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APJML
27,2
Traceability systems in the
Western Australia halal food
supply chain
324 Delma Poniman
Received 19 May 2014
Faculty of Management, Universiti Teknologi Malaysia, Johor, Malaysia and
Revised 18 September 2014 The Business School, The University of Western Australia, Crawley, Australia
29 September 2014
Accepted 5 October 2014 Sharon Purchase
The University of Western Australia, Crawley, Australia, and
Joanne Sneddon
The Business School, The University of Western Australia, Crawley, Australia
Abstract
Purpose – The purpose of this paper is to explore the emergence and implementation of traceability
systems in the Western Australian (WA) Halal food industry. In particular, to understand how
individuals in facilitating organizations perceive the Halal idea logic and the benefits that a traceability
system can provide to the Halal food processing industry.
Design/methodology/approach – An empirical qualitative approach was employed to examine these
issues utilizing in-depth interviews. Thematic analysis was carried out using Leximancer software.
Findings – Findings suggest that individual’s perception of Halal idea logic is aligned to the roles they
perform. These perceptions were impacted by the specific objectives or business interests of each
organization. Facilitating organizations also perceive that traceability systems are a strategic tool in
the Halal food processing industry.
Practical implications – The research provides insights into how to improve existing understanding
of the Halal idea logic within Halal food business networks and the benefits of implementing traceability
systems in Halal food production. Joint activity between firms creates a network effect, where the value
created is greater than that which the firms alone can create.
Originality/value – Though traceability systems have become increasingly popular in the food
industry, little research has been undertaken to understand how individuals in facilitating organizations
perceive these systems, particularly in the growing Halal food industry. Hence, the study contributes to
the literature of traceability studies and the area of change and process adaptation in business
relationships in the context of halal food production.
Keywords Business networks, Leximancer, Facilitating organizations, Halal food supply chain,
Traceability system
Paper type Research paper
1. Introduction
The global Halal economy comprises approximately 1.8 billion Muslims, about one-quarter
of the world’s population (Adams, 2011; Porter, 2014). The Halal sector is growing in both
Muslim majority and minority countries (Berry, 2011). The sectors growth in Muslim
minority countries (e.g. Russia, France) is attributed to its high quality and stringent
food preparation safety measures (Berry, 2011). In 2009, the Halal food market made
up 16 per cent of the global food industry, generating around $632 billion in revenue
Asia Pacific Journal of Marketing
and Logistics (Alserhan, 2010) increasing to $700 billion in 2014 (Porter, 2014). Asian countries
Vol. 27 No. 2, 2015
pp. 324-348
© Emerald Group Publishing Limited
1355-5855
The authors thank Ministry of Education, Malaysian Government, Universiti Teknologi
DOI 10.1108/APJML-05-2014-0082 Malaysia and The University of Western Australia
dominate the global Halal food market, followed by Africa, Europe and the Americas. Western
However, the Australia/Oceania region is a significant emerging market for Halal Australia
food growing at 33.3 per cent between 2009 and 2010 (Berry, 2011).
In Islam, Halal food is defined as “food products that are prepared following a set of
halal food
Islamic dietary laws and regulations, which determine what is permissible, lawful and supply chain
clean” (Berry, 2011, p. 3). The word “Halal” comes from an Arabic language, meaning
lawful or permitted by the lawgiver (Allah). Halal encompasses all aspects of life 325
including: food, lifestyle, and services (Power, 2009) and is compulsory for Muslims
(Bonne and Verbeke, 2008). Obeying Halal requirements shows respect and protects the
Islamic faith (Laldin, 2006; Sungkar and Darhim, 2009). In terms of food, Muslims are
only allowed to consume food or drink that conforms to Islamic dietary laws as
specified in the Quran (the Islamic sacred book), the Hadiths (sayings) of the Messenger
of Allah – Prophet Muhammad, his Sunnah (tradition and teachings) and the Fiqh
(understanding) of the Islamic Jurists: Hanafi, Shafi’, Maliki, and Hambali.
