Effects of supply chain orientation on firm performance: insights from a Malaysian case study of halal-certified small and medium-sized enterprises

• Published in: Journal of small business and entrepreneurship Vol. 35; no. 6; pp. 927 - 943
• Main Authors: Muhamed, Ariff Azly, Salim, Norhuda, Ab Rahman, Mohd Nizam, Hamzah, Firdaus Mohd, Ali, Mohd Helmi
• Format: Journal Article
• Language: English
• Published: Regina Routledge 02-11-2023; Taylor & Francis Ltd
• Subjects: Entrepreneurs; Entrepreneurship; Financial performance; firm performance; halal; Halal food; orientation de la chaîne d'approvisionnement; performances des entreprises; petites et moyennes entreprises; Small & medium sized enterprises-SME; small and medium-sized enterprises; Supply chain orientation; Supply chains; Malaysia
• ISSN: 0827-6331; 2169-2610
• DOI: 10.1080/08276331.2020.1848328

This research aims to investigate the relationship between supply chain orientation (SCO) and firm performance (FP) in the context of halal-certified small and medium-sized enterprises (SMEs). The proposed SCO model incorporates three factors, namely top management support, commitment, and credibility, for the determination of firm performance. A total of 512 halal-certified SMEs was surveyed, in which 284 responses were received and analysed using structural equation modelling with partial least squares (SEM-PLS). The credibility of supply chain partners was shown to have a major effect on firm performance in the context of halal-certified SMEs. On the other hand, top management support and commitment demonstrated a lesser influence, despite having statistically significant effects on firm performance. This study provides a framework for halal practitioners to refine their business operations based on the implementation of SCO elements to improve firm performance.