ENHANCING HALAL PROCUREMENT PRACTICE AMONG HOTEL IN MALAYSIA
Keywords:
Halal Procurement, Halal Practice, Transparency, Supplier Engagement, Risk Management.
Abstract
The demand for halal products has increased significantly throughout the world, either from Muslims themselves or non-Muslim communities. This phenomenon is due to an increasing concern for health as they believe that halal food has better cleanliness and safety. Few studies have shown that the supply chain plays a crucial role in ensuring that the products are halal compliant and that procurement is one of the main branches. In the hotel industry, the procurement department is responsible for ensuring that raw materials are arranged, purchased, delivered, and consumed effectively. Transparency, supplier engagement, and risk management are three elements that are highlighted matters in the hotel industry. Previous studies have shown that these three elements have a significant role in enhancing procurement practice in organisations. This paper focuses on the elements and effectiveness of halal procurement practises among Malaysian hotels. This study also aims to help companies evaluate their halal procurement practises and develop effective strategies to ensure that food products follow halal guidelines that ultimately enhance business performance.
References
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Moazzam, M., Akhtar, P., Garnevska, E., & Marr, N. E. (2018). Measuring agri-food supply chain performance and risk through a new analytical framework: a case study of New Zealand dairy. Production Planning and Control, 29(15), 1258–1274. https://doi.org/10.1080/09537287.2018.1522847
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Novianti, D., Arkeman, Y., Almunawar, M. N., & Haditjaroko, L. (2020). Designing a Transparent Distributed Systems for Halal Supply Chains Using Blockchain Technology. Journal of Business & Economic Analysis, 3(2), 151–170. https://doi.org/10.36924/sbe.2020.3204
Obura, C. O. (2019). Role of Integrity in Enhancing Effective Procurement Practice in Kenya Bureau of Standards. European Journal of Business and Strategic Management, Vol.4(Issue 2), pp 77-86. https://iprjb.org/journals/index.php/EJBSM/article/view/864/990
Rasi, R. Z., Masrom, N. R., Omar, S. S., Ahmad, M. F., & Sham, R. (2017). Designing Halal Supply Chain: Malaysia’s Halal Industry Scenarios. MATEC Web of Conferences, 135, 00040. https://doi.org/10.1051/matecconf/201713500040
Razalli, M. R. (2018). Managing Halal certification supply chain: Determinants success factors framework for a hotel performance. International Journal of Supply Chain Management, 7(1), 149–154.
Salam, M. A. (2017). The mediating role of supply chain collaboration on the relationship between technology, trust and operational performance: An empirical investigation. Benchmarking, 24(2), 298–317. https://doi.org/10.1108/BIJ-07-2015-0075
Sheikh, O. A., & Khan, M. N. (2018). Exploring the Halal Supply Chain in Pakistan. International Conference on Contemporary Issues in Business & Economics, 354–362.
Supian, K., & Rashid, N. A. (2018). The Role of Supplier, Top Management and Government in Halal Practices Integrity of Malaysian Food Business. International Journal of Asian Social Science, 8(8), 549–559. https://doi.org/10.18488/journal.1.2018.88.549.559
Tieman, M. (2017). Halal risk management: combining robustness and resilience. Journal of Islamic Marketing.
Tieman, M., & Ghazali, M. C. (2013). Principles in halal purchasing. Journal of Islamic Marketing, 4(3), 281–293. https://doi.org/10.1108/JIMA-01-2012-0004
Tieman, M., Zakaria, Z., Sulaiman, A., & Ramli, S. Q. (2020). Halal procurement strategy in the food industry: a focus group discussion. International Journal of Islamic Marketing and Branding, 5(3), 167–180. https://doi.org/10.1504/ijimb.2020.10035279
Yasir, M. A., Amir, A. M., Maelah, R., Hafiz, A., & Nasir, M. (2020). Establishing Customer Knowledge Through Customer Accounting in Tourism Industry: A Study of Hotel Sector in Malaysia. Asian Journal of Accounting and Governance, 14.
Yusoff, T., Abdul Razak, I., & Abdul Aziz, A. (2017). Halal Integrated Logistic Management System: Lesson Learnt from Malaysian Industries. First International Halal Management Conference, August, 0–17. https://www.researchgate.net/publication/321069012
Zeka, K. (2018). Hotel Industry Development in Kosovo Hotel Industry Development in Kosovo Honors Project.