Both Muslims and non-Muslims purchase Halal food, however, their purchase
motivations differ. While Muslims are obliged to consume only Halal food, non-Muslims
may choose to purchase Halal food to satisfy their concerns about food quality (i.e. the
“clean” aspect of food processing and preparation) (Power, 2009).
Despite the rapid growth in the market for Halal food among Muslim and non-Muslim
consumers, there is considerable debate about the integrity and authenticity of Halal
certified food. This debate has centred on the following issues:
(1) No unified Halal standard exists (Sungkar and Darhim, 2009), providing
opportunities for the fabrication of Halal certification (Anir et al., 2008).
(2) Modernization of food manufacturing processes leading to “grey areas” where
product ingredients falling between Halal and non-Halal (i.e. haram[1]) are
referred to jurists (local fatwa) to determine whether they can be consumed or
avoided (Tieman et al., 2012; Lam and Alhashmi, 2008).
Questions about the integrity and authenticity of Halal food highlight the need for
effective traceability systems to provide much needed transparency in the production
system (Meuwissen et al., 2003). Effective traceability systems require the cooperation
of all actors in the food production network (Opara, 2002, 2003). Industry actors must
comply with Halal dietary laws to ensure food product integrity from farm to fork
(Lodhi, 2009). The Halal food network comprises individuals or organizations who
are directly and indirectly involved with Halal food manufacturing organizations
(from purchasing, production, marketing, sales and other relevant departments in
the organization), suppliers, Islamic Organizations (IOs), the Government, research
institutes as well as competitors.
A few studies discuss traceability from the perspective of a single organization (Petroff
and Hill, 1991; Guercini and Runfola, 2009) while none have taken a co-ordinated
interdependent perspective. Opara (2002) argued that effective traceability management
systems should involve all actors in the supply chain from the primary producer to
individual consumers. Therefore, it is important to examine the perceptions of all
interdependent organizations to move towards shared understandings of the importance
and benefits of the adoption and implementation of traceability systems across the
business network. Failure to reach common understanding across the network of
the benefits and costs of traceability systems affects adoption and implementation
behaviours and consequently system effectiveness (Rajaguru and Matanda, 2013).
APJML In the Halal food production context, research has examined traceability from
27,2 the consumer’s perspective (Anir et al., 2008; Zailani et al., 2010), rather than the
organizational perspectives. Therefore, gap exists in the extant traceability systems
literature regarding organizational perceptions and behaviours towards the adoption
and implementation of traceability systems.
We explore these issues in the context of the WA Halal food industry by examining
326 how facilitating organizations perceive the Halal idea logic (Welch and Wilkinson,
2002) and the use of traceability systems. The present study focused on the
involvement of government bodies, research institutes, certifiers and independent food
advisory bodies in the WA Halal food industry. These organizations are referred to as
facilitators external to the focal manufacturing firm (Aarikka-Stenroos et al., 2014).
Facilitating organizations play a central role in innovations such as the implementation
of traceability systems by encouraging and supporting their adoption by
manufacturing organizations (Hobbs, 2003). The specific objectives of this research
were: to understand how individuals in facilitating organizations perceived the “Halal”
idea logic; and to investigate how individuals in facilitating organizations perceived the
costs and benefits of traceability systems to the Halal food processing industry.
2. Literature review
2.1 Business networks
The business network approach examines businesses as a network of interdependent
relationships. It is argued that no single business entity exists in isolation, instead it
maintains relationships with other network actors through resource sharing and
activity exchange, embedded in or connected to other relationships in the network
(Håkansson and Snehota, 1989). The “embeddedness” and “connectedness” of the
relationships cannot be disregarded when analysing any developments or changes in
those relationships (Håkansson and Snehota, 1995). For instance, the adoption and
implementation of traceability systems in the WA Halal food industry is an example of
how developments or changes in relationships may affect the innovation process, and
vice versa. Traceability system implementation, like other process changes, requires
various network actors to share and complement each other’s resources, in particular,
information (Easton, 1992). The information shared in traceability systems improves
the efficient use of shared resources throughout the network, while use of the system is
manifested through coordination activities (Håkansson, 1987; Håkansson et al., 2009;
Håkansson and Snehota, 1995).
