The Practical Implications of Halal Manufacturing on Halal Organizational Sustainability Performance in the Malaysian Halal Industry

Khairulazmi Mohamad Karudin, Mohd Rizaimy Shaharudin and Amir Imran Zainoddin
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Khairulazmi Mohamad Karudin: Department of Business and Management, Faculty of Business and Management, Universiti Teknologi MARA, 85000 Segamat, Johor.
Mohd Rizaimy Shaharudin: Faculty of Business and Management, Universiti Teknologi MARA, 08400 Kedah, Malaysia
Amir Imran Zainoddin: Department of Business and Management, Faculty of Business and Management, Universiti Teknologi MARA, 85000 Segamat, Johor.

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 9, 2914-2922

Abstract: Halal manufacturing still lags in sustainable manufacturing, and the current practice is considered to remain unaffected. Most issues in Malaysian halal manufacturing are hygiene, halal certification, and mismanaging manufacturing progress. Meanwhile, waste generated from halal manufacturing has not complied with the right standards. For example, most water areas have been contaminated by waste produced from halal manufacturing, requiring significant efforts from the Malaysian government to overcome this issue. However, awareness and continuous practice by manufacturers are still repetitive. This study aims to develop a theoretical framework on how halal manufacturing affects halal organizational sustainability performance. Institutional theory (IT) is applied as the underpinning theory for this study. This conceptual model illustrates how halal manufacturing influences organizational sustainability performance, resulting in reputational, financial, and competitive benefits. The study is expected to contribute new insights to theoretical considerations regarding practical knowledge of halal manufacturing and the concept of halal organizational sustainability performance, that can be used to improve and enhance Malaysian halal producers’ practice in the halal industry. Throughout this research, several values can be stressed to the benefit of those in academic and industrial practices. Malaysian halal producers are recommended in this study to implement halal manufacturing that aligns with halal standards to achieve halal organizational sustainability performance.

Date: 2024
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