Zul Ariff Abdul Latiff, Fatin Aqilah Dzulkifli, Noor Iffa Haniz Zakaria, Nor Sahira Edi, Nur Fraihin Aman Zuria, Siti Nursyahirah Mohamad Radzip, & Nursalwani Muhamad. (2018). The Application of Online Halal Label Among Food Manufacturer Behavior Toward the Halal Label System in Malaysia. Canadian Social Science, 14(8), 55–60. https://doi.org/10.3968/10484
Zulfakar, M. H., Chan, C., & Jie, F. (2017). Institutional forces on Australian halal meat supply chain (AHMSC) operations. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-01-2016-0005
Abd Rahman, A., Singhry, H. B., Hanafiah, M. H., & Abdul, M. (2017). Influence of perceived benefits and traceability system on the readiness for Halal Assurance System implementation among food manufacturers. Food Control, 73, 1318–1326. https://doi.org/10.1016/j.foodcont.2016.10.058
Agyapong, A., Mensah, H. K., & Ayuuni, A. M. (2018). The moderating role of social network on the relationship between innovative capability and performance in the hotel industry. International Journal of Emerging Markets, 13(5), 801–823. https://doi.org/10.1108/IJoEM-11-2016-0293
Ahmad, A. N., Ungku Zainal Abidin, U. F., Othman, M., & Abdul Rahman, R. (2018). Overview of the halal food control system in Malaysia. Food Control, 90, 352–363. https://doi.org/10.1016/j.foodcont.2018.02.035
Al-Sa’di, A. F., Abdallah, A. B., & Dahiyat, S. E. (2017). The mediating role of product and process innovations on the relationship between knowledge management and operational performance in manufacturing companies in Jordan. Business Process Management Journal, 23(2), 349–376. https://doi.org/http://dx.doi.org/10.1108/BPMJ-03-2016-0047
Alsetoohy, O., & Ayoun, B. (2018). Intelligent agent technology: the relationships with hotel food procurement practices and performance. Journal of Hospitality and Tourism Technology. https://doi.org/https://doi.org/10.1108/JHTT-04-2017-0028
Astill, J., Dara, R. A., Campbell, M., Farber, J. M., Fraser, E. D. G., Sharif, S., & Yada, R. Y. (2019). Transparency in food supply chains: A review of enabling technology solutions. Trends in Food Science and Technology, 91, 240–247. https://doi.org/10.1016/j.tifs.2019.07.024
Azmi, F. R., Musa, H., Chew, B. C., & Jagiripu, I. P. (2021). Supply risk management: A case study of halal food industry in Malaysia. Uncertain Supply Chain Management, 9(2), 501–512. https://doi.org/10.5267/j.uscm.2021.1.001
Baharuddin, S. A., & Ismail, R. M. (2018). Halal compliance impact on organisational performance: The role of religiosity. International Journal of Supply Chain Management, 7(5), 455–460.
Bani, J. S. (2021). Uncertain Supply Chain Management The moderating role of lean operations between supply chain integration and operational performance in Saudi manufacturing organisations. Uncertain Supply Chain Management, 9, 169–178. https://doi.org/10.5267/j.uscm.2020.10.004
El-Gohary, H. (2020). Coronavirus and halal tourism and hospitality industry: Is it a journey to the unknown? Sustainability (Switzerland), 12(21), 1–26. https://doi.org/10.3390/su12219260
Farnsworth, L. D., Delwiche, A., & Mckinney, C. (2019). The Good Food Purchasing Program : A Policy Tool for Promoting Supply Chain Transparency and Food System Change. In Institutions as Conscious Food Consumers. Elsevier Inc. https://doi.org/10.1016/B978-0-12-813617-1.00005-8
Giyanti, I., & Indriastiningsih, E. (2019). Impact of Halal Certification on The Performance of Food Small Medium Enterprises. Jurnal Ilmiah Teknik Industri, 18(2), 116–123. https://doi.org/10.23917/jiti.v18i2.7242
Hamdan, F. A., Nasir, S., & Jaafar, H. S. (2018). Evaluating Transparency in Halal Trade Facilitation. Advances in Transportation and Logistics Research, Volume 1(2016), 516–527. http://proceedings.itltrisakti.ac.id/index.php/ATLR/article/view/49/58
Ibrahim, S. Z., Lahap, J., Nazlan, N. H., Ariffin, H. F., & Mohd Said, N. (2020). Developing A Procurement Framework for the Malaysian Hospitality Industry: A Preliminary Study. ESTEEM Journal of Social Sciences and Humanities, 4, 10–18. http://ejssh.uitm.edu.my/
Iqbal, J., & Iqbal, Z. (2018). Stochastic Procurement Its Major Determinants and Their Impact on Operational Performance of Textile Firms : A Case Study of Faisalabad Pakistan Zafar Iqbal. 2(2), 164–182.