In the business network approach, many actors are involved in the adoption of
innovations, such as Halal traceability systems, including suppliers, customers, regulators,
IOs and competitors. Every relationship in the network needs to be considered including
actors that are “external” to the innovation process itself. Therefore, this research focused
on the facilitating organizations external to the manufacturing process in the WA Halal
food industry in order to explore the developments and changes that occurred during the
innovation process.
2.1.1 Facilitating organizations as participants. The decision to adopt and implement a
traceability system is often influenced by the institutional context, namely those facilitating
organizations who are responsible for the system development policies (Ramesh, 1998).
Support from facilitating organizations often continues throughout process changes in
order to achieve successful implementation. Therefore, it is critical that the perspectives of
these network actors are captured as their direct or indirect interconnectedness can create
community pull effects (Hienerth and Lettl, 2011) and influence the adoption of Western
process changes (Aarikka-Stenroos et al., 2014). Hence, the present research Australia
proceeded with the assumption that facilitators influence the introduction of a new
phenomenon such as the Halal idea logic in the food industry and perceptions of
halal food
how the adoption and implementation of a traceability system might benefit the supply chain
Halal food processing industry.
The facilitating organizations that were the focus of this research played an 327
important role in the adoption and implementation of traceability systems within the
supply chain. Facilitating organizations were selected for this study as previous
research has paid little attention to their roles and perspectives. Given the critical role
that they play in the adoption and implementation of traceability systems the view of
facilitating organizations should not be underprivileged. Therefore, in advance of
examining the understanding of the halal idea logic among food manufacturing firms
in the Halal food network, it is important to examine the facilitating organization’s
understandings of this concept first (Aarikka-Stenroos et al., 2014). All actors in the
network will be impacted by participating in network process changes, even without
direct relationships to central organizations (Powell et al., 2005). Facilitators in our
research often had direct relationships with food manufacturers, farmers and food
retailers. However, in contrast to the spill-over effects as mentioned by Powell et al.
(2005), we argue that the facilitators may have “spill-in” effects with information
flowing into manufacturing organizations as cohesive networks and sub-networks
formed in the innovation process.
Figure 1.
Concept map from
leximancer
Connected concepts here referred to the hierarchical order of appearance of the Western
concepts where either directly or indirectly-connected concepts can be interpreted into Australia
emergent behaviour (relationship) (Smith and Humphreys, 2006). For example, results
indicate that the themes “food” and “Halal” were positioned in the centre of the map.
halal food
The proximity of these two themes suggest that whenever the interviewees talked supply chain
about “system”, “chain”, “abattoir”, and “time”, the concepts within these themes are
often closely connected to the theme “food” and “Halal”. 333
Food was ranked the highest (100 per cent), the second ranked theme was Halal (86
per cent), the third and fourth ranked themes were System (16 per cent) and Chain (16
per cent), the fifth ranked theme was Time (9 per cent) and the last ranked theme was
Abattoir (8 per cent) (Figure 2).
The percentages refer to the “connectivity” score indicating how important the themes
are relative to one another. Therefore, the theme Food was ranked highest indicating its
connectedness to the other themes in the concept map. Two themes, Food and Halal were
highly connected, recording above 86 per cent connectivity score. However, the percentage
dropped substantially for the third and subsequent themes. For example, the themes like
System and Chain recorded less than 20 per cent connectivity scores with other themes.
The following analysis of the interview data focused on the four largest themes.
Contextual similarity: Table II shows the prominent themes, concepts and the
concept meaning discussed during the 12 interviews.
Percentage
Abattoir 8
Time 9
Chain 16
System 16
Halal 86 Figure 2.
