The Factors Influencing Value Creation of Halal Logistics Conceptual Framework Development

Abstract

Halal logistics has an important role in global Muslim consumer’s way of life. Muslim countries follow Shariah law strictly. Thus, Halal logistics activities must segregate facilities for halal and nonhalal products. In addition, the world Muslim population has risen steadily. It influences production and export volumes from Thailand to the global trade of halal products increasing. Logistics service providers (LSPs) have been seeking an opportunity for creating a business competitive advantage into new situations. They can create and deliver better benefits to customers than their competitors and simultaneously earn higher profits than the average of other LSPs. A variety and flexibility of logistics activities come together to make services more desirable to the target market. Although many studies have been carried out on the influence of value creation, a part of halal logistics research in Thailand is rare. For the reasons mentioned, the objective of this paper to describe the influencing value creation in halal logistics activities from a literature review to be a conceptual framework development. Establishing the issues concerning value creation of halal logistics causality are best explained by the following resource sharing, innovation solutions, and risk management.