Khan, S., Khan, M. I., Haleem, A., & Jami, A. R. (2019). Prioritising the risks in Halal food supply chain: an MCDM approach. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-10-2018-0206
Kiarie, J. W. (2017). The Influence of supplier relationship management practices on operational performance of large manufacturing organisations in Kenya [Strathmore University]. http://su-plus.strathmore.edu/handle/11071/5586
Ku, E. C. S., Hsu, S.-F., & Wu, W.-C. (2020). Connecting supplier – supplier relationships to achieve supply chain performance of restaurant companies. Journal of Hospitality and Tourism, 3(3), 311–328. https://doi.org/10.1108/JHTI-10-2019-0113
Lee, H. Y., Hwang, H. J., & Kim, D. H. (2019). Issues of halal supply chain management: Suggestion for Korean traders. Journal of Korea Trade, 23(8), 132–144. https://doi.org/10.35611/jkt.2019.23.8.132
Ministry of Finance Malaysia. (2021). Economic outlook. In Percetakan Nasional Malaysia Berhad. www.treasury.gov.my
Moazzam, M., Akhtar, P., Garnevska, E., & Marr, N. E. (2018). Measuring agri-food supply chain performance and risk through a new analytical framework: a case study of New Zealand dairy. Production Planning and Control, 29(15), 1258–1274. https://doi.org/10.1080/09537287.2018.1522847
Mohamad, N., & Backhouse, C. (2019). A framework for the development of Halal food products in Malaysia. Loughborough’s Research Repository. http://iieom.org/ieom2014/pdfs/151.pdf
Novianti, D., Arkeman, Y., Almunawar, M. N., & Haditjaroko, L. (2020). Designing a Transparent Distributed Systems for Halal Supply Chains Using Blockchain Technology. Journal of Business & Economic Analysis, 3(2), 151–170. https://doi.org/10.36924/sbe.2020.3204
Obura, C. O. (2019). Role of Integrity in Enhancing Effective Procurement Practice in Kenya Bureau of Standards. European Journal of Business and Strategic Management, Vol.4(Issue 2), pp 77-86. https://iprjb.org/journals/index.php/EJBSM/article/view/864/990
Rasi, R. Z., Masrom, N. R., Omar, S. S., Ahmad, M. F., & Sham, R. (2017). Designing Halal Supply Chain: Malaysia’s Halal Industry Scenarios. MATEC Web of Conferences, 135, 00040. https://doi.org/10.1051/matecconf/201713500040
Razalli, M. R. (2018). Managing Halal certification supply chain: Determinants success factors framework for a hotel performance. International Journal of Supply Chain Management, 7(1), 149–154.
Salam, M. A. (2017). The mediating role of supply chain collaboration on the relationship between technology, trust and operational performance: An empirical investigation. Benchmarking, 24(2), 298–317. https://doi.org/10.1108/BIJ-07-2015-0075
Sheikh, O. A., & Khan, M. N. (2018). Exploring the Halal Supply Chain in Pakistan. International Conference on Contemporary Issues in Business & Economics, 354–362.
Supian, K., & Rashid, N. A. (2018). The Role of Supplier, Top Management and Government in Halal Practices Integrity of Malaysian Food Business. International Journal of Asian Social Science, 8(8), 549–559. https://doi.org/10.18488/journal.1.2018.88.549.559
Tieman, M. (2017). Halal risk management: combining robustness and resilience. Journal of Islamic Marketing.
Tieman, M., & Ghazali, M. C. (2013). Principles in halal purchasing. Journal of Islamic Marketing, 4(3), 281–293. https://doi.org/10.1108/JIMA-01-2012-0004
Tieman, M., Zakaria, Z., Sulaiman, A., & Ramli, S. Q. (2020). Halal procurement strategy in the food industry: a focus group discussion. International Journal of Islamic Marketing and Branding, 5(3), 167–180. https://doi.org/10.1504/ijimb.2020.10035279
Yasir, M. A., Amir, A. M., Maelah, R., Hafiz, A., & Nasir, M. (2020). Establishing Customer Knowledge Through Customer Accounting in Tourism Industry: A Study of Hotel Sector in Malaysia. Asian Journal of Accounting and Governance, 14.
Yusoff, T., Abdul Razak, I., & Abdul Aziz, A. (2017). Halal Integrated Logistic Management System: Lesson Learnt from Malaysian Industries. First International Halal Management Conference, August, 0–17. https://www.researchgate.net/publication/321069012
Zeka, K. (2018). Hotel Industry Development in Kosovo Hotel Industry Development in Kosovo Honors Project.
Zul Ariff Abdul Latiff, Fatin Aqilah Dzulkifli, Noor Iffa Haniz Zakaria, Nor Sahira Edi, Nur Fraihin Aman Zuria, Siti Nursyahirah Mohamad Radzip, & Nursalwani Muhamad. (2018). The Application of Online Halal Label Among Food Manufacturer Behavior Toward the Halal Label System in Malaysia. Canadian Social Science, 14(8), 55–60. https://doi.org/10.3968/10484
Zulfakar, M. H., Chan, C., & Jie, F. (2017). Institutional forces on Australian halal meat supply chain (AHMSC) operations. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-01-2016-0005
Published
2021-12-01
How to Cite
Shari, S. S. B., Moid, M. B. M., Supian, K. B., & Suhaimi, A. S. B. (2021). ENHANCING HALAL PROCUREMENT PRACTICE AMONG HOTEL IN MALAYSIA. International Journal of Business and Management Future, 7(1), 1-9. https://doi.org/10.46281/ijbmf.v7i1.1468
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Copyright (c) 2021 Sara Shakira Binti Shari, Muzairihana Binti Mohd Moid, Kamisah Binti Supian, Anora Shaliaty Binti Suhaimi
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