Perception of food manufacturers towards adoption of halal food supply chain in Malaysia: Exploratory factor analysis

Abstract

Purpose

Food industry players obtain the advantages of profits growth within the halal industry whereby the market is dynamic to generate profit. Hence, this study aims to analyse the perception of food manufacturers towards the adoption of the halal food supply chain (HFSC).

Design/methodology/approach

For this study, 103 halal food manufacturers in Malaysia were selected as respondents. Perceptions of respondents towards HFSC were recorded using a five-point questionnaire. The questionnaire was designed by authors and adapted from a previous study. The questionnaire was circulated by two experts with proficiency in this filed.

Findings

By conducting exploratory factor analysis, the study found the perception of food manufacturers, which is expected business benefits play an important role in the adoption of HFSC. Halal integrity becomes the second factor to lead the company to its adoption. Organizational readiness is the third factor that drives the company to adopt HFSC.

Research limitations/implications

Majority of the sample was responded by Bumiputera companies. The study suggests focussing the study for non-Bumiputera companies to examine their influence towards HFSC. Furthermore, future studies should explore different sectors of halal, such as pharmaceuticals, cosmetics, travel and tourism, logistics, finance and e-commerce. Moreover, ensuring the status of halal should be more emphasized in food chains; thus, the source of risk in HFSC should be explored to secure the integrity of halal.

Practical implications

The paper includes implications for the halal food industry, whereby the adoption of HFSC will contribute to the business benefits to create a more competitive advantage to the industry. Moreover, the implications of halal practice can create consumers’ trust on the halal product.

Originality/value

This paper fulfils an analysed need to study specifically on upstream parties by adopting HFSC.

Citation

Azmi, F.R., Abdullah, A., Musa, H. and Wan Mahmood, W.H. (2020), "Perception of food manufacturers towards adoption of halal food supply chain in Malaysia: Exploratory factor analysis", Journal of Islamic Marketing, Vol. 11 No. 3, pp. 571-589. https://doi.org/10.1108/JIMA-12-2018-0236