Food 100
Ranked-ordered
themes
0 10 20 30 40 50 60 70 80 90 100
Figure 3.
Tags positioning in
the concept map
themes – System and Chain suggesting that they placed more emphasis on these Western
two themes as compared to the other themes. Australia
This finding may be associated with the functions and the objectives of the two
organizations themselves, as their roles involve monitoring of the whole food industry
halal food
in WA. Given their objectives, those organizations were more interested in the supply chain
economic development in the food supply chain such as the implementation of
the traceability systems, and how food businesses used such systems to improve their 335
businesses. Food safety and food quality matters are at the forefront of government
policy (Hobbs, 2003) as outlined below:
We […] deal with all agriculture and food businesses right throughout the supply chain […]
our responsibility extends well beyond the farm gate, that responsibility is economic
development responsibility, not a health responsibility or regulations responsibility, it’s about
assisting business to be mmm better businesses. So that’s our purpose, as a as an organization
to support the success of businesses in Western Australia (M, GD2).
[…] the better businesses actually understand quality assurance system as being a good way
of doing business […]. There’s six ways of achieving you know higher rates of profit, and one
of them is loose less and loose less often and QA systems allow you to do that […] QA systems
are food profit generators […] (M, GD2).
The other two groups, Certifiers and Research Institutes, were positioned further
away from the first two groups but were closely positioned to the Halal theme.
The close proximity of these two tagged groups to the theme Halal indicated that the
two groups were more interested in Halal as compared to other themes in the concept
map. This could be linked to their roles as they work within the Halal food processing
industry.
Research Institutes interviewees were well-versed on Halal and related to it as both a
food preparation process and its importance towards the Islamic religion:
The word Halal mean suitable for consumption under Islamic Syariah Law (F, RI2).
I’ve got a reasonably detail understanding about to that point where I’m acutely aware of
under Islamic law or jurisdiction or structure in for example Malaysia there is completely
different interpretation of how Halal means to Saudi or in Emirates (M, RI2).
Within the Certifiers group, their duties and responsibilities are to ensure that food
products adhere to Halal food supply chain requirements. They would not want to be
held responsible for anything that could jeopardize the halal status of the food
products, and therefore, place strong emphasis on their work. The use of “I” and “my”
showed that Halal was very personal to this group and that they have internalized the
Halal idea logic individually:
I’m going to be answerable […] you know, that is on MY leg, what is made Halal, what XXX
has made Halal, we are all going to be answerable for that (M, C2).
For the remaining two groups, their understanding of Halal idea logic could be inferred
from the knowledge pathway analysis. The knowledge pathway analysis indicated the
contribution of a particular concept from the start and end of the path that the concept
traverses. The pathway does not necessarily represent how interviewees interpreted
those concepts, but indicates how the concepts are linked to one another in their
responses to the interviews. The pathway is presented in an associated contribution
score (e.g. Food: 0.38) where the score reflects “the contribution of that concept in
linking together the start and end of the pathway” (Letch, 2013, p. 446).
APJML The path from Government Department group goes to Food first (contribution ¼ 0.38),
27,2 then to Halal (contribution ¼ 0.62). This suggests that the interviewees in this group view
Halal in the sense that it is the processing of the food:
My understanding of Halal is the method for food processing. Procedures are suitable for
Halal consumption (M, GD1).
336 The knowledge pathway analysis for the Independent Food Advisory Body has a path
from the group to Business (contribution ¼ 0.18) and then Food (contribution ¼ 0.62)
followed by Halal (contribution ¼ 0.2). An interviewee from this group also referred to
Halal as a process:
Well, I supposed I have a very crude understanding of it and Halal to me is a food preparation
process […] that is acceptable under Islam rule (F, IFAB11).
