ISSN: 2222-6990
Open access
This study examines the impact of green practise (GP) antecedents—green halal supplier selection (SUPP), green halal manufacturing (GHM), and green halal logistics (GHL)—on supply chain performance in the context of halal food small and medium enterprises (SME). The study examined the relationship between GP antecedent and supply chain performance using data from 115 halal SME. To test the proposed hypothesis, this study employed quantitative methodology with a purposive sampling technique. In addition, multiple regression employing structural equation modeling-partial least square (SEM-PLS) is used to examine the collected data while maximising the variance captured. This study found that GHL among supply chain partners has a greater impact on the performance of halal supply chains. In addition, empirical data validate the significance of SUPP and GHM in enhancing the performance of the halal supply chain in the context of halal food SME. Incorporating the GP as a strategic approach to boost supply chain performance while ensuring the halal credibility of the product, the findings of this study will assist halal small and medium-sized enterprises (SME) in refining their supply chain activity. This is the first study to examine the role of strategic green firm resources in enhancing supply chain performance.
Abdul Rahman, R., Rezai, G., Mohamed, Z., Shamsudin, M. N., & Sharifuddin, J. (2013). Malaysia as Global Halal Hub: OIC Food Manufacturers’ Perspective. Journal of International Food & Agribusiness Marketing, 25(sup1), 154–166. https://doi.org/10.1080/08974438.2013.809672
Acar, M. F., Zaim, S., Isik, M., & Calisir, F. (2017). Relationships among ERP, supply chain orientation and operational performance. Benchmarking: An International Journal, 24(5), 1291–1308. https://doi.org/10.1108/BIJ-11-2015-0116
Ali, M. H., & Suleiman, N. (2016). Sustainable food production: Insights of Malaysian halal small and medium sized enterprises. International Journal of Production Economics, 181, 303–314. https://doi.org/10.1016/j.ijpe.2016.06.003
Ali, M. H., Tan, K. H., & Ismail, M. D. (2017). A supply chain integrity framework for halal food. British Food Journal, 119(1), 20–38. https://doi.org/10.1108/BFJ-07-2016-0345
Andrews, D., Nonnecke, B., & Preece, J. (2007). Conducting Research on the Internet: Online Survey Design, Development and Implementation Guidelines. International Journal of Human-Computer Interaction, 16(2), 185–210.
Ashby, A., Leat, M., & Hudson-Smith, M. (2012). Making connections: a review of supply chain management and sustainability literature. Supply Chain Management: An International Journal, 17(5), 497–516. https://doi.org/10.1108/13598541211258573
Azevedo, S. G., Carvalho, H., & Machado, V. C. (2011). The influence of green practices on supply chain performance: A case study approach. Transportation Research, 47(6), 850–871. https://doi.org/10.1016/j.tre.2011.05.017
Biswas, A., & Roy, M. (2015). Leveraging factors for sustained green consumption behavior based on consumption value perceptions: testing the structural model. Journal of Cleaner Production, 95(May 2015), 332–340.
https://doi.org/10.1016/j.jclepro.2015.02.042
Chan, R. Y. K., He, H., Chan, H. K., & Wang, W. Y. C. (2012). Environmental orientation and corporate performance: The mediation mechanism of green supply chain management and moderating effect of competitive intensity. Industrial Marketing Management, 41(4), 621–630. https://doi.org/10.1016/j.indmarman.2012.04.009
Day, M., & Lichtenstein, S. (2006). Strategic supply management: The relationship between supply management practices, strategic orientation and their impact on organisational performance. Journal of Purchasing and Supply Management, 12(6 SPEC. ISS.), 313–321. https://doi.org/10.1016/j.pursup.2007.01.005
Esper, T. L., Defee, C. C., & Mentzer, J. T. (2010). A framework of supply chain orientation. The International Journal of Logistics Management, 21(2), 161–179.
