Blockchain Enabled Smart Contracts in Halal Supply Chains: Enhancing Digital Trust, Operational Efficiency, and Competitive Advantage
DOI:
https://doi.org/10.31334/c774h955Keywords:
Blockchain; Halal Supply Chain; Digital Trust; Operational Efficiency; Competitive Advantage;Abstract
The complex challenges confronting the halal logistics sector require innovative solutions to ensure religious adherence, especially due to manual documentation processes that are fragmented and disconnected along supply chains. These shortcomings undermine transparency and integrity, heightening risks of noncompliance and eroding consumer confidence. This research aims to explore integrating blockchain-enabled smart contracts into halal supply chains to boost compliance, traceability, and operational efficiency. Semi-structured interviews and focus groups with certification bodies, logistics providers, and blockchain specialists generated qualitative data. Thematic analysis using NVivo software developed a conceptual model for applying blockchain in halal logistics. Findings revealed that smart contracts can automate verification of compliance, reduce errors and fraud from human intervention, and provide immutable records aligned with Islamic ethics. Moreover, technological readiness within organizations, capabilities, and regulatory support emerged as pivotal factors for adoption. Theoretically, applying Signaling Theory and the Technology-Organization-Environment framework to the halal supply chain context contributes new knowledge. Practically, a blueprint results for building digital trust mechanisms addressing both faith-based and operational issues. This advances discourse on ethical innovation in logistics and aids policymaking for more resilient, trustworthy halal supply chain systems.
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