Comparing the two groups, the findings show that within the Government Department
group, the contribution of Food to Halal is very high (0.62) suggesting a strong
association. However, in the Independent Food Advisory Body, the contribution from
Food to Halal is only 0.20, which is a relatively weaker relationship. The difference of
the contribution scores between the two groups suggests that the Government
Department always referred to Halal food when they talked about the concept Food,
whereas the Independent Food Advisory Body did not always refer to just Halal food
when the concept Food was mentioned. This could be linked to the membership of the
advisory body. Out of the 600 food business member, very few were actually involved
in Halal food businesses, limiting the advisory body’s interactions with Halal. The low
contribution figures in the knowledge pathway analysis from Food to Halal in the Food
Advisory Body could also be attributed to the fact that the focus of the organizations
interacting with the Food Advisory Body is more on the strategic management rather
than the products or services of the business itself (i.e. halal food).
The knowledge pathway analyses for the other two groups, Certifiers and Research
Institutes, both showed a direct traverse between the group to Halal (contribution ¼ 1.00),
indicating strong and stable relationships of the two groups to the Halal idea logic. Again,
these findings could be attributed to the fact that both groups were closely related to the
concept of Halal due to the nature of their duties and responsibilities in the industry.
Halal idea logic interpretations were also analyzed from the rank-ordered concept
list analysis. Halal was ranked at varied level in each group of interviewees. The Halal
idea logic was ranked at: number eight in the Certifiers’ group; number 16 in the
Research Institutes’ group; number 18 in the Government Departments’ group; and
number 22 in the Independent Food Advisory Body group. The findings suggest that
Halal was ranked differently given that different organizational goals or business
interests left a lot of room for varied information (Halinen et al., 2013) on how the
business participants view the Halal idea logic.
In general, all of the interviewees appear to have a basic understanding of the Halal
idea logic. All of them acknowledged that Halal is food that is suitable for consumption
for Muslims under the Islamic law. Most interviewees thought of Halal only as a
requirement in food consumption, but one interviewee from a Research Institute
pointed out that the Halal idea logic extends beyond consumable food, where it actually
begins from the act of obtaining the food itself:
Halal means what is acceptable for Muslims […]. This is what Halal is, and also what we can
do and what we cannot do, in terms of our actions. In terms of our actions, interactions with
other people, so all these combined, what is Halal and what is not Halal (M, RI4).
Halal idea logic reaches much further than the binding laws that must be observed by Western
Muslims, it reflects the act of worship to the Creator (Allah). For Muslims, Halal food is Australia
more than a product attribute (Wilson and Liu, 2010; Zakaria and Abdul-Talib, 2010).
It combines Islamic dietary laws and also the religious values of the manufacturing
halal food
organizations and the individuals in those organizations. Findings suggest that this supply chain
was the case for the Certifiers’ understanding as it is closely aligned to the theme
“Halal” as compared to the other three groups. 337
Following the abductive approach, these observations of the perceptions of halal
idea logic led the researchers to the second phase of the analysis to examine the
perceived costs and benefits of a traceability system to the Halal food processing
industry. The findings in Section 4.3 were analysed using Leximancer analysis and
content analysis.
4.3 Analyses of the perceived costs and benefits that a traceability system delivers to
the Halal food processing industry
The analyses on benefits of traceability systems were carried out from the concept
centrality and rank-ordered concept list analyses. The two themes – “Halal” and “System”
were not closely aligned as seen in the concept map (Figure 1). In terms of rank-ordered
concept list analysis in the different groups, the concept traceability under the theme
“System” was ranked highest in the Government Departments’ group suggesting that
traceability was an important tool to them. The finding suggests that interviewees from
the Government Departments were more focused on “System” because traceability
systems are more than just Halal. Such systems offer wider benefits including valued
information as a product attribute (Moe, 1998); liability protection for the organization
(Meuwissen et al., 2003) and efficiency in supply chain management (Guercini and
Runfola, 2009; Regattieri et al., 2007).
