THE HALAL PURCHASING STRATEGIES ON MANUFACTURING PERFORMANCE

Abstract

Abstract Purpose – The purpose of this study is to introduce a new framework to optimize the design of halal purchasing strategies towards the manufacturing industries performance.   Design/methodology/approach – The study utilizes large group of executives and managers in the purchasing and supply chain department from manufacturing firm in Malaysia. Findings – The finding shows that the purchasing strategies (effective negotiation, collaborative relationship and interaction, effective cost management, supply base management, and strategic sourcing management) and halal policy (responsibility, scope, assurance, and method of assurance) determine the manufacturing purchasing performance. More empirical research is needed to further refine the Halal Purchasing Strategies for different product–market combinations. Second, conduct qualitative research to various industries.   Research limitations/implications – This research shows that halal purchasing strategies is different from conventional purchasing method, which requires a halal policy and specific design parameters for effective negotiation, collaborative relationship and interaction, effective cost management, supply base management, and strategic sourcing management.   Originality/value – The halal purchasing strategies can be an important instrument to design and manage halal purchasing in extending halal integrity from source to point of consumer purchase. It could be implemented as a practice mediating the impact on manufacturing performance in order to remain competitive in the challenging and competitive business environment.