ABSTRACT

The purpose of this chapter is to identify the issues and challenges of blockchain-based halal traceability system adoption as a global-scale technology for halal food supply chain among the Malaysian and Indonesian halal food enterprises. The research uses in-depth interviews with leaders and high-ranked officials from both public and private sectors in Malaysia and Indonesia, respectively, in making a strategic decision to adopt the blockchain-based halal traceability system. It was also imperative for this study to make sure that all participants had good knowledge and expertise on the subject matter of blockchain-based halal traceability systems. Nevertheless, due to time constraints, the number of people who participated in the study was relatively small. Internal factors are used to identify the strengths and weaknesses, whereas external factors are used to identify the opportunities and threats. It was also acknowledged that each participating country holds a unique set of strengths and weaknesses. This research aims to contribute to the halal industry by providing insights into the perceptions and recommendations of managers toward how stakeholders can better manage, take advantage, or benefit from the blockchain-based halal traceability system. This study is offering research propositions for future research in relation to resource-based view (RBV) theory. The findings suggest that the adoption of the blockchain-based halal traceability system was not a simple task for any halal food enterprise. These enterprises should evaluate all the opportunities and threats before making any strategic decisions. Respondents from both sectors were unanimous that the blockchain-based halal traceability system could foster the development of halal food supply chain. This study offers six research propositions for future research as part of the knowledge contributions. In addition, the findings of the study also can help the halal food enterprises in Malaysia and Indonesia to take any strategic decision with regard to blockchain-based halal traceability system adoption in an organization.