Furthermore, the action to adopt and use a traceability system was most often
“influenced by the institutional context, such as corporate strategies for traceability”
(Ramesh, 1998, p. 38). Government Departments have been actively promoting the
adoption of traceability systems and one department had sponsored staff to carry out
doctoral research benchmarking traceability systems:
We sponsored a PhD student at Curtin University to look into the uptake of Quality
Assurance (traceability system) in Western Australia by food businesses […] (M, GD2).
This strong urge for the adoption of a traceability system by the Government
Departments not only suggested that it is a tool for inter-organization control but it can
be used to gain market power (Guercini and Runfola, 2009; Alfaro and Rábade, 2009;
Hobbs, 2003). The following excerpts quote two of the interviewees who supported the
above as the benefits of implementing the traceability system:
I think the first instance is always compliance […] and you understand where the problem is
early […]. and you understand what you need to do to address that so yeah good businesses
understand that QA systems are good profit generators not just the compliance, you have to
you have to comply to this (M, GD2).
They’re not just they’re not just something to get you customers. They actually are a useful
tool (F, GD3).
With this strong emphasize on the importance of the traceability system, it can be
inferred that the system could be further exploited to increase profitability in the Halal
food context. Food businesses should take advantage of its mandatory requirement in
APJML their operations and use the system to provide other valuable benefits in terms of
27,2 marketing strategies, in particular branding and firm differentiation:
The traceability system can be used as a business development tool in telling a story […]
whether it’s Halal or organic or any other attributes (M, GD2).
It will work the same with any other products, in terms of they would have to be able to show
338 some manufacturers are one of manufacture Halal products […] (M, GD1).
Therefore, there is potential for a Halal food product traceability system to provide
transparency of information surrounding food processing (Meuwissen et al., 2003) and
increase consumers’ trust in the food production process over and above the Halal
credence attribute (Zailani et al., 2010).
The “traceability” concept was ranked very low in the Certifiers’ group (27/30). Out
of four certifiers, only one certifier claimed that it has a traceability system in place:
And then we have the sticker system, it’s the traceability. […] we can trace by the stickers.
Our condition is I think it’s number 6 or number 7, every carton in and out of the company
must be Halal-stickered. So if the company manufactured small goods like Bolognese or
something and they send it to the butcher shop, it must have a sticker on it. So when we go
inspect the shop, we will trace which company do they use (Male, C2).
Therefore, the Certifiers group may not be aware of what is meant by traceability systems.
The double sense-making process (Halinen et al., 2013) has allowed the researcher to
interpret the subjective meaning of experience expressed by the interviewees in that they
may have thought of it as a “software and hardware program”, and missed the point that
the traceability systems can refer to manual data management, which all of them
presently have in their operations. The following extract indicates that the traceability
system is present in a manual form:
We have to put that stamp on all documentation when we certify or not certify – when we
prepare the documentation to go to all the Islamic countries who purchases the product from
the abattoirs […]. if you look at the top, here is the RFP number, then look for your RFP
number. It should be stamped on the RFP number oh it’s a Hong Kong line, yeah, all right here
is Hong Kong, there you go. See Hong Kong. It says Hong Kong Air Freight Australia 1 of 43.
It should be 10 pages (M, C3).
The misalignment of interpreting what is a traceability system makes it more
challenging to fully utilize these systems across the business network. Though the
traceability system is a compulsory requirement, full functionality cannot be utilized if
it is unavailable throughout the whole supply chain, hence the need for all actors in the
supply chain to embrace the full potential functionality of a traceability system (Opara,
2002, 2003).
It is interesting to note that Interviewee GD2 pointed out that depending on the
distance of relationship power between the certifier and the manufacturer or between
the manufacturer and its suppliers; the need of having a proper system in place may
well be affected by the trust factor:
No, it has, again this is the trust factor, so whoever the player is in the chain, the pivot point
has to have enough assurity or assurance of the attributes of the product from each of those
suppliers, so they may have no QA system or traceability systems, but because they’re close
enough to the business, where they know that the attribute is entirely correct, then that’s
something that they they’ll trust and therefore take on responsibility as they use that
ingredients perhaps and take it through the chain that way. If their relationship would, the
business is a lot more distance, and less trustworthy then they will need some proof and Western
evidence, and that’s where the QA system comes in, so depends on that sort of relationships of
the clients through the channel (M, GD2).