https://doi.org/10.1108/09574091011071906
Frey, J. H. (1994). Questionnaire design, interviewing and attitude measurement. Evaluation and Program Planning, 17(1), 33–34. https://doi.org/10.1016/0149-7189(94)90021-3
Hair, J. F., Sarstedt, M., Pieper, T. M., & Ringle, C. M. (2012). The Use of Partial Least Squares Structural Equation Modeling in Strategic Management Research: A Review of Past Practices and Recommendations for Future Applications. Long Range Planning, 45(5–6), 320–340. https://doi.org/10.1016/j.lrp.2012.09.008
Haitovsky, Y. (1969). Multicollinearity in Regression Analysis: Comment. The Review of Economics and Statistics, 51(4), 486. https://doi.org/10.2307/1926450
Haleem, A., Khan, M. I., & Khan, S. (2021). Conceptualising a framework linking halal supply chain management with sustainability: an India centric study. Journal of Islamic Marketing, 12(8), 1535–1552. https://doi.org/10.1108/JIMA-07-2019-0149
Henseler, J., Ringle, C. M., & Sarstedt, M. (2014). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
Hernandez, M. I. S., & Miranda, F. J. (2011). Linking internal market orientation and new service performance. European Journal of Innovation Management, 14(2), 207–226. https://doi.org/10.1108/14601061111124894
Herzog, W., & Boomsma, A. (2009). Small-sample robust estimators of noncentrality-based and incremental model fit. Structural Equation Modeling, 16(1), 1–27. https://doi.org/10.1080/10705510802561279
Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strategic Management Journal, 20(2), 195–204. https://doi.org/10.1002/(SICI)1097-0266(199902)20:2<195::AID-SMJ13>3.3.CO;2-Z
Ketchen, D. J. (2013). A Primer on Partial Least Squares Structural Equation Modeling. Long Range Planning, 46(1–2), 184–185. https://doi.org/10.1016/j.lrp.2013.01.002
Khan, S. N., & Mohsin, M. (2017). The power of emotional value: Exploring the effects of values on green product consumer choice behavior. Journal of Cleaner Production, 150(May 2017), 65–74. https://doi.org/10.1016/j.jclepro.2017.02.187
Kirchoff, J. F., Tate, W. L., & Mollenkopf, D. (2016). The impact of strategic orientation organizational orientation on green supply chain management and firm performance. International Journal of Physical Distribution & Logistics Management, 46(3), 269–292.
Lee, Y.-K., Kim, S.-H., Seo, M.-K., & Hight, S. K. (2015). Market orientation and business performance: Evidence from franchising industry. International Journal of Hospitality Management, 44, 28–37. https://doi.org/10.1016/j.ijhm.2014.09.008
Mentzer, J. T., Witt, W. De, Keebler, J. S., Min, S., Nix, N. W., Smith, C. D., & Zacharia, Z. G. (2001). Defining supply chain management. Journal of Business Logistic, 22(1), 107–124.
Min, S., & Mentzer, J. T. (2004). Developing and measuring supply chain management concepts. Journal of Business Logistic, 25, 63–99.
Miocevic, D., & Crnjak-Karanovic, B. (2012). The mediating role of key supplier relationship management practices on supply chain orientation-The organizational buying effectiveness link. Industrial Marketing Management, 41(1), 115–124. https://doi.org/10.1016/j.indmarman.2011.11.015
Muhamed, A. A., Ab. Rahman, M. N., Leuveano, R. A. C., Zainuddin, A. Z., & Hassan, M. F. (2022). Sustainable Framework For Halal Manufacturing Firm: A Strategic Approach. Korea Review of International Journal, 15(Special Issue 4), 18–23.
Muhamed, A. A., Ab Rahman, M. N., & Zain, C. M. C. R. (2019). Drivers for the Willingness of Small and Medium Enterprise in Implementing Halal Supply Chain Management. International Journal of Engineeriing and Technology (UAE), 8(1.2), 146–152. https://doi.org/10.14419/ijet.v8i1.2.24892
Muhamed, A. A., Halif, M., Abu Bakar, M. Z., Hassan, M. F., & Abd Rahim, N. N. (2022). Non-Conventional Strategic Supply Chain Management towards Halal Perspective. International Journal of Academic Research in Business and Social Sciences, 12(1). https://doi.org/10.6007/ijarbss/v12-i1/12078
Muhamed, A. A., Salim, N., Ab Rahman, M. N., Hamzah, F. M., & Ali, M. H. (2020). Effects of supply chain orientation on firm performance: insights from a Malaysian case study of halal-certified small and medium-sized enterprises. Journal of Small Business & Entrepreneurship, 0(0), 1–17. https://doi.org/10.1080/08276331.2020.1848328
Nunnally, J., & Bernstein, I. H. (1994). Psychometric Theory (J. Vaicunas & J. R. Belser (eds.); 3rd ed.). McGraw-Hill, Inc.
Oeyono, J., Samy, M., & Bampton, R. (2011). An Examination of Corporate Social Responsibility and Financial Performance: A Study of the Top 50 Indonesian Listed Corporations. Journal of Global Responsibility, 2(1), 100–112. https://doi.org/10.1108/20412561111128555
Ortas, E., M. Moneva, J., & Álvarez, I. (2014). Sustainable supply chain and company performance. Supply Chain Management: An International Journal, 19(3), 332–350. https://doi.org/10.1108/SCM-12-2013-0444
Pitt, M. M., & Khandker, S. R. (1998). The impact of Group?Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter? Journal of Political Economy, 106(5), 958–996. https://doi.org/10.1086/250037
Poniman, D., Purchase, S., & Sneddon, J. (2015). Tracebility system in the Western Australia halal food supply chain. Asia Pacific Journal of Marketing and Logistic, 27(2), 324–348.
