The Relative Advantage of Halal Logistics: Perspectives from Malaysian Halal Food Firms

Abstract

This paper aims to provide perspectives on the relative advantage of halal logistics operations among halal firms. The data for this quantitative study were derived from 146 halal management practitioners representing halal product firms. The data was analysed using mean interpretation with SPSS Statistics 27 as the statistical tool. The findings indicate that halal logistics operations provide a distinct relative advantage to adopters. Underpinned by the Diffusion of Innovation (DOI) theory, this study found that the theory adequately explains the benefits offered by halal logistics operations to the ecosystem of halal firms. The identified relative advantage factors include increasing the firm's profit, enhancing competitive advantage, and maintaining the purity of halal products. These results suggest that commercial benefits are key drivers for adoption decisions. The study offers significant implications for halal food firms, logistics providers, and government agencies such as JAKIM and HDC in formulating strategies to encourage the wider implementation of halal logistics practices. Future research could expand on this study by involving populations from other manufacturing schemes, such as halal cosmetics and pharmaceuticals.