Australia
halal food
Interviewee GD1 also mentioned that the government expects the certifier to be supply chain
independent of the manufacturer to ensure there is no coercive attempt by the
manufacturer to allow certification process taking place easily:
339
They’re all set by the Islamic groups, so we didn’t get involved in that to any ground or extend
other than to ensure that they are following the document and they’re doing what they say
they’re doing […] (M, GD1).
This finding may have implications for interdependence in business networks. The
interdependence between organizations may well constrain behaviours between those
organizations (Håkansson and Ford, 2002). As illustrated by Interviewee GD2, a
supplier’s position in the network may affect its relationship with the manufacturer.
A business relationship that was developed from their past business transactions
history and is ongoing, will not be affected even if the other party (the supplier) may or
may not have a traceability system in place. Given its current strong ties and position
in the network, the supplier would still be chosen as one of its supplier. This is due to
the relationships, rights and obligations that they have built through their past
interactions (Turnbull et al., 1996). Therefore, having a traceability system in place would
definitely strengthen one’s position in the network.
As a conclusion to this finding, Table III summarizes the perceived costs and
benefits that a traceability system delivers to the Halal food processing industry from
the facilitating organizations’ perspectives.
5. Managerial implications
In terms of managerial contribution, this paper provides an understanding of current
scenario of Halal food industry within WA that provides insights into: improving
existing understanding of the Halal idea logic not only to the facilitating actors, but to
all actors in the business network to ensure mutual understanding of the concept; and
how to align the true interpretation of what is meant by a traceability system across the
supply chain. These insights have important policy implications for government as the
findings suggest that there are misinterpretations and misalignment of the traceability
system constraining successful implementation.
In both issues above (i.e. interpretation of Halal and traceability), there appeared to
be a missing concept of meaning of the Halal and traceability elements between actors.
While the certifiers seemed to pay more attention to the Halal aspects of the products,
Costs Benefits
1. Misinterpretation of what constitutes a 1. Tool for inter-organizational control
traceability system
2. Misalignment of true interpretation of the 2. Tool for market power
traceability systems
3. Inclusion of supply chain wide participation in 3. Tool for branding and firm differentiation Table III.
the implementation process strategies Perceived costs and
4. Power and relationship interdependencies in the 4. Provide transparency of information that can benefits of a
network increase consumers’ trust traceability system
APJML the Government Departments focused more on production processes (i.e. traceability).
27,2 Findings confirm that industry standards, developed by Government Departments,
focused mainly on business needs of the food supply chain, rather than the ethical
norms or religious requirements of consumers. The generic industrial standards are
devoid of ethical and religious values, therefore direct transfer of technology such as
the traceability system would not necessarily lead to success as it needs to be adapted
340 to the Halal requirements and values. The standard for traceability implementation is
covered by the ISO Standard for Quality Management System – ISO 9001:2008. This
standard aims to enhance customer satisfaction through the effective application of the
quality management system. This includes processes for continual improvement of
the system and the assurance of conformity to customer, statutory, and regulatory
requirements. Though the standard is a process-based quality management system
consisting of management responsibilities, resource management, product realization
and measurement, analysis and improvement elements, it lacks the elements of capturing
the ethical norms or religious customs in the manufacturing process. Therefore, it is
essential for the facilitating organizations responsible for developing policies to
understand the Halal idea logic thoroughly before adopting the traceability system into
the Halal food industry context.