Rao, P., Holt, D., Rao, P., & Holt, D. (2005). Do green supply chains lead to competitiveness and economic performance? International Journal of Operations & Production Management, 25(9), 898–916.
https://doi.org/10.1108/01443570510613956
Rejeb, A., Rejeb, K., & Zailani, S. (2021). Are Halal Food Supply Chains Sustainable: A Review And Bibliometric Analysis. Journal of Foodservice Business Research, 24(5), 554–595. https://doi.org/10.1080/15378020.2021.1883214
Sabbagh, O., Ab Rahman, M. N., Ismail, W. R., & Wan Hussain, W. M. H. (2017). The moderation influence of warranty on customer satisfaction’s antecedents: an empirical evidence from automotive dealerships. Service Industries Journal, 37(5–6), 381–407. https://doi.org/10.1080/02642069.2017.1326483
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/j.jbusres.2014.06.024
Salavou, H., Baltas, G., & Lioukas, S. (2004). Organisational innovation in SMEs: The importance of strategic orientation and competitive structure. European Journal of Marketing, 38(9/10), 1091–1112. https://doi.org/10.1108/03090560410548889
Salim, N., Rahman, M. N. A., Wahab, D. A., & Muhamed, A. A. (2020). Influence of social media usage on the green product innovation of manufacturing firms through environmental collaboration. Sustainability (Switzerland), 12(20), 1–17.
https://doi.org/10.3390/su12208685
Sarstedt, M., Hair, J. F., Ringle, C. M., Thiele, K. O., & Gudergan, S. P. (2016). Estimation issues with PLS and CBSEM: Where the bias lies! Journal of Business Research, 69(10), 3998–4010. https://doi.org/10.1016/j.jbusres.2016.06.007
Saunders, M., Lewis, P., & Thornhill, A. (2008). Research Methods for Business Students. In Research methods for business students. https://doi.org/10.1007/s13398-014-0173-7.2
Stanko, M. A., Bonner, J. M., & Calantone, R. J. (2007). Building commitment in buyer-seller relationships: A tie strength perspective. Industrial Marketing Management, 36, 1094–1103. https://doi.org/10.1016/j.indmarman.2006.10.001
Talib, M. S. A., Hamid, A. B. A., & Chin, T. A. (2015). Motivations and limitations in implementing Halal food certification: a Pareto analysis. British Food Journal, 117(11), 2664–2705. https://doi.org/10.1108/BFJ-02-2015-0055
Theodosiou, M., Kehagias, J., & Katsikea, E. (2012). Strategic orientations, marketing capabilities and firm performance: An empirical investigation in the context of frontline managers in service organizations. Industrial Marketing Management, 41(7), 1058–1070. https://doi.org/10.1016/j.indmarman.2012.01.001
Tieman, M. (2015). Halal clusters. Journal of Islamic Marketing, 6, 2–21. https://doi.org/10.1108/JIMA-05-2014-0034
Zailani, S., Govindan, K., Iranmanesh, M., Shaharudin, M. R., & Sia Chong, Y. (2015). Green innovation adoption in automotive supply chain: The Malaysian case. Journal of Cleaner Production, 108, 1115–1122. https://doi.org/10.1016/j.jclepro.2015.06.039
Zailani, S., Iranmanesh, M., Aziz, A. A., & Kanapathy, K. (2017). Halal logistics opportunities and challenges. Journal of Islamic Marketing, 8(1), 127–139.
https://doi.org/10.1108/JIMA-04-2015-0028
Zailani, S., Jafarzadeh, S., Iranmanesh, M., Nikbin, D., & Selim, N. I. I. (2018). Halal logistics service quality: conceptual model and empirical evidence. British Food Journal, 120(11), 2599–2614. https://doi.org/10.1108/BFJ-07-2017-0412
In-Text Citation: (Zakariah et al., 2023)
To Cite this Article: Zakariah, H., Muhamed, A. A., Halif, M. M., Leuveano, A. C., Rafique, M. Z., & Muhamed, A. (2023). Green Business Practices and the Success of Malaysia’s Halal Food Companies. International Journal of Academic Research in Business and Social Sciences, 13(1), 272 – 285.
Copyright: © 2023 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non0-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode