diffusion of innovation theory.

Design/methodology/approach

A sample that consists of 143 Malaysian Halal food and beverage manufacturers was drawn from Halal Malaysia Official Portal using the simple random sampling technique. The responses were collected from the key managerial personnel with experience and knowledge on the Halal supply chain using phone interviews. Subsequently, the partial least squares structural equation modelling approach was then used to analyse the theoretical model.

Findings

The manufacturers would go through a chain of the process before deciding to participate in the traceability system. Firstly, the manufacturers which practice a comprehensive Halal orientation strategy will be more perceptive towards the institutional pressures that demand them to participate in a traceability system. Secondly, in response to the pressures, the manufacturers would evaluate the technological characteristics of the system and subsequently develop their perceived desirability. Thirdly, the manufacturers with favourable perceived desirability shall decide to participate in the system.

Originality/value

This study advances the current literature of Halal supply chain, information systems, operations management and blockchain through an integrated model that could explain 73.19% of the variance in intention to participate.

Citation

Hew, J.-J., Wong, L.-W., Tan, G.W.-H., Ooi, K.-B. and Lin, B. (2020), "The blockchain-based Halal traceability systems: a hype or reality?", Supply Chain Management, Vol. 25 No. 6, pp. 863-879. https://doi.org/10.1108/SCM-01-2020-0044