Although the Islamic slaughtering process is accepted by the regulatory authorities
in Australia, the Halal food supply chain remains unregulated, especially for domestic
markets. For export markets, exporters can refer to Australian Government
Department of Agriculture Meat Notice Number: 2013/08 where it provides updates
on the guidelines for the preparation, identification storage and certification for export
of halal red meat and red meat products. However, Halal standards, certifications
and monitoring procedures for domestic markets are established by personal efforts
of the local, IOs themselves. These organizations have few resources to devote to
understanding the scientific aspects of the modern food processing. Local IOs may
not understand traceability systems, therefore affecting how they make sense of the
system itself.
Therefore, it is essential that certifiers and Government Departments work closely
to ensure shared understandings of Halal as an ethical norm or religious requirement
and the traceability system as an innovative process of ensuring food safety and
quality. Achieving a shared understanding would also help these organizations gain
trustworthiness in the accreditation claims made by producers.
In order to address these issues, it is recommended that training and knowledge
sharing seminars are organized to educate key employees in halal food networks on the
true interpretation of Halal. In WA, the Government also need to address the absence of
political will in the regulation of halal food supply chain given that Halal consumers are
increasing rapidly in the domestic market. As more people from around the world are
migrating to WA, the demand for Halal food products are increasing. With no proper
regulations for Halal certification in the domestic market, most food products do not
bear any Halal identification and therefore fail to attract consumers who would prefer
halal. Internationally, a special task force attached to the Codex Alimentarius should
also be established to formulate international guidelines in the handling and processing
of Halal food. In terms of traceability knowledge, the responsible Government
Departments should take actions in studying how can the traceability systems be
adapted to suit the halal food industry and then continue advocating its importance to
all actors in the halal food network. The findings provide information about the current
level of understanding on the importance of traceability systems as perceived by the
facilitating actors. Knowing these different understandings of traceability, the Western
Government Departments can design education tailored to different groups of actors in Australia
the network rather than presenting general information to cater to all actors.
halal food
6. Conclusion supply chain
To conclude, this paper explored the Halal food industry within WA, looking at the
emergence of traceability systems and how individuals in the facilitating organizations 341
perceive the Halal idea logic and relate to the possibilities of exploiting traceability
systems in the industry. The findings suggest that facilitating organizations generally
understand the Halal idea logic in food processing and that to some extent differs
according to their roles and objectives/goals of their organizations. The findings also
suggest that traceability systems can further be exploited to benefit the Halal food
industry.
Joint activity between firms creates a network effect, where the value created is
greater than that which the firms alone can create (Munksgaard and Medlin, 2014).
Therefore, if all facilitating organizations have consistent schema logic and collaborate
and cooperate with each other, there is a greater chance that the advocacies of these
two areas of Halal and traceability will generate a greater impact on the business
network, rather than if it was advocated individually by each facilitating organization.
It is also important to highlight that this paper only includes facilitating
organizations, leaving out the perspectives of other actors in the Halal food industry.
This is one of the limitations of this study, which will provide a valuable agenda for
future research. In addition, it is stressed here that the present findings are only
restricted to sub-set of the Halal food supply network in Western Australia, which is
just the facilitating organizations. Regardless of its lack of generalizability to a wider
coverage, and its limitation, this study, on the other hand, could be the cornerstone of
the studies of business relationships in the context of Halal food industry in WA that
has not yet been explored in the literature. Therefore, further studies covering this area
are strongly recommended, for example extending this study to involve the other
actors in the Halal food ecology (individuals who are directly and indirectly involved in
the Halal food manufacturing operations organizations from: purchasing, production,
marketing, sales and other relevant departments in the organization; the suppliers; the
organization’s suppliers’; customers; as well as the competitors in the Halal food
industry).
Note
1. Haram is what is forbidden and punishable according to Islamic law. Haram includes any
prohibited pattern of behaviour, speech, dress, conduct and manner under Islamic Law
(Al Jallad, 2008). According to the Quran, haram foods include dead animals, and blood, and the
flesh of swine, and that which is slaughtered as a sacrifice for other than Allah (or has been
slaughtered for idols, on which Allah’s name has not been mentioned while slaughtering).
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