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Advances in Social Sciences Research Journal – Vol. 10, No. 6.2

Publication Date: June 25, 2023

DOI:10.14738/assrj.106.2.15021.

Ariffin, N., Sundram, V. P. K., Zulfakar, M. H. (2023). Systematic Literature Review of Halal Purchasing in Value Chain Management.

A Qualitative Research Era from 2011 to 2022. Advances in Social Sciences Research Journal, 10(6.2). 291-306.

Services for Science and Education – United Kingdom

Systematic Literature Review of Halal Purchasing in Value Chain

Management. A Qualitative Research Era from 2011 to 2022

Nurulfaraiza Ariffin

Corresponding Author

nurulfaraiza@utar.edu.my

Faculty of Science, Universiti Tunku Abdul Rahman, 31900 Kampar,

Perak, MALAYSIA and Faculty of Business and Management,

Universiti Teknologi MARA, 40450 Shah Alam Selangor, MALAYSIA

Veera Pandiyan Kaliani Sundram

Faculty of Business and Management, Universiti Teknologi MARA,

40450 Shah Alam Selangor, MALAYSIA

Mohd Hafiz Zulfakar

Faculty of Business and Management, Universiti Teknologi MARA,

40450 Shah Alam Selangor, MALAYSIA

ABSTRACT

In observing the rapid competition among businesses in halal market demand, the

globe forces to seek competitive advantages and halal purchasing practice as one of

way to improve a company's performance. Over the last decade researchers have

studied halal supply chain management from various perspectives in relation to

different industries. However, there is limited literature in halal purchasing and

value chain since start of twenty-first century. The number of publication papers is

still pegged to the lowest ebb. This paper aims to systematically review all

qualitative research papers, published in reputed journals on the practices of halal

purchasing. This paper will employ a systematic literature review methodology

extracted from Scopus database and Google Scholar search engine ranging from

2011 until 2022 totaling 17 articles. The authors review the items of the Preferred

Reporting Items for Systematic Review and Meta-Analysis (PRISMA) on halal

purchasing and value chain have operationalized systematic reviews. The analysis

reveals three research clusters: halal purchasing practices, value chain

management, and halal supply chain. The findings of this study will help to explore

the understanding of halal in purchasing practices and value chain. This study will

be useful for researchers and practitioners in their fields as well as to assist the

businesses in halal industry and purchasing management.

Keywords: Halal Purchasing, Value Chain, PRISMA, systematic review

INTRODUCTION

The Islamic view of the halal and haram is very simple and clear [1]. From another perspective,

the halal and haram are parts of the total legal system of Islam, it's Sharia a system whose

primary objective is the good of mankind. The fact that halal purchasing is synchronize along

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Advances in Social Sciences Research Journal (ASSRJ) Vol. 10, Issue 6.2, June-2023

Services for Science and Education – United Kingdom

with value chain with halal supply chain management is important to the Muslim around the

world which has a systematic way of life. For Muslims, Islam is a way of life came with its

complete comprehensive and external Sharia law for the whole mankind [2]. Halal industry is

not static but halal is going through an evolution. Halal product is based on an assessment and

confirmation of ingredient component and extend beyond production process and finally it will

be audited by halal certification body with continuous process of improvement [3]. The halal

supply chain addresses halal requirement from source of the farmer raw materials or the

supplier of the farmer and the point of consumer purchase retailers such as supermarket,

restaurants or consumer doorstep via online services [4]. Successful businesses of all kinds rely

on the purchasing management to negotiate optimal price for quality materials, control low

inventories and maintain efficient work process [5]. Halal purchasing is a part of supply chain

that becomes crucial in developing off its halal product and entire value chain in order

managing the firm’s external resources. The substance of relationship between buyer and

supplier evolves based on the maturity of a supplier relationship [6,7]. There are many types of

researches have been conducted in different aspects of the halal, for instance, halal food quality

[8], halal logistics [9], halal supply chain management [10] or halal certification [11]. Both kinds

of methods have been performed, i.e., qualitative and quantitative. In quantitative studies, the

methods have been conducted by using theory of planned behavior, theory of social identity

and social dominance, theory of animosity and other theories. In qualitative studies, halal food

quality and logistics services have been explored various aspects which have given deeper

insight into this area. There is dire need to gather data for qualitative studies to give a holistic

view of literature which can be a guide for future researchers [12]. Therefore, the aim of this

study is to conduct a systematic literature review and to develop a database of qualitative

studies for future research. This study has carried out a systematic literature review of all the

qualitative studies conducted on halal purchasing, halal supply chain and halal value chain

management in various cultures and contexts. The studies published from 2011 to 2022 were

taken for this review as per criteria guidelines in methodology section of this paper. Based on

these assumptions the current study was conceived to address the need to analyze the quality

of systematic review in halal purchasing in a more comprehensive fashion, paying particular

attention to the specific guidelines followed in this review. More specifically, by considering the

items of the Preferred Reporting Items for Systematic Reviews and meta-analysis (PRISMA)

[13]. A comprehensive analysis of systematic reviews in halal purchasing against the PRISMA

checklist would contribute to having a better understanding of the execution quality and rigor

of systematic reviews. Overall, through the use of a systematic review of review studies in the

field, the current study aims to provide recommendations to improve the validity and reliability

of future reviews in halal purchasing and procurement.

LITERATURE REVIEW

In halal purchasing concepts, the important in supply chain process of buyer-supplier

partnership is purchasing management. The complexity of sourcing the products is increasingly

dealing with halal requirements. As halal is extending towards purchasing, an effective process

is required between the purchasing concept itself which are halal policy, procurement strategy

and purchasing process [14]. Porter (1985) discovers in a firm’s value chain, purchasing is

playing an important supporting roles activity [15]. Muslim’s consumer perspective is very

concerned regarding the food components and also inquisitive regarding all activities involved

along the whole food supply chain [16]. In halal purchasing, the process explained every step

of purchasing required halal certification for items such as raw materials, ingredients,

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Ariffin, N., Sundram, V. P. K., Zulfakar, M. H. (2023). Systematic Literature Review of Halal Purchasing in Value Chain Management. A Qualitative

Research Era from 2011 to 2022. Advances in Social Sciences Research Journal, 10(6.2). 291-306.

URL: http://dx.doi.org/10.14738/assrj.106.2.15021

additives, and packaging materials. It also includes services such as logistics, sertu (washing)

and purchased insurance shall be specified in the halal purchasing for order specification. For

the animal (raw material) was a machine, it would have been slaughtered in accordance with

the Islamic standards and its function in creating and controlling the upstream network supply

chain structure would be critical for animal-based products [14]. In compliant with halal

purchasing guarantees to all products and services, the sources must observe with halal

certification requirements such as the applications, enforcement and controls a sustainable

suppliers base with the authorities of halal certifications and validity of halal certificates;

ensures all suppliers restricted by the company are halal compliant enforced through valid

contract agreement and supplier audits; screen and identify halal purchase market

developments by providing intelligence of the supply risk. In developing halal purchasing

process, the focus is not just on the purchasing department or the buyer-supplier relationship.

The organization in purchasing function is wide and involves all activities of the purchasing

process, services or work supplied and the administration actions. The latest emerging

business that has captured global attention is now halal supply chain. Ngah & Zainuddin (2012)

pointed the activities in the halal supply chain are warehousing, sourcing, transport, handling

and delivery of halal products, inventory management and other business management

strategies such as lean management and values-based management. Omar, Jaafar and Osman

(2012) highlighted the imposition of the Islamic laws in supply chain management acts as the

basic requirements for a Shariah-based halal management process: meaning everything must

be halal (permissible) and toyyib along the whole chain. According to Kamaruddin, Iberahim,

& Shabudin (2018) the consumers’ consumption trends are not only towards halal products

but also halal logistics. In the context of halal logistics, the halal products must be ensured its

totally halal throughout the logistics activities including transportation, storage and

warehousing and retailing must be observe to Shariah principles. Syazwan, Lim Rubin, and

Vincent Khor (2013) discovered in halal logistics, halal products must be protected from non- halal products or substances until they arrive at the destination. Though, there is high tendency

of halal products might be cross contaminated during stuffing and delivering due to the

transportation being contaminated. Halal integrity assurance is the key factor in developing a

well trusted halal food supply chain in the current complex and competitive environment. The

halal integrity means the products sourced, produced, processed, stored and distributed with

compliance with the Islamic values and these are in line with the universal values such as high

quality, safety, hygienically produced and respect for animal welfare and traded. Ab Talib,

Hamid, & Zulfakar (2015) discovered factors hindering halal logistics adoption were due to lack

government support, collaboration issues among logistics service providers, lack of knowledge

on halal matters such as cleanliness of transport and containers, and the perception of

additional and increase in operation costs. [19] pointed halal integrity encompass cleanliness,

sertu cleansing of transport. Containers and trucks, operations’ compliance with Shariah laws

and tracking and traceability. Sertu cleansing is warranted for machines, utensils or equipment

that are being used previously in manufacturing of non-halal food products. Sertu ritual

cleansing also needs to be carried out if severe najs such as dogs, pigs and its derivatives are

present in the warehouse. The strength of the Porter’s Value Chain Analysis is its approach. The

Porter’s Value Analysis focuses on the system and activities with customers as the central

principle rather than on departments and accounting expense categories. This system links

systems and activities to each other and demonstrates which effect this has on costs and profit.

Consequently, the value chain analysis makes clear where the sources of value and loss amounts

can be found in the organization [20]. Value chain can be divided